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Home My WebLink About1998-05-06 PACKET 09.C.F2�QUEST OF CITY COUNCIL ACTI(7f� GOUPlCIL AGEh1DA MEEI'ING IT�t�A # �ATE 5/6/98 � PREP,4RED BY: Community Develapment lGirrr �indquisfi OF�IGItdATlP1G DEPARTMEtdT STAFF AUTFiOR ..��>�..�a+..tr4�.�>.�...�.k.�«��.:��«.m��.�<��« COUNCII. ACTION REQUEST: • Adopt a resolution approving the final plat for West Draw Meadows • Approve the Development Agreement for West Drav✓ Meadows • Authorize the City Engineer to prepare the plans and specifications for West Draw Meadows r . �. : � r . s ADVISORY COMMISSION ACTiON � . . ■ ' . � ' : i• I� " � �� ,� , * i� •' � t i' '� r, ' REVIEWED ❑ ❑ ❑ ❑ ❑ ❑ ❑ • � DEP!!ED ❑ ❑ ❑ ❑ ❑ ❑ ❑ '�' li APPROVED ❑ ❑ ❑ ❑ ❑ ❑ ❑ �� • ' _ � � s• �. _� _ ..; /� ' i • ! .' � �'� � f i• i' � �' � ' � `, 1! • ' ♦ . ,�.. � �..,� _ -.� �... �' ' •s - '• - � ••• .:��• • _ +�.. , � „, �,, � , _ �fL�� _____ �_��`"f - �ity .4dministrator Date .�a��<�.�A��.��.��aRtr«��««A.>.xd��.��tr� � ' * ' � 1 ,i� � s .'. � , � : � '.. ' 'r. * .��e4 .�. * � � F' M�:^� MEMORANDUM T0: Honorabie Mayor & City Council Members Ryan Schroeder, City Administrator FROM: Kim Lindquist, Community Development Director DATE: May 1, 1998 SUBJECT: West Draw Meadows — Final Plat and Development Agreement Centex Homes has filed for final plat approval for the development of a residentiai subdivision known as WEST DRAW MEADOWS. This plat consists of 40 new lots for unattached single family homes. The developer hopes to grade the site in May or June and is requesting that the public improvements be constructed this year. This item was initially scheduied for the April 15, 1998 Council meeting. However, the applicant had requested some changes to the Development Agreement that prompted staff to pull the item. Some revisions to the agreement have been made although Centex has requested several additional modifications which are defined in their April 29, 1998 letter. Staff will review these items briefly in this memo. BACKGROUND The 205-1ot preliminary plat approval was granted by Resolution No. 98-08 as a part of Case #97-38. This final plat is the first phase of that development. DISCUSSION Final Plat The Planning staff reviewed the proposed final piat for West Draw Meadows and found it substantially in conformance with the approved preliminary plat. The conditions stipulated in the preliminary plat has been incorporated in the resolution approving the final piat. The City Engineer has requested some modifications to the plat to better accommodate the proposed grading plan. The newly submitted finai plat appears to address these concems, however, a condition of approval requires that all drainage and utility easements recommended by the City" consulting engineer shall be shown on the final plat. The developer is dedicating parkland and open space to the City in recognition of the park dedication requirements for the single-family portion of West Draw Meadows. The Council should note the proposed roadway names associated with the plat. The applicant is proposing road names that complement the natural environment of the area. Fo�ctail Court, Windflower Trail, Cattail Lane, Nightingale Court, and Skylark Court are aBl names proposed for the project. The applicant has maintained the Granada Avenue name where the new road wiil align with the existing Granada Ave. Staff is unclear if the Counci{ would like to diverge from ttie existing street Mayor, City Council & Schroeder January 27, 1998 Page 2 naming system and therefore requested the applicant to propose something different. If the Council would prefer the streets be named consistent with the existing system, the approval should be made contingent upon renaming the proposed streets. Development Agreement In general, the proposed development agreement is consistent with the standard City format used for other developers. The foilowing briefly responds to the April 29, 1998 Centex letter: 4.3 and 4.4 Payment of street lighting utility charges and sealcoating were recently enacted by the City Council. Payment of the fees was flagged in the preliminary plat and rezoning approvals for the West Draw Meadows project. 5.7 and 8.1 Centex would like reasonable notice prior to the City drawing down on the posted letter of credit. As typically written the City can draw on the erosion control letter of credit without notice. Modification of this language does not compromise the City's ability to ensure perFormance. 8.1 Centex is requesting that the City accept other financial guarantees, other than only a letter of credit. Apparently a letter of credit ties up more of a developers cash reserves as compared to a performance bond. A copy of a memo from the previous City Attomey, Jac{c Clinton is enclosed. This memo was forwarded to the Council in 1996, and the Councii reaffirmed their interest in only accepting letter of credit, or cash, as a surety for developer performance. The Council minutes are also included. 7.4 Centex has requested that the City not limit the number of building permits available because the trunk utilities are not in place. Centex has expressed concern that the timing for installation of the sanitary sewer line may preclude residential building within their project this year. If the City does not believe the trunk utilities will be instalied this fall, Centex has indicated they wili delay filing of the plat and site grading until next spring. This would also delay dedication of the water tower site to the City. At this time it is stiil possible to complete both the trunk utility work and the development site infrastructure to facilitate some fall construction. Timing is dependent upon when easements for the sanitary sewer can be obtained. Nevertheless, staff cannot support inGusion of the proposed language into the development agreement as it binds the Council. Dan Blake of Centex has indicated he would like to discuss several of these items with the Council at the meeting. The staff position has already been reviewed with Centex. RECOMMENDATION Staff recommends that the City Council adopt a resolution approving the finai plat known as West Draw Meadows and approve the Development Agreement for the West Draw Meadows. The Gouncil should also adopt the resolution authorizing the City Engineer to prepare plans and specifications for the West Draw Meadows plat. RESOLUTION NO. 98-X7� RESOLUTION APPROVING THE FINAL PLAT KNOWN AS WEST DRAW MEADOWS WF�REAS, Centex Homes has filed a final plat application for the purpose of developing a residential subdivision known as West Draw Meadows. This plat consists of 40 lots for unattached single family homes located on property legally described as: The South half of the Southeast Quarter of Section 6, Township 27, Range 21, except the North 20 acres thereo� according to the Govemment Survey thereof and situated in Washington County, Minnesota, except the following pazcels: Ali that part of the Southwest quarter of the Southeast quarter of Section 6, Township 27, Kange 21 described as follows: Beginning at a point on the South line of said quarter section 675 feet East from the Southwest corner of the above Southwest Quarter of the Southeast Quarter; thence East on said South line 160 feet; thence North at right angles 270 feet; thence West aY right angles 160 feet; thence South at right angles 270 feet to the point of beginning. 2. The North 20 rods of the Fast 16 rods of the South three-quarters of the South half of the Southeast quarter of Section 6, Township 27 North, Range 21 West. The South 10 rods of the South 20 rods of the North 40 rods of the East 16 rods of the South three- quarters of the South half of the Southeast Quar[er of Section 6, Township 27 North, Range 21 West. 4. The North 10 rods of the South 20 rods of the North 40 rods of the East 16 rods of the South three- quazters of the South haif of the Southeast Quarter of Section 6, Township 27 North, Range 21 West. The North half of the Southeast Quarter and the North 20 acres of the South half of the Southeast quarter of Section 6, Township 27, Range 21, according to the Government Survey thereof and situated in Washington County, Minnesota, except the following parcels: The East 264.36 feet of the 5outheast quarter of Section 6, Township 27, Range 21, City of Cottage Grove, Washington County, Minnesota, which 6es North of the South line of the North 20 acres of the South half of the said Southeast quarter. 2. The West 33730 feet of the East 601.66 feet of the Southeast Quarter of Section 6, Township 27, Range Resolution No. 98-XXX Page 2 21, City of Cottage Grove, Washington County, IvTinnesota, which lies North of the South line of the North 20 acres of the South half of said Southeast Quarter. The North half of the Northeast quarter of Section 7, Township 27, Range 21, e�ccept those parts thereof described as follows: 1. That part thereof platted as Howazd's Addition. 2. That part thereof described as follows: Beginning at the intersection of the East line of said Section 7 and South line of Washington County E-fiIkghway Right of Way Plat No. 30; thence South 00 degrees 31 minutes 44 seconds East, along the Fast line of said Section 7, a distance of 50 feet; thence Northwesterly to a point on the South line of said Plat No. 30, distant 50 fcet South 88 degrees 18 rerinutes 44 seconds West from the point of beginning; thence North 88 degrees 18 minutes 44 seconds East along the South line of said Plat No. 30, a distance of 50 feet to the point of beginning. 3. The Fzst 440 feet of the West 1,133 feet of the North 645 feet of the South 963 feet of the Northwest Quarter of the Northeast Quarter of Section 7, Township 27, Range 21, together with that part of the East 30S feet of the West 1,220 feet of said Northwest Quarter o£ the Northeast Quarter, lying North of the South 963 feet of said Northwest Quarter of the Northeast Quarter. 4. The South 963 feet of the East 440 feet of the West 1,133 f�t, except the East 440 feet of the West 1,133 feet of the North 640 f�t of the South 963 feet of the Northwest quarter of the Northeast quarter of Section 7, Township 27, Range 21, according to the Govemment Survey thereof and situated in Washington County, Ivfinnesota. WFiEREAS, the Plam�ing Commission held a public hearing on November 24, 1997 and approved the request by Centex Homes for preliminary plat approval for the residential subdivision known as West Draw Meadows, subject to certain conditions; and WHEREAS, the City Council subsequently accepted the Planning Commission's recommendation and approved the West Draw Meadows prelimiijary plat (Res. No. 98-08) on 7anuary 21, 1998. NOW, THEREFORE, BE TI' RESOLVED, that the City Council for the City of Cottage Grove, Washington County, Mim�esota hereby approves the final plat Irnown as West Draw Meadows as requested by Centex Homes. Said approval is subject to the following conditions: 1. The developer shall abide by the 17 conditions stipulated in Resolution No. 98-08, approving the preliminary plat Irnown as Wesi Draw Meadows. 2. The developer shall enter into a subdivision agreement with the City of Cottage Grove for the installation of and payment for all public improvements in the subdivisioq pursuant to Section 28-18 of the City's Subdivision Ordinance. 3. The Cit}�s consulting engineer is authorized to prepaze a preliminary feasibility report for purposes of estimating the costs of all public improvements for this project. Resolution No. 98-XXX Page 3 4. The City Attomey is authorized to prepaze a subdivision agreement for approval by the City Council. 5. All drainage and utility easements as recommended by the Cit}�s wnsulting engineer shall be shown on the final plat. 6. All public right-of-ways and easements shall be dedicated to the City for public purposes. 7. The dimensions of each lot shall be verified on the final plat and a list containing the square footage for each lot shall be provided to the City. 8. The developer shall disclose to homebuyers of the surrounding vacant property land uses. 9. The final plat shall be recorded with the Washington County Recorder's Office prior to the City awarding a bid(s) to constmcC public streets and utilities. 10. T'he development of this project shall comply with the grading and erosion control plans as approved by the City Engineer. 11. All emergency overflow swales must be identified on the Grading and Erosion Control Plan. 12. The subdivider shall fumish the City with a reproducible copy and four (4) prints of the recorded plat. 13. Approval of the final plat is valid for two years after City Council action. The Gity Council may extend the period by agreement with the subdivider, subject to all applicable performance conditions and requirements; or the Council may require submission of a new application. 14. Erosion controi shai be performed in accordance with the recommended practices of the "M'innesota Constiuction Site Erosion and Sediment Conuol Planning Handbook" and the conditions stipulated in Section 23-36, Erosion Contro( During Const�uction of the City's Subdivision Ordinance. Passed this 6"' day ofMay1998. John D. Denzer, Mayor Attest: Cazon M. Stransky, City Clerk F:\GROUPS�PLANNING\ 1998UtESOLC7CLV'P W DM. DOC RESOLUTION NO. 98-XXX RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS FOR WEST DRAW MEADOWS WHEREAS, pursuant to a resolution passed by the council on the 6` day of May, 1998, the city engineer was authorized to prepare plans and specifications for the improvements of West Draw Meadows Utility and Street Improvement project; NOW THEREFORE BE IT RESOLVED, BY THE CITY COUNCIL OF C077AGE GROVE, COUNTY OF WASHINGTON, STATE OF MINNESOTA; 1. Such improvements are necessary, cost effective, and feasibie as detailed in the feasibility report. 2. Such improvements are hereby ordered as proposed in the council resolution adopted the 6"' day of May, 1998. 3. The engineering firm of Bonestroo, Rosene, Anderlik, & Associates is hereby designated as the engineer for this improvement. The engineer shail prepare pians and specifications for the making of such improvement. Passed this 6"' day of May, 1998. John D. Denzer, Mayor Attest: Caron M. 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I I � i �@ i N `> � � -"--"""-� �--"--- �..� f � m rr • ' ;� �� s � � �� A; r; r:. > x �� n�� $g � �° � � (j �, pi �$ � � � �� e I�f 004 04i9P;�98 THU 08:05 FA% CENTEX HOMES Minnesota Division April 29, 1998 Ms. Kim Lindquist Community Developroent Direcxor City of Cottage Grove 7516 80 Stceet South Cottnge Grove, MN 55016 sy f� � ass.asst ,`, r-�, �-��, c; � �' � C ' ` � � -._ _ _ - � � � � � � � � ''': _ _-------'''�� Re: West Draw Meadows — Developers Agteement Dear Kim: � �� 1240o Whitewntar orlve Sulte t20 Mlnnetonks, MN 66343 Phone:9t2-B36-]833 F4x: 812-836-]B39 APR 3 0 19 I have to foliowing comments regarding the draft Development Agreement that was fa�ted to our office by Sohn McCool on Aprif 27. The reference numbers refer to thc agreement section numbers. 4.3 .. 5.7 E�I S.1 7.4 Centex will a�ee to pay tlie proposed street light utility cost only under protest as this is a bene�t to flie City and its residents. We expect that the homeowners will be exempt from the street tight utility fee during the first three years. We would agree to paying for sealcoating only uuder protest as this is a City maintenance item that has beeu histor'rcally (and will continue in Yhe FuNre) paid for by the genera( tax payers. It would also be necessary that the funds collected be specifically allocated to the sealcoating of the streets in our plat and not used for current CiTy exQenditures for street or other work. Please deleYe the entire last sentence and replace it with "Any cost for said such corrective action shall be paid for by the DEVELOPER." As I stated befoxe, Centex can not agtee to the City drawing on the finantial gunrantee wiYhout notice. Proper notice and the reqnired guarantee are addressed in 8.1 pazagraph 4: delete "Except as provided in pazagraph 5.7" lu sub (d) change 8.2 to 5.7 and add "and fails to pay CTTY invoices fot corrective action within tlurty days of the invoice date. The ageement should provide an altemative method of financial guaranlee. The requirement to guarantee for the PeNtion items places an unnecess2ry financial burden on the developer if a letter of credit is the only acceptable form. If the CITY is somehow concemed with the quick accessibiliry of the funds, the guarentee items shouid be divided into categories wiYh d'afferent atlowabie guarantees. A bond will provide the City with adequate security in the event of non-payment of an assessment or failure to complete some other requ'ued improvement. A tetter of credif could be provided for items such as streat sweepittg and erosion contYOl. {add section) "The CiTY wilt not restrict the issuance of building permits andlor occuQancy because of a lack of Vunk sewer and water facilities. The CITY acknowledges that it is in contto] of the necessary trunk facilities and is committed to provide them to the Og%3�•;�98 TFIU 08:05 FAX site. The CITY will be responsible for any temporary measures necessary to accommodate building occupancy prior to completion of thc trank facilities." 1Q.1 Blue nnd Gold Company's address is Bumsville, MN SS337 Please calt me to discuss these items or make the requested changes and forward to us for review. Sinccrely, C$NTEX IiOMES � tQ 002 Dtiuiel A. Blake Land Development Manager [Reserved for recording data] DEVELOPMENT AGREEMENT FOR WEST DRAW MEADOWS (PHASE I) This Agreement is made and entered into on the 6th day of May, 1998, by and between Centex Homes and Blue and Gold Company referred to as "DEVELOPER", and the City of Cottage Grove, a municipal corporation, situated in the County of Washington, State of Minnesota, hereinafter referred to as the "CITY". R�I-IEREAS, the DEVELOPER is the owner and developer of a subdivision known as West Draw Meadows (Phase I) consisting of 40 lots and four outlots situated in the City of Cottage Grove, County of Washington, State of Minnesota, of which aze described in Exhibit "A", which is attached hereto and made a part hereof by reference; and WHEREAS, Chapter 23 of the City Code of the City of Cottage Grove, requires DEVELOPER to make certain improvements in the subdivision, and the parties hereto aze desirous of entering into an agreement with respect to such improvements, a list of which improvements is set forth, together with the estimated cost thereof, in E�ibit "B" attached hereto and made a part hereof by reference, hereinafter referred to as the °Improvements". NOW, THEREFORE, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: I. DEFII�IITIONS. 11 Terms. The following terms shail have the meanings as set forth helow. 1.2 C�. "City" means the City of Cottage Grove, a Minnesota municipai corporation. 13 Develoner. "Developer" means Centex Homes — Minnesota Division and Blue and Gold Company. II. DEVELOPER W.ARRANTIES. 21 Warrantv of Title. The DEVELOPER represents and warrants that it owns fee title to the property which is the subject of this subdivision, free and cleaz of any mortgages, liens, and other encumbrances, except: a mortgage dated December 10, 1996, filed January 9, 1997 as Document No._917199, executed by Blue and Gold Company, a Minnesota Corporation, as mortgagor, to Peter R. Thompson and Virginia E. Thompson, as mortgagees, to secure the original principal amount of $587,161.20 as assigned to Samuel H. Hertogs, Herbert P. Koch, trustee of the Herbert P. Koch Trust under Agreement dated November 12, 1992, and Fred Burstein IRA, collectively, as assignee, by Assignment filed January 9, 1997 as DocumenC No. 917200. 2.2 Cleaz Title to the CITY. Prior to the dedication, transfer, or conveyance of any real property or interest therein to the CITY for future phases of development, the DEVELOPER shaii deliver to the CITY evidence in the form of a title opinion or a title insurance policy evidencing good title in the DEVELOPER. The condition of the title of any real property or interest therein to be dedicated, transferred or conveyed to the CITY as provided for herein shall vest good and mazketable title in the CITY, free and cleaz of any mortgages, liens, encumbrances, taaces or assessments. `a III. PLAT APPROVAL. 3.1 Plat Name/Recordine of Plat. Subject to the terms and conditions of this Development Agreement, the recitals above, and a11 other applicable ordinances of the City of Cottage Grove, including the zoning and subdivision ordinances, the preliminary and final plat resolutions, and the CITY's Development Policy the CITY hereby approves the recording of the plat known as"West Draw Meadows." DEVELOPER shall record the plat prior to the CITY awarding bids for the Improvements which are listed as "Petition Items" in Exhibit "B". In the event that the plat is not recorded prior to the awazd of the bids, the CITY shall delay the award of the bid until the DEVELOPER records the plat, or until the DEVELOPER transfers to the CITY the right-of-way and easements where the Improvements aze to be installed. 3.2 Easements. DEVELOPER shall grant all easements required by the CITY on the final plat or DEVELOPER shail provide the easements in otherwise recordable form, without cost to the CITY. IV. CITY IMI'ROVEMENTS. 4.1 CITY Improvements. The DEVELOPER has petitioned the CITY to construct and install Improvements iisted as "Petition Items" in Exhibit "B". The CITY sha11 construct the Improvemenis in accordance with its regulaz methods of making public nnprovements. The estnnated costs in E�ibit "B" "Petition Items" include engineering, legal, administrative and finance and bonding costs. The CITY shall assess the costs for the Improvements, including engineering, legal, administrative and finance and bonding costs against the lots located witlun the subdivision in accordance with Minnesota Statutes, Chapter 429 and Chapter 444. 3 4.1.1 The amount of the assessment shall be computed by taking the total costs of the Improvements, including engineering, legal, administrative and finance and bonding costs less any deposits or payments made by the DEVELOPER, according to the terms of this Agreement. 4.1.2 The Improvements assessed pursuant to Minnesota Statutes, Chapter 429 shall be assessed with a pay back over a period of tl�ree (3) years. 4.2 Waiver a) The DEVELOPER hereby waives the requirement of hearings and notice of any hearings necessary for installation of said Improvements, or Improvements installed at the request of the DEVELOPER as provided herein; the DEVELOPER fur[her waives objection to any and all defects in the proceedings for the ordering of the Improvements, the letting of the contracts for the Improvements and the assessment of the cost of said Improvements. b) DEVELOPER further waives any objection to the assessments for said Improvements levied by the CITY pursuant to Minnesota Statutes, Chapter 429 or Chapter 444, specifically including the right to appeal the levy of assessments for the Improvements �e-�3i�, and further including change orders necessary for the completion of the Improvements, if such objection is not made in writing and delivered to CITY between the time of the opening of the bids for the installaiion of said Improvements and grior ta the CITY Council approval or award thereof, or within Thirty (30) days of the opening of the bids, whichever shall occur first. If the DEVELOPER's objection is received, the CITY Council shall have the option of reletting the bids, continuing with the Improvements or deleting the Improvements from the contract. 4.3 Street Lighting. The DEVELOPER agrees to provide a public street lighting system planned in accordance with the applicable CITY ordinance, pursuant to the "Petition Items". The street light utility cost which amounts to $30.20 per lot per yeaz for a three-yeaz period shall be 0 assessed equally to the forty (40) lots in the subdivision. The total amount is $3,624.00 and equates to $90.60 per lot. 4.4 Street Sealcoatine. The DEVELOPER agrees to pay the cost of the first sealcoating application of all public streets in the subdivision. The cost of sealcoating is based on the rate of $0.65 per squaze yazd multiplied by the total square yazds of roadway (15,601 square yazds). The sealcoating cost, which amounts to a total of $10,140.65 is included in the preliminary cost estimate for street improvements, shall be assessed equally to the forty (40} lots in the subdivision. V.DEVELOPERIMPROVEMENTS. 5.1 CITY Conformance. All work and improvements required by this Agreement to be performed by the DEVELOPER shall be built and constructed by the DEVELOPER in accordance with the plans and specifications approved by the CITY and the CITY Council, and all ordinances and preliminary and final plat resolutions of the CITY or any amendments thereto and CITY Development Policy. 5.2 Gradin�and Draina eF Pians. The DEVELOPER shall provide the CITY with grading and drainage pians to be approved by the CITY. The grading and drainage plans shall include lot and house elevations, drainage swales which shall be sodded in the same manner as boulevazds, storm sewer, catch basins, erosion control structures and pending areas to conform with the overall CITY stozm sewer plan, and said plans shall be approved by the CITY. Except for zndividual house sites, property with slopes of Fifteen percent (15%) or greater shall not be rough graded. The plan sha11 contain holddown elevations that will allow for the spreading of excavation material in order to achieve compliance with the grading plan. The grading of the site shall be performed by the DEVELOPER and completed in conformance with the approved grading and drainage plan. Grading shall be coordinated with the CITY to coincide with the schedule for the installation of CITY Improvements. The DEVELOPER Gj shall construct drainage facilities adequate to serve the subdivision in accordance with the approved plans. The DEVELOPER agrees to grant to the CITY, without cost to CITY, all easements reasonably necessary for the preservation and maintenance of said drainage system, for drainage basins, for utility service and for utility looping. Prior to issuance of a Certificate of Occupancy for any home constructed on a lot within the subdivision, a Certificate of Compliance by a surveyor sha11 be submitted reflecting conformance with the approved grading plan, and that the lot pin corners aze installed. 5.3 Public Streets. The DEVELOPER shall grade, in accordance with the grading plan provided to and approved by the CITY, all public streets, boulevards, driveways and other public lands, if any, and other lands shown in the approved grading plan. The DEVELOPER shall perform the grading prior to the awazd of the CITY's contract for the Improvements. If the DEVELOPER does not perform the work required by this pazagraph, the CITY shall complete all work required of the DEVELOPER under the CITY contract. The DEVELOPER shall be financially responsible for payments for this eatra work, which shall be assessed as provided above. The CITY shall have the right to demand an increased financial guarantee in accordance with pazagraph 8.1 hereof, if applicable. 5.4 Public Street Maintenance. DEVELOPER shall be responsible for a11 maintenance, upkeep and repair (including snow plowing and grading) of all public streets contained within the subdivision until the base bituminous, curb and gutter and tapered bituminous azound the rim of a11 manholes within the public roadway are completed and accepted by the CITY, and DEVELOPER hereby agrees to indemnify and hold the CITY harmless from any and all claims for damages of - any nature whatsoever arising out of the establishment of this plat and the streets within the plat until those streets have been accepted by the CITY. 3 5.5 Street Si¢ns. The DEVELOPER shall be financially responsible for the cost of street identification signs. Street signs shail be in conformance with the names as indicated on the CITY street naming system. The actual nuxnber and location of signs will be determined and installed by ihe CITY. 5.6 Restoration. The DEVELOPER sha11 cleaz any soil, earth or debris from the street Improvements within the subdivision, which is placed thereon as a result of construction on the land within the addition by the DEVELOPER or its agents, successors or assigns. The DEVELOPER sha11 restore any gravel base for the street Improvements if said gravel base is contaminated by mi�cing construction or excavation debris or earth in the gravei base and repair any damage to bihuninous surfacing and/or concrete curbing of the street Improvements resulting from the authorized or unauthorized use of construction equipment. Completion of the work described in this pazagraph shall be completed within fifteen (15) days of notice by the CITY to the DEVELOPER that repair or restoration is required pursuant to this pazagraph. 5.'7 Erosion Control. Prior to the commencement of grading, the DEVELOPER shall obtain and pay for a General Storm Water Permit for Construction Activity from the Minnesota Pollution Conh�ol Agency and a grading permit from the City of Cottage Grove. The DEVELOPER, its contractors and subcontractors, must perform all grading in accordance wiYh the said Permits. Erosion control shall comply with the terms of the Permits, and the Minnesota Pollution Control Agency and Environmental Protection Agency Guidelines for erosion and sediment control plans. After the site is rough graded, the DEVELOPER sha11 provide for erosion control, and provide necessary erosion control devices that aze reasonably required by the CITY. The parties recognize that tnne is of the essence in controlling erosion. If the DEVELOPER does not provide erosion control, the CITY may, after a twenty-four-hour notice take such action as it deems appropriate to control erosion. fl1 5.8 Sod. The DEVELOPER shall pay for and install cultured sod in from the street curb to the reaz wall of the dwelling and major drainage swales as determined by the CITY in the entire subdivision. Gorner lots shall be sodded to the sideyazd setback. For a lot where the Certificate of Occupancy is issued between August 1 and May 1 of the following yeaz, compietion of the work described in this pazagraph shall be completed by the DEVELOPER by the I Sth of June; for a lot where the Certificate of Occupancy is issued between May 1 and July 31, completion of the work described in this pazagraph shall be completed by the DEVELOPER by the 15th day of September. Notwithstanding anything to the contrary in pazagraph 5.8, it is agreed that, in lieu of the DEVELOPER installing sod on the lot, the DEVELOPER may provide to the lot owners certificates which entitle the lot owners to have the sod delivered to the property at the owner's request for installation by the lot owner. 5.9 Lot Trees. DEVELOPER agrees to pay the CITY to install one (1) 1 3/4" caliper boulevard tree per lot, except for corner lots which shall have one boulevazd tree on each street side of the property, in accordance with CITY's ordinance specifications. For a lot where the Certificate of Occupancy is issued between August 1 and May i of the following yeaz, compietion of the work described in this pazagraph shall be completed by the City by the 15th of June; for a lot where the Certificate of Occupancy is issued between May 1 and July 31, completion of the work described in this paragraph shall be completed by the City by the 1 Sth day of September. 5.10 Driveway Aprons. The DEVELOPER sha11 pay for and construct hard-surface driveway surfaces from the street curb to the front of the garage or front yazd setback line for each lot in accordance with the CITY approved standards and ordinance requirements. For a lot where the Certificate of Occupancy is issued between August 1 and May 1 of the following yeaz, complefion of the work described in this pazagraph shall be completed by the DEVELOPER by the 15th of June; for a lot where the Certificate of Occupancy is issued between May 1 and July 31, 0 completion of the work described in this pazagraph shall be completed by DEVELOPER by the 15th day of September. 5.11 Prohibition on Transfer of Responsibilitv. The DEVELOPER shall not transfer or assign its responsibility to perform the requirements of pazagraphs 5.6, 5.7, 5.9 and 5.10 to any lot purchaser or builder of home on any lot within the subdivision. Notwithstanding anything to the contrary in pazagraph 5.11, it is agreed that the DEVELOPER may transfer its responsibility to install sod in accordance with paragraph 5.8, provided that the DEVELOPER shall remain liable for the performance thereof. VI. PARK DEDICATION. 6.1 Pazk Dedication. The DEVELOPER agrees to convey Outiot B to the CITY in satisfaction of the pazk dedication requirements for the first phase of development. Outlot B comprises of 6.44 acres. In consideration of the DEVELOPER dedicating Outlot B, which is in excess of the general requirements for pazk land dedication for this first phase, the CITY agrees to waive the recreation facilities chazge of $150.00 per lot for the West Draw Meadows (Phase I). 6.2 In consideration of future development, the DEVELOPER shall dedicate all lands proposed for parks and open space to the CITY as approved by Planned Unit Development (Ordinance No. 652 dated 7anuary 21, 1998) and the Site Plan and Preliminary Plat approval (Resolurion No. 98-08 dated January 21, 1998) in recognidon of the pazk dedication requirements for the single-family phases of the West Draw Meadows properly, and the Darreil Gonyea property immediately south of the West Draw Meadows properiy. The Developer will grade a ballfield and a pazking azeas in the public pazk and open space azea north of 70�' Street and also a ballfield and pazking azea in the public pazk and open space azea south of 70�' Street, and construct the proposed sidewalk and participate in fifry percent of the cost to construct the off-road trails in lieu of payment E for recreation fees for the West Draw Meadows single-family development and the multi-family development included in the subject properiy. The off-road trails shown in E�ibit C will be paved eight (8) feet in width as various phases develop. 63 The DEVELOPER shall place a minnnum of four inches (4") of topsoil on the playing field azea of Oudot B, and a minimum of four inches (4") of topsoil shall be placed in the other azeas to be seeded. The topsoil shall be of a qualiry of at least equal to the soil quality prior to grading and development. VII.OTHER REQUIREMENTS. 7.1 Occupancy and Access. No occupancy of any building in said plat shall occur untii water and sanitary sewer Improvements aze available for use and Class V gravel base for streets is in piace. Furthermore, the DEVELOPER shall maintain reasonable access to any occupied house or houses within said addition, including necessary street maintenance such as grading and graveling and snow removal prior to permanent street surfacing and acceptance of said streets by the CITY. 7.2 Other A encies. It is fiarther agreed by the CITY that if the DEVELOPER requires any evidence of this Agreement for the purpose of escrow requirements of the Federai Housing Administration, Veterans Administration, or any other United States Governmental Agency, the CITY will furnish all required guarantees to the effect that the listed improvements will be or have been made, and that the particulaz lot will not be assessed therefore, or if assessed, that all assessments have been paid if payment therefore has previousiy been made in the amount of One Hundred Twenty Five percent (125%) of the estimated assessment for said lot. It is acknowledged that this Agreement does not appiy to sewer availability chazges imposed by the Metropolitan Waste Control Commission, and the CITY will not be required to fumish any guarantees with respectthereto. 10 7.3 Weed/Grass Maintenance. DEVELOPER shall not allow or permit within the subdivision any weeds, grass, brush or other rank vegetation to a height greater than 8 inches, or permit any accumulation of dead weeds, grass or brush. In the event the DEVELOPER fails to comply with this provision, the Director of Public Works may give the DEVELOPER notice to cut or remove material in violation of this pazagraph. All costs of cutting or removing incurred by the CITY shall be paid by the DEVELOPER, or assessed against the Properry. VIIL FINANCIAL GUARANTEE REQUIREMENTS. 8.1 Financial Guarantee Requirements. The DEVELOPER shall provide to the CITY cash and/or a non-expiring or automatically renewable irrevocable Letter(s) of Credit in a total amount of Four hundred ninety-eight thousand seven hundred forty-seven and 96/100 Dollazs ($498,�47.96) to assure the completion and payment of the following items: Perition Items (40% of esrimate) Street Grading (150% of estimate) $302,860.96 $ 25,741.50 Offsite improvements (boulevazd trees, $ 76,663.50 yazd sod, street signs, utility sleeve const. and swale sod)(150% of estimate) Landscaping (I50 % of estimate Erosion Control (I50% of estimate) Street Sweeping (150% of estimate) Grading Compliance and Lot Pin Corner Certificate �C��IJ $ 10,000.00 $ 41,610.00 $ 1,872.00 $ 40,000.00 $498,747.96 The fmancial guazantees shall provide a guarantee of the payment of the "Petition Items" and completion of "Escrow Items" set forth in Exhibit "B". 11 The letter of credit must provide that it wili be automatically extended at its expiration date on an annual basis unless sixty (60) days prior to the expiration date the Director of Community Development is no6fied by certified maii that said letter of credit will not be extended and therefore will expire. The irrevocable Letter(s) of Credit shall be subject to the approval of the CITY Attorney, prior to acceptance by the CITY. It is mutually aclrnowledged that the protection/cleaning existing utilities, erosion control, sh�eet sweeping, street signs, landscaping and private infrashucture constitute One Hundred Fifty pereent (150%) of the estimated costs, "Petition Items" aze Forty percent (40%) of the estimated costs, and the grading compliance and lot pin corner certificate constitute One Hundred percent (100%) of the estimated costs. Except as provided in pazagraph 5.7, the CITY may draw upon the Letter(s) of Credit with ten (10) business day's notice to the DEVELOPER, if any one or more of the following conditions exist: a) Nonpayment of the sgeei�r�-assessments or installments thereof. b) The DEVELOPER fails to pay CITY invoices for boulevazd trees within thirty (30) days of the invoice date. c) The DEVELOPER fails to complete the "Escrow Items" by the deadlines specified in this Agreement. d) DEVELOPER fails to provide appropriate erosion control pursuant to i .. .: . � e) Notwithstanding the time requirements contained in this Agreement for completion of any improvement by the DEVELOPER, if any of the required "Escrow Items" are not completed at least Thirty (30) days prior to the expiration of the Letter(s) of 12 Credit, the CITY is authorized to draw upon the remaining balance of the Letter(s) of Credit. After assessments for the public nnprovements have been paid in full on Sixty percent (60%) of the lots within the subdivision, the irrevocable Letter(s) of Credit for the "Petition Items° may be reduced as assessments, or installments thereof, are paid on the remaining lots. The reduction shall be made two times a year on February 15 and September 15 upon the request of the DEVELOPER. With approval of the CITY, a Letter(s) of Credit (except for amounts posted to guarantee payment of assessments) may be reduced from time to time as work required by this Agreement is completed, or CITY invoices are paid for work required to be done by the CITY, provided that the Letter(s) of Credit shall not be reduced in an amount less than Ten percent (10%) of the financial guarantees for offsite improvements and erosion control. The irrevocable Letter(s) of Credit shall be reduced upon certification by the CITY that the items have been satisfactorily completed and CITY invoices aze paid. IX. DEFAULT AND REMEDIES. 9.1 Default bv DEVELOPER. In the event of default by the DEVELOPER as to any of the work to be performed hereunder by itsetf, or its heirs, successors, or assigns, the CITY is hereby granted the right to declare the entire sum set forth in this Agreement due and payable in full, with a11 real estate taxes due and payable in the year following the breach of any provision of this Agreement, and the CITY may immediately bring legal action against the DEVELOPER to collect the sums covered by this Agreement and/or draw upon the financial guarantees posted in conformance with paragraph 8.1. The DEVELOPER shall be responsible for the payment of the sum set forth in this Agreement, including any assessments levied. 13 9.2 Terms of Breach. Breach of any term of this Agreement by the DEVELOPER or failure to comply with the CITY ordinances, resolutions or the CITY Development Policy shall be grounds for denial of building or occupancy permits for buildings within the subdivision until such breach is corrected by the DEVELOPER. 93 Validi . If any portion, section, subsection, sentence, clause, pazagraph or phrase of this Agreement is for any reason held to be invalid, such decision sha11 not affect the validity of remaining portions of the Agreement. 9.4 Rights Cumulative. No remedy conferred in this Agreement is intended to be exclusive and each shall be cumulative and shall be in addition to every other remedy. The election of any one or more remedies shail not constitute a waiver of any other remedy. 9.5 Attorne '�. DEVELOPER agrees to pay the CITY its reasonably necessary attorney's fees and costs, in the event that any suit or action is commenced to enforce the terms of this Development Agreement or in the event that action is brought upon the Letter(s) of Credit furnished by DEVELOPER as provided for herein. 9.6Indemnification. The DEVELOPER agrees to indemnify and hold the CITY harmless against any and all liability, loss, damages, costs and expenses, including reasonable attorney's fees, which the CITY may hereafter sustain, incur or be required to pay by reason of any negligent act or omission or intentional act of the DEVELOPER, its agents, officers, employees, contractors or subcontractors, which is incurred in connection with or is of any nature whatsoever arising out of the establishment of the plat, or the installation of the Improvements or work which the DEVELOPER is required to perform under the terms of this Agreement. 14 9.7 Payment of Citv Costs. Upon execution of this contract, the DEVELOPER shall pay to the CITY a deposit in the amount of $2,500.00, to be used by the CITY to pay its out-of-pocket costs in preparing this contract. The out-of-pocket costs to be paid shall include, but not be limited to, attorneys' fees, engineering fees, and other technical or professional assistance, including the work of the CITY staff and employees. The $2,500.00 shall be credited to the final costs that are assessed to the project. X. MISCELLANEOUS. 10.1 Notices. All notices, certificates or other communications required to be given to the CITY and DEVELOPER hereunder shall be sufficiently given and shall be deemed given when delivered, or when deposited in the United States mail, first class, with postage fully prepaid and addressed as follows: If to the CITY: City of Cottage Grove Director of Communiry Development 7516 - 80th Street South Cottage Grove, MN 55016 If to the DEVELOPER: Centex Homes — Minnesota Division C/O Scott J. Richer 12400 Whitewater Drive Suite 120 Minnetonka, MN 55343 Blue and Gold Company C/O Darrel Gonyea 211 River Ridge Circle South Suite 106 Burnsville, MN 55337 The CITY and the DEVELOPER, by notice given hereunder, may designate different addresses to which subsequent no6ce, certificate or other communications will be sent. 15 10.2 No Third Partv Beneficiar�. This Agreement and any financial guazantees required pursuant to its terms aze not intended for the benefit of any third party. 10.3 Amendments, Chan�es and Modifications. This Agreement may be amended or any of its terms modified only by written amendment authorized and executed by the CITY and the 1��1+l��Li � : 10.4 Apnlicable Law. This Agreement sha11 be governed by and construed in accordance with the laws of the State of Minnesota. 10.5 Successors and Assiens. This Agreement shall be binding upon and extend to the heirs, representatives, assigns and successors of the parties. IN WIT'NESS WHEREOF, the parties have hereunto set their hands and seals the day and yeaz first written above. CENTEX HOMES, a Nevada general partnership CITY OF COTTAGE GROVE By: Scott J. Richter Its : Minnesota Division President BLUE AND GOLD COMPANY, a Ivlinnesota Corporation By: Darrel E. Gonyea Its: President By: Its: Jokui D. Denzer, Mayor Attest: By Its: Cazon M. Stransky, City Clerk 16 STATE OF MINNESOTA ) ) ss COUNTY OF WASHINGTON ) On the _ day of ACKNOWLEDGMENT BY CITY 1998, before me a notary public within and for said County, personally appeared John D. Denzer and Caron M. Stransky to me personally known, each by me duly sworn, each did say that they are respectively the Mayor and Clerk of the City of Cottage Grove, a municipality named in the foregoing instrument and that the seal affixed to said instrument was signed and sealed on behalf of said municipality by authority of its City Council and said Mayor and Clerk acknowledged said instrument to be the free act and deed of said municipality. Notary Public STATE OF MINNESOTA COUNTY OF ) ) ss ) DEVELOPER ACKNOWLEDGMENT On this _ day of , 1998, before me, a notary public within and for said County, personally appeared Scott J. Richter, Minnesota Division President of Centex Real Estate Corporation, a Nevada corporation, managing general partner of Centex Homes, a Nevada generai partnership, on behalf of said corporation, to me personally known, each by me duly sworn, did say that he is respectively the Minnesota Division President of Centex Real Estate Corporation, a Nevada corporation, managing generai partner of Centex Homes, a Nevada general partnership; named herein and he did acknowledge and execute said instrument to be his free act and deed on behalf of said Corporation. Notary Public 17 STATE OF MINNESOTA COUNTY OF On this s day of ) ) ss ) DEVELOPER ACKNOWLEDGMENT 1998, before me, a notary public within and for said County, personally appeared Darrel E. Gonyea, President of Blue and Goid Company, a Minnesota Corporation, to me personally known, each by me duly sworn, did say that he is respectively the President of Blue and Gold Company, a Minnesota Corporation; named herein and he did acknowledge and execute said instrvment to be his free act and deed on behaif of said Corporation. Notary Public THIS INSTRUMENT DRAFTED BY: Community Development Department City of Cottage Grove 7516 — 80`" Street South Cottage Grove, MN 55016 18 EXHIBIT A (Legal Description) West Draw Meadows The South half of the Southeast Quarter of Section 6, Township 27, Range 21, except the North 20 acres thereof, according to the Government Survey thereof and situated in Washington Counry, Minnesota, except the following pazcels: 1. All that part of the Southwest quarter of the Southeast quarter of Section 6, Township 21, Range 21 described as follows: Beginning at a point on the South line of said quarter section 675 feet East from the Southwest corner of the above Southwest Quarter of the Southeast Quarter; thence East on said South line 160 feet; thence North at right angles 270 feet; thence West at right angles 160 feet; thence South at right angles 270 feet to the point of beginning. 2. The North 20 rods of the East 16 rods of the South three-quarters of the South half of the Southeast quarter of Section 6, Township 27 North, Range 21 West. 3. The South 10 rods of the South 20 rods of the North 40 rods of the East 16 rods of the South three-quarters of the South half of the Southeast Quarter of Section 6, Township 27 North, Range 21 West. 4. The North 10 rods of the South 20 rods of the North 40 rods of the East lb rods of the South three-quarters of the South half of the Southeast Quarter of Section 6, Township 27 North, Range 21 West. The North half of the Southeast Quarter and the North 20 acres of the South half of the Southeast quarter of Section 6, Township 27, Range 21, according to the Government Survey thereof and situated in Washington County, Minnesota, except the following parcels: 1. The East 26436 feet of the Southeast quarter of Secrion 6, Township 27, Range 21, City of Cottage Grove, Washington County, Minnesota, which lies North of the South line of the North 20 acres of the South half of the said Southeast quarter. 2. The West 337.30 feet of the East 601.66 feet of the Southeast Quarter of Section 6, Township 27, Range 21, City of Cottage Grove, Washington County, Minnesota, which lies North of the South line of the North 24 acres of the South half of said Southeast Quarter. The North half of the Northeast quarter of Section 7, Township 27, Range 21, except those parts thereof described as follows: i. That part thereof platted as Howard's Addition. 2. That part thereof described as foilows: Beginning at the intersection of the East line of said Section 7 and South line of Washington County Highway Right of Way Plat No. 30; thence South 00 degrees 31 minutes 44 seconds East, along the East line of said Section 7, a distance of 50 feet; thence Northwesterly to a point on the South line of said Plat No. 30, distant 50 feet South 88 degrees 18 minutes 44 seconds West from the point of beginning; thence North 88 degrees 18 minutes 44 seconds East along the South line of said Piat No. 30, a distance of 50 feet to the point of beginning. 3. The East 440 feet of the West 1,133 feet of the North 645 feet of the South 963 feet of the Northwest Quarter of the Northeast Quarter of Section 7, Township 27, Range 21, together with that part of the East 305 feet of the West 1,220 feet of said Northwest Quarter of the Northeast Quarter, lying North of the South 963 feet of said Northwest Quarter of the Northeast Quarter. 4. The South 963 feet of the East 440 feet of the West 1,133 feet, except the East 440 feet of the West 1,133 feet of the North 640 feet of the South 963 feet of the Northwest quarter of the Northeast quarter of Section 7, Township 27, Range 21, according to the Govemment Survey thereof and situated in Washington County, Minnesota. According to plat thereof on file and of record in the office of the County Recorder, Washington County, Minnesota D _: : WEST DRAW MEADOWS (Phase � f� x I Y Y 11T�� ► f(11� �l u 7.'� PHASE 1 phase 2 Phase 3 Phase 4N Phase 4S Total Sanitary Sewer $189,117.00 $43,079 $65,684 $159,452 $119,089 $5�6,421 WaterMain 79,293.00 42,127 48,232 140,179 85,586 395,417 House Services 30,596.00 19,110 18,346 66,503 22,168 156,703 Stotm Sewer 39,653.00 40,227 38,322 12Q202 75,430 313,834 Streeu " 173,563.00 99,654 146,256 409,536 180,356 1,009,365 Trails (50/50) 0 N/A N/A N/A N/A N/A Street Lights 27,710.00 14,469 19,656 66,339 24,502 152,676 Street Light Utility 3,624.00 N/A N/A N/A N/A N/A Area Chazges 194,288.40 N/A N/A N/A N/A N/A Sidewalks 19,328.00 4,723 0 40,319 0 64,370 Total Cost $75'7,152.40 $263,389 $336,496 $1,002,530 $507,131 $2,866,698.40 Total CosULot $18,928.81 $10,536 $14,021 $11,523 $17,487 $13,018 N/A Not Avaitable * Included is the cost of sealcoating the roads for the first time. This is concunent with the Pavement Management Task Force's recommendation. 100% PETITION FOR IMPROVEMENTS AND WAIVER OF HEARING, N.OTICE AND APPEAL RIGFITS The undersigned, being the owner of all the real properiy in Washington County, Minnesota consisting of the plat of West Draw Meadows (Phase I), the legal description of said plat is contained in Exhibit "A" which is attached hereto and made a part hereof by reference, hereby petitions the City Council of the City of Cottage Grove, Minnesota to undertake without a public hearing under Minn. Chapter 429 or Chapter 444, the foilowing public improvements along and adjacent to the sh�eets, and public ways as aze reflected on the plat: PETITION ITEMS d Sanitary Sewer Water Main House Services Storm Sewer Streets Street Lights Street Light Utility Charge Sidewalks Sanitary Sewer Area Chazge Waterworks Area Charge Storm Sewer Area Chazge Total $189,117.00 $79,293.00 $30,576.00 $39,653.00 $173,563.00 $27,710.00 $3,624.00 $19,328.00 $26,611.83 $49,77131 $117,905.26 $757,152.40 And to assess the entire cost thereof aganist our property abutting said improvements based on benefits received without regard to cash valuation. Waiver. The Owner hereby waives the requirement of hearings and notice of any hearings for the installation of said improvements, or improvements instaited at the request of the Owner. Owner furdier waives objection to any and all defects in the proceedings for the ordering of the improvements, the letting of the contcacts for the improvements and the assessrnent of the cost of said improvements. Baseri on the City's assessment policy and procedures in effect at the time of this Waiver, Owner fi.irther waives any objection to the assessment for the said improvements levied by the City pursuant to Minnesota Statutes, Chapter 429 or Chapter 444, specifically including the right to appeal the levy of assessment for the improvements, and further including change orders necessary for the completion of the anprovements. CENTEX HOMES, A NEVADA GENERAL PARTNERSHIP : Its : Scott J. Richter Minnesota Division President STATE OF MINNESOTA K�IfJ��'l�l�l On this _ day of ) ) ss ) BLUE AND GOLD COMPANY, A MINNESOTA CORPORATION : Darrel E. Gonyea Its: President 1�7��11�J��]��y,a►L�]iJ11��Ze7�l�� 1998, before me, a notary public within and for said County, personally appeared Scott J. Richter, Minnesota Division President of Centex Real Estate Corporation, a Nevada corporation, managing generai partner of Centex Homes, a Nevada general partnership, on behalf of said corporation, to me personaliy known, each by me duly sworn, did say that he is respectively the Minnesota Division President of Centex Real Estate Corporation, a Nevada corporation, managing general partner of Centex Homes, a Nevada general partnership; named herein and he did acknowledge and execute said inshvment to be his free act and deed on behalf of said Corporation. Notary Public STATE OF MINNESOTA COUNTY OF On this _ day of ). ) ss ) DEVELOPER ACKNOWLEDGMENT 1998, before me, a notary public within and for said County, personally appeazed Darrei E. Gonyea, President of Blue and Gold Company, a Minnesota Corporation, to me personally known, each by me duly swom, did say that he is respectively the President of Blue and Gold Company, a Minnesota Corporation; named herein and he did acknowledge and execute said inshument to be his free act and deed on behalf of said Corporation. Notary Public I hereby certify that I have examined the above Petition and appropriate real estate records and fmd that said Petition is in proper form and is signed by all of the Owners of the property abutting said improvements. IN WITNESS WHEREOF, I have hereunto set my hand as the Clerk and the seal of the City of Cottage Grove this day of 1998. CITY OP COTTAGfi GROVE By Caron M. Stransky Its: Citv Clerk SEAL EXHIBIT A (Legal Description) West Draw Meadows The South half of the Southeast Quarter of Section 6, Township 2'7, Range 21, except the North 20 acres thereof, according to the Government Survey thereof and situated in Washington County, Minnesota, except the following pazcels: All that part of the Southwest quarter of the Southeast quarter of Section 6, Township 27, Range 21 described as follows: Beginning at a point on the South line of said quarter section 675 feet East from the Southwest corner of the above Southwest Quarter of the Southeast Quarter, thence East on said South line 160 feet; thence North at right angles 270 feet; thence West at right angles 160 feet; thence South at right angles 270 feet to the point of beginning. 2. The North 20 rods of the East 16 rods of the South three-quarters of the South half of the Southeast quarter of Section 6, Township 27 North, Range 21 West. 3. The South 10 rods of the South 20 rods of the North 40 rods of the East 16 rods of the South three-quarters of the South half of the Southeast Quarter of Section 6, Township 27 North, Range 21 West. 4. The North 10 rods of the South 20 rods of the North 40 rods of the East 16 rods of the South three-quarters of the South half of the Southeast Quarter of Section 6, Township 27 North, Range 21 West. The North half of the Southeast Quarter and the North 20 acres of the South half of the Southeast quarter of Section 6, Township 27, Range 21, according to the Govemment Survey thereof and situated in Washington County, Minnesota, except the following parcels: 1. The East 26436 feet of the Southeast quarter oF Section 6, Township 27, Range 21, City of Cottage Grove, Washington County, Minnesota, which lies North of the South line of the North 20 acres of the South half of the said Southeast quarter. 2. The West 33730 feet of the East 601.66 feet of the Southeast Quarter of Section 6, Township 27, Range 21, City of Cottage Cnove, Washington County, Minnesota, which lies North of the South line of the North 20 acres of the South half of said Southeast Quarter. The North half of the Northeast quarter of Section 7, Township 27, Range 21, except those parts thereof described as follows: 1. That part thereof platted as Howazd's Addition. E:\GROUPS\PLANNI7�G\98PROJEC'CSV'&W WDM.doc 2. That part thereof described as follows: Beginning at the intersection of the East line of said Section 7 and South line of Washington County Highway Right of Way Plat No. 30; thence South 00 degrees 31 minutes 44 seconds East, along the Fast line of said Section 7, a distance of 50 feet; thence Northwesterly to a point on the South line of said Plat No. 30, distant 50 feet South 88 degrees 18 minutes 44 seconds West from the point of beginning; thence Nor[h 88 degrees 18 minutes 44 seconds East along the South line of said Plat No. 30, a distance of 50 feet to the point of beginning. 3. The East 440 feet of the West 1,133 feet of the North 645 feet of the South 963 feet of the Northwest Quarter of the Northeast Quarter of Section 7, Township 27, Range 21, together with that part of the East 305 feet of the West 1,220 feet of said Northwest Quarter of the Northeast Quarter, lying North of the South 963 feet of said Northwest Quarter of the Northeast Quarter. 4. The South 963 feet of the East 440 feet of the West 1,133 feet, except the East 440 feet of the West 1,133 feet of the North 640 feet of the South 963 feet of the Northwest quarter of the Northeast quarter of Section 7, Township 27, Range 21, according to the Government Survey thereof and situated in Washington County, Minnesota. According to plat thereof on file and of record in the office of the County Recorder, Washington County, Minnesota. F:IGROUPS�PLANNING\98PROJECiSW&W WDM.doc . EXHIBIT B WEST DRAW MEADOWS (Phase I) Petition Items PH[�SE 1 Phase 2 Phase 3 Phase 4N Phase 4S Total Sanitary Sewer $189,117.00 $43,079 $65,684 $159,452 $119,089 $576,421 WaterMain 79,293.00 42,127 48,232 140,179 85,586 395,417 HouseServices 30,576.00 19,110 18,346 66,503 22,168 156,703 Storm Sewer 39,653.00 40,227 38,322 120,202 75,430 313,834 Streets * 173,563.00 99,654 146,256 409,536 180,356 t,009,365 Trails {50/50) 0 N/A N/A N/A N/A N/A Street Lights 27,710.00 14,469 19,656 66,339 24,502 152,676 StreetLightUtility 3,624.00 N/A N/A N/A N/A N/A Area Charges 194,288.40 N/A N/A N/A N/A N/A Sidewalks 19,328.00 4,723 0 40,319 0 64,3�0 Total Cost $757,152.40 $263,389 $336,496 $1,002,530 $507,131 $2,866,698.40 Total Cost/I,ot $18,928.81 $10,536 $14,021 $11,523 $17,487 $13,018 N!A Not Available * Included is the cost of sealcoating the roads for the first time. This is concurrent with the Pavement Management Task Force's recommendation. F:\GROUPS�PLANN[NU798PROJECTS�P&W WDM.doc CLINTON & TAYLOR, P.A ATTORNEYS AT LAW u 8750 - 90TfI STREET SOUTH SUIT'E 20t CO'1'fAGE GROVE, MINNESOTA 55016-3301 7ack W. Clinton " F. 7oseph Taylor Fiic C. Thoie ** MEMO T0: THE HONORABLE MAYOR AND CITY COUNCIL KEVIN D. FRAZELL, CITY �DMINISTRATOR KIM LINDQUIST, DIRE�OR OF COMMUIvrITY DEVELOPMEIv'T 70HN MCCOO� � IOR PLANNER FROM: JACK W. CLIN ON (�c.il�'' RE: USE OF ALTE NATIVE INAl�`CIAL GUARANTEES DATE: JULY 9. 1996 �'�--- $2C��C ound Legal Assistant Cindy L. Johnson The City Council received a request from Don Jensen of Kenco Construction to use bonds rather than letters of credit for subdivision financial guarantees. The bonds wouid be used to provide the City with the necessary assurances concerning development projects. Kim Lindquist, John McCool, Diane Archer and I met to review the options. This memo is a summary of the issues and a recommendation. Discussion Purpose of Financial Guarantees. The City has requiced financial goarantees in conjunction with subdivision agreements. The items that are covered have changed as development requirernents have been modified, but Che purpose of Che requirements is to provrde the City with reasonable assurances that the work to be performed by the developer is done conforming to the plans, and the guarantee minimizes the financial risk to the Ciry in the event the developer does not perfo�n. Bonds ConYrasYed with LetYers of Credit. A bond is a document submitted by a surety, typicaliy an insurance company. The bond specifies the terms upon which it wili either pay the City money or perfocm the work the developer has not done. A premium is paid by the developer to the surety for the bond while it remains in effect. Bonds are issued after the surety assesses the developer's net worth, and their track record in the industry. Credit woRhy developers are able to obtain bonds, although a pledge of the developer's assets can be required by the surety, butitis not necessarily required. The bond is not liquid like the letter of credit, and the bond company may have control over the perfoanance of work the developer fails to do. ��Qd!'�!;'•, JUL I 0 (9� � � "I il ��I/ii Phone: (612) 459-664<t Faz: (612) 459-4719 ' Certified as a Rea( Pmperty Law Speciatiet by the Mimksota State Bar Associetion •a Also admittcd to prectice in W isconsin CLINTON & TAYLOR, P.A. ATTORNEYS AT LAW Re: Use of Alternative Financial Guarantees July 9, 1996 Page Two Letters of credit are issued by a bank. The bank agrees to pay the City the amount necessary to cure the default of a developer. The City can obtain the funds by issuing a Certificate of Noncompliance and a Draft on the letter of credit. Since a letter of credit is liquid, the bank must be able �o pay the City the amount of funds up to the total� amount specified in Che letter of credit. Therefore, a bank will require securicy, sornetimes in liquid form, before agreeing to issue a letter of credit. 'I'he bank can also secure the letter of credit with a mortgage on the development land if [here is sufficient equity. The security usually required by a bank will restrict the use of the assets pledged and is, from the developer's view, the major difference compared to a bond where the surety may not require assets to be pledged. There is a premium paid on a bond while iC remains in effect. A bank will usualiy charge 1 point (1%) per quarter for the amount of the letter of credit in effect. Until the early 1980's, the City typically obtained bonds, but when the interest rates rose, a number of developers defauited. The bond companies were paying claims on subdivisions. Due to the risk involved, bonds were, for practical pucposes, unavailable. Letters of credit became the alternative to use. Mechanics of Bonds/Letter of Credit. Where there is a default, performance on a bond compared to a letter of credit varies. Where a bond is in effect, notice has to be given to the surety. The surety detec whether its principal (the devetoper) agrees that there is a defaulC. Where there is a dispute, the surety can assert the same defenses available to its principal, and it is likely that the surety will make payment or tender performance only where the developer's default is cleady established, othercvise it will refuse payment until the matter is resolved, either by agreement through the parties or se[fled in litigation. Where a letter of credit posted, funds can be obtained by presenting a Certificate and Draw and fuods are paid to the Ciry within a few days. The bank does not have the abiliry to assert defenses, or to inquire into any disputes that might exist between the City and the developer. The City can then use the funds to perform the work. If the City falsely certifies that the work is not done, or uses the money for purposes not specified in the letter of credit, the City could be liabie for return of the money. Therefore, in general a letter of credit will provide the City with a more prompt means of resolving a default. The Ciry has not had Co draw on financial guaranCees frequently. Overall, the developers have performed the work. However, in those cases where the financiai guarantee is needed, the ability to draw has enabled the City to perform the work promptly. Financial Guarantee Coverage. Guarantees are required foc grading, erosion control, boulevard sod, trees, yard sod, driveways, street improvements, survey monument placement, and certificate by survey of lot grading compliance. CLINTON & TAYLOR, P.A. ATTORNEYS AT LAW Re: Use of Alternative Fin2ncial Guarantees July 9, 1996 Page Three More recently, the City added a requirement to cover 40% of the cost of public improvements. The requirement was added when a development did not sell 40% of the lots, and the lots went tax delinquent and the City's assessments were potentially at risk. A need for prompt access to funds is for the 40% of the public improvements, off-sites and erosion control. That group of items is usualiy 80% to 90% of the total financial guarantee. There could be a difference of opinion concerning the extent of erosion control in place, and whether there was a problem of not, and the letter of cresit provides the city with immediate access to funds ig ther is a problem the warranCS immediaCe attention. In addiCion, Che extent offsite improvemenCS that may not be done can vary significantly. If there were some small items to be perfoimed, if a developer disputed the issue, it would become a question of whether it is cost effective to pursue the bond if it is disputed. In discussing the coverage of various items, the current requirement covers the installation of a driveway. The dciveway (compared to the apron area over the public right-of-way) was added in 1993. The addition was made due to one home constnicting the driveway apron, but not completing the rest of the driveway surfacing. Kim Lindquist is recommending that the requirement be amended to delete the financial guarantee for the driveway. The code will be amended to require a concrete or asphalt driveway. Contract Costs The financial guarantees in the subdivision agreement are based on estimates from the engineer. The agreement specifies that the estimaCes include engineering, legal, bonding and administrative costs. Periodicaily when a very favorable bid is received, developers have asked for the cost estimates for the financial guarantees to be revised based on the actual bid amounts. Tf that is done, an amended agreement wili be required. The Finance Department can handie the change concerning the pending assessment rolL If the cost variance, after adding the engineering, legal, bonding and administrative charges to the contract price, would warrant it, the City can do an amended agreement and thereby reduce the required financial guarantees. Recommendation The recommended changes from Planning, Finance and our office which are submitted for the Council's consideration are as fotlows: 1) Retain the current code requirements requiring cash, escrow or letter of credit for the remaining financial guarantees where required under the development agreements. CLINTON & TAYLOR, P.A. ATTORNEYS AT LAW Re: Use of Alternative Financial Guarantees 7uly 9, 1996 Page Four 2) Amend Section 23-19 (b)(11�f to delete the requirement that a financial guarantee cover the driveway. The code will be amended to require construction of a drive way. Requested Action This repoR will be on the July 10, 1996 council meeting. The Council can discuss the report and act on the recommendations set forth above. � JWC:cIj Q20-1105 cc: Kenco ConsCrucCion Company, Inc., Attn: Mr. Don Jensen REGULAR MEETING - JULY 10, 1996 COITAGE GROVE CITY COUNCIL PAGE 4 B. Consider Zoninq Alternatives -"B" Districts (Old Cottage Grove Fire Station Referencing the report induded in the agenda, Community Development Director Kim Lindquist highlighted two opti�ns available to Council. To rezone the property to B-3 or amend the ordinance to allow auto repair uses in the B-2 District as a conditionai use. lindquist stated that as a part of the conditional use permit review process, an applicant wouid be required to submit a plan to ensure that the site complies with all site plan standards (ie. parking, landscaping, screening). Relative to the Old Cottage Grove Fire Station property, Lindquist stated that at present the site has no weil and has shared water service with the neighboring property, Gerlach's. A permanent agreement to continue this arrangement would be required so that water continues to be available to the site. In addition, the current on- site septic system is not in compliance with Minnesota Pollution Control Agency standards, and a new system would have be instalied on the site. Council discussed the option to amend the ordinance to permit auto repair uses in the B-2 district and the suggested list of conditions specialiy related to an auto repair use. Council directed Staff to inform the potential buyers of the property regarding the: (1) conditional use permit and site plan review standards and requirements; (2) lack of a weli on the site; and (3) repiacement of the existing on-site septic system. Because of the potential cost implications, this would give the bidders an opportunity to either revise or withdraw their offer. MOTION BY RAUN, SECONDED BY SHIELY, TO TABLE THIS MATTER. MOTION CARRIED. 5-0. C. Resoonse to Concept of Subdivision Bonds as Financiai Guarantee Councii acknowiedged the report from City Attorney Jack Ciinton regarding the request from Don Jensen of Kenco Construction to use bonds rather than letters of credit for subdivision financia� guarantees. MOTION BY RAUN, SECONDED BY WOLCOTT, TO (1) RETAIN THE CURRENT CODE REQUIREMENTS REQUIRING CASH, ESCROW OR LETTER OF CREDIT FOR FINANCIAL GUARANTEES REQUIRED UNDER DEVE�OPMENT AGREEMENTS; (2) AMEND SECTION 23-19(b)(1) f TO REGULAR MEETING - JULY 10, 1996 COTTAGE GROVE CITY COUNCIL PAGE 5 DELETE THE FINANCIAL GUARANTEE FOR THE DRIVEWAY; AND AMEND THE CODE TO REQUIRE THEINSTALLATION OF A CONCRETE OR ASPHA�T DRIVEWAY. MOTION CARRIED. 5-0. D. Grove Trunk Sanitarv Sewer Rehabilitation Project MOTION BY WOLCOTT, SECONDED BY HA�E, TO ADOPT RESOLUTION N0. 96-106, A RESOLUTION AWARDING CONTRACT FOR CONSTRUCTION OF GROVE PLAZA TRUCK SANITARY SEWER REHABILITATION PROJECT TO LAMETTI AND SONS, INC., IN THE AMOUNT OF 520,400. Council Member Raun suggested that a small segment of the pipe could be sent to and evaluated by Twin City Testing to determine the cause of the corrosion He asi<ed whether it was possible some type of chemical was dumped into the line, causing the corrosion. Gity Engineer Jerry Bourdon stated that the corrosion couid be caused from hydrogen sulfite being generated in the fine. Council Member Raun expressed an interest in having the line tested to determine the exact cause of the corrosion. MOTION CARRIED. 5-0. E. Budget Amendment - MIS Equipment MOTION BY RAUN, SECONDED BY HALE, TO APPROVE THE PUFiGHASE OF TWO (2) NiGH SPEED Ti880 PRINTERS IN THE AMOUNT OF 51,900, FOR THE POLICE DEPARTMENT, AND COMPUTER HARDWARE AND SOFTWARE IN THE AMOUNT OF 59,200 FOR THE COMMUNITY DEVELOPMENT DEPARTMENT. ADOPT RESOLUTION N0. 96-107 A RESOLUTION AMENDING THE 1996 GENERAL FUND BUDGET. MOTION CARRIED. 5-0. F. AMM Position with Regard to Transportation Funding Council discussed the four issues being posed by the Association of Metropolitan Municipalities Transportation Committee. The Council unanimously agreed that they would support a gas tax increase but oniy if the funds were dedicated to highway repairs, maintenance, and construction. Council was in agreement that they wouid not support a general sales tax increase.