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4.15. SR 04-21-2014 City of Elk=' Request for Action River To Item Number Mayor and City Council 4.15 Agenda Section Meeting Date Prepared by Consent Aril 21, 2014 Jeremy Barnhart,Deputy Director, CODD Item Description Reviewed by Jabez Second Addition Development Agreement Cal Portner, City Administrator Reviewed by Action Requested Approve,by motion,the Development Agreement for the Jabez Second Addition. Background/Discussion The conditions imposed by the City Council on the approval of the Final Plat for Jabez Second addition included a requirement that a development agreement be signed, outlining costs and responsibilities to the satisfaction of the city attorney. Staff and the attorney have drafted a development agreement outlining these responsibilities, and are seeking Council approval. The developer has not signed the document. The Development Agreement closely follows our standard agreement, and outlines requirements security in the form of Letter of Credit and escrow deposits. The public street being constructed will be maintained by the developer until the street connects to 170"'Lane,part of the Natures Edge Business Center. This was done at the request of the developer so that a cul de sac did not need to be improved, impacting the development of the buildable parcel. The Agreement will allow for the construction of the building prior to completion of the street, although a Certificate of Occupancy may not be issued. Financial Impact None Attachments ■ Development Agreement P a w E A E U a r NaA f RE] Development Agreement Jabez Second Addition Final Plat approved by the Elk River City Council January 21, 2014 Development Agreement April 21, 2014 Table of Contents 1. Warranty of Developer.......................................................................................................................................1 2. Phased Development..........................................................................................................................................1 3. Right to Proceed..................................................................................................................................................1 4. Approved Plans....................................................................................................................................................2 5. Improvements......................................................................................................................................................2 6. Additional Regulatory Approvals......................................................................................................................3 7. Installation of Improvements............................................................................................................................3 8. City Installed Improvements..............................................................................................................................5 9. Fees and Security for Developer's Performance.............................................................................................5 10. Responsibility for Costs......................................................................................................................................7 11. General Provisions...............................................................................................................................................8 12. Park Dedication....................................................................................................................................................9 13. Landscaping..........................................................................................................................................................9 14. Surface and Groundwater Management...........................................................................................................9 15. Default.................................................................................................................................................................11 16. Issuance of Building and Occupancy Permits...............................................................................................11 17. Model Homes.....................................................................................................................................................11 18. Miscellaneous......................................................................................................................................................11 19. Notices.................................................................................................................................................................13 EXHIBIT A Resolution No. 14-06 EXHIBIT B Legal Description EXHIBIT C Final Plat EXHIBIT D Cost Estimate Form EXHIBIT F Reduced Copy of Landscape Plan EXHIBIT I Consent of Mortgagee EXHIBIT J Summary of Payments Due i Development Agreement for Plat of Jabez Second Addition THIS AGREEMENT (the Agreement), made and entered into this 21st day of April, by and between the CITY OF ELK RIVER, a municipal corporation organized under the laws of the State of Minnesota (the City),and (the Developer). WITNESSETH: WHEREAS, the Developer has made application to the City for approval of a final plat of land within the City described on Exhibit A attached hereto (the Subdivision);and WHEREAS, the City Council adopted Resolution No. 14-06 on January 21, 2014, (attached as Exhibit A hereto) granting final plat approval to the Subdivision, subject to several conditions, including a condition that Developer enter into an agreement with the City governing the provision of certain utilities, services and facilities to the Subdivision and the transfer of certain land interests and payments to the City, so as to fully comply with the Subdivision Ordinance; NOW, THEREFORE, in consideration of the premises and the mutual promises and conditions hereinafter contained,it is hereby agreed as follows: 1. Warranty of Developer. Developer hereby warrants and represents to the City, as inducement to the City's entering into this Agreement, that Developer is owner of certain real property legally described in EXHIBIT B attached hereto consisting of 7.18 acres of unimproved land located in the City of Elk River, Sherburne County, Minnesota. The Developer intends to improve and develop such property for two lots and a public street to be known as Jabez Second Addition (the Development). The Development is sometimes hereinafter referred to as the "Property," "Project," or "Subdivision." A copy of the final plat is attached as EXHIBIT C. 2. Phased Development. PURPOSELY LEFT BLANK 3. Right to Proceed. Within the Subdivision, the Developer may not grade or otherwise disturb the earth,remove trees,construct sewer lines,water lines, streets,utilities,public or private improvements, or any buildings until all the following conditions have been satisfied: (1) this Agreement has been fully executed by 1 both parties and filed with the City Clerk; (2) the necessary security has been received by the City; (3) the necessary insurance for the Developer and its construction contractors has been received by the City; (4) the final plat for the Subdivision has been filed with the office of the Sherburne County Recorder or Registrar of Titles,and (5) all required permits are secured and a copy filed with the City Engineer. 4. Approved Plans. The Subdivision shall be developed in accordance with the following plans. The plans may not be attached to this Agreement. With the exception of Plans A, B and E the plans may be prepared, subject to the City Engineer's approval, after entering into this Agreement, but before commencement of any work in the Development. The City Engineer may approve minor amendments to Plan B without City Council approval. If the plans vary from the written terms of this Contract, the written terms shall control.The plans are: Plan A-Plat Plan B-Final Grading,Drainage,and Erosion Control Plan&SWPPP Plan C-Plans and Specifications for Public Improvements Plan D -Street Lighting Plan Plan E-Landscape Plan Plan F — Storm water Management Plan detailing long term ownership, maintenance schedules and procedures for all stormwater facilities as required by the City's MS4 permit 5. Improvements. In accordance with the application materials submitted by Developer, the preliminary and final plats of the Subdivision, the City Council Resolution attached as Exhibit A hereto, and the applicable standards and ordinances of the City, the following described Improvements (the Improvements) shall be constructed and installed on the terms and conditions hereinafter contained: (01) Site grading to elevations shown in the approved grading and drainage plan and construction of retaining walls (Site Grading); (02) Streets, as required by the City,including grading,graveling and stabilizing, constructing and vegetating of berms, swales and boulevards, planting trees on boulevards, permanent street surfacing with bituminous material,installing concrete curbs,gutters and driveway approaches,and installing traffic control street signs as required the City Engineer and installing street lights as required by the local utility(Street Improvements) ; (03) Sidewalks,as required by the City(Sidewalk Improvements); (04) Storm sewers, as required by the City, including all necessary pipes, manholes, catch basin, ditches,inlets,retention areas and other appurtenances (Storm Sewer Improvements) ; (05) Wetland mitigation measures as required by the U.S. Army Corps of Engineers, the Department of Natural Resources and/or the Wetland Conservation Act (Wetland Mitigation); (06) Landscaping, Trees and grass as required by City Ordinance and any additional landscape Improvements required by the City(Landscape Improvements). 2 (07) Temporary and permanent erosion and sediment control measures as required by the City's MS4 permit and the MPCA National Pollutant Discharge Elimination System construction stormwater permit(Stormwater Management Improvements). (08) Survey Monuments. Durable iron survey monuments shall be set, pursuant to Minnesota Statutes, Section 505.02, Subd. 1, within one (1) year after recording of the final plat of the Subdivision. Developer shall provide in writing notice to the City a Surveyor's certification that all monuments have been set. 6. Additional Regulatory Approvals. All additional regulatory approvals required for construction of the Improvements or development of the Subdivision shall be obtained before commencement of construction on the Improvements. Additional approvals may include but are not limited to the Department of Health permits for water system modifications; Minnesota Pollution Control Agency permits for the extension of sanitary sewer or cluster on-site treatment systems; National Pollutant Discharge Elimination System permits for grading;Department of Natural Resources permits for water appropriations;Army Corps of Engineers permits for construction of sedimentation ponds; and City, County and/or State permits for access and work within existing road rights of ways. 7. Installation of Improvements. The following Improvements will be installed at Developer's expense by Developer as hereinafter provided. (01) Installation. Developer shall construct and install at Developers sole expense all Improvements necessary to fully complete the development the subdivision, including those Improvements identified in Exhibit D,attached hereto,except as may otherwise be set forth in this Agreement. The installation of the Improvements shall be in accordance with all applicable City ordinances, including the City subdivision ordinance, and shall be subject to review, approval, inspection and authorization by the City and/or its specialty consulting staff, as provided in this agreement. (02) Deadline for Performance by Developer. Except as otherwise provided herein, Developer agrees to complete all Improvements and perform all other acts as are required by the Subdivision Ordinance, other applicable ordinances and the terms and conditions of this agreement, and resolution No. 14-06 and to do so on or before occupancy, with the exception of the final wear course of asphalt on streets. The final wear course on streets shall be installed between August 15 and October 15 the year following the base layer of asphalt construction. The Developer may, however, request an extension of time from the City. If an extension is granted, it shall be conditioned upon updating the security posted by the Developer to reflect cost increases and the extended completion date. Final wear course placement outside of this time frame must have the written approval of the City Engineer. (03) Approval of Contractor. The City reserves the right to approve or disapprove any contractor selected by the Developer. (04) Construction Plans. The construction, installation, materials and equipment shall be in accordance with plans and specifications prepared by a licensed professional engineer and approved by the City Engineer. Such plans and specifications shall be based upon such engineering surveys, including soil borings and material tests, determined to be necessary by the City Engineer. (05) Supervision and City Services. Construction and installation plans and activity shall be reviewed by and subject to the supervision of the City. Developer will cause the contractor(s) to inform the City's representatives of the schedule to complete the Improvements as required in the 3 approvals. City shall inspect all Improvements during and after construction for compliance with approved specifications. Developer will notify the City Engineer or his designee at such times during construction as the City Engineer requires for inspection purposes. (A) The Developer shall instruct its engineer to provide adequate field inspection personnel to assure an acceptable level of quality control to the extent that the Developer's engineer will be able to certify that the construction work meets the approved City standards as a condition of City acceptance. The Developer's engineer shall provide for on-site project management. In addition, the City may, at the City's discretion and at the Developer's expense, have one or more City inspectors and a soil engineer inspect the work on a full or part-time basis. The Developer, its contractors and subcontractors, shall follow all instructions received from the City's inspectors. The Developer's engineer is responsible for design changes and contract administration between the Developer and the Developer's contractor. The Developer or its engineer shall schedule a pre-construction meeting at a mutually agreeable time at the City with all parties concerned, including the City staff, to review the program for the construction work. (06) Easements. The Developer shall convey to the City,prior to the final approval of plans and specifications and at no cost to the City, all permanent and temporary easements for the installation and maintenance of all Improvements determined to be necessary by the City. All such easements shall be in recordable form acceptable to the City and contain such terms and conditions as the City may prescribe. (07) Insurance. Developer shall cause each contractor engaged in the construction and installation of any Improvement to furnish the City with evidence acceptable to the City showing insurance coverage (including workers' compensation, liability and property damage) in such amounts as are required for City construction contracts. Developer shall also maintain adequate liability insurance for public use of Streets, Sidewalk and other Improvements until such time as those Improvements are completed and accepted by City as provided herein, and shall hold the City harmless and indemnify the City from any liability arising out of the public's use of said Improvements until such time as those Improvements are completed and accepted by the City as provided herein. (08) As Constructed Plans. Within thirty(30) days after the completion of the improvements and before the security is released, the Developer shall supply the City with a complete set of reproducible "as constructed" plans and an electronic file of the "as constructed" plans in an AutoCAD.DWG file or a .DYF file and PDF formats, all prepared in accordance with City standards.All constructed public utilities shall be field surveyed after construction with all location, elevation, and data attributes information, deliverable to the City in an approved sub-foot accurate GIS/GPS format. (09) City Acceptance. The City shall accept,at no cost, ownership of all Improvements provided that such Improvements have been constructed in compliance with the plans and specifications therefore and City requirements with respect thereto as determined by the City. No improvements will be accepted prior to all disturbed areas of the site being fully vegetated and functioning in accordance with the approved construction and storm water management plans. Upon acceptance, all Improvements lying within the public easements or rights of way shall become City property without further notice or action. (10) License. The Developer hereby grants the City, its agents, employees, officers and contractors a license to enter the Subdivision to perform all work and inspections deemed appropriate by the City in conjunction with the Development. 4 (11) Faithful Performance of Construction Contracts. Developer will fully and faithfully perform the installation and construction of the Improvements in accordance with the approved plans and specifications therefore and shall comply with all terms of any and all contracts entered into by the Developer for the installation and construction of all such Improvements, at no expense to the City. (12) Warranty. Developer hereby warranties the workmanship and materials respecting such Improvements for a period of two (2) years following the City's final acceptance of the Improvements and agrees to repair or replace, as directed by the City, and at Developer's sole cost and expense, any work or materials that become defective, in the sole opinion of the City, within said two (2) year period even though notice thereof be given by the City after said two (2) year period. 8. City Installed Improvements. (01) The Subdivision will have no City installed Improvements. (02) There are no assessments levied against the subdivision. 9. Fees and Security for Developer's Performance. (01) City Administration and Construction Observation Fees. Developer shall reimburse the City for all the City's costs and expenses incurred in the processing of the Subdivision and for review of plans and construction observation and in regard to any action or event of default by Developer, resulting in any suit or proceeding at law or in equity to which the City shall become a party in reference to the Developer's interest in the property or the project. Reimbursement shall be due and payable to the City within thirty (30) days following the receipt of a statement therefore. The Developer shall post a cash escrow in the amount of ten percent (10%) of the estimated costs of the Improvements. This escrow will be drawn from as the project progresses to cover the City's ongoing costs and expenses relating to administration and construction observation of the improvements. City administration will include, but is not limited to, supervision of construction observation, consultation with Developer and its engineer on status or problems regarding the project, coordination for final inspection and acceptance, project monitoring during the warranty period,and processing of requests for reduction in security. Construction observation shall include full to part time inspection of all work associated with the Improvements. Based on past experience it is estimated that an escrow of ten percent (10%) shall be sufficient to cover the City related expenses associated with the work. Delays,change in work scope,contractor performance, etc. can all contribute to this amount not being sufficient. All City costs experienced in excess of the escrow are the responsibility of the Developer. These costs will be billed directly to the Developer and become due per the terms stated in Section 10. (02) Letter of Credit. No work shall be commenced under this Agreement, and the Final Plat of the Subdivision will not be released for recording,until the Developer has filed with the City a cash deposit or an irrevocable and unconditional Letter of Credit acceptable to the City, in the amount of sixty seven thousand, eight hundred eighty seven dollars and 20/100 Dollars ($67,887.20). Said Letter of Credit shall also provide that funds shall be paid to the City upon written demand of the City to the extent of default herein by Developer in the payment of any amount due or the performance of any other duty or obligation of Developer pursuant to this Agreement, including Developer's obligations to complete Developer Improvements, to complete on-site Landscape Improvements,and to make payment of any amounts due hereunder. 5 (A) The security provided in accordance with the above may be reduced quarterly, on March 31,June 30,September 30 and December 31 of each year. The amount released each quarter will equal the amount of work completed by the Developer during the quarter, except that: (i) the security will not be released to an amount less than the amount of Developer's total indebtedness to the City pursuant to the terms of this Agreement,; and, (ii) the security will not be released below twenty-two thousand, four hundred dollars ($22,400) until all Improvements pursuant to this Agreement have been completed in full and all other obligations of Developer under this Agreement have been fulfilled, including Developer's obligation to install required Landscaping Improvements, two year warranty period has been completed, and to fulfill the requirements of the Wetland Mitigation,if applicable. (B) The Letter of Credit shall contain a provision that states that the Letter of Credit shall be automatically renewable annually unless the issuer of the Letter of Credit first gives the City thirty (30) days written notice by certified mail of its intent not to renew the Letter of Credit. The letter of credit shall also contain a minimum initial period of 1 year. The Letter of Credit shall be a guaranty to the City that the Improvements and all other requirements set forth in this Agreement will be timely completed to the City's satisfaction. The Letter of Credit shall be maintained continuously by the Developer, except as reductions are authorized by the City, until the Improvements are completed to the City's satisfaction, including certification by the City engineer that all items are satisfactorily completed, pursuant to this Agreement. The Letter of Credit shall have no conditions and shall be subject to being drawn upon by the City upon any default under this Agreement, including failure to pay contractors, subcontractors or costs or expenses owed to the City. If at any time the City shall draw upon the Letter of Credit,the Developer agrees that within 10 days upon being notified of such withdrawal by the City, Developer shall either pay the deficient amount in cash to the City or have the Letter of Credit restored to its full amount (04) Maintenance Bond. Purposely Left Blank (05) Water Availability Charges. Developer shall pay applicable Water Availability Charge at the time of building permit. (06) Surface Water Management Fee. Developer shall pay surface water management fees in the amount of Three thousand, six hundred and three dollars ($3,603.00), ($1,287 per acre) for each lot in the Subdivision prior to release of the final plat for recording. (07) Seal Coating. Developer shall pay the City for the first sealcoating of streets in the Subdivision in the amount of One Thousand Seven Hundred-Fifty and 00/100 Dollars ($1,750) prior to recording of the final plat. 10. Responsibility for Costs. (01) Except as otherwise specified herein, the Developer shall pay all costs incurred by it or the City in conjunction with the development of the Subdivision, including but not limited to Soil and Water Conservation District charges, legal, planning, engineering and construction observation inspection expenses incurred in connection with approval and acceptance of the plat,the preparation of this Agreement, review of construction plans and documents, the payment of fines and penalties 6 imposed on the city as a result with non-compliance with any permit or failure to obtain necessary permits,and all costs and expenses incurred by the City in monitoring and inspecting development of the Subdivision. (02) The Developer shall hold the City and its officers, employees, and agents harmless from claims made by itself and third parties for damages sustained or costs incurred resulting from plat approval and development. The Developer shall indemnify the City and its officers, employees, and agents for all costs, damages, or expenses which the City may pay or incur in consequence of such claims,including attorneys' fees. (03) The Developer shall reimburse the City for costs incurred in the enforcement of this Agreement,including engineering and attorneys' fees. (04) The Developer shall pay, or cause to be paid when due, and in any event before any penalty is attached, all special assessments referred to in this Agreement. This is a personal obligation of the Developer and shall continue in full force and effect even if the Developer sells one or more lots,the entire plat,or any part of it. (05) The Developer shall pay in full all bills submitted to it by the City for obligations incurred under this Agreement within thirty (30) days after receipt. If the bills are not paid on time, the City may halt development and construction within the Subdivision until the bills are paid in full.Bills not paid within thirty(30) days shall accrue interest at the rate of eighteen percent(18%) per year. (06) In addition to the charges and special assessments referred to herein, other charges and special assessments may be imposed such as but not limited to sewer availability charges ("SAC"), City water connection charges, City sewer connection charges,and building permit fees. 11. General ProvisionsBinding Effect. The terms and provisions hereof shall be binding upon, and inure to the benefit of the heirs,representatives, successors and assigns of the parties hereto and shall be binding upon all future owners of all or part of the Subdivision and shall be deemed covenants running with the land. References herein to Developer, if there be more than one, shall mean each and all of them. This Agreement shall be placed of record so as to give notice hereof to subsequent purchasers and encumbrances of all or any part of the Subdivision,and all recording fees,if any, shall be paid by the Developer. (02) Severable. In the event that any portion of this Agreement shall be held invalid for any reason, the same shall not affect in any respect whatsoever the validity of the remainder of this Agreement. (03) Waiver. Any waiver,whether express or implied, by any party of a breach of any provision of this Agreement will not operate as or be construed to be a waiver of any subsequent breach of this Agreement. (04) Construction Times. All construction activities shall be confined to the following hours of operation: Monday-Friday 6:00 AM until 9:00 PM Saturday 8:00 AM until 5:00 PM (only with 48 hour advance notice to the City Engineer or their representatives) Sunday Not Allowed 7 This does not apply to activities that are required on a 24-hour basis such as dewatering, etc. Any deviation from the above hours is subject to approval of the City Council. (05) Street Construction. No street construction will be allowed after October 15 or prior to May 15 unless approved by the City Engineer. (06) History. Any item or condition found that indicates the site is likely to yield information important to pre-history or history shall be reported to the city immediately,and the city reserves the right in such event, to stop work immediately until the subdivision is appropriately investigated and developer is authorized to recommence work. (07) Covenants. Developer shall prepare and file restrictive covenants in a form acceptable to the City Attorney. Restrictive covenants shall, at minimum, be recorded on the Wetland and the Wetland Mitigation areas. 12. Park Dedication. Park dedication requirements shall be satisfied by paying a park dedication fee in the amount of$20,843 ($7,444 per acre for 2.8 acres in the Subdivision) prior to release of the final plat for recording. 13. Landscaping. Developer agrees to install landscaping materials in accordance with the Landscape Plan,attached as Exhibit F. (01) All residential landscaping requirements shall be completed prior to occupancy of the unit, or by June 1 following occupancy if occupancy occurs October 15 through May 31. (02) In the event the landscaping,including trees and establishment of turf,is not complete at the time of Certificate of Occupancy, the City may issue a certificate of occupancy and require the provision of a cash deposit from the builder of the lot to guarantee the successful completion of the landscaping improvement. The City, its employees, agents or contractors shall have the right to go upon the property to complete the landscaping without permission of the owner of the property or lot, and shall not be liable for trespass. The City may also require a deposit as part of the building permit fee to secure compliance with the landscaping requirements. 14. Surface and Groundwater Management. (01) Dewaterin . Due to the variable nature of groundwater levels and stormwater flows, it will be the Developer's and the Developer's contractors and subcontractors responsibility to satisfy themselves with regard to the elevation of groundwater in the area and the level of effort needed to perform dewatering and storm flow routing operations. All dewatering shall be in accordance with all applicable county, state, and federal rules and regulations. DNR regulations regarding appropriations permits shall also be strictly followed. (02) Wetlands. If the Developer proposes the filling of wetlands in connection with development of the Subdivision, final plat approval is contingent upon, and the final plat shall not be recorded until, receipt of necessary permits from appropriate regulatory agencies to fill wetlands as proposed by the Developer and approval by the Technical Evaluation Panel of the proposed mitigation plan for wetlands filling. If these permits are denied, or approval of the wetland permit and mitigation plan is subject to conditions which significantly impact the Subdivision, the final plat for the Subdivision shall be resubmitted to the City Council for consideration of changes required for the wedand approvals. The City shall receive a copy of the monitoring report annually for three years. 8 (03) Erosion Control. Prior to initiating any work on the site, the erosion control plan, Plan B, shall be implemented by the Developer and inspected and approved by the City or other regulating authority. The City may impose additional erosion control requirements if they are deemed necessary to protect the downstream waters of the state..All areas disturbed by the grading operations shall be stabilized per the MPCA NPDES Stormwater Permit for Construction Activity and the City MS4 permit. Seed shall be in accordance with the City's current seeding specification which will include temporary erosion control measures to provide ground cover as rapidly as possible. All seeded areas shall be fertilized, mulched, and watered as necessary for seed retention and growth. The parties recognize that time is of the essence in controlling erosion. If the Developer does not comply with the MPCA NPDES Stormwater Permit for Construction Activity, the City MS4 permit, with the erosion control plan and schedule, or supplementary instructions received from the City or other regulating authority, the City may take such action as it deems appropriate to control erosion. The City will endeavor to notify the Developer in advance of any proposed action,but failure of the City to do so will not affect the Developer's and City's rights or obligations hereunder. If the Developer does not reimburse the City for any cost the City incurred for such work within ten (10) days, the City may draw down the letter of credit to pay any costs. No development, utility or street construction will be allowed and no building permits will be issued unless the plat is in full compliance with the approved erosion control plan. (04) Grading. The Subdivision shall be graded in accordance with the approved grading development and erosion control plan, Plan B. The plan shall conform to City specifications. Within thirty (30) days after completion of the grading the Developer shall provide the City with an "as constructed" grading plan certified by a registered land surveyor or engineer that all storm water treatment/infiltration basins and swales, have been constructed on public easements or land owned by the City. The "as constructed" plan shall include field verified elevations of the following: (a) cross sections of storm water treatment/infiltration basins; (b) location and elevations along all swales, wetlands, wetland mitigation areas if any, locations and dimensions of borrow areas/stockpiles, and installed "conservation area" posts; and (c) lot corner elevations and house pads, and all other items listed in City Code Section 30-416 (q) (1). The City may withhold issuance of building permits until the approved certified grading plan is on file with the City and all erosion control measures, including full vegetation of entire site, are in place as determined by the City Engineer. A certified as-built building pad survey must be submitted and approved for commercial, industrial or institutional developments prior to issuance of a building permit. (05) CleanUp. The Developer shall clean dirt and debris from all streets that has resulted from construction work by the Developer,home builders, subcontractors, their agents or assigns. Prior to any construction in the plat, the Developer shall identify in writing a responsible party and schedule for erosion control, street cleaning,and street sweeping. (06) National Pollutant Discharge Elimination System Requirements. Prior to the commencement of any work, the Developer shall provide a signed Storm Water Pollution Prevention Plan for City review and approval to control erosion from the site. Because the site is over one (1) acre, the Developer shall also apply for and obtain an NPDES permit from the Minnesota Pollution Control Agency. (07) Municipal Separate Storm Sewer System Requirements. All stormwater management activities shall comply with the City MS4 permit. 9 15. Default. (01) Remedies. In the event of default by the Developer as to any of the work to be performed by it hereunder, the City may, at its option, perform the work and the Developer shall promptly reimburse the City for any expense incurred by the City, provided the Developer, except in an emergency as determined by the City, is first given notice of the work in default, not less than forty-eight (48) hours in advance. This Agreement is a license for the City to act, and it shall not be necessary for the City to seek a Court order for permission to enter the land. When the City does any such work, the City may, in addition to its other remedies, assess the cost in whole or in part. (02) Acceleration on Default. In the event Developer, or its heirs, successors or assigns,violates any of the covenants and agreements herein contained, or fails to pay any amount due to the city, the City,at its option,in addition to its other rights and remedies,by written notice of default given to the Developer, may declare all amounts to be paid by the Developer pursuant to this Agreement, due and payable in full, with interest, immediately, or on such date as the City shall specify in its notice of default to Developer. If Developer fails to make payment in the amount and at the time specified in the City's notice of default to Developer, City may, at its option, draw on the security provided by Developer pursuant to Section 9 of this Agreement and/or commence legal action against Developer to collect the entire amount owed by Developer, including reasonable attorneys' fees. Developer shall be personally liable for such amounts due and,if more than one, such liability shall be joint and several. 16. Issuance of Building and Occupancy Permits. (01) Building Permits. The City may issue building permits for the construction of the approved car dealership prior to completion of the public and private infrastructure, provided that access to the site for emergency vehicles is maintained at all times. City will not issue a certificate of occupancy(said certificate will allow the structure to be transferred to a new owner for the purpose of permanent occupancy) for any building constructed on any lot or parcel in the Subdivision until all Improvements (except final lift of paving) are completed, approved by the City Engineer and accepted by the City. Temporary certificates of occupancy may be issued for sites; however, such certificates will not allow the structure to be transferred to a new owner for the purpose of occupancy. (02) Notice to buyer. If the Developer fails to comply with any of provisions of this Agreement, the City may refuse to issue a building permit or certificate of occupancy for any lot or parcel in the Subdivision. Developer agrees to advise purchasers of any lot or parcel within the Subdivision of the existence of this contract and the obligations and restrictions created herein prior to the completion of the sale. Further,Developer agrees to save and hold City harmless from any and all claims or actions arising from the right to withhold the issuance of such permits and certificates and from other provisions hereof. 17. Road Maintenance. (01) Developer shall maintain the public road until the connection with 1701b Lane in Natures Edge Business Park is completed. Maintenance shall include snowplowing, street sweeping, repairs, and all other work necessary to ensure that the road is kept at city standards. 10 18. Miscellaneous. (01) Filing of Final Plat and Developer Agreement. Before construction commences on the Improvements, the Final Plat of the Subdivision and this Developer Agreement must be filed and recorded and all necessary easements shall have been conveyed to the City, unless the City authorizes in writing the commencement of limited construction activities. (02) Incorporation by Reference. All plans, special provisions, proposals, specifications and contracts for the Improvements to be made pursuant to this Agreement shall be and hereby are made a part of this Agreement by reference as fully as if set forth herein in full. (03) No Replacement. This Agreement is in addition to and is not in replacement of the terms and conditions of the Petition for Public Improvements and Waiver of Right to Public Hearing and Right to Object relating to the Subdivision executed by Developer. (04) Regulatory Compliance. The Developer represents to the City that the Subdivision complies with all city, county, metropolitan, state, and federal laws and regulations,including but not limited to: subdivision ordinances, zoning ordinances, and environmental regulations. If the City determines that the plat does not comply, the City may, at its option, refuse to allow construction or development work in the Subdivision until the Developer does comply. Upon the City's demand,the Developer shall cease work until there is compliance. (05) Third Parties. Third parties shall have no recourse against the City under this Agreement. (06) Breach. Breach of the terms of this Agreement by the Developer shall be grounds for denial of building permits,including lots sold to third parties. (07) Severabili ty. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this Agreement is for any reason held invalid, such decision shall not affect the validity of the remaining portion of this Agreement. (08) Damage to Public Improvements. If building permits are issued prior to the acceptance of public improvements,the Developer assumes all liability and costs resulting in delays in completion of public improvements and damage to public improvements caused by the City, Developer, its contractors, subcontractors,material men,employees,agents,or third parties. No sewer and water connections or inspections may be conducted and no one may occupy a building for which a building permit is issued on either a temporary or permanent basis until the streets needed for access have been paved with a bituminous surface,the utilities are completed,and the vegetation is established and accepted by the City Engineer. (09) Amendments. The action or inaction of the City shall not constitute a waiver or amendment to the provisions of this Agreement. To be binding, amendments or waivers shall be in writing, signed by the parties and approved by written resolution of the City Council. The City's failure to promptly take legal action to enforce this Agreement shall not be a waiver or release. (10) Binding Contract. This Agreement shall run with the land and may be recorded against the title to the property. The Developer covenants with the City, its successors and assigns, that the Developer is well seized in fee title of the property being final platted and/or has obtained consents to this Agreement, in the form attached hereto, from all parties who have an interest in the property; that there are no unrecorded interests in the property being final platted; and that the Developer will indemnify and hold the City harmless for any breach of the foregoing covenants. 11 (11) Insurance. The Developer and contractor shall acquire public liability and property damage insurance covering personal injury, including death, and claims for property damage which may arise out of the Developer's work or the work of their subcontractors or by one directly or indirectly employed by any of them. The insurance must be maintained until six (6) months after the City has accepted the public improvements. Limits for bodily injury and death shall be not less than$500,000 for one person and$1,000,000 for each occurrence;limits for property damage shall be not less than$200,000 for each occurrence;or a combination single limit policy of$1,000,000 or more. The City shall be named as an additional insured on the policy on a primary and noncontributory basis, and the Developer and contractor shall file with the City a certificate evidencing coverage prior to the City signing the plat. The certificate shall provide that the City must be given ten (10) days advance written notice of the cancellation of the insurance. (12) No Waiver. Each right, power or remedy herein conferred upon the City is cumulative and in addition to every other right, power or remedy, express or implied, now or hereafter arising, available to City,at law or in equity,or under any other agreement,and each and every right,power and remedy herein set forth or otherwise so existing may be exercised from time to time as often and in such order as may be deemed expedient by the City and shall not be a waiver of the right to exercise at any time thereafter any other right,power or remedy. (13) Assignment. The Developer may not assign this Agreement without the written permission of the City Council. The Developer's obligation hereunder shall continue in full force and effect even if the Developer sells one or more lots,the entire plat,or any part of it. 19. Notices. All notices and demands specified herein shall be deemed appropriately and timely given when delivered personally or deposited in the United States mail to the addresses hereinafter set forth by certified mail (return receipt requested). The addresses of the parties hereto are as follows until changed by written notice given as above: If to the City at: City of Elk River Attn: City Administrator 13065 Orono Parkway Elk River,Minnesota 55330 If to the Developer at: Cornerstone Auto Attn: Stephen Rohlf 17219 Highway 10 Elk River,MN 55330 12 IN WITNESS WHEREOF,the City and Developer have caused this Agreement to be duly executed on this day and year first above written. CITY OF ELK RIVER By: John J.Dietz Its: Mayor By: Tina Allard Its: Clerk DEVELOPER: By: Its: 13 STATE OF MINNESOTA ) ) ss. COUNTY OF SHERBURNE ) This instrument was acknowledged before me this day of , by John J.Dietz and Tina Allard,the Mayor and City Clerk,respectively, for the City of Elk River,Minnesota. Notary Public STATE OF MINNESOTA ) ss. COUNTY OF ) This instrument was acknowledged before me this day of , by Notary Public This instrument was drafted by: City of Elk River 13065 Orono Parkway Elk River,MN 55330 14 EXHIBIT A Resolution No. 14-06 A-1 EXHIBIT B Legal Description Parcel A: The North 420.00 feet of the West 420.00 feet of the Southeast Quarter of the Northwest Quarter of Section 11,Township 32,Range 26,according to the United States Government Survey thereof, Sherburne County,Minnesota. Parcel B: The North 368.04 feet of the Southwest Quarter of the Northwest Quarter of Section 11, Township 32,Range 26,Sherburne County,Minnesota,lying Easterly of U.S. Highway No. 10, according to the United States Government Survey thereof,Sherburne County,Minnesota. Parcel C: The South 55.96 feet of the North 424.00 feet of the Southwest Quarter of the Northwest Quarter of Section 11, Township 32, Range 26, Sherburne County, Minnesota, lying Easterly of US Highway No. 10. B-1 EXHIBIT C Final Plat • A 3 y 2 ° s ism �' A T2 1147 9 1 � 3 = AS is IN Al '---7-- Co wrvi�i°uue ° .. - P I ' Is ----- g � I ---r -- — ---°-- _- z €e 3 'It 3 d Isla H Iii \,Y °'ye yy§n � rcn -�� _�� NI+u'wn Nru•nn•w�� Ye 5r t i I 6 I wai I I I I � E IT C-1 EXHIBIT D Cost Estimate Form E-1 EXHIBIT E Purposely Left Blank E-1 EXHIBIT F Reduced Copy of Landscape Plan J L (cR 0 2. Ooqu rc !g —Ur -L(R) Eu fl 35 00• 10 U.S• HIGH F-1 EXHIBIT I I-1 EXHIBIT J Summary of Payments and Securities Due $ 6,788.72 City Fees escrow deposit Section 9. (02) $67,887.20 Letter of Credit Section 9. (03) $ 3,603.00 Surface Water Management Fee Section 9. (06) $ 1,750.00 Seal Coating Section 9. (07) $20,843 Park Dedication Section 12. $26,296.00 Total J-1