4.5. SR 10-16-2017 EGty1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 4.5
Agenda Section Meeting Date Prepared by
Consent October 16, 2017 Chris Leeseber , Senior Planner
Item Description Reviewed by
Developers Agreement: Trace Heights Second Zack Carlton,Planning Manager
Addition Reviewed by
Cal Portner, City Administrator
Action Requested
Approve,by motion, the Development Agreement for Trace Heights Second Addition.
Background/Discussion
The conditions imposed by the City Council for the approval of the resolution for the Final Plat of Trace
Heights Second Addition include a requirement that a Development Agreement be signed. Staff and the
city attorney drafted a Development Agreement outlining these responsibilities, and are seeking Council
approval.
The agreement outlines the costs,responsibilities, and required security in the form of a Letter of Credit
and escrow deposits.
Financial Impact
None
Attachments
■ Development Agreement dated October 16, 2017
POWERED 6T
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Development Agreement
Trace Heights 2nd Addition
Final Plat approved by the Elk River City Council
September 18, 2017
Development Agreement
October 16, 2017
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Table of Contents
1. Warranty of Developer ....................................................................................................................................... 1
2. Phased Development .......................................................................................................................................... 1
3. Right to Proceed .................................................................................................................................................. 2
4. Development Plans.............................................................................................................................................. 2
5. Improvements ...................................................................................................................................................... 2
6. Additional Regulatory Approvals ...................................................................................................................... 3
7. Installation of Improvements ............................................................................................................................ 4
8. City Installed Improvements .............................................................................................................................. 5
9. Security for Developer’s Performanc ............................................................................................................... 6
10. Responsibility for Costst ..................................................................................................................................... 7
11. General Provisions Binding Effect ................................................................................................................... 8
12. Park Dedication .................................................................................................................................................... 9
13. Development Plan ............................................................................................................................................... 9
14. Landscaping .......................................................................................................................................................... 9
15. Surface and Groundwater Management........................................................................................................... 9
16. Default ................................................................................................................................................................. 11
17. Issuance of Building and Occupance Permits ............................................................................................... 11
18. Model Homes ..................................................................................................................................................... 12
19. Miscellaneous ...................................................................................................................................................... 12
20. Notices ................................................................................................................................................................. 13
EXHIBIT A Resolution No. 17-52
EXHIBIT B Legal Description
EXHIBIT D Cost Estimate Form
EXHIBIT E Development Plan Checklist
EXHIBIT F Purposely Left Blank
EXHIBIT G Consent of Mortgagee
EXHIBIT H Summary of Payments Due
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DEVELOPMENT AGREEMENT
FOR
Trace Heights 2nd Addition
THIS AGREEMENT (the Agreement), made and entered into this 2nd day of October, 2017, by and
between the CITY OF ELK RIVER, a municipal corporation organized under the laws of the State of
Minnesota (the City), and Regenscheid Investments Incorporated (the Developer).
W I T N E S S E T H:
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. 17-52 on September 18, 2017, (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 53.77 acres of unimproved land located in the City of Elk River,
Sherburne County, Minnesota. The Developer intends to improve and develop such property for single
family residential uses, to be known as Trace Height 2nd Addition (the Development). A copy of the final plat
is attached as EXHIBIT C.
2. Changes In Official Controls. For two (2) years from the date of this Agreement, no amendments
to the City’s Comprehensive Plan or official controls shall apply to or affect the use, development
density, lot size, lot layout or dedications of the Development unless required by state or federal law
or agreed to in writing by the City and the Developer. Thereafter, notwithstanding anything in this
Agreement to the contrary, to the full extent permitted by state law, the City may require compliance
with any amendments to the City’s Comprehensive Plan, official controls, platting or dedication
requirements enacted after the date of this Contract.
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
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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. Development Plans. The Subdivision shall be developed in accordance with the following plans
(The Plans). The Plans shall 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
Plan G – Development and tree preservation plan required by Section 13 hereto
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) 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);
(04) Landscaping, trees and grass as required by City Ordinance and any additional landscape
Improvements required by the City (Landscape Improvements).
(05) Park and trails, as required by the City, including all park grading, removal of specified
vegetation, construction of trails, and installation of park and trail signs including Park boundary
markers (5-foot steel posts) at all lot corners that border park property or City owned outlots (Park
and Trail Improvements).
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(06) 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).
(07) 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.
(08) Mailboxes, in a style and location approved by the City of Elk River, shall be provided prior
to occupancy of any unit.
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 Improvements will be installed at Developer’s expense by
Developer as hereinafter provided.
(01) Developer shall construct and install at Developers sole expense all Improvements necessary
to fully complete the Development, 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. 17-52 and to do so on or before October 31, 2018 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
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inform the City’s representatives of the schedule to complete the Improvements as required in the
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. 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 shall
provide for on-site project management. 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 .dxf 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.
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(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.
(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 installation of
improvements, including 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 Development.
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) Security for Developers Performance.
(A) 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 six-hundred, forty-four thousand, six-hundred eighty-nine and 50/100
Dollars ($644,689.50). 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
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Developer pursuant to this Agreement, including Developer’s obligations to complete
Improvements, to complete on-site Landscape Improvements, and to make payment of any
amounts due hereunder.
(B) The security provided in accordance with the above may be released 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 fifty thousand dollars ($50,000) 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 and to fulfill
the requirements of the Wetland Mitigation, if applicable.
(C) 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 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. The Developer shall post maintenance bonds in the amount of twenty-five
percent (25%) of final certified construction costs to secure the warranty in Section 7 (12) hereof.
The City shall retain ten percent (10%) of the security posted by the Developer until the maintenance
bonds are furnished to the City or until the warranty period expires, whichever first occurs. The
retainage may be used to pay for warranty work, grading, erosion control, and as built survey escrow.
(05) Grading, erosion control and as-built survey escrow. The Developer shall post a cash escrow of
$1,000.00 per lot to the City to guarantee compliance with the erosion control and grading
requirements and the submittal of an as-built certificate of survey. Prior to release of this escrow, an
as-built certificate of survey for single family lots must be submitted to verify that the final as -built
grades and elevations of the specific lot and all building setbacks are consistent with the approved
Plans for the development, and any amendments thereto as approved by the City Engineer, and that
all required property monuments are in place. If the final as-built surveys are not timely completed,
the City may enter the lot, perform the work, and apply the cash escrow toward the cost. Upon
satisfactory completion of the grading, erosion control and as-built survey, the escrow funds, without
interest, less any draw made by the City, shall be returned to the person who deposited the funds
with the City.
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(06) Surface Water Management Fee. Developer shall pay surface water management fees in the
amount of Two Thousand, Eighty-Eight and 00/100 dollars ($2,088.00), ($116.00 per lot) for each
lot in the Subdivision prior to release of the final plat for recording.
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
imposed on the city as a result of 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 of the 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”),
Municipal water connection charges, City sewer connection charges, and building permit fees.
11. General Provisions Binding 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.
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(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
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) Snowplowing. Until the Improvements are accepted by the City or an agreement expressly
reached in advance, the developer is responsible for snow removal and ensuring access by
Emergency Response equipment.
(07) Mailboxes. All mailboxes be clustered, and in a style and location acceptable to the City of
Elk River.
(08) 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.
(09) 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 shall be paid for 18 lots in the amount of Twenty-Five
Thousand, Six Hundred Sixty-Six and 74/100 dollars ($25,666.74), ($1,425.93 per lot).
13. Development Plan. A development plan “Development Plan” shall be submitted by Developer
and approved by the City Engineer or his designee prior to issuance of any building permit within the
Subdivision. The Development Plan will identify, for each lot in the Subdivision those items noted on the
checklist attached as Exhibit E to this Agreement. Approval of the Development Plan may be contingent
upon soil borings verifying elevations and compaction tests for proposed house pads.
14. Landscaping. Developer agrees to install one over story tree in the boulevard of each Lot, and
require one additional over story tree in the front yard of each Lot. For Lots not sold by April 31, 2019,
Developer agrees to install one tree in the front yard of all unsold lots. All required trees shall be 2 inches in
caliper.
(01) All residential landscaping requirements shall be completed prior to occupancy of the
dwelling unit, or by June 1 following occupancy if occupancy occurs October 15 through May 31.
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(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 cash deposit shall be no less than $1,000.00. 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.
15. Surface and Groundwater Management.
(01) Dewatering. 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
wetland approvals. The City shall receive a copy of the monitoring report annually for three years.
(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 and before the City approves individual
building permits (except up to three model home permits on lots acceptable to the Building Official
per section 18), 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,
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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
the City Code. The City will 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. The Developer certifies to the City that
all lots with house footings placed on fill have been monitored and constructed to meet or exceed
FHA/HUD 79G specifications. The soils observation and testing report, including referenced
development phases and lot descriptions, shall be submitted to the Building Official for review prior
to the issuance of building permits.
(05) Clean Up. 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.
16. 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 8 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.
11
17. Issuance of Building and Occupancy Permits.
(01) Building Permits. The City will not issue any building permit (a permit issued for
construction of a structure to be sold and occupied by a new owner) for any lot or parcel in the
Subdivision until all small and large utilities are installed, streets are paved with the first lift of
pavement and vegetation is full established. 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 with model
permits; however, such certificates will not allow the structure to be transferred to a new owner for
the purpose of occupancy.
(02) Notice to Homebuyers. 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.
18. Model Homes.
(01) The City may issue building permits for the construction of up to three model homes on lots
approved by the Building Official 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 st ructure 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.
19. 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
12
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) Severability. 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 Improvements. If building permits are issued prior to the acceptance of
Improvements, the Developer assumes all liability and costs resulting in delays in completion of
public Improvements and damage to 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) 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 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
(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.
20. 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: Regenscheid Investments Incorporated
Attn: Jason Regenscheid
14000 Sunfish Lake Blvd, Suite 201
Ramsey, MN 55303
14
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: CEO
15
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
A-1
EXHIBIT A
Resolution No. 17-52
B-1
EXHIBIT B
Legal Description
Outlot A, TRACE HEIGHTS, according to the recorded plat thereof, Sherburne County, Minnesota.
C-1
EXHIBIT C
Final Plat
ENVIRONMENTAL ◦ ENGINEERING ◦ SURVEYINGTRACE HEIGHTS SECOND ADDITIONVICINITY MAPYALE STREET NW204TH WILSON STREET NWYALE STREETNWA
V
E
N
U
E
NW202ND202NDAVE. NW AVE. NW
D-1
EXHIBIT D
Cost Estimate Form
To:Contact:Regenscheid Custom Homes Justin Moody
Trace Heights 2nd AdditionProject Name:Bid Number:17-079
Fax:Ramsey, MN 55303
Address:14000 Sunfish Lake Blvd.Phone:
Project Location:Bid Date:6/22/2017
Total PriceUnit PriceUnitItem DescriptionItem #Estimated Quantity
$18,500.00$18,500.001.001 LSMobilization
$15,500.00$15,500.001.002 LSClearing & Grubbing
$15,000.00$1.2512,000.003 LFSilt Fence
$1,550.00$1.551,000.004 LFTree Fence
$2,700.00$1,350.002.005 EACHGravel Construction Entrance
$75,900.00$1.6546,000.006 CYCommon Excavation
$42,500.00$1.7025,000.007 CYSubgrade Correction
$16,500.00$1.6510,000.008 CYTopsoil Respread
$2,500.00$5.00500.009 CYSubcut for Infiltration Basins
$15,250.00$30.50500.0010 CYCompost (Import) for Infiltration Basins
$6,350.00$6,350.001.0011 LSSeed & Blanket Infiltration Basins w/MnDOT Mix 33-261
(Includes Scarifying & Prepping planting medium)
$7,540.00$580.0013.0012 ACRETurf Establishment
$24,082.50$28.50845.001 LF12" RCP Cl. 5
$6,191.50$30.50203.002 LF15" RCP Cl. 5
$6,195.00$35.00177.003 LF18" RCP Cl. 5
$2,437.50$37.5065.004 LF21” RCP Cl. 4
$1,930.00$965.002.005 EACH12" RCP Flared End Section (W/Trash Guard)
$6,650.00$950.007.006 EACH15" RCP Flared End Section (W/Trash Guard)
$1,900.00$950.002.007 EACH18” RCP Flared End Section (W/Trash Guard)
$1,300.00$1,300.001.008 EACH21" RCP Flared End Section (W/Trash Guard)
$4,080.00$80.0051.009 CYRip Rap CL. 3
$2,565.00$2,565.001.0010 EACH48" Dia. Catch Basin Manhole
$4,845.00$1,615.003.0011 EACH48" Storm Manhole
$4,885.00$4,885.001.0012 EACH48" Outlet Control Structure
$150.00$150.001.0013 EACHErosion Control for Catch Basins
$14,250.00$0.7519,000.001 SYSubgrade Preparation
$76,500.00$4.5017,000.002 SY8" Aggregate Base Cl. 5
$136,850.00$8.5016,100.003 SY2.5" Bit. Non-wear Course SPNWB230C.
$90,160.00$5.6016,100.004 SY1.5" Bit. Wear Course SPWEA230C
$3,150.00$3.151,000.005 GALTack Coat
$13,650.00$6.502,100.006 SY4" Aggregate Shoulder Cl. 7
$2,400.00$400.006.007 EACHAdjust Manhole Casting
$332.50$4.7570.008 LFSawcut Bituminous
$1,480.50$21.1570.009 LFMill Bituminous
$4,500.00$4,500.001.0010 LSBackfill Road & Grade Boulevard
$4,510.00$1.104,100.0011 SYSeed & Blanket
$5,750.00$575.0010.0012 ACRETurf Establishment
$1,000.00$2.00500.0013 LFConduit Crossings(Utility-4"PVC Supplied by Small Utilities)
$795.00$265.003.0014 EACHR1-1 Stop Sign
Page 1 of 26/22/2017 6:29:05 PM
To:Contact:Regenscheid Custom Homes Justin Moody
Trace Heights 2nd AdditionProject Name:Bid Number:17-079
Fax:Ramsey, MN 55303
Address:14000 Sunfish Lake Blvd.Phone:
Project Location:Bid Date:6/22/2017
Total PriceUnit PriceUnitItem DescriptionItem #Estimated Quantity
$1,060.00$265.004.0015 EACHType III Barricades
$1,300.00$325.004.0016 EACHStreet Sign
$644,689.50Total Bid Price:
Notes:
•Addenda Acknowledged: N/A.
•Price does not include: Site Surveying; Soil Testing; Building or Structure Demolition; Hidden or Buried Debris; Hazardous Materials Removal; Street
Sweeping; Dewatering; Import and/or Export of Dirt; Site Utilities other than those listed above; Bonds and Permits; Moving of Small Utilities; Any
Trench Borrow; SWPPP Management/Maintenance; Traffic Control; Silt Fence Removal;Any Erosion Control NOT Listed Above;
•Pricing is based on the engineer(s) plans dated: 6/9/17.
•Proposal is valid for a period of 30 days from date of proposal.
•This proposal assumes an average topsoil depth of 1.0 foot.
•Any delays due to incomplete surveying or improper surveying could result in additional charges.
•Price does not include lowering/moving small utilities. If there are utilities not properly represented on plans, price is subject to change.
•Retainage is NOT to exceed 5% without prior approval, and is to be released/reduced as our work is approved.
•**Owner/Developer agrees that NPDES Permit will be transferred back to Owner/Developer, as New Contractor, within 10 days
of completion of grading/storm sewer and site is stabilized, with either Erosion Blanket or Seed & Mulch.**
Payment Terms:
Net due upon receipt of billing. A 1.5% per month service charge will be assessed on unpaid balance.
ACCEPTED:
The above prices, specifications and conditions are satisfactory
and hereby accepted.
Buyer:
Signature:
Date of Acceptance:
CONFIRMED:
North Pine Aggregate, Inc.
Authorized Signature:
Estimator:JordanErickson
jordan@npainc.net
Page 2 of 26/22/2017 6:29:05 PM
E-1
EXHIBIT E
Development Plan Checklist
Development Plan Requirements
1. Lot and block numbers
2. Street Names
3. Storm sewer alignment with top and invert elevations. Also Flared ends with invert
elevations
4. Centerline Street elevations at 100 foot stations with high and low points
5. Centerline street percent grades
6. Cul-de-sac percent grade along curb
7. Building setback lines
8. Final Contours
9. All proposed driveway slopes
10. House pads with house style and elevations
11. Front and rear lot corner elevations
12. Spot elevations at the rear of the house pads if the drainage is to be directed around
the house pad to the front
13. Typical lot detail indicating where lot and house elevations are shown to.
14. Legend with type of house styles and grade difference for garage floor to walkouts or
lookouts.
15. Lot dimensions to the nearest foot
16. Typical street section
17. Drainage arrows at high points and major grade changes
18. Existing and proposed easements
19. Emergency overflows should be labeled and shown with spot elevations and
drainage arrows. Emergency overflows must be established for catch basins in the
street and in rear yards. Areas along rear lot lines which are below emergency
overflows elevations shall be designated as drainage easement on the final plat.
20. Wetland boundaries must be accurately shown
21. Development plan must be signed by a registered Land Surveyor or Engineer.
22. All trees within the subdivision that are to be preserved shall be fenced with a snow
fence at the drip line to prevent grading, compaction, or storage of equipment, debris
or materials. Staff shall inspect the fencing prior to grading. Cutting of trees between
April 15 and July 15 shall not be permitted. The Operator shall take other measures
deemed appropriate by the Sherburne County Forester to control oakwilt, such as,
but not limited to: debarking or destroying fallen diseased trees prior to April 15, not
leaving roots exposed and avoiding mechanical damage on remaining trees.
H-1
EXHIBIT F
Purposely left blank
I-1
EXHIBIT G
Consent of Mortgagee
First American Title Co
701 Xenia Avenue South, Ste 450
Golden Valley, MN 55416
September 05, 2017
Justin Moody
Regenscheid Custom Homes Inc
3420 152nd LN NW
Andover, MN 55304
Phone: (763)498-3241
Customer Reference: New Plat
If you have any questions, please contact your Title Officer at (763) 852-3800 or (800) 657-6597.
Order Number: 1468049
Title Officer: Cheryl Meyer
Phone: (218)722-1495
Owner:
Property: 11134 205th Avenue NW
Elk River, Minnesota
Attached please find the following item(s):
Commitment
Thank You for your confidence and support.
Customer First!
When providing documents to the company for recording, please send them to
First American Title Co at 701 Xenia Avenue South, Ste 450, Golden Valley, MN 55416
First American Title Insurance Company
ALTA 2006 Plain Language Commitment
(6-17-06)
File No. 1468049
COMMITMENT FOR TITLE INSURANCE
ISSUED BY
FIRST AMERICAN TITLE INSURANCE COMPANY
AGREEMENT TO ISSUE POLICY
We agree to issue policy to you according to the terms of the Commitment. When we show the policy amount
and your name as the proposed insured in Schedule A, this Commitment becomes effective as of the Commitment Date
shown in Schedule A.
If the Requirements shown in this Commitment have not been met within six months after the Commitment
Date, our obligation under this Commitment will end. Also, our obligation under this Commitment will end when the
Policy is issued and then our obligation to you will be under the Policy.
Our Obligation under this Commitment is limited by the following:
The Provisions in Schedule A.
The Requirements in Schedule B-I
The Exceptions in Schedule B-II
The Conditions on Page 3 of Jacket
This Commitment is not valid without SCHEDULE A and Sections I and II of SCHEDULE B.
IN WITNESS WHEREOF, First American Title Insurance Company has caused its corporate name and seal to be affixed
by its duly authorized officers and this Commitment will become valid when countersigned by a validating officer or
authorized signatory as of the Commitment Date shown on Schedule A.
ALTA 2006 Commitment Jacket
81000600035 (3/07)
COUNTERSIGNED BY:____________________________________
=
First American Title Insurance Company
=
Commitment Page 3
File No. 1468049
INFORMATION
The Title Insurance Commitment is a legal contract between you and the company. It is issued to show the basis on
which we will issue a Title Insurance Policy to you. The Policy will insure you against certain risks to the land title,
subject to the limitations shown in the Policy.
The Company will give you a sample of the Policy form, if you ask.
The Policy contains an arbitration clause. All Arbitrable matters when the Amount of Insurance is $2,000,000 or less
shall be arbitrated at the option of either the Company or you as the exclusive remedy of the parties. You may review
a copy of the arbitration rules at http://www.alta.org/.
The Commitment is based on the land titles as of the Commitment Date. Any changes in the land title or the
transaction may affect the Commitment and the Policy.
The Commitment is subject to its Requirements, Exceptions and Conditions.
THIS INFORMATION IS NOT PART OF THE TITLE INSURANCE COMMITMENT.
YOU SHOULD READ THE COMMITMENT VERY CAREFULLY.
TABLE OF CONTENTS
AGREEMENT TO ISSUE POLICY
SCHEDULE A
1. Commitment Date
2. Policies to be Issued, Amounts and Proposed Insureds
3. Interest in the Land and Owner
4. Description of the Land
SCHEDULE B-I – Requirements
SCHEDULE B-II – Exceptions
CONDITIONS
If you have any questions about the Commitment, please contact the issuing office.
First American Title Insurance Company
Commitment Page 4
File No. 1468049
CONDITIONS
1. DEFINITIONS
(a) "Mortgage" means mortgage, deed of trust or other security instrument. (b) "Public Records"
means title records that give constructive notice of matters affecting your title according to the
state statutes where your Land is located.
2. LATER DEFECTS
The Exceptions in Schedule B - Section II may be amended to show any defects, liens or
encumbrances that appear for the first time in the public records or are created or
attach between the Commitment Date and the date on which all of the Requirements (a) and (c)
of Schedule B - Section I are met. We shall have no liability to you because of this amendment.
3. EXISTING DEFECTS
If any defects, liens or encumbrances existing at Commitment Date are not shown in Schedule B,
we may amend Schedule B to show them. If we do amend Schedule B to show these defects,
liens or encumbrances, we shall be liable to you according to Paragraph 4 below unless you knew
of this information and did not tell us about it in writing.
4. LIMITATION OF OUR LIABILITY
Our only obligation is to issue to you the Policy referred to in this Commitment, when you have
met its Requirements. If we have any liability to you for any loss you incur because of an error in
this Commitment, our liability will be limited to your actual loss caused by your relying on this
Commitment when you acted in good faith to:
Comply with the Requirements shown in Schedule B - Section I
or
Eliminate with our written consent any Exceptions shown in Schedule B - Section II.
We shall not be liable for more than the Policy Amount shown in Schedule A of this Commitment
and our liability is subject to the terms of the Policy form to be issued to you.
5. CLAIMS MUST BE BASED ON THIS COMMITMENT
Any claim, whether or not based on negligence, which you may have against us concerning the
title to the Land must be based on this Commitment and is subject to its terms.
=
First American Title Insurance Company
=
Commitment Page 5
File No. 1468049
Commitment For Title Insurance
issued by
First American Title Insurance Company
First American Title Insurance Company
2006 ALTA Plain Language Commitment Schedule A Commitment Page 6
Commitment File No.: 1468049
SCHEDULE A
Name and Address of Title Insurance Company:
First American Title Insurance Company
1 First American Way
Santa Ana, CA 92707
1. Commitment Date: August 29, 2017 at 7:30 a.m.
2. Policy (or Policies) to be issued: Policy Amount
a. ALTA Owners Policy (06-17-06) $550,000.00
Proposed Insured:
Regenscheid Investments Incorporated
3. Fee Simple interest in the land described in this Commitment is owned, at the Commitment Date,
by: Robert G. Stuttgen Revocable Trust .
4. The Land referred to in this Commitment is described as follows:
Outlot A, Trace Heights, Sherburne County, Minnesota.
NOTE: This property is Abstract.
Property Address: 11134 205th Avenue NW
Elk River, Minnesota
First American Title Insurance Company
2006 ALTA Plain Language Commitment Schedule B Commitment Page 7
Commitment File No.: 1468049
SCHEDULE B - SECTION I
REQUIREMENTS
The following requirements must be met:
(A) Pay the agreed amounts for the interest in the Land and/or the Mortgage to be insured.
(B) Pay us the premiums, fees and charges for the policy.
(C) Documents satisfactory to us creating the interest in the Land and/or the Mortgage to be insured
must be signed, delivered and recorded.
(D) You must tell us in writing the name of anyone not referred to in this commitment who will get
an interest in the land or who will make a loan on the land. We may make additional
requirements or exceptions relating to the interest or the loan.
(E) Taxes due and payable in the year 2017 in the amount of $2,960.00 are half paid.
Base Tax: $2,960.00
Property Identification No.: 75-819-0010
Property is Non-Homestead (for taxes due and payable in the year 2017)
(F) There are no levied or pending assessments now a lien.
(G) Matters which a physical inspection of the land would disclose. The Company has ordered a plat
drawing and/or inspection and there may be further requirements prior to closing. If there are no
further requirements, this item will be automatically deleted (without an Endorsement being
issued).
(H) With respect to the conveyance to be made by Trustee, the Trust of Robert G. Stuttgen
Revocable Trust, to Regenscheid Investments Incorporated, a Minnesota corporation , obtain the
following for recording/filing:
a. Complete Trust Instrument, together with any Amendments thereto, containing an
unrestricted
Power of Sale,
OR
Certificate of Trust;
and
b. Affidavit of Trustee;
and
c. Trustee's Deed;
First American Title Insurance Company
2006 ALTA Plain Language Commitment Schedule B Commitment Page 8
Commitment File No.: 1468049
NOTE: Submit the above document(s) to the Company for examination and possibly
further requirements prior to closing.
(I) Certificate of Real Estate Value.
(J) Well Disclosure Certificate; or Deed which contains the following statement:
"The Seller certifies that the Seller does not know of any wells on the described real
property."
(K) This Commitment was prepared from the public records. No Abstract was furnished for
examination, and none will be provided to any party without additional charge.
(L) Provide this Company with a properly completed and executed Owner's Affidavit.
(M) The following is required from Regenscheid Investments Incorporated, a Minnesota corporation.
Upon receipt and review this company reserves the right to make further requirements:
a) Certificate of good standing issued by the Minnesota Secretary of State
b) Bylaws
c) Articles of Incorporation
d) Corporation resolutions from the Board of Directors authorizing the sale/loan/purchase of
subject property
(N) Company Affidavit by Purchaser and/or Mortgagor executed by Regenscheid Investments
Incorporated, a Minnesota corporation.
(O) If an Owner's Policy of title insurance is not ordered at the closing, Company's "Notice of
Availability of Owner's Title Insurance" form must be signed by the mortgagors.
(P) The Owner's Policy will be issued for the value of the vacant land only. If that land is to be
improved and if it is desired that the improved value be insured (for additional charges) the
Company must receive a written request to insure the improved value prior to closing. A pending
disbursement clause will then be added as an Exception in the Owner's Policy.
(Q) The "gap period" will be insured, if this transaction is closed by First American Title Insurance
Company or it affiliates. The gap refers to the gap from the effective date of this commitment to
the closing date and the gap from the closing date to the recording date of the instrument to be
insured.
(R) This Commitment is for the exclusive use of this Company and its affiliates in closing the
transaction described herein. Anyone else closing off this Commitment shall be liable to this
Company for all loss and damage, including payment of all charges shown on the Preliminary
Invoice attached hereto.
First American Title Insurance Company
2006 ALTA Plain Language Commitment Schedule B Commitment Page 9
Commitment File No.: 1468049
SCHEDULE B - SECTION II (CONTINUED)
EXCEPTIONS FROM COVERAGE
Any policy we issue will have the following exceptions unless they are taken care of to our satisfaction.
1. Owner's Covered Risk No. 2(c), which reads as follows, is hereby deleted: (c) Any
encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that
would be disclosed by an accurate and complete land survey of the Land. The term
"encroachment" includes encroachments of existing improvements located on the Land onto
adjoining land, and encroachments onto the Land of existing improvements located on adjoining
land.
2. Owner's Covered Risk No. 10, which reads as follows, is hereby deleted: Any defect in or lien or
encumbrance on the Title or other matter included in Covered Risks 1 through 9 that has been
created or attached or has been filed or recorded in the Public Records subsequent to Date of
Policy and prior to the recording of the deed or other instrument of transfer in the Public Records
that vests Title as shown in Schedule A.
3. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in
the public records or attaching subsequent to the Effective Date but prior to the date the
proposed Insured acquires for value of record the estate or interest or mortgage thereon covered
by this Commitment.
4. Any encroachment, measurement, party walls, or other facts which a correct survey of the
premises would show.
5. Rights or claims of parties in possession not shown by the public records.
6. Easements, or claims of easements, not shown by the Public Records.
7. Any lien, or right to lien, for services, labor, or material heretofore or hereafter furnished,
imposed by law and not shown by the Public Records.
8. All assessments and taxes due and payable in 2017, and thereafter.
9. No coverage is provided for municipal code compliance matters and fees, including, but not
limited to, utilities, water, or sewer services, or fees for tree, weed, grass and snow or garbage
removal, police boarding, vacant building registration and zoning.
10. Any and all connection, hook-up, nuisance, and/or condemnation charges.
11. Tenancy rights, either as month to month, or by virtue of written leases of persons in possession
of any part of the subject property.
12. Right of the County of Sherburne to limit access to C.S.A.H. No. 33 as shown on the Plat of Trace
Heights.
13. An easement for transmission line purposes to The Rural Cooperative Power Association in the
document recorded February 28, 1953 as 79570 in Book Q of Misc., page 489 of Official Records.
First American Title Insurance Company
Above is amended by Doc. No. 115192.
First American Title Insurance Company
2006 ALTA Plain Language Commitment Schedule B Commitment Page 11
Commitment File No.: 1468049
14. An easement for pipeline purposes to Northern Natural Gas Company in the document
recorded September 14, 1982 as Doc. No. 171424 of Official Records.
15. An easement for access purposes to Northern Natural Gas Company in the document
recorded May 8, 2000 as Doc. No. 412457 of Official Records.
16. An easement for regulating and measuring station purposes to Northern Natural Gas Company in
the document recorded May 8, 2000 as Doc. No. 412458 of Official Records.
17. Water rights, claims or title to water, whether or not shown by the public records.
18. Rights of the United States of America and/or the State of Minnesota , the county, the
municipality, and the public, in and to that part of the land which may be within wetlands .
19. Any interest outstanding of record in and to all the oil, gas and other minerals in and under and
that may be produced from said premises, together with all rights incident to or growing out of
said outstanding minerals, including but not limited to outstanding oil and gas leases and
easements.
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First American Title Insurance Company
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Commitment Page 12
Commitment File No.: 1468049
Privacy Information
We Are Committed to Safeguarding Customer Information
In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such
information - particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our
subsidiaries we have adopted this Privacy Policy to govern the use and handling of your personal information.
Applicability
This Privacy Policy governs our use of the information that you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as
information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source.
First American calls these guidelines its Fair Information Values.
Types of Information
Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: • Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; • Information about your transactions with us, our affiliated companies, or others; and • Information we receive from a consumer reporting agency.
Use of Information
We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties
except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period
after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of
nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty
insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies and escrow companies. Furthermore,
we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies or to other financial
institutions with whom we or our affiliated companies have joint marketing agreements.
Former Customers
Even if you are no longer our customer, our Privacy Policy will continue to apply to you.
Confidentiality and Security
We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and
entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be
handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values. We currently maintain physical, electronic, and procedural safeguards that comply with
federal regulations to guard your nonpublic personal information.
Information Obtained Through Our Web Site
First American Financial Corporation is sensitive to privacy issues on the Internet. We believe it is important you know how we treat the information about you we receive on the Internet.
In general, you can visit First American or its affiliates’ Web sites on the World Wide Web without telling us who you are or revealing any information about yourself. Our Web servers collect the
domain names, not the e-mail addresses, of visitors. This information is aggregated to measure the number of visits, average time spent on the site, pages viewed and similar information. First
American uses this information to measure the use of our site and to develop ideas to improve the content of our site.
There are times, however, when we may need information from you, such as your name and email address. When information is needed, we will use our best efforts to let you know at the time of
collection how we will use the personal information. Usually, the personal information we collect is used only by us to respond to your inquiry, process an order or allow you to access specific
account/profile information. If you choose to share any personal information with us, we will only use it in accordance with the policies outlined above.
Business Relationships
First American Financial Corporation's site and its affiliates' sites may contain links to other Web sites. While we try to link only to sites that share our high standards and respect for privacy, we are
not responsible for the content or the privacy practices employed by other sites.
Cookies
Some of First American's Web sites may make use of "cookie" technology to measure site activity and to customize information to your personal tastes. A cookie is an element of data that a Web site
can send to your browser, which may then store the cookie on your hard drive.
FirstAm.com uses stored cookies. The goal of this technology is to better serve you when visiting our site, save you time when you are here and to provide you with a more meaningful and
productive Web site experience.
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Fair Information Values
Fairness We consider consumer expectations about their privacy in all our businesses. We only offer products and services that assure a favorable balance between consumer benefits and consumer
privacy.
Public Record We believe that an open public record creates significant value for society, enhances consumer choice and creates consumer opportunity. We actively support an open public record
and emphasize its importance and contribution to our economy.
Use We believe we should behave responsibly when we use information about a consumer in our business. We will obey the laws governing the collection, use and dissemination of data.
Accuracy We will take reasonable steps to help assure the accuracy of the data we collect, use and disseminate. Where possible, we will take reasonable steps to correct inaccurate information.
When, as with the public record, we cannot correct inaccurate information, we will take all reasonable steps to assist consumers in identifying the source of the erroneous data so that the consumer
can secure the required corrections.
Education We endeavor to educate the users of our products and services, our employees and others in our industry about the importance of consumer privacy. We will instruct our employees on
our fair information values and on the responsible collection and use of data. We will encourage others in our industry to collect and use information in a responsible manner.
Security We will maintain appropriate facilities and systems to protect against unauthorized access to and corruption of the data we maintain.
Form 50-PRIVACY (9/1/10) Page 1 of 1 Privacy Information (2001-2010 First American Financial Corporation)
J-1
EXHIBIT H
Summary of Payments Due
$64,468.95 City Fees escrow deposit Section 9 (01)
$18,000.00 Grading/ Erosion Control/As built escrow Section 9 (05)
$2,088.00 Surface Water Management Fee Section 9 (07)
$84,556.95 Total