3.6. SR 08-04-2008REQUEST FOR ACTION
To Item Number
Ci Council 3.6.
Agenda Section Meeting Date Prepared by
Consent Au ust 4, 2008 erem Barnhart, Plannin Mana er
Item Description Reviewed by
Development Agreement for Renner 4th Addition
Reviewed by
Action Requested
Council approval of the attached development agreement fox Renner 4~' Addition.
Background/Discussion
The City Council approved the final plat for Renner 4th Addition on June 16th, 2008. Since then, staff and
the City Attorney have been working on a development agreement to clearly define the construction and
payment parameters associated with the development, including the street construction.
The attached agreement has been reviewed by the City Attorney and the developer.
Financial Impact
N/A
Attachments
^ Development Agreement
Action Motion by Second by Vote
Follow Up
S:\Council\Plannuig\Renner 4th DA.doc
Development Agreement
RENNER 4TH ADDITION
Final Plat approved by the Elk River City Council
June 16, 2008
Development Agreement
August 4, 2008
Developer Agreement
Renner 4"' Addition
Page 2
Table of Contents
1. Warranty of Developer
2. Improvements
3. Installation of Improvements
4. City Installed Improvements
5. Required Prepayement of Assessments
6. Default
7. Park Dedication
8. Security for Developers Performance
9. Additional Conditions
10. Issuance of Building and Occupanry Permits
11. General Provisions
Exhibit A Legal Description
Exhibit B Resolution of approval
Exhibit C Development Plan Checklist
Exhibit D Cost Estimate Form
Exhibit E Consent of Mortgage.
Exhibit F Summary of Payments Due
Exhibit G Terry Maurer memos dated May 20, 2008
Exhibit H Rebecca Haug memos dated May 19, 2008
Exhibit I Reduced copy of Final Plat
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DEVELOPER AGREEMENT
FOR
RENNER 4TH ADDITION
THIS AGREEMENT, made and entered into this 4~ day of August, 2008, by and between
the CITY OF ELK RIVER, a municipal corporation organized under the laws of the State of
Minnesota (the City), and Renner Land Development, LLC., (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. 08 - 42 on June 16, 2008, (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_,) Warrani_y of Developer -Developer hereby warrants and represents to the City, as inducement
to the City's entering into this Agreement, that Developer is the owner of certain real property
"THE PROPERTY" legally described in EXHIBIT B attached hereto consisting of 21.20 acres of
unimproved land located in the City of Elk River, Sherburne County, Minnesota. The Developer
intends to improve and develop The Property for Light Industrial use "THE DEVELOPMENT",
or "THE. PROJECT" OR "THE SUBDIVISION". A reduced copy of the proposed final plat
is attached as EXHIBIT C.
2.) 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 (Site
Grading);
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(02) Streets, as required by the City, including grading, graveling and stabilizing,
constructing 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) Storm sewers, as required by the City, including all necessary catch basin, ditches,
inlets, retention areas and other appurtenances (Storm Sewer Improvements) ;
(04) Temporary and permanent erosion and sediment control measures as required by
the approved Storm Water Pollution Prevention Plan (SWPPP Improvements).
(05) 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.
(06) Mailboxes, in a style and location approved by the City of Elk River, shall be
provided prior to occupancy of any unit.
3.) 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 the extension of water; 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; and/or Army Corps of Engineers permits for
construction of sedimentation ponds.
4.) Installation of Improvements -The following 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 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 subject to review, approval,
inspection and authorization by the City and/or its consulting engineer, 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. 08-42 and to do so on or before December 31, 2009.
(03) Approval of Contractor -The City reserves the right to approve any contractor
selected by the Developer.
(04) Construction Plans -The construction, installation, materials and equipment shall
be in accordance with plans and specifications 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.
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(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 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.
(06) Ci 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. Such compensation shall be due and
payable to the City within thirty (30) days following the receipt of a statement therefore. To
assist in the timely payment of these costs and expenses, the Developer shall escrow funds
in the amount of Ten (10) percent of the estimated costs of the Improvements to be applied
to the City's costs and expenses.
(07) 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.
(08) Insurance -Developer shall cause each contractor engaged in the construction and
installation of any Improvement to furnish the City with evidence acceptable to the Ciry
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.
(09) 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 fox the installation and construction of all such
Improvements, at no expense to the City. Developer hereby guarantees the workmanship
and materials respecting such Improvements for a period of one (1) year 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 one (1) year period even though notice thereof be
given by the City after said one (1) year period.
(10) 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
Ciry.
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5.) City Installed Improvements
(01) The Subdivision will have no City installed Improvements.
6.) Required Prepavment of Assessments
(01) There are no assessments levied against the subdivision.
7.) General Provisions
(01) 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.
(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 7:00 AM unti18:00 PM
Saturday 8:00 AM unti15:00 PM
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 November 1 or
prior to May 15 unless approved by the City Engineer.
(06) Snowplowing -Until the Improvements are accepted by the City or the first lift of
blacktop is installed, 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) Histo 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.
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8.) Park Dedication -Park dedication requirements shall be satisfied by paying a park dedication
fee in the amount of $28,605.60, ($2,320 per acre for 12.33 acres in the Subdivision) prior to release
of the final plat for recording.
9.) Development Plan -
Purposefully Left Blank
10.) Landscaping
Purposefully Left Blank
11.) Wetlands/ NPDES
(01) National Pollutant Discharge Elimination System Requirements -Prior to the
commencement of grading 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 Agenry.
12.) Additional Conditions -Developer specifically agrees to the conditions attached as Exhibit A
to City Council Resolution No. 08 - 42, which conditions are hereby specifically incorporated into
this Agreement and made a part hereof. Developer also agrees to the following conditions:
(01) The development shall meet all applicable fire codes. The Fire Chief shall verify
the location of all fire hydrants, and may require additional hydrants necessary to preserve
the health and safety.
(02) Surface Water Management Fee -Developer shall pay surface water management
fees in the amount of Thirteen Thousand, three Hundred Sixteen and 40/100 dollars
($13,316.40), ($1,080 per acre) for each lot in the Subdivision prior to release of the final plat
for recording.
(03) Seal coating -Developer shall pay the City for the first seal coating of streets in the
Subdivision in the amount of Seven Thousand Five Hundred and 00/100 Dollars ($7,500)
prior to recording of the final plat.
(04) Engineer Comments. The Public Works Director's comments, dated May 20, 2008
be incorporated into the plans, attached as Exhibit G.
(05) Environmental Comments. All comments contained in Environmental
Technicians memo dated May, 19, 2008 shall be addressed, attached as Exhibit H.
(06) An association shall be established for the shared well system, identifying and sharing
maintenance and use costs.
(07) Approved Street Signage plan shall be submitted prior to Final Plat application.
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(08) All required subdivision/park information shall be provided in an electronic format
(.dwg file) as required by the City Ordinance and Land Use Application prior to recording of
the plat.
(09) This approval of the Preliminary Plat shall expire after 1 year, unless the property owner
or owners agent has submitted a Final Plat or letter of request for extension.
(10) In addition to the easements shown on the preliminary plat, the following easements
shall be provided:
A. Temporary cul-de-sac
B. Utility easements for the shared well
13.) Securityfor Developer's Performance -
(01) 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 Three Hundred Thousand and 00/100 Dollars ($300,00.00),. 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 and
maintain erosion control devices, and to make payment of any amounts due hereunder.
(02) 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 One Hundred Thousand and no
00/100 Dollars ($100,000), until all Improvements pursuant to this
Agreement have been completed in full, accepted and all other obligations
of Developer under this Agreement have been fulfilled, and to fulfill the
requirements of the Wetland Mitigation, if applicable.
(03) 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
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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
14.) Default
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.
15.) Issuance of Building and OccuQancy 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 and streets are paved with the
first lift of pavement.
(02) Occupancy Permits -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 (first lift of paving only) are completed, approved by the City Engineer and
accepted by the City.
16.) Miscellaneous
(01) Final Plat Apbroval -The City's final approval of the Subdivision plat is hereby
made conditional upon the execution and delivery of this Agreement and the City's receipt
of all petitions, security and other items specified herein.
(02) 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 lirnited construction activities.
(03) 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.
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(04) 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.
17.) 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: Ciry of Elk River
Attn: City Administrator
13065 Orono Parkway
Elk River, Minnesota 55330
If to the Developer at: Renner Land Development, LLC
Attn: Raymond Renner
15688 Jarvis Street NE
Elk River, MN 55330
Dennis L Sharp
10907 93Td Avenue North
Osseo, MN 55369
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:
By:
Stephanie Klinzing
Its: Mayor
By:
Tina Allard
Its: Ciry Clerk
DEVELOPER:
Raymond Renner
Its: Secretary
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STATE OF MINNESOTA
COUNTY OF SHERBURNE
ss.
The foregoing instrument was acknowledged before me this
day of , 2008, by Stephanie Klinzing and Tina Allard, the Mayor and City Clerk,
respectively, for the City of Elk River, Minnesota.
Notary Public
STATE OF MINNESOTA
COUNTY OF SHERBURNE
ss.
The foregoing instrument was acknowledged before me this
day of , 2008, by Raymond Renner
Notary Public
This instrument was drafted by:
The City of Elk River
13065 Orono Parkway
Elk River, MN 55330
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EXHIBIT A
Resolution 08-42
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EXHIBIT B
LEGAL DESCRIPTION
Legal description of the subject property is Outlot A and Lot 1, Block 1 RENNER
THIRD ADDITION, subject to roadway easements, Sherburne County, Minnesota.
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EXHIBIT C
Final Plat
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EXHIBIT D
Cost Estimate Form
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EXHIBIT E
Left Blank
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EXHIBIT F
Left Blank
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EXHIBIT G
Public Works Comments
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EXHIBIT H
EnviYOnmental Technician Comments
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EXHIBIT I
Consent of Mortgagee
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EXHIBIT J
Summary of Payments Due
$30,000 .00 City Fees escrow deposit Section 4.06
$28,605.60 Park Dedication Section 8
$13,316.40 Surface Water Management fee Section 12.02
X7,500 00 Seal coating Section 12.03
$ 79,422.00 Total
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