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ITEM 3.5 Boulder Creek 2nd AdditionOtsezoMINNESOTA V DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT: Planning REQUESTOR: City Planner Licht MEETING DATE: 25 April 2016 PRESENTER(s): REVIEWED BY: ITEM #: Consent City Administrator Johnson 3.5 — Boulder Creek 2nd Add. City Attorney MacArthur City Engineer Wagner AGENDA ITEM DETAILS RECOMMENDATION: City staff recommends approval of the Boulder Creek 2nd Addition Final Plat and development agreement. ARE YOU SEEKING APPROVAL OF A CONTRACT? I IS A PUBLIC HEARING REQUIRED? Yes. I No. BACKGROUND/JUSTIFICATION: Mattamy Homes received final plat approval of 78 single family lots to be known as Boulder Creek 2nd Addition on 25 April 2016. The developer is requesting revision of the development agreement to allow them to construct street and utility improvements in two phases based on their current supply of single family lots. The first phase would consist of 53 single family lots to be completed by 31 December 2016 and the second phase would be 25 single family lots to be completed by 31 December 2018. The proposed phased construction does not change the fees or securities to be provided by the developer in executing the revised development agreement for final platting 75 lots. Park and trail dedication requirements for the Boulder Creek preliminary plat are to be met as a combination of land dedication, park and trail improvements, and cash fee in lieu of land. Outlots A, C, and D are to be deeded to the City with this final plat. Additional land to be dedicated to the City will occur with later phases ultimately meeting 57.9 percent of the required park and trail dedication requirement. The cash portion of the park and trail dedication requirement will be met as a percentage of the current fee of $3,400/lot for Boulder Creek 2"d Addition. The developer has proposed completing improvements for the Lefebvre Creek greenway within the plat and the City owned parcel to the west abutting 75th Street. However, plans have not been submitted for review by City staff and the Parks and Recreation Commission or approval of the City Council. As such, City staff recommends adding $261,109.00 to the required letter of credit for the park and trail dedication fees due for both the Boulder Creek and Boulder Creek 2"d Addition final plats. The developer has submitted grading and drainage plans for the area of the proposed final plat and has initiated work under a separate grading agreement and provision of security. The developer is required to pay a Stormwater Impact Charge for Lefebvre Creek of $2,180 per gross acre at the time of final plat approval, which is included in the development agreement. The developer is also proposing to undertake grading and stormwater improvements to Lefebvre Creek in accordance with the Watershed Management Plan. Costs incurred for these improvements, which are subject to review and approval of the City Engineer, are to be credited against the Stormwater Impact Charge for the final plat (and future additions) as outlined in the revised development agreement. SUPPORTING DOCUMENTS: ❑ ATTACHED ❑ NONE A. Site Location B. Resolution 2016-63 approving the revised Development Agreement C. Development Agreement POSSIBLE MOTION Please word motion as you would like it to appear in the minutes. Motion to adopt Resolution 2016-63 approving a revised Development Agreement for Boulder Creek 2"d Addition. BUDGET INFORMATION FUNDING: I BUDGETED: ❑ YES NA ACTION TAKEN ❑ NO ❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes) COMMENTS: 60_4dde41-eek �) Carlson -OTSEGO Mcca,n DEVELOPMENT AGREEMENT BOULDER CREEK 2ND ADDITION AGREEMENT entered into this day of July, 2016 between the City of Otsego ("City"), a municipal corporation organized under the laws of the State of Minnesota, and Mattamy Minneapolis, LLC, a limited liability company under the laws of the State of Delaware ("Developer"). 1. Request for Plat Approval. The Developer has requested that the City approve that plat entitled BOULDER CREEK 2ND ADDITION. The legal description of the property covered by this Agreement is as follows: OUTLOT E and OUTLOT F, BOULDER CREEK, according to the Plat on file and of record at the Office of the County Recorder, Wright County, Minnesota, The Plat contains seventy eight (78) single family residential lots. The plat is located within the City's East Sewer District, is zoned R-5, Single and Two Family Residential District as approved by Ordinance adopted by the City Council on July 14, 2014. The Final Plat for BOULDER CREEK was approved by the City Council on September 22, 2014. 2. Conditions of Plat Approval. The City hereby approves the Plat on condition that the Developer enter into this Agreement, furnish the security required by it, and record the Agreement with the Wright County Recorder or Registrar of Titles within one hundred (100) days after the City Council approves the Agreement. The Developer shall cooperate with the City in recording the Agreement and all required additional deeds and documents and providing assurance that the Agreement and all required documents have been properly and timely recorded. 1 3. Right to Proceed. Within the Plat, the Developer may not grade or otherwise disturb the earth, remove trees, construct sewer lines, storm sewers, water lines, streets, utilities, public or private improvements, or any buildings or structures until all the following conditions have been satisfied: 1) this Agreement has been fully executed by both parties and filed with the City Clerk, and all conditions contained in the Agreement have been met, 2) the necessary security has been received by the City, 3) this Agreement has been recorded with the Wright County Recorder's Office, 4) The Developer has initiated and attended a pre -construction meeting with the City Engineer, and 5) the Zoning Administrator has issued a letter that all conditions have been satisfied and that the Developer may proceed; or until such time as approval to commence earlier construction is specifically approved by the City, and Developer has fully complied with all conditions set forth by City staff. 4. Sanitary Sewer Service Allocation. The allocation of sanitary sewer service to the seventy eight (78) lots within the Plat does not occur until all required security has been posted. 5. Changes in Official Controls. BOULDER CREEK 2ND ADDITION is a planned and staged development within the meaning of Minn. Stat. 462.358, Subd. 3c, and no amendment to the City's Comprehensive Plan or other Official Controls shall apply to or affect the use, development density, lot size, lot layout, or platting requirements for BOULDER CREEK 2ND ADDITION for a period of five (5) years. 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, other Official Controls enacted after the date of this Agreement. This provision does not apply to regulations or Official Controls related to park and trail dedication or any fee established by the City chargeable to the Developer for municipal costs arising from said future phases. 6. Development Plans. The Plat shall be developed in accordance with the plans on file at the office of the City Clerk and the conditions stated below. If the plans vary from the written terms of this Agreement, the written terms shall control. The plans are: Plan A Final Plat, BOULDER CREEK 2ND ADDITION prepared by Carlson McCain. Plan B Grading, Drainage, and Erosion Control Plan prepared by Carlson McCain and as finally approved by the City Engineer. Plan C Sanitary Sewer, Water Main, Storm Sewer and Streets Plans for BOULDER CREEK 2ND ADDITION, as prepared by Carlson McCain and as finally approved by the City Engineer. 2 Plan D Landscape Plan for BOULDER CREEK 2ND ADDITION, prepared by Carlson McCain, and as finally approved by the City Zoning Administrator. 7. Improvements. The Developer shall install and/or pay for the following: A. Streets B. Street lights C. Site grading and ponding D. Underground installation of all utilities E. Sanitary sewer lines F. Water lines G. Storm water management improvements H. Setting of lot and block monuments I. Construction surveying and staking J. Traffic control signs Improvements shall be installed in accordance with City standards, the City Code, and the above -referenced plans that have been furnished to the City and approved by the City Engineer. The Developer shall obtain all necessary permits before proceeding with construction. The City shall provide adequate field inspection personnel to assure acceptable quality control, which will allow certification of the construction work. The City may, when reasonably required to do so by the City Engineer, and at the Developer's expense, have one (1) or more City inspectors and a qualified engineer inspect the work. Within thirty (30) days after the completion of the improvements and before all retained security is released, the Developer shall supply the City with a complete set of reproducible "as constructed" and an electronic file of the "as constructed" plans in AutoCAD.DWG file or a .DXF file, all prepared in accordance with City standards. Before the security for the completion of utilities is fully released, iron monuments shall be installed in accordance with Minnesota Statutes 505.02. The Developer's surveyor shall submit a written notice to the City certifying that the monuments are installed following site grading, utility and street construction. 8. Contractors/Subcontractors. City Council members, City employees, and City Planning Commission members, and corporations, partnerships and other entities in which such individuals have greater than a twenty five percent (25%) ownership interest or in which they are an officer or director may not act as contractors or subcontractors for the public improvements identified in Paragraph 7 above. 9. Permits. The Developer shall obtain or require its contractors and subcontractors to obtain all necessary permits, which may include, but are not limited to: A. Wright County for County Road access and work in County right of way. 3 B. MNDOT for State Highway Access C. MNDOT for work in right of way D. Minnesota Department of Health for watermains E. MPCA NPDES Permit for construction activity F. MPCA for sanitary sewer and hazardous material removal and disposal G. DNR for dewatering H. City of Otsego for building permits I. City of Otsego for sanitary sewer connections J. City of Otsego for retaining walls 10. 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 be strictly followed. 11. Time of Performance. The Developer shall install all listed improvements within the area outlined in red on attached Exhibit A by December 31, 2016, with the exception of the final wear course of asphalt on streets and landscaping. The final wear course on streets shall be installed between August 15th and October 15 the first summer after the base layer of asphalt has been in place one freeze thaw cycle. The Developer may request an extension of time from the City to be submitted in writing to the City Clerk, for which said extension shall be conditioned upon updating the security posted by Developer to reflect cost increases and the extended completion date. Final wear course placement outside of the above time frame must have the written approval of the City Engineer. The City may impose additional conditions on the extension necessary to ensure performance. The Developer shall install all listed improvements within the area outlined in blue on attached Exhibit A by December 31, 2018, with the exception of final wear course of asphalt on streets and landscaping. The final wear course on streets shall be installed between August 15th and October 15th the first summer after the base layer of asphalt has been in place one freeze thaw cycle. 12. Right of Entry. The Developer hereby grants to the City, its agents, employees, officers and contractors an irrevocable right of entry to enter the Plat to perform any and all work and inspections necessary or deemed appropriate by the City during the installation of improvements by Developer or the City, or to make any necessary corrective actions necessary by the City. Except in emergency situations, as defined by the City, the City shall give the developer thirty (30) business days notice stating the deficiencies and necessary corrections prior to making any corrective action. Said right of entry shall 4 continue until the City finally accepts the improvements and any applicable warranty period has expired. 13. Erosion Control. Prior to initiating site grading, and before any utility construction is commenced or further building permits are issued, the erosion control plan, Plan B, shall be implemented by the Developer and inspected and approved by the City. If the City Engineer determines that it would be unreasonable to require full implementation of the erosion control plan prior to utility construction or issuance of certain building permits, he shall state in writing what construction can take place and what particular building permits can be issued prior to full implementation. The City may impose additional erosion control requirements if, in the reasonable opinion of the City Engineer, they would be beneficial. All areas disturbed by the excavation and backfilling operations shall be reseeded forthwith after the completion of the work in that area. If the Developer does not comply with the erosion control plan and schedule or any supplementary instructions, the City may, with reasonable notice and opportunity to cure, take action as it deems appropriate. 14. Grading Plan. Plat grading shall be in accordance with the approved grading plan, Plan B. The plan shall conform to City specifications and the City Code. Ponds, swales, and ditches shall be constructed on public easements or land owned by the City. Within thirty (30) days after completion of grading and before any retained security is fully released, the Developer shall provide the City with an "as built" grading plan including certification by a registered land surveyor or qualified engineer that all ponds, swales, and ditches have been constructed on public easements or land owned by the City. "As built" plans shall include field verified elevations of the following: A. Cross sections of ponds B. Location and elevations of swales and ditches C. Lot corners and house pads Occupancy pert -nits shall not be issued by the Building Official until the grading and drainage plan is certified as set forth above. 15. Clean Up. The Developer shall promptly clean any and all dirt and debris from streets and construction sites in accordance with the City Code resulting from construction work by the Developer, its agents or assigns. 16. Ownership of Improvements. Upon acceptance by the City Council of the work and construction required by this Agreement, improvements lying within public easements and public right-of-way shall become City property without further notice or action. 17. Streets. The Developer agrees to maintain the streets in the Plat until the base course bituminous surfacing has been accepted by the City. Should the City be W1 required to grade the street prior to paving, the cost of such grading shall be paid by the Developer and drawn from the Developer's letter of credit. Should snow plowing be necessary prior to street paving, the Developer shall be responsible for such plowing as may be required by the Streets Supervisor. If, upon the Developer's request, the City agrees to plow the street prior to acceptance, such work will be done upon agreement that the Developer will hold harmless and indemnify the City from any and all liability claims related to such work and pay all costs associated with that work. Any plowing undertaken by the City will constitute no acceptance or evidence of acceptance of the street(s) in question. Upon final completion of streets and acceptance by the City as a City street rather than a private drive, the Developer shall guarantee to the City for a period of two (2) years that the streets have been constructed to City standards. The warranty period shall not commence until such time as street construction is completed and the streets are accepted as City streets by the City. The two (2) year warranty set forth above commences upon the date on which the City accepts the streets by resolution. 18. Sewage Treatment. No occupancy permit for any building within the Plat will be issued by the City unless the Building Official has inspected both the sewer and water connections to the building and has certified that they have been constructed satisfactorily in accordance with City specifications and the City Code. 19. Administrative Fee. A fee for City Administration of this project is one percent (1 %) of estimated construction costs of the public improvements, or $13,232.00. 20. Sewer Availability Charges. The Sewer Availability Charges for the Plat due upon Final Plat approval is as follows; 78 lots at $2,310.00 per REC = $180,180.00. 21. Sewer Connection Fees. Sanitary sewer connection fees are paid at the time of issuance of a building permit. The applicable amount due per unit shall be the fee per REC unit in place at the time of application for a building permit. 22. Water Availability Charges. The Water Availability Charges for the Plat due upon Final Plat approval is as follows. 78 lots at $1,613.00 per REC = $125,814.00. 23. Water Connection Fees. Water connection fees are paid at the time of issuance of a building permit. The applicable amount due per unit shall be the fee per REC unit in place at the time of application for a building permit. 24. Park and Trail Dedication. A portion of the Park and Trail Dedication obligation will be met by dedication of land, Outlots A, C and D in this Final Plat and additional land included in future phases which are to be deeded to City. The remainder of the requirement is cash as follows; 78 lots x $3,400.00 per lot x 42.1% = $111,649.00. This amount and $149,460.00 of Park and Trail Dedication deferred from Boulder Creek 1st Addition shall be included in the Security (Letter of Credit) in Section 30 of this Agreement. This total amount of $261,109.00 may be reduced pending City Council on approval of proposed Developer installed improvements within the Plat or abutting City parcels and City right of way, and actual completion of that work if approved. 25. Storm Water Management Fee. Developer shall pay a Stormwater Charge for LeFebvre Creels as follows: 50 acres x $2,180.00 per gross acre = $109,000.00. Developer is undertaking certain work related to Storm Water Management in conjunction with construction of this development including installation of Trunk Culverts ($64,696.00) and Ditch Cleaning ($63,000.00) totaling $127,696.00, and resulting in a credit of $18,696.00. This credit will be applied against Storm Water Management Fees for Boulder Creek 31d Addition. 26. Transportation Infrastructure Cost. The collector street access fee for this Plat is as follows: 78 lots x 1,460.00 per lot = $113,880.00. 27. Street and Traffic Control Signs. Before the City signs the final plat, the Developer shall pay to the City $5,750.00 for installation of traffic control signs (stop signs, street signs, dead-end signs). The said amount was calculated as follows: twenty three (23) signs at $250.00 per sign. Using these funds, the City shall purchase and install the street and traffic control signs. 28. Street Light Construction. The Developer shall pay for the operation and maintenance of the street lights for a period of two (2) years. In order to facilitate payment for operation and maintenance of street lights, the Developer shall submit a fee to be included within the escrow and fees established in Paragraph 27 of this Agreement calculated as follows: 7 lights x $2,000.00 per light for a total payment of $14,000.00. The operation and maintenance of the street lights by the City shall not commence until such time as the street lights are actually constructed. Street lighting shall conform to adopted City Code. 29. City Engineering Administration and Construction Observation, Legal Fees Escrow and City Fees. The Developer shall pay a fee for consulting engineering administration following approval of the Plat. City engineering administration will include consultation with Developer and its engineer on status or problems regarding the project, monitoring during the warranty period, general administration and processing of requests for reduction in security. Fees for this service shall be the actual amount billed for those services, which are estimated to be three percent (3%) of the estimated construction cost of the Plan C Improvements to be inspected, assuming nonnal construction and project scheduling. The Developer shall pay for construction observation performed by the City Engineer. Construction observation shall include part or full time observation, as determined by the City Engineer, of proposed street, sanitary sewer, water and storm drainage construction and will be billed on hourly rates actually required for said inspection, which are estimated to be five percent (5%) of the estimated construction cost of the Plan C Improvements to be inspected. In the event of prolonged construction or unusual problems, the City will notify the Developer of anticipated cost overruns for engineering administration and observation services. Any amounts for engineering administration not utilized from this escrow fund shall be returned to the Developer when all improvements have been completed, all financial obligations to the City satisfied, and the required "as constructed" plans have been received by the City. All City fees and costs billed to Developer pursuant to this Agreement shall be billed at City's customary rates therefor. The escrow and fee account shall also include estimated fees for Legal expenses actually incurred (with any excess funds, if any, returned to Developer as indicated further in this Paragraph 29), City Administrative Fee (a flat fee due upon execution of this Agreement), Trunk Water and Sewer Access Fees (a flat fee due upon execution of this Agreement), Transportation Infrastructure Costs (a flat fee due upon execution of this Agreement), Park and Trail Dedication Fees (a flat fee due upon execution of this Agreement), Street Light Maintenance and Operation Fee (a flat fee due upon execution of this Agreement) and shall be established as follows: Engineering Services Escrow 8% of $ $1,323,185.00 $105,855.00 Legal Services Escrow 1 % of $1,323,185.00 $13,232.00 City Administration Fee 1 % of $1,323,185.00 $13,232.00 Street Signs 23 at $250.00 per sign $5,750.00 Street Lights 7 at $2,000.00 per light $14,000.00 Sewer Availability Charge 78 lots at $2,310.00 per REC $180,180.00 Water Availability Charge 78 lots at $1,613.00 per REC $125,814.00 Stormwater Impact Charge 50 acres x $2,180 per gross acre reduced by the estimated cost of work to be completed resulting in a $18,696 credit $00.00 Transportation Charge 78 units at $1,460.00 per unit $113,880.00 Park and Trail Dedication Fee 78 lots x $3,400/lot x 42.1%- deferred as a potential credit $00.00 GIS Data Entry Fee 50 acres x $100 per acre $5,000.00 Wetland Delineation Review 1 Review x $2,00.00 per review $2,000.00 TOTAL $578,943.00 This escrow amount shall be submitted to the City prior to the City executing this Agreement. All administrative and legal fees related to plan review, drafting of this Agreement and any other necessary items shall be paid to the City prior to execution of this Agreement. Any amounts for legal and engineering not utilized from this escrow fund shall be returned to the Developer when all improvements have been completed, all financial obligations to the City satisfied, and the required "as constructed" plans have been received by the City. All other amounts listed as flat fees are non-refundable and available immediately for City use when posted. 8 30. Security. To ensure compliance with the terms of this Agreement, and construction of all public improvements, the Developer shall furnish the City with a cash escrow or Irrevocable Standby Letter of Credit with automatic renewal provisions in the amount of $2,295,555.00 said amount calculated as follows: Site grading, erosion control and wetland protection $00.00 Sanitary sewer (lateral & trunk) $298,690.00 Watermain (lateral & trunk) $305,170.00 Storm Sewer (lateral) $233,815.00 Streets $485,510.00 Landscaping $156,000.00 Engineering services $96,150.00 Park and Trail Dedication $261,109.00 SUBTOTAL $1,836,444.0 0 25% additional security $459,111.00 TOTAL $2,295,555.0 0 The issuer and form of the security (other than cash escrow) shall be subject to City approval. The security shall be issued by a banking institution in good standing as determined by the City and reasonably approved by the City Administrator. The City shall have the ability to draw on the security at a bank or branch bank located within fifty (50) miles' of the City Hall. The security shall be for a term initially ending three hundred sixty four (364) days from the date of issuance and shall contain an automatic renewal provision pursuant to which the security shall be deemed automatically renewed for successive one year (or 364 day) periods unless the issuer shall provide written notice of non -renewal to the City at least sixty (60) days prior to the expiration date of the letter of credit (a "Issuer Notice of Non -Renewal"). If the Developer does not replace such security with substitute security meeting the requirements hereof and reasonably acceptable to the City within thirty (30) days after the Issuer Notice of Non -Renewal, then the City may draw down the security and hold the proceeds thereof as security for the performance of the obligations of Developer hereunder. It shall be the responsibility of the Developer to inform the City at least thirty (30) days prior to expiration of the security of the impending expiration and the status of the project relative to the security and this Agreement. If, for whatever reason, the security lapses prior to complete compliance with this Agreement (other than during any warranty period), the Developer shall immediately provide the City with either an extension of the security or an irrevocable letter of credit of the same amount upon notification of the expiration. The City may draw down the security for any other violation of the terms of this Agreement, which violation remains uncured after delivery of any required notice hereunder and expiration of the applicable cure period. If the security is drawn down the proceeds shall be used to cure any default and the balance held as security for the performance of any remaining obligations of the Developer hereunder. M Upon receipt of proof satisfactory to the City that work has been completed and financial obligations to the City have been satisfied, with City approval, the security may be reduced from time to time down to $252,976.00, which is the amount of warranty security. A warranty security in the amount of $252,976.00 shall be posted with the City as set forth in paragraph 34 of this Agreement. The warranty period shall be a twelve (12) month period after the applicable work has been completed. Notwithstanding the posting of that warranty security, the security shall not be reduced below ten percent (10%) of the posted security until all Improvements have been completed, all financial obligations to the City satisfied (which includes posting of warranty security), and the required "as built" plans have been received by the City. The intent of this Agreement is that the City shall have access to sufficient security, either security or warranty security, to complete the project and insure warranty on all public improvements at all times. This security amount shall be submitted to the City prior to execution of the Agreement. All administrative and legal fees related to plan review, drafting of this Agreement and any other necessary items shall be paid to the City prior to execution of this Agreement. The security for this Agreement shall be an Irrevocable Standby Letter of Credit with automatic renewal provisions conforming to the requirements of this Paragraph or cash in the amount of $2,295,555.00. 31. Landscaping. The Developer shall install two (2) trees upon each lot within the Plat of a species approved by the Zoning Administrator. These plantings may not be installed in a public right-of-way. Any security posted for this agreement or prior additions may be used to cure any defects in the event that the Developer, it assigns or successors fail to install landscaping according to this Agreement. Landscaping security to insure compliance with the approved Landscape Plan shall be $1,000 per lot to be posted with the City at the time of application for a building permit on each lot. Any trees which can cause a public nuisance or public hazard, such as bug infestation or weal-, bark, are specifically prohibited. The Developer, Builders or Property Owners (applicant for building permit) in the residential lot area shall sod all front yards within the buildable portion of each lot and shall post any security required by the City to assure landscaping or other items in compliance with the City Code at the time of application for a building permit on each lot. The Developer, Builder or Property Owner shall provide not less than six (6) inches of topsoil in required front yards or side yards abutting public rights -of -way. Where slopes lie in excess of ten (10) percent, sodding (staked) shall be required. Weather pennitting, the trees, grass seed and sod shall be planted before Certificates of Occupancy are issued. All grass seed shall be maintained so that turf is established within one (1) year of planting. 10 If landscaping as required by the City Code and this Agreement is not timely completed, the City, after reasonable notice and opportunity to cure, may enter the lot or lots, perform the work, and apply any posted security toward the cost. The Developer, it assigns or successors, Builder or Property Owner will provide will provide all trees, grass, seed and sod within the Plat and shall maintain said plantings and warrant them to remain alive, of good quality and disease free for twelve (12) months after planting. Any replacement shall be warranted for twelve (12) months from the time of planting. Developer is also required to implement a Landscaping Plan including boulevard landscaping along City streets as well as designated other plantings. Security shall be posted in order to insure compliance with the approved Landscaping Plan. 32. Significant Trees. There are no significant trees within the Phase. The Developer is not required to replace any significant trees. 33. Meters. Meters shall be provided as per City policy. 34. Warranty. The Developer warrants all work required to be performed by it against poor material and faulty workmanship for a period of one (1) year after its completion and acceptance by the City. The amount of posted warranty security for public improvements to be posted by the Developer shall be in the amount of $252,976.00. The amount, has been determined by the City Engineer, and is based upon the costs of the raw materials and labor which would be necessary to correct the most conunon deficiencies in such public improvements. 35. Claims. The Developer shall pay any subcontractor within ten (10) days of the Developer's receipt of payment by the City for undisputed services provided by the subcontractor. In the event that the City receives claims from labor, materialmen, or others that perform work required by this Agreement, which is provided to real property owned by the City, and the sums due them have not been paid, and the laborers, materialmen or others are seeping payment from the City, the Developer hereby authorizes the City to commence an interpleader action pursuant to Rule 22, Minnesota Rules of Civil Procedure for the District Courts, to draw upon the letters of credit in an amount up to one hundred twenty- five percent (125%) of the claim(s) and deposit the funds in compliance with the Rule, and upon such deposit, the Developer shall release, discharge, and dismiss the City from any further proceedings as it pertains to the letters of credit deposited with the District Court, except that the Court shall retain jurisdiction to determine attorney fees pursuant to this Agreement. In the event that the Developer desires to make a cash deposit instead of drawing down the letter of credit if a claim is made as stated above, they shall immediately notify the City of this intent at the time the claim is made and shall delivery one hundred twenty-five percent (125%) of the claim to the City within ten (10) days of such notice in the form of cash or certified check. 11 36. Restrictions. The following restrictions apply to the property and all lots thereon shall be held, sold, and conveyed subject to the following conditions and restrictions, which are for the purpose of protecting the value and desirability of the Plat and insuring that all conditions imposed by the City in this Agreement are properly recorded against the property. Said conditions shall run with the real property and be binding on all parties having a right, title or interest in the plat or any part thereof, their heirs, executors, representatives, successors and assigns: Outlots A,B,C and D are to be conveyed to the City. Outlots A, C, and D will be conveyed for park and trail purposes. Outlot B will be dedicated for wetland purposes. 37. Responsibility for Costs. A. Except as otherwise specified herein, the Developer shall pay all costs incurred by them or the City in conjunction with the development of the Plat, including, but not limited to, legal, planning, engineering, and inspection expenses incurred in connection with development of said Plat, the preparation of this Agreement, and all costs and expenses incurred by the City in monitoring and inspecting development of the Plat. B. The Developer shall hold the City and its officers and employees harmless from claims made by itself and third parties for damages sustained or costs incurred resulting from Plat development, except for any claims based on the negligence or willful misconduct of City, it employees, agents and contractors, the Developer shall indemnify the City and its officers and employees for all costs, damages or expenses which the City may pay or incur in consequence of such claims, including reasonable attorney's fees. C. The prevailing party shall reimburse the non -prevailing party for costs incurred in the enforcement of this Agreement, including engineering fees, attorney's fees, and costs and disbursements. D. 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, unless the Developer is in good faith and with all due diligence disputing the payment of the same. If the bills are not paid on time, and such failure remains uncured as of a date thirty (30) days after delivery of written notice to the Developer of such failure, the City may halt all plat development work and construction, including but not limited to the issuance of building permits for lots which the Developer may or may not have sold, until all bills are paid in full. Claims not paid within thirty (30) days shall accrue interest at the rate of twelve percent (12%) per year. 38. Developer's Default. In the event of default by the Developer as to any of the work to be performed by it hereunder, and the failure of Developer to cure such default 12 within thirty (30) days after delivery of written notice from the City (a "Developer Default") the City may, at its option, perform the work and the City may then draw down the security established in Paragraph 17 to pay for any work undertaken. This notice provision does not apply if the work performed by the City or its contractors is of an emergency nature, as determined at the reasonable discretion of the City. Should such emergency work be required the City will make all reasonable efforts to notify the Developer as soon as possible. When the City does any such work, the City may, in addition to its other remedies, assess the cost in whole or in part pursuant to any applicable statutes or ordinances. 39. Miscellaneous. A. The Developer represents to the City that to best of its knowledge, the Plat complies with all City, County, State, and Federal laws and regulations, including but not limited to, Subdivision Ordinances, Zoning Ordinances, and environmental regulations except where specifically excluded by this agreement. If the City determines that the Phase does not comply, the City may, at its option, refuse to allow construction or development work in the plat until the Developer does comply. Upon the City's demand, the Developer shall cease work until there is compliance. B. Third parties shall have no recourse against the City under this Agreement. C. The occurrence and continuance of a Developer Default under this Agreement shall be grounds for denial or revocation of building permits. D. 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. E. If building permits are issued by the City prior to the completion and acceptance of public improvements, the Developer shall assume all liability for the costs resulting in any delay in completion of public improvements and damage to any public improvements caused by the Developer, its contractors, subcontractors, materialmen, employees, agents, or third parties. 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, unless a specific exception is approved by the City. F. 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. 13 G. This Agreement shall run with the land, shall be recorded against the title to the property and all properties therein established by the Plat, and shall be binding on all parties having any right, title or interests in this phase of the plat or any part thereof, their heirs, successors, and assigns. After the Developer has completed the work required of them under this Agreement as set forth in Section 8, at the Developer's request, the City will execute and deliver to the Developers a release or partial release (s) of this Agreement. H. The Developer shall take out and maintain until one (1) year after the City has accepted the public improvements, public liability and property damage insurance covering personal injury, including death, and any 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. Limits for bodily injury and death shall not be less than $500,000.00 for one person and $1,000,000.00 for each occurrence; limits for property damage shall be not less than $200,000.00 for each occurrence. The City shall be named as an additional named insured on said policy, and the Developer shall file a copy of the insurance coverage with the City prior to the City issuing further building permits. I. 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. J. The Developer shall pay for all local costs related to drainage improvements required to complete the construction according to the plans and conditions that are a part of this Agreement. K. Should development of the plat proceed at a pace slower than anticipated, and for that reason, specific terms of this agreement become onerous or unduly burdensome to the Developer, upon his/her application, the City will enter into negotiations regarding those specific terms and shall not unreasonably withhold consent to appropriate changes in the terms of this Agreement. L. The Developer shall demonstrate and maintain compliance with the 1991 Wetland Conservation Act. M. The Developer shall be responsible for all on site drainage as well as for any affects that their actions may have on adjoining properties. Specifically, the Developer shall maintain existing drainage tiles on site, and shall be responsible for any and all drainage problems related to either the site drainage tiles or problems with on -site drainage 14 facilities to be constructed in accordance with this agreement and plat approval. 40. Notices. Required notices to the Developer shall be in writing, and shall be either hand delivered to the Developer, their employees or agents, or mailed to the Developer by registered mail at the following address: Mattamy (Minneapolis) Partnership, 7201 Washington Avenue South, Edina, MN 55439 Attention: Trace Mills, Vice President, with a copy to Leslie C. Candes, Chief Legal Counsel U.S., 1900 Summit Tower Blvd., Suite 500, Orlando, FL 32810. Notice to the City shall be in writing and shall be either hand delivered to the City Clerk at the following address: City of Otsego, City Hall, 13400 90th Street NE, Otsego, MN 55330, Attention: City Clerk 15 STATE OF MINNESOTA ss. COUNTY OF WRIGHT CITY OF OTSEGO Jessica Stockamp, Mayor Tami Loff, City Clerk MATTAMY MINNEAPOLIS, LLC DEVELOPER M Trace Mills, Vice President The foregoing instrument was acknowledged before me this day of 2016, by Jessica Stockamp, Mayor and by Tami Loff, City Clerk, of the City Otsego, a Minnesota municipal corporation, on behalf of the City and pursuant to the authority of the City Council. Notary Public 16 STATE OF MINNESOTA ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2016 by Trace Mills, Vice President of Mattamy Minneapolis, LLC, a Delaware limited liability company with authority and on behalf of the company. DRAFTED BY: MACARTI IUR LAW OFFICE, LLC 3601 Thurston Avenue North Suite 103 Anoka, MN 55303 (763) 231-5850 Notary Public 17 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO.2016-63 RESOLUTION APPROVING REVISED DEVELOPERS AGREEMENT - BOULDER CREEK 2ND ADDITION WHEREAS, Mattamy (Minneapolis) Partnership has an approved Plat known as BOULDER CREEK 2ND ADDITION; and WHEREAS, the approved Plat requires construction of public improvements and payment of City costs and fees; and WHEREAS, those obligations are contained and memorialized in the attached revised Developers Agreement which replaces the Agreement approved by the Council on April 25, 2016; and WHEREAS, the Developers Agreement also sets forth the security required to assure satisfactory construction of public improvements and establishes the various remedies available to the City in the event that Developer breaches the terms and conditions of the Agreement. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Otsego, Wright County, Minnesota as follows; 1. The attached revised Developers Agreement between the City of Otsego and Mattamy (Minneapolis) Partnership is hereby approved in form, subject to modification of fees, charges and security as approved by City staff. 2. The Mayor and City Clerk are hereby authorized to execute the final Developers Agreement on behalf of the City of Otsego. ADOPTED this 25th day of July, 2016 by the City Council of Otsego. MOTION TO ADOPT the Resolution by Council Member and seconded by Council Member IN FAVOR: OPPOSED: CITY OF OTSEGO Jessica Stockamp, Mayor Tami Loff, City Clerk 2