ITEM 3.7 Highlands of RiverpointeOtsezo
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
Planning
REQUESTOR:
City Planner Licht
MEETING DATE:
13 March 2017
PRESENTER(s):
REVIEWED BY:
ITEM #:
Consent Agenda
City Administrator Flaherty
3.7 — Highlands of Riverpointe
City Engineer Wagner
City Attorney MacArthur
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends approval of the revised Highlands of River Pointe final plat and development
agreement.
ARE YOU SEEKING APPROVAL OF A CONTRACT? I IS A PUBLIC HEARING REQUIRED?
Yes. I No.
BACKGROUND/JUSTIFICATION:
Lennar Corporation received final plat approval of 59 single family lots to be known as the Highlands of
River Pointe on 23 January 2017 following the preliminary plat for the development of the Lahn Farm
property know as Meadows of River Pointe on 14 March 2016. The subject site is located south of 53rd
Street (CSAH 36) at Randolph Avenue. The developer subsequently revised the final plat and
development agreement to add 10 lots to this final plat, requiring the final plat and development
agreement to be reconsidered by the City Council.
■ Preliminary Plat Consistency. The proposed final plat is consistent with the design for this area
of the development shown as on the preliminary plat.
■ Zoning. The subject site is zoned, R-5 Single and Two Family Residential District, which allows
single family dwellings as a permitted use. There is also a PUD -CUP governing development of
the preliminary plat regarding lot requirements and setbacks.
■ Landscaping. The developer has submitted a landscape plan for the entire preliminary plat
meeting the requirements Section 20-19-2.0 and Section 20-19-2.D of the Zoning Ordinance.
The developer will be required to install the landscaping within the area of the final plat as a
condition approval and provide a security as part of the development contract.
■ Lot Requirements. The single family lots the final plat are subject minimum lot and setback
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requirements shown below. All of the proposed lots illustrated on the final plat comply with
these requirements.
Front
Side
Rear
Wetland
CSAH 36/
Randolph
35ft.
7ft.
20ft.
40ft.
65ft.
25ft.
7ft.
20ft.
40ft.
65ft.
30ft. garage
Access. The final plat is accessed from 53`d Street (CSAH 36). The development agreement
provides for payment of a collector street access fee for the revised final plat based on 69 lots.
Streets. Streets within the proposed final plat are designed with a 60 foot right-of-way and 28
foot street section with concrete curb and gutter consistent with the Engineering Manual. A five
foot wide concrete sidewalk will be constructed along one side of all public streets within the
final plat as required by the Subdivision Ordinance and Engineering Manual. Signs identifying
future extension of public streets are to be installed at the termini of all temporary dead -ends or
cul-de-sacs and all street signs will be installed by the City. Street names are to be shown on the
final plat as approved by City staff. All street construction plans are subject to review and
approval of the City Engineer.
Park and Trail Dedication. Section 21-7-18 of the Subdivision Ordinance requires 12 percent of
the net area of the subject site to be dedicated to the City for parks and trails, a cash fee in lieu
of land paid to the City, or a combination thereof as determined by the City. The net area of the
preliminary plat is 226.81 acres (less right-of-way for CSAH 36 and wetlands) making the
required dedication of land 27.22 acres. The preliminary plat for the area south of CSAH 36
include dedication of a corridor for a public trail from CSAH 36 to the outlot encompassing the
Crow River floodplain that is to be deeded to the City. The entire trail corridor will be credited
as 1,897 linear feet of trail within a minimum 20 foot wide corridor equal to 0.87 acres or 3.2
percent of the total acres required for the area of the preliminary plat. The balance of the park
and trail dedication requirements for the preliminary plat will be paid as a percentage of the
cash fee in lieu of land in effect at the time of final plat approval for each addition. Outlots A, B,
and C will be deeded to the City with this final plat. The developer will also construct the trail
through these outlots along with their site improvements. The developer will be credited the
cost of the trail construction against the park dedication fee outlined above. Construction plans
for the trail are to be subject to review and approval by the City Engineer.
Grading and Drainage Plans. The developer has submitted grading and drainage plans for the
proposed final plat. The preliminary plat approval requires that the developer stabilize the
shoreland area at the bend in the Crow River west of the final plat. This information must be
shown on the construction plans and is subject to review and approval of the City Engineer. The
developer is providing for regional storm water management within the preliminary plat and no
Stormwater Impact Fee is required. All grading and drainage plans are subject to review and
approval by the City Engineer.
Utilities. The developer has submitted utility plans for the proposed final plat. All utility plans
are subject to review and approval by the City Engineer. Utility connection charges will be due
at the time a building permit is issued for each lot within the final plat based on the fee schedule
in effect at that time. The developer is required to pay Utility Availability Charges at the time of
final plat approval as provided for in the development agreement.
Street Lighting. Section 6-8-4 of the City Code specifies installation of street lighting for new
subdivisions. Type I lighting will be required to be installed by the developer at the corner of all
local streets, the terminus end of permanent cul-de-sacs, and at the midpoint of blocks longer
than 900 feet. A Type II is to be light installed by the developer at intersection of 53`d Street
(CSAH 36) and Road 1. The development contract will provide for payment of the street light
operation fee of $500/fixture as established by the City Code.
Easements. The final plat illustrates drainage and utility easements at the perimeter of each
single family lot as required by Section 21-7-15 of the Subdivision Ordinance. There are
oversize easements where needed to accommodate storm water drainage basins, swales and
storm water pipe. All drainage and utility easements are subject to review and approval of the
City Engineer.
Outlots. The proposed final plat includes Outlots B and C. The final plat is to be revised to
provide for Outlot A on the outside of Block 6 from Road 1 to the south plat line. Outlots A, B,
and C are to be deeded to the City for storm water management and park purposes.
Development Agreement. The City Attorney has drafted a development agreement related to
the proposed final plat to provide for construction of the project, completion of all public
improvements, establishment of required securities and payment of applicable fees. The
Development Agreement is to be adopted by resolution of the City Council concurrent with the
final plat approval and executed prior to recording of the final plat.
SUPPORTING DOCUMENTS: ❑ ATTACHED ❑ NONE
A. Site Location
B. Final Plat
C. Findings of Fact and Decision
D. Resolution 2017-22 approving the Development Agreement
E. Development Agreement
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Motion to approve the revised Highlands of River Pointe final plat subject to the conditions as outlined
in the Findings of Fact and Decision dated March 8, 2017 and adopt Resolution 2017-22 approving a
Development Agreement.
BUDGET INFORMATION
FUNDING: BUDGETED: ❑ YES
❑ NO
NA
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
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FINDINGS OF FACT AND DECISION
8 March 2017
APPLICANT: Lennar Corporation
APPLICATION: Request for final plat approval of 69 single family lots to be known as the Highlands
of River Pointe.
CITY COUNCIL MEETING: 13 March 2017
FINDINGS: Based upon review of the application and evidence received, the City Council of the
City of Otsego now makes the following findings of fact:
A. The legal description of the property is attached as Exhibit A.
B. The property lies within the East Sewer Service District and is guided for low density
residential land uses by the 2012 Otsego Comprehensive Plan, as amended.
C. The property is zoned R-5, Single and Two Family Residential District, which allows single
family dwellings as a permitted use.
D. The City Council approved application for preliminary plat approval and a PUD -CUP on 14
March 2016.
E. The applicant is proposing a final plat of 69 single family lots.
F. The Request for Council Action dated 13 March 2017 prepared by the City Planner, The
Planning Company LLC, is incorporated herein.
G. The Engineering Review dated January 16, 2017 prepared by the City Engineer, Hakanson
Anderson Inc., is incorporated herein.
H. Final plat applications are processed in accordance with Section 21-3-3 of the Subdivision
Ordinance and do not require a recommendation by the Planning Commission.
DECISION: Based on the foregoing information and applicable ordinances, the application is
hereby APPROVED subject to the following conditions:
1. The applicant shall execute a development agreement as drafted by the City Attorney and
subject to approval of the City Council.
2. All of the lots within the final plat shall comply with the following minimum setbacks:
Front
Side
Rear
Wetland
CSAH 36/
Randolph
25ft.
7ft.
20ft.
40ft.
65ft.
30ft. garage
3. The final plat shall be revised to indicate street names subject to review and approval of City
staff.
4. The developer shall pay a collector street access fee upon approval of the final plat as set
forth in the development agreement.
5. The developer shall satisfy park and trail dedication requirements as a cash fee in lieu of
land as set forth in the development agreement.
6. The construction plans shall include stabilization of the shoreline of the Crow River. All
grading, drainage and erosion control plans are subject to review and approval by the City
Engineer.
7. The applicant shall pay applicable utility availability charges upon approval of the final plat
and pay utility connection charges at the time a building permit is issued for each lot based
on the current fee in effect at that time.
8. Street lighting shall be installed within the final plat in accordance with Section 6-8-4 of the
City Code with payment of charges as established in accordance with the City Fee Schedule,
subject to review and approval of the City Engineer.
9. Construction plans for sanitary sewer, water main, storm sewer, and streets shall be subject
to review and approval by the City Engineer.
10. All easements are subject to review and approval of the City Engineer.
11. The final plat shall be revised to include Outlot A north and west of Block 6; Outlots A, B,
and C shall be deeded to the City in accordance with Section 21-7-15.D of the Subdivision
Ordinance.
12. The developer shall execute a development agreement with the City subject to review by the
City Attorney and approval of the City Council.
MOTION BY:
SECOND BY:
ALL IN FAVOR:
THOSE OPPOSED:
ADOPTED by the City Council of the City of Otsego this 13th day of March, 2017.
CITY OF OTSEGO
By:
Jessica L. Stockamp, Mayor
2
Attest:
Tami Loff, City Clerk
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2017-22
RESOLUTION APPROVING DEVELOPERS AGREEMENT -
HIGHLANDS OF RIVER POINTE
WHEREAS, U.S. Home Corporation D/B/A Lennar intends to construct sixty
nine (69) residential homes upon property platted as HIGHLANDS OF RIVER
POINTE; and
WHEREAS, the approved work on the Plat requires construction of some public
improvements and payment of City costs and fees; and
WHEREAS, those obligations are contained and memorialized in the attached
Developers Agreement; 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 Developers Agreement between the City of Otsego and U.S.
Home Corporation D/B/A Lennar is hereby approved, subject to staff
approved additions and changes.
2. The Mayor and City Clerk are hereby authorized to execute the Developers
Agreement on behalf of the City of Otsego.
ADOPTED this 13th day of March, 2017 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
DEVELOPMENT AGREEMENT
HIGHLANDS OF RIVER POINTE
AGREEMENT entered into this day of March, 2017 between the City of
Otsego ("City"), a municipal corporation organized under the laws of the State of
Minnesota, and U.S. Home Corporation D/B/A Lennar, a corporation 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 HIGHLANDS OF RIVER POINTE. The legal
description of the property covered by this Agreement is as follows:
See Exhibit A.
The Plat contains sixty nine (69) 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 March 14, 2016. The Preliminary
Plat for development of the Lahn Property was approved by the City Council on March 14,
2016.
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.
I
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 sixty nine (69) lots within the Plat does not occur until all required security has been
posted.
5. Changes in Official Controls. HIGHLANDS OF RIVER POINTE 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
HIGHLANDS OF RIVER POINTE 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, HIGHLANDS OF RIVER POINTE prepared by Sathre-
Bergquist, Inc.
Plan B Grading, Drainage, and Erosion Control Plan prepared by Sathre-
Bergquist, Inc. and as finally approved by the City Engineer.
Plan C Sanitary Sewer, Water Main, Storm Sewer and Streets Plans for
HIGHLANDS OF RIVER POINTE, as prepared by Sathre- Bergquist,
Inc. and as finally approved by the City Engineer.
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Plan D Landscape Plan for HIGHLANDS OF RIVER POINTE, prepared by
Sathre- Bergquist, Inc., 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 .DNF 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.
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B. MNDOT for State Highway Access
C. NMOT 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
by April 1, 2018, with the exception of the final wear course of asphalt on streets and
landscaping. The final wear course shall not be constructed until at least one construction
season after the base construction is completed and shall be delayed one more construction
season if at least 75% build out is not achieved. However the final wear course shall not be
delayed for a period longer than two years after the base course is paved regardless of build
out; in which case the Developer shall provide an escrow for fog sealing the streets in the
event the final wear course is placed prior to 75% build out. 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.
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
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
4
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 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 permits 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
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
R
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 $15,404.00.
20. Sewer Availability Charges. The Sewer Availability Charges for the Plat
due upon Final Plat approval is as follows; 69 lots at $2,382.00 per REC = $164,358.00.
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: 69 lots at $1,663.00 per REC = $114,747.00.
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. The Park and Trail Dedication for the Plat is 69
units at $3,486.00 per unit x 97.80/o= $235,242.00.
25. Storm Water Management Fee. There is no storm water management fee
for this Plat.
26. Transportation Infrastructure Cost. The collector street access fee for this
Plat is as follows: 69 lots x 1,515.00 per lot = $104,535.00
27. Street and Traffic Control Signs. Before the City signs the final plat, the
Developer shall pay to the City $12,250.00 for installation of traffic control signs (stop
signs, street signs, dead-end signs). The said amount was calculated as follows: 49 signs at
$250.00 per sign. Using these funds, the City shall purchase and install the street and traffic
control signs.
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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: six (6) lights x $500.00 per light for a total payment of $ 3,000.00.
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 normal 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.
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 $1,540,415.00
$123,233.00
Legal Services Escrow
1% of $1,540,415.00
$15,404.00
City Administration Fee
1% o of $1,540,415.00
$15,404.00
Street Signs
49 at $250.00 per sign
$12,250.00
Street Lights
6 at $500.00 per light
$3,000.00
Sewer Availability Charge
69 lots at $2,382.00 per REC
$164,358.00
Water Availability Charge
69 lots at $1,663.00 per REC
$114,747.00
Storm Sewer (lateral)
$224,085.00
Streets
Transportation Charge
69 units at $1,515 per unit
$104,535.00
Park and Trail Dedication Fee
GIS Data Entry Fee
Wetland Delineation Review
TOTAL
69 lots x $3,486/lot x 97.8%
30.4 acres x $100 per acre
0 Review at $2,000.00 per
review
$235,242.00
$3,040.00
$00.00
$791,213.00
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.
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 $2,211,806.25 said amount calculated as follows:
Site grading, erosion control and wetland protection
$91,200.00
Sanitary sewer (lateral & trunk)
$366,910.00
Watermain (lateral & trunk)
$253,215.00
Storm Sewer (lateral)
$224,085.00
Streets
$696,205.00
Landscaping
$35,400.00
Engineering services
$102,430.00
SUBTOTAL
$1,769,445.0
0
25% additional security
$442,361.25
TOTAL
$2,211,806.2
5
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 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 ending July 1, 2018 and shall contain an
automatic renewal provision. The City may draw down the security for any violation of the
terms of this Agreement, or upon receiving notice of the pending expiration of the security.
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. If the
required improvements are not completed at least thirty (30) days prior to the expiration of
the security, the City may also draw down the security. If the security is drawn down the
proceeds shall be used to cure any default.
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 $250,457.00, which is the amount of warranty
security. A warranty security in the amount of $250,457.00 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 $2,211,806.25.
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 $3,000 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
9
public nuisance or public hazard, such as bug infestation or weak 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 permitting, 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.
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 buffer
yard landscaping along City collector and arterial 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, except for warranty on streets which is set forth in
Section 17 of this Agreement. The amount of posted warranty security for public
improvements to be posted by the Developer shall be in the amount of $250,457.00. 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 common 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
10
the City, and the sums due them have not been paid, and the laborers, materialmen or others
are seeking 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.
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 and C are to be deeded to City for
storm water management and park 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
negligence of City, 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
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
I1
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, the City may, after notice and a reasonable period of time to
cure said default, halt all plat development work and construction,
including but not limited to the issuance of building permits for lots
which the Developers 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, 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, provided the Developer is first given notice of the work in default, not less than
seven (7) days in advance and a reasonable period of time to cure said default. 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. Breach of any of the terms of this Agreement by the Developer 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
City, the Developer, its contractors, subcontractors, materialmen,
12
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.
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 Developers, upon
13
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
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: Attention: ,Lennar,
16305 36th Avenue N., Suite 600, Plymouth, MN 55446. 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 90t" Street NE, Otsego, MN 55330, Attention: City Clerk
14
CITY OF OTSEGO
I:•
Jessica Stockamp, Mayor
Tami Loff, City Clerk
DEVELOPER
U.S. HOME CORPORATION D/B/A LENNAR
Its:
STATE OF MINNESOTA )
SS.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this day of
2017, 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
15
STATE OF MINNESOTA )
SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
2017 by the of U.S. Home Corporation D/B/A
Lennar, with authority and on behalf of the corporation.
DRAFTED BY:
MACARTHUR LAW OFFICE, LLC
3601 Thurston Avenue North
Suite 103
Anoka, MN 55303
(763) 231-5850
16
Notary Public