HomeMy WebLinkAboutItem 12 - Hammes Development Agreement Amendments
(reserved for recording information) DEVELOPMENT CONTRACT
(Public sewer and water) Hammes Estates 1st Addition
AGREEMENT dated_________________, 2015, by and between the CITY OF LAKE
ELMO a Minnesota municipal corporation (“City”), and The Ryland Group, Inc. a Maryland
Corporation (the “Developer”).
1. REQUEST FOR PLAT APPROVAL. The Developer has asked the City to approve t he
plat for Hammes Estates 1st Addition (referred to in this this Contract as the "plat"). The land is situated in
the County of Washington, State of Minnesota, and is legally described as:
That part of the South Half of the Northeast Quarter of Section 34, Township 29 North, Range 21
West, Washington County, Minnesota, EXCEPT the East 60.00 feet of the North 967 feet of said
South Half of the Northeast Quarter thereof. AND EXCEPT Parcel 3 of Washington County Highway
Right of Way Plat 49-19B, recorded September 18, 1985 as Document Number 492530.
2. CONDITIONS OF PLAT APPROVAL. The City hereby approves the plat on condition
that the Developer enter into this Contract, furnish the security required by it, and record the plat with the
County Recorder or Registrar of Titles within (180) days after the City Council approves the final plat.
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3. RIGHT TO PROCEED. Unless separate written approval has been given by the City,
within the plat or land to be platted, the Developer may not grade or otherwise disturb the earth, remove trees,
construct sewer lines, water lines, streets, utilities, public or private improvements, or any buildings until all
the following conditions have been satisfied: 1) this agreement has been fully executed by both
parties and filed with the City Clerk, 2) the necessary security has been received by the City, 3) the plat has
been recorded with the Washington County Recorder's Office, and 4) the City’s Community Development
Director has issued a letter that all conditions have been satisfied, a preconstruction conference has been
held, and that the Developer may proceed.
4. HOA DOCUMENTS. The required HOA documents shall be recorded with the Washington
County Recorder’s Office within thirty (30) days of the plat being recorded with the County. 5. PHASED DEVELOPMENT. This plat is a phase of a multi-phased preliminary plat, the
City may refuse to approve final plats of subsequent phases if the Developer has breached this Contract
and the breach has not been remedied. Development of subsequent phases may not proceed until
Development Contracts for such phases are approved by the City. Park charges and area charges for
sewer and water referred to in this Contract are not being imposed on outlots, if any, in the plat that are
designated in an approved preliminary plat for future subdivision into lots and blocks. Such charges will be
calculated and imposed when the outlots are final platted into lots and blocks.
6. PRELIMINARY PLAT STATUS. The plat is a phase of a multi-phased preliminary plat,
the preliminary plat approval for all phases not final platted shall lapse and be void unless final platted into
lots and blocks, not outlots, within five (5) years after preliminary plat approval.
7. CHANGES IN OFFICIAL CONTROLS. For two (2) years from the date of this Contract,
no amendments to the City's Comprehensive Plan or official controls shall apply to or affect the residential
use, development density, lot size, lot layout or dedications of the approved final plat unless required by state
or federal law or agreed to in writing by the City and the Developer. Thereafter, notwithstanding anything in
this Contract to the contrary, to the full extent permitted by state law, the City may require compliance
with any amendments to the City's Comprehensive Plan, official controls, platting or dedication
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requirements enacted after the date of this Contract.
8. DEVELOPMENT PLANS. The plat shall be developed in accordance with the following
plans and at the Developer’s sole expense. The plans shall not be attached to this Contract. If the plans
vary from the written terms of this Contract, the written terms shall control. The plans are:
Plan A – Final Plat
Plan B – Final Grading, Drainage, and Erosion Control Plans
Plan C – Final Sanitary Sewer, Water Main, Storm Sewer, and Street Plans
Plan D – Final Landscape Plan
9. IMPROVEMENTS. The Developer shall install and pay for the following:
A. Streets
B. Sanitary Sewer
C. Watermain
D. Surface Water Facilities (pipe, ponds, rain gardens, etc.)
E. Grading and Erosion Control
F. Sidewalks/Trails
G. Street Lighting
H. Underground Utilities
I. Street Signs and Traffic Control Signs
J. Landscaping and Street Trees K. Tree Preservation and Reforestation L. Wetland Mitigation and Buffers M. Monuments Required by Minnesota Statutes The improvements shall be installed in accordance with the City subdivision ordinance and the City’s
Engineering Design and Construction Standards Manual and pursuant to the direction of the City Engineer.
The Developer shall submit plans and specifications which have been prepared by a competent registered
professional engineer to the City for approval by the City Engineer. The Developer shall instruct its
engineer to provide adequate field inspection personnel to assure an acceptable level of quality control to
the extent that the Developer's engineer will be able to certify that the construction work meets the
approved City standards as a condition of City acceptance. In addition, the City may, at the City's discretion
and at the Developer's expense, have one or more City inspectors and a soil engineer inspect the work on
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a full or part-time basis. The Developer's engineer shall provide for on-site project management. The
Developer's engineer is responsible for design changes and contract administration between the Developer
and the Developer's contractor. The Developer or his engineer shall schedule a pre-construction meeting
at a mutually agreeable time at the City Hall with all parties concerned, including the City staff, to review the
program for the construction work.
All labor and work shall be done and performed in the best and most workmanlike manner and in
strict conformance with the approved plans and specifications. No deviations from the approved plans and
specifications will be permitted unless approved in writing by the City Engineer. The Developer agrees to
furnish to the City a list of contractors being considered for retention by the Developer for the performance
of the work required by the Contract. The Developer shall not do any work or furnish any materials not
covered by the plans and specifications and special conditions of this Contract, for which reimbursement is
expected from the City, unless such work is first ordered in writing by the City Engineer as provided in the
specifications.
10. CITY ENGINEERING ADMINISTRATION AND CONSTRUCTION
OBSERVATION. Prior to the commencement of any construction activity authorized under this agreement,
the Developer shall submit an escrow for City Engineering Administration and Construction Observation
in an amount provided under paragraph 36. Summary of Cash Requirements. Thereafter, the Developer
shall reimburse the City each month, within 30 days of receiving an invoice, for all engineering
administration and construction observation performed during the construction of the plat at normal City
rates for such Services. If the Developer fails to pay the invoiced amount within such 30-day period, and
such failure continues for an additional five (5) business days after written notice from the City of such
failure, the City may draw upon the escrow and stop the work on site until said escrow has been replenished
in its full amount. City engineering administration will include monitoring of construction progress and
construction observation, consultation with Developer and his engineer on status or problems regarding
the project, coordination for testing, final inspection and acceptance, project monitoring during the warranty
period, and processing of requests for reduction in security. Construction observation may be performed
by the City's in-house staff or consulting engineer. Construction observation shall include, at the discretion 4
of the city, part or full time inspection of proposed public utilities and street construction. Services will be
billed on an hourly basis at normal City rates therefore.
The direction and review provided through the inspection of the improvements should not be
considered a substitute for the Developer required management of the development. Developer will cause
the contractor(s) to furnish the City with a schedule of proposed operations at least five (5) days prior to the
commencement of construction of each type of Improvement. City shall inspect all Developer Installed
Improvements during and after construction for compliance with approved plans and specifications. Developer
will notify the City Engineer at such times during construction as the City Engineer requires for inspection
purposes. Such inspection is pursuant to the City’s governmental authority, and no agency or joint venture
relationship between the City and Developer is thereby created.
11. 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 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 8 above.
12. PERMITS. The Developer shall obtain or require its contractors and subcontractors to
obtain all necessary permits, including but not limited to:
A. Right-of-Way Excavations and Obstructions:
• City of Lake Elmo, Right-of-Way Utility Installation(s)
• City of Lake Elmo, Right-of-Way Obstruction(s)
• Washington County, Utility Installations(s)
• Washington County, Street or Driveway Access(s)
• Minnesota Department of Transportation, Utility Installation
• Minnesota Department of Transportation, Right-of-Way Permit
B. Watermain Extensions:
• Minnesota Department of Health
C. Sanitary Sewer Extensions:
• Minnesota Pollution Control Agency
• Metropolitan Council Environmental Services
D. Stormwater Management:
• Valley Branch Watershed District Permit
E. Erosion, Sedimentation Control:
• Minnesota Pollution Control Agency, General NPDES Stormwater Permit 5
• SW PPP (Stormwater Pollution Prevention Plan)
F. Wetland Mitigation:
• Board of Water and Soil Resources, W CA
G. Construction Dewatering:
• Minnesota Department of Natural Resources 13. TIME OF PERFORMANCE. The Developer shall install all required public improvements
by October 31, 2015, with the exception of the final wear course of asphalt on streets. The Developer
shall have the option of installing the wearing course of streets within one (1) year following initial
commencement of work on the required basic improvements or installing it after the first course has
weathered a winter season, consistent with warranty requirements, however final acceptance of the
improvements will not be granted until all work is completed including the final wear course. The Developer
may, however, request an extension of time from the City. If an extension is granted, it shall be conditioned
upon updating the security posted by the Developer to reflect cost increases and amending this agreement
to reflect the extended completion date. Final wear course placement outside of this time frame must have
the written approval of the City Engineer.
14. LICENSE. The Developer hereby grants the City, its agents, employees, officers and
contractors a license to enter the plat to perform all work and inspections deemed appropriate by the City in
conjunction with plat development.
15. CONSTRUCTION ACCESS. Construction traffic access and egress for grading, public
utility construction, and street construction is restricted to access the subdivision via
the planned construction access off of Keats Avenue. No construction traffic is permitted on other
adjacent local streets.
16. CONSTRUCTION SEQUENCE AND COMPLIANCE. The City will require the
Developer to construct the improvements in a sequence which will allow progress and compliance points
to be measured and evaluated. The Developer and/or their representatives are required to supervise
and coordinate all construction activities for all improvements and must notify the City in writing stating
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when the work is ready for the inspection at each of the measurable points defined in the following
paragraphs 16., 17. and 18. For the purpose of this paragraph, Electronic message (email) shall be
deemed an acceptable method of notification provided it is captioned “Notice pursuant to Development
Agreement”.
17. EROSION CONTROL. Prior to initiating site grading, the erosion control plan, Plan B,
shall be implemented by the Developer and inspected and approved by the City. Erosion control practices
must comply with the approved plans and specifications for the plat, with all watershed district permits and
with Minnesota Pollution Control Agency’s Best Management Practices. The City may impose additional
erosion control requirements as deemed necessary. The parties recognize that time is of the essence in
controlling erosion. If the Developer does not comply with the erosion control plan and schedule or
supplementary instructions received from the City, the City may take such action as it deems appropriate to
control erosion. The City will endeavor to notify the Developer in advance of any proposed action, but
failure of the City to do so will not affect the Developer's and City's rights or obligations hereunder. If the
Developer does not reimburse the City for any cost the City incurred for such work within ten (10) days, the
City may draw down the security to pay any costs. No development, utility or street construction will be
allowed and no building permits will be issued unless the plat is in full compliance with the approved
erosion control plan.
If building permits are issued prior to the acceptance of public improvements, the Developer
assumes all responsibility for erosion control compliance throughout the plat and the City may take such
action as allowed by this agreement against the Developer for any noncompliant issue as stated above.
Erosion control plans for individual lots will be required in accordance with the City’s building permit
requirements, or as required by the City or City Engineer.
18. GRADING PLAN. The plat shall be graded in accordance with the approved grading drainage
and erosion control plan, Plan "B". The plan shall conform to Engineering Design and Construction
Standards Manual. All grading shall be completed within the Subdivision prior to the preparation and
submittal of the as-constructed grading plan.
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Within thirty (30) days after completion of the grading, the Developer shall provide the City with a
"record" grading plan certified by a registered land surveyor or engineer that all trails, ponds, swales, and
ditches have been constructed on public easements or land owned by the City. The "record" plan shall
contain site grades and field verified elevations of the following: a) cross sections of ponds; b) location and
elevations along all swales, emergency overflows, wetlands, wetland mitigation areas if any, ditches,
locations and dimensions of borrow areas/stockpiles; c) lot corner elevations and house pads; and d) top
and bottom of retaining walls. The City will not issue any building permits until the approved certified record
grading plan is on file with the City.
19. STREET AND UTILITY IMPROVEMENTS. All storm sewers, sanitary sewers, watermain,
and streets shall be installed in accordance with the approved Plans and Specifications for Public
Improvements, Plan "C". The plan shall conform to the City’s Engineering Design and Construction Standards
Manual. Curb and gutter and the first lift of the bituminous streets, sidewalks, the boulevards graded,
street signs installed, and all restoration work on the site shall be completed in accordance with the approved
plans. Once the work is completed, the Developer or its representative shall submit a written request to
the City asking for an inspection of the initial improvements. The City will then schedule a walk- through to
create a punch list of outstanding items to be completed. Upon receipt of the written punch list provided by
the City, the punch list items must be completed by the Developer and the City notified to re- inspect the
improvements. The final bituminous wear course may be installed in accordance with paragraph
12. above. 20. STREET MAINTENANCE DURING CONSTRUCTION. The Developer shall be
responsible for all street maintenance until the streets are accepted by the City in writing. W arning signs
shall be placed when hazards develop in streets to prevent the public from traveling on same and
to direct attention to detours. If and when streets become impassable, such streets shall be barricaded
and closed. In the event residences are occupied prior to completing streets, the Developer shall maintain
a smooth surface and provide proper surface drainage to insure that the streets are passable to traffic and
emergency vehicles. The Developer shall be responsible for keeping streets within and without the
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subdivision clean of dirt and debris that may spill, track, or wash onto the street from Developer’s operation.
The Developer may request, in writing, that the City keep the streets open during the winter months by
plowing snow from the streets prior to final acceptance of said streets. The City shall not be responsible
for repairing the streets because of snow plowing operations. Providing snow plowing service does
not constitute final acceptance of the streets by the City. The Developer shall contract for street cleaning
within and immediately adjacent to the development. At a minimum, scraping and sweeping shall
take place on a weekly basis. A copy of this contract shall be approved by the City before grading is
started. The contract shall provide that the City may direct the contractor to clean the streets and the
contractor will bill the Developer.
21. OWNERSHIP OF IMPROVEMENTS. Upon completion of the work and construction
required by this Contract, the improvements lying within public easements shall become City property.
Prior to acceptance of the improvements by the City, the Developer must furnish the City with a complete
set of reproducible "record" plans, an electronic file of the "record" plans in accordance with the City’s
Engineering Design and Construction Standards Manual together with the following affidavits:
- Developer/Developer Engineer’s Certificate - Land Surveyor’s Certificate
certifying that all construction has been completed in accordance with the terms of this Contract. All
necessary forms will be furnished by the City. Upon receipt of “record plans” and affidavits, and upon
review and verification by the City Engineer, the City Engineer will accept the completed public
improvements.
22. PARK DEDICATION. The Developer shall pay a cash contribution of $ 10 7, 55 4 in
satisfaction of the City's park dedication requirements. This charge is based on the park dedication
requirement for all the areas to be platted within the Hammes Estates Preliminary Plat. No additional fees
in lieu of land dedication will be charged for future developments within the preliminary plat area. The
charge was calculated as follows: 2.1 acres (5.7 acres of park land provided subtracted from 7.8 acres of
park land required) at $51,216 per acre per the submitted appraisal for the property. The Developer shall
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receive a credit from the cash amount due for the actual costs of the North East Park Plan Improvements
depicted in the Final Landscape Plans Dated September 22, 2014. These improvement shall include: 16-
feet by 24-feet shelter, picnic table, bike rack, grill station, retaining wall, fishing pier, canoe rack, concrete
hardsurface, woodland seed mix restoration, landscaping, and parking lot improvements. The Developer
shall deposit $107,554 with the City at time of final plat to be held by the City in escrow until such time as
park improvements have been installed. Upon installation of park improvements, the City shall release the
credited amount to the Developer.
23. SANITARY SEWER AND WATER UTILITY AVAILABILITY CHARGES (SAC
AND WAC). The Developer shall be responsible for the payment of all sewer availability charges (SAC)
and all water availability charges (WAC) with respect to the Improvements required by the City and any
state or metropolitan government agency. The sewer availability charge (SAC) in the amount of $3,000.00 per REU shall be paid by the
Developer prior to the City recording the final plat. The total amount to be paid by the Developer is $171,000.00.
The water availability charge (WAC) in the amount of $3,000.00 per REU shall be paid by the
Developer prior to the City recording the final plat. The total amount to be paid by the Developer is
$171,000.00.
In addition, a sewer connection charge in the current amount of $1,000.00 per REU, a Met Council
sewer availability charge in the current amount of $2,435.00 per REU, and a water connection charge in
the current amount of $1,000.00 per REU will be collected by the City at the time the building permit is
issued for each lot. These amounts are charged at the time of building permit in accordance with the latest
city fee schedule.
24. TRAFFIC CONTROL SIGNS. Traffic control signs shall be included as part of the
public street improvements, and the installation costs shall be included in the street construction
calculations.
25. STREET LIGHTS. The Developer is responsible for the installation of street lights
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consistent with a street lighting plan approved by the City. The Developer shall coordinate the
installation of street lights with Xcel Energy in conjunction with the other improvements, and agrees to pay
Xcel Energy for all upfront costs associated with the street lighting system, including underground cables,
posts, lamps, ballasts, starters, photocells, and glassware. All street lights will be leased by the City upon
final acceptance of the system. The Developer shall also pay $499.68 in payment for the first year
operating costs for street lights.
26. WETLAND MITIGATION. The Developer shall complete wetland mitigation/restoration
in accordance with the approved Plans and Specifications and in accordance with any applicable Watershed
or agency Permits. If the mitigation work is found to be incomplete or restoration is unsuccessful the City
may draw down the security at any time during the warranty period if the Developer fails to take corrective
measures to be used by the City to perform the work. Prior to the acceptance of the public improvements
for the Hammes Estates plat, all wetland buffers shall be delineated and identified via staking and signage
that is acceptable to the City.
27. BUILDING PERMITS/CERTIFICATES OF OCCUPANCY.
A. Public sewer and water, curbing, and one lift of asphalt shall be installed on all
public and private streets prior to issuance of any building permits, except fivefour model homes on lots
acceptable to the Community Development Director.
B. Prior to issuance of building permits, wetland buffer monuments shall be placed in
accordance with the City’s zoning ordinance. The monument design shall be approved by the Community
Development Department.
C. Written certification of the as-constructed grading must be on file at the City for the
block where the building is to be located.
D. Breach of the terms of this Contract by the Developer, including nonpayment of
billings from the City, shall be grounds for denial of building permits and/or withholding of other permits,
inspection or actions, including lots sold to third parties, and the halting of all work in the plat.
E. If building permits are issued prior to the acceptance of public improvements, the
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Developer assumes all liability and costs resulting in delays in completion of public improvements and
damage to public improvements caused by the City, Developer, their contractors, subcontractors,
materialmen, employees, agents, or third parties.
F. No sewer and water connection permits may be issued until the streets needed for
access have been paved with a bituminous surface and the utilities are tested and approved by the City
Engineer.
G. The City will not issue a certificate of occupancy for any building constructed on
any lot or parcel in the Plat, including any model homes authorized under this agreement, until Public
sewer and water, curbing, and one lift of asphalt is installed on all public and private streets; all utilities
are tested and approved by the City Engineer; and the as- constructed grading must be on file at the
City for the block where the building is to be located.
28. RESPONSIBILITY FOR COSTS.
A. In the event that the City receives claims from labor, materialmen, or others that
work required by this Contract has been performed, the sums due them have not been paid, and the laborers,
materialmen, or others are seeking payment from the City, and in t he f ut ure event that such claims
have not been resolved by t he Developer wit hin t hirt y (30) days af ter writt en not ice 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 125 percent 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
payment of attorneys' fees pursuant to this Contract.
B. Except as otherwise specified herein, the Developer shall pay all costs incurred by it
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 approval and acceptance of the plat, the
preparation of this Contract, review of construction plans and documents, and all costs and expenses
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incurred by the City in monitoring and inspecting development of the plat. All amounts incurred and due at
the time, must be fully paid prior to execution and release of the final plat for recording.
C. The Developer shall hold the City and its officers, employees, and agents harmless
from claims made by itself and third parties for damages sustained or costs incurred resulting from plat
approval and development. The Developer shall indemnify the City and its officers, employees, and agents
for all costs, damages, or expenses which the City may pay or incur in consequence of such claims, including
attorneys' fees.
D. The Developer shall reimburse the City for costs incurred in the enforcement of this
Contract, including reasonable engineering and attorneys' fees.
E. The Developer shall pay in full all bills submitted to it by the City for obligations
incurred under this Contract within thirty (30) days after receipt. Bills not paid within thirty (30) days shall
be assessed a late fee per the City of Lake Elmo adopted Fee Schedule. Upon request, the City will
provide copies of detailed invoices of the work performed.
29. City Payments. In the event city payments are required by Section 29.A below, within
thirty (30) days of the City's final acceptance of the Improvements, pursuant to Section 21 of this
Agreement, but only if the Developer is not in default under this Agreement, the City shall pay to the
Developer the sums set forth in the attachment to this Agreement as Exhibit B. The actual amount of the
reimbursement shall be based on actual construction costs which will be verified by the Developer to the
City in the Plans submitted to the City as required in Section 21. This payment by the City shall be the
City's only responsibility with regard to construction of the Improvements and in no case shall act as a
waiver of any other right of the City under this Agreement or under applicable laws, ordinances, or rules.
A. City payments pursuant to this Agreement shall be: $50,045.00
30. SPECIAL PROVISIONS. The following special provisions shall apply to plat
development:
A. Implementation of the recommendations listed in the September 18,
2014 Engineering memorandum is required along with all conditions of approval listed in any City Council
resolution approving the plat. 13
B. Within thirty (30) days of the plat being recorded at the County, the Developer shall
convey Outlot A and C to the City by warranty deed, free and clear of any and all encumbrances.
C. The Developer shall install a temporary turnaround at the southern end of
June Avenue North until it is extended as part of future phases of the Hammes Estates development.
D. The Developer must obtain a sign permit from the City Building Official prior to
installation of any permanent subdivision identification signs.
F. The Developer shall provide for a minimum green belt/buffer of 100 feet around all of
the adjacent Stonegate subdivision. This buffer shall be secured by a covenant running in favor of the City
and a title commitment issued therefore.
G. All trails shall be located within the easements and dedicated to the City of Lake Elmo.
Title commitments from a regional title company shall be provided for all land so dedicated.
H. The Developer shall be responsible for the construction of all improvements within
the Keats Avenue (CSAH 19) right-of-way as required by Washington County and further described in the
review letter received from the County dated May 6, 2014. The required improvements shall include, but
not be limited to: modifications to the median crossing in this area, continuation of a bituminous trail through
the median, turn lanes, and other improvements as required by the County.
I. The Developer shall observe all other County requirements as specified in the
Washington County review letter dated May 6, 2014.
J. The Developer shall enter into a maintenance agreement with and satisfactory to the
City that clarifies the individuals or entities responsible for any landscaping installed in areas outside of land
dedicated as public park and open space on the final plat.
K. Any land under which public trails are located will be accepted as park land provided
the Developer constructs said trails within the dedicated areas as part of the public improvements for the
subdivision and easements are provided where required by the City.
L. No more than one hundred units depicted on the preliminary plat (100) may be
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approved as part of a final plat until a second access is provided to the subdivision via a connection through
the property to the south of the Hammes Estates.
M. The Developer shall be responsible to monitor the restored southern shoreline
of Goose Lake for invasive species for a period of 5 years as specified in the MN DNR Public Waters
Work Permit.
N. The Developer shall submit all documentation of remediation activities related to
a recorded soil contamination on the site to the Minnesota Pollution Control Agency for review and approval.
The Developer shall submit the acknowledgment of approval from the Minnesota Pollution Control Agency to
the City prior to the issuance of building permits for all lots in the recorded plat affected by the soil
contamination event. The Developer must submit the acknowledgement of successful remediation from the
MPCA prior to the City’s consideration of subsequent phases of the Hammes Estates development.
31. MISCELLANEOUS.
A. The Developer may not assign this Contract without the written permission of the
City Council. The Developer's obligation hereunder shall continue in full force and effect even if the Developer
sells one or more lots, the entire plat, or any part of it.
B. Retaining walls that require a building permit shall be constructed in accordance with
plans and specifications prepared by a structural or geotechnical engineer licensed by the State of
Minnesota. Following construction, a certification signed by the design engineer shall be filed with the City
Engineer evidencing that the retaining wall was constructed in accordance with the approved plans and
specifications. All retaining walls identified on the development plans or by special conditions referred to in
this Contract shall be constructed before any other building permit is issued for a lot on which a retaining
wall is required to be built.
C. Appropriate legal documents regarding including Homeowner Association
documents, covenants and restrictions relating to the plat approval and outlots and conveyances, as
approved by the City Attorney, shall be filed within thirty (30) days of the recording of the plat. No third-
party beneficiary status is hereby conferred. All outlots and common areas, including Outlots C and D, shall
be maintained in good order and repair by a homeowner’s association, and, if it does not do so, then the City 15
may perform the work and assess the costs against the individual lots within the plat of Hammes Estates
and without regard to the formalities or requirements of Minn. Stat. § 429.
D. Developer shall take out and maintain or cause to be taken out and maintained until
six (6) months after the City has accepted the public improvements, public liability and property damage
insurance covering personal injury, including death, and claims for property damage which may arise out of
Developer's work or the work of its subcontractors or by one directly or indirectly employed by any of them.
Limits for bodily injury and death shall be not less than $500,000 for one person and $1,000,000 for each
occurrence; limits for property damage shall be not less than $200,000 for each occurrence; or a
combination single limit policy of $1,000,000 or more. The City shall be named as an additional insured on
the policy, and the Developer shall file with the City a certificate evidencing coverage prior to the City
signing the plat. The certificate shall provide that the City must be given thirty (30) days advance written notice
of the cancellation of the insurance.
E. Third parties shall have no recourse against the City under this Contract. F. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this
Contract is for any reason held invalid, such decision shall not affect the validity of the remaining portion of
this Contract.
G. The action or inaction of the City shall not constitute a waiver or amendment to the
provisions of this Contract. 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 Contract shall not be a waiver or release.
H. This Contract shall run with the land and may be recorded against the title to the
property. The Developer covenants with the City, its successors and assigns, that the Developer has fee
title to the property being final platted and/or has obtained consents to this Contract, in the form attached
hereto, from all parties who have an interest in the property; that there are no unrecorded interests in the
property being final platted; and that the Developer will indemnify and hold the City harmless for any
breach of the foregoing covenants.
I. Each right, power or remedy herein conferred upon the City is cumulative and in 16
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 represents to the City that the plat complies with all city, county,
metropolitan, state, and federal laws and regulations, including but not limited to: subdivision ordinances,
zoning ordinances, and environmental regulations. If the City determines that the plat does not comply, the
City may, at its option, refuse to allow construction or development work in the plat until the Developer does
comply. Upon the City’s demand, the Developer shall cease work until there is compliance.
32. EVENTS OF DEFAULT. The following shall be "Events of Default" under this Agreement
and the term "Event of Default" shall mean, whenever it is used in this Agreement, any one or more of the
following events:
A. Subject to unavoidable delays, failure by Developers to commence and complete
construction of the Public Improvements pursuant to the terms, conditions and limitations of this Agreement
and the continuance of such failure for a period of thirty (30) days after written notice thereof (provided, however,
that in the event of a bona fide emergency, the City shall only be required to give such notice as is practicable
under the circumstances).
B. Failure by Developers to substantially observe or perform any material covenant,
condition, obligation or agreement on their part to be observed or performed under this Agreement and the
continuance of such failure for a period of thirty (30) days after written notice thereof (provided, however, that
in the event of a bona fide emergency, the City shall only be required to give such notice as is practicable under
the circumstances).
33. REMEDIES ON DEFAULT. Whenever any Event of Default occurs, the City, subject to
any rights of third parties agreed to by the City pursuant to this Agreement, or otherwise by written, executed
instrument of the City, may take any one or more of the following:
A. The City may suspend its performance under the Agreement until it receives 17
assurances from Developers, deemed adequate by the City, that Developers will cure their default and
continue their performance under the Agreement. Suspension of performance includes the right of the City
to withhold permits including, but not limited to, building permits.
B. The City may initiate such action, including legal or administrative action, as is
necessary for the City to secure performance of any provision of this agreement or recover any amounts
due under this Agreement from Developers, or immediately draw on the Letter of Credit, as set forth in this
Agreement. In the event of any uncorrected failure to maintain any common area or landscape areas, the City
may undertake to do the work and assess the costs to the individual lots within the plat without regard to the
formalities or requirements of Minn. Stat. § 429..
18
34. ENFORCEMENT BY CITY; DAMAGES. The Developer acknowledges the right of the
City to enforce the terms of this Agreement against the Developer, by action for specific performance or
damages, or both, or by any other legally authorized means. The Developer also acknowledges that its
failure to perform any or all of its obligations under this Agreement may result in substantial damages to the
City; that in the event of default by the Developer, the City may commence legal action to recover all damages,
losses and expenses sustained by the City; and that such expenses may include, but are not limited to,
the reasonable fees of legal counsel employed with respect to the enforcement of this Agreement.
35. WARRANTY. The Developer warrants all improvements required to be constructed by it
pursuant to this Contract against poor material and faulty workmanship. The Developer shall submit either
cash or a letter of credit for twenty-five percent (25%) of the amount of the original cost of the improvements.
A. The required warranty period for materials and workmanship for the utility contractor
installing public sewer and water mains shall be two (2) years from the date of final written City acceptance
of the work.
B. The required warranty period for all work relating to street construction, including
concrete curb and gutter, sidewalks and trails, materials and equipment shall be subject to one (1) year
from the date of final written acceptance, unless the wearing course is placed during the same construction
season as the bituminous base course. In those instances, the Developer shall guarantee all work,
including street construction, concrete curb and gutter, sidewalks and trails, material and equipment for a
period of two (2) years from the date of final written City acceptance of the work.
C. The required warranty period for sod, trees, and landscaping is two growing seasons
following installation.
D. The required warranty for landscaping within storm water infiltration areas (Outlot A)
shall be three (3) years following installation. The Developer shall also enter into a funded maintenance
agreement with the City for a period of three (3) years prior to acceptance of the landscaping for within these
storm water infiltration areas. Said maintenance agreement shall include requirements for the proper care of
native plantings and the elimination of weeds and invasive species.
19
36. SUMMARY OF SECURITY REQUIREMENTS. To guarantee compliance with the
terms of this agreement, payment of special assessments, payment of the costs of all public improvements,
and construction of all public improvements, the Developer shall furnish the City with an irrevocable letter of
credit, in the form attached hereto, from a bank, cash escrow or a combination cash escrow and Letter of
Credit ("security") for $2,880,829.56. The amount of the security was calculated as follows:
CONSTRUCTION COSTS:
Streets $489,243.50
Sanitary Sewer $569,227.75
Watermain $359,915.00
Surface Water Facilities (pipe, ponds, rain gardens, etc.) $479,785.50
Grading $25,000.00 Erosion Control $25,801.90
Sidewalks/Trails $117,684.00
Street Lighting Xcel to Install, to be pre-paid directly by Developer
Street Signs and Traffic Control Signs $3,550.00
Landscaping $222,656.00 Tree Preservation and Restoration $3,600.00
Wetland Mitigation and Buffers Separate letter of credit through Watershed District Monuments $5,700.00
Miscellaneous Facilities N/A
Developer’s Record Drawings $2,500.00
Construction Sub-Total $2,304,663.65
Total Project Securities (at 125% Construction Costs) $2,880,829.56
20
This breakdown is for historical reference; it is not a restriction on the use of the security. The bank shall be
subject to the approval of the City Administrator. The City may draw down the security, without notice, for
any violation of the terms of this Contract or if the security is allowed to lapse prior to the end of the
required term. If the required public improvements are not completed at least thirty (30) days prior to the
expiration of the security, the City may also draw it down. If the security is drawn down, the proceeds shall
be used to cure the default.
37. REDUCTION OF SECURITY. Upon written request by the Developer and upon receipt of
proof satisfactory to the City Engineer that work has been completed and financial obligations to the City
have been satisfied, with City Engineer approval the security may be reduced as follows:
A. Up to 50%, or $1,440,414.78 of the security provided in accordance with paragraph
32. above may be released when: (1) Developer’s obligations under this Agreement have been completed
and the Public Improvements have been found to be complete to the satisfaction of the City including all
corrective work for any identified punch list items, but not including the final wear course; and
(2) completion of the Improvements is done to the satisfaction of the City and evidence of such is provided
by the City in writing and satisfactory evidence of payment, such as lien waivers are provided.
B. Up to an additional 25%, or $720,207.39 of the security provided in accordance
with paragraph 32. above may be released when: (1) Developer’s obligations under this Agreement
have been completed and the Improvements have been found to be complete to the satisfaction of the City
including all corrective work for any identified punch list items and including the final wear course; and (2)
Improvements are accepted by the City in writing and satisfactory evidence of payment, such as lien
waivers, are provided.
C. Twenty percent (25%) of the amounts certified by the Developer's engineer shall be
retained as security until: (1) all improvements have been completed, (2) iron monuments for lot corners have
been installed, (3) all financial obligations to the City satisfied, (4) the required "record" plans have been
received and approved by the City, (5) a warranty security is provided, and (6) the public improvements are
accepted by the City.
38. SUMMARY OF CASH REQUIREMENTS. The following is a summary of the cash 21
Sewer Availability Charge (SAC)
Water Availability Charge (WAC)
Park Dedication
Street Light Operating Fee
City Base Map Upgrading
City Engineering Administration
Escrow
Total Cash Requirements
requirements under this Contract which must be furnished to the City at the time of final plat approval:
$171,000.00
$171,000.00
$107,554.00
$499.68
$1,425.00
$50,000.00 (Based on two months of administration/observation)
$501,478.68
39. NOTICES. Required notices to the Developer shall be in writing, and shall be either hand
delivered to the Developer, its employees or agents, or mailed to the Developer by certified mail at the
following address: 36 Moonlight Bay, Stillwater, MN 55082. Notices to the City shall be in writing and shall
be either hand delivered to the City Administrator, or mailed to the City by certified mail in care of the City
Administrator at the following address: Lake Elmo City Hall, 3800 Laverne Avenue N. Lake Elmo, Minnesota
55042.
40. EVIDENCE OF TITLE. Developer shall furnish the City with evidence of its fee ownership
of the property being platted by way of an attorney’s title opinion or title insurance policy dated not earlier
than thirty (30) days prior to the execution of the plat.
CITY OF LAKE ELMO
(SEAL)
BY: , Mayor
AND
, City Clerk
22
DEVELOPER:
THE RYLAND GROUP, INC.
BY: Its
STATE OF MINNESOTA ) ( ss.
COUNTY OF WASHINGTON )
The foregoing instrument was acknowledged before me this day of , 2 , by and by , the Mayor and City Clerk of the City of Lake Elmo, a Minnesota municipal corporation, on behalf of the
corporation and pursuant to the authority granted by its City Council.
NOTARY PUBLIC
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this_____day of________________,
2015, by The Ryland Group, Inc., a Maryland corporation, for and on behalf of the corporation.
NOTARY PUBLIC
DRAFTED BY: City of Lake Elmo
3800 Laverne Avenue North Lake Elmo, MN 55042 (651) 747-3901
23
FEE OWNER CONSENT
TO
DEVELOPMENT CONTRACT
, fee owners of all or part of the subject property, the development of which is governed by the foregoing Development Contract, affirm
and consent to the provisions thereof and agree to be bound by the provisions as the same may apply to
that portion of the subject property owned by them.
Dated this day of , 2 .
STATE OF MINNESOTA )
( ss. COUNTY OF )
The foregoing instrument was acknowledged before me this day of , 2 ,
by .
NOTARY PUBLIC
DRAFTED BY: City of Lake Elmo 3800 Laverne Avenue North Lake Elmo, MN 55042 (651) 747-3901
24
MORTGAGE CONSENT
TO
DEVELOPMENT CONTRACT
, which holds a mortgage on
the subject property, the development of which is governed by the foregoing Development Contract, agrees that the Development Contract shall remain in full force and effect even if it forecloses on its mortgage.
Dated this day of , 2 .
STATE OF MINNESOTA ) ( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of _,
2 , by .
NOTARY PUBLIC
DRAFTED BY: City of Lake Elmo
3800 Laverne Avenue North Lake Elmo, MN 55042 (651) 747-3901
25
EXHIBIT “A”
TO
DEVELOPMENT CONTRACT
Legal Description of Property Being Final Platted as Hammes Estates 1st Addition
That part of the South Half of the Northeast Quarter of Section 34, Township 29 North,
Range 21 West, Washington County, Minnesota, EXCEPT the East 60.00 feet of the North
967 feet of said South Half of the Northeast Quarter thereof. AND EXCEPT Parcel 3 of
Washington County Highway Right of Way Plat 49-19B, recorded September 18, 1985 as
Document Number 492530.
26
EXHIBIT “B” TO DEVELOPMENT CONTRACT
City Oversizing Payment Calculation
Contract Item Unit
Cost/
Cost Increase
(8” to 12” WM) Quantity Amount
Watermain LF $12.50 3,104 $38,800.00
Gate Valves EA $1,225.00 4 $4,900.00
Plugs EA $345.00 2 $690.00
Fittings Lbs $5.00 1,131 $5,655.00
Total Oversizing Estimate $50,045.00
27
IRREVOCABLE LETTER OF CREDIT
No. Date:
TO: City of Lake Elmo
Dear Sir or Madam:
We hereby issue, for the account of (Name of Developer) and in your favor, our Irrevocable Letter of Credit in the amount of $_ , available to you by your draft drawn on sight on the undersigned bank at its
offices in Minnesota.
The draft must:
a) Bear the clause, "Drawn under Letter of Credit No. , dated , 2 , of (Name of Bank) ";
b) Be signed by the Mayor or City Administrator of the City of Lake Elmo.
c) Be presented for payment at (Address of Bank) , on or before 4:00 p.m. on November 30,
2_ _.
This Letter of Credit shall automatically renew for successive one-year terms unless, at least forty-five (45)
days prior to the next annual renewal date (which shall be November 30 of each year), the Bank delivers written notice to the Lake Elmo City Administrator that it intends to modify the terms of, or cancel, this Letter of Credit. Written
notice is effective if sent by certified mail, postage prepaid, and deposited in the U.S. Mail, at least forty-five (45) days prior to the next annual renewal date addressed as follows: City Administrator, City Hall, 3800 Laverne Ave. N. Lake
Elmo Minnesota 55042 and is actually received by the City Administrator at least thirty (30) days prior to the renewal date. This Letter of Credit sets forth in full our understanding which shall not in any way be modified, amended,
amplified, or limited by reference to any document, instrument, or agreement, whether or not referred to herein.
This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may be made under this Letter of Credit. This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce Publication No. 500.
We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored upon presentation.
BY:
Its
28
PAGE 1 of 1
MEMORANDUM
Date: February 18, 2015
To: Nick Johnson, City Planner Re: Hammes Estates – Watermain Oversize Costs
From: Jack Griffin, P.E., City Engineer
The City has requested that the standard 8‐inch diameter watermain be oversized to a 12‐inch trunk watermain
within a portion of the Hammes subdivision as depicted on the attached exhibit. The Hammes Estates preliminary
plans have included the trunk watermain accordingly. Engineering received the attached watermain oversize cost
determination as prepared by Westwood Professional Services, dated February 2, 2015. The costs have been
reviewed and appear to be an appropriate estimate for the oversizing requested.
FOCUS ENGINEERING, inc.
Cara Geheren, P.E. 651.300.4261
Jack Griffin, P.E. 651.300.4264
Ryan Stempski, P.E. 651.300.4267
Chad Isakson, P.E. 651.300.4283
2/19/2015 Focus Engineering, Inc. Mail Hammes Oversizing
https://mail.google.com/mail/u/0/?ui=2&ik=885060bd59&view=pt&cat=City%20of%20Lake%20Elmo%2FPrivate%20Developments%2FHammes%20E…1/1
Jack Griffin <jack.griffin@focusengineeringinc.com>
Hammes Oversizing
Ryan Bluhm <Ryan.Bluhm@westwoodps.com>Mon, Feb 2, 2015 at 9:41 AM
To: Nick Johnson <NJohnson@lakeelmo.org>
Cc: Jack Griffin <jack.griffin@focusengineeringinc.com>, Brian McGoldrick <brianjmcgoldrick@hotmail.com>,
"Sonstegard, Mark" <msonsteg@ryland.com>
Nick and Jack,
The oversizing costs are as follows;
12” watermain versus 8” watermain – 3104LF x $12.50/LF = $37,248
12” Gate valves versus 8” Gate Valves – 4 ea x $1225 = $4900
12” Plugs versus 8” Plugs – 2 ea x $345 = $690
3481 Lbs of fittings versus 2350Lbs for 8” pipe = 1131*$5 = $5655
Total Oversizing = $48,493
I hope this helps. See the attached sketch for the location of the 12" watermain.
Thanks
Ryan Bluhm
Senior Project Manager
Ryan.Bluhm@westwoodps.com
Direct (952) 9067432
Main (952) 9375150
Cell (952) 8739300
MultiDisciplined Surveying & Engineering
7699 Anagram Drive | Eden Prairie, MN 55344
westwoodps.com
(888) 9375150
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12inchwatermain.pdf
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