HomeMy WebLinkAbout# 22 - Royal Golf Club at Lake Elmo 1st Addition STAFF REPORT
DATE: September 19, 2017
REGULAR
ITEM #:
MOTION
TO: City Council
FROM: Emily Becker, Planning Director
AGENDA ITEM: Royal Golf Club at Lake Elmo Development Agreement
REVIEWED BY: Jack Griffin, City Engineer
Sarah Sonsalla, City Attorney
Kristina Handt, City Administrator
Brian Swanson, Finance Director
Stephen Wensman, Former Planning Director
BACKGROUND:
On September 5, 2017, the City Council adopted Resolution 2017-093 approving the Final Plat of
Royal Golf Club at Lake Elmo. An executed Development Agreement is a condition of final plat
approval and is required prior to recording the final plat with Washington County.
ISSUE BEFORE COUNCIL:
The City Council is being asked to adopt Resolution 2017-096 approving the Developer
Agreement for Royal Golf Club at Lake Elmo.
REVIEW/ANALYSIS:
A condition of approval of the Royal Golf Club at Lake Elmo Final Plat is that the developer enter
into a Developer’s Agreement prior to the execution of the plat by City officials. Staff has drafted
this Developer Agreement which is attached for consideration by the City Council. The key
aspects of the agreement include the following components:
• The Developer provide executed warranty deeds to the City for recording for Outlots A, C,
E, H, J, M, N, and Q.
• Legal documents regarding homeowner association documents, covenants, and restrictions
are to be submitted, reviewed, and approved by the City Attorney.
• Removal of the provision that the Developer follow the City of Lake Elmo “Bee Safe”
policy for pesticide use, as Resolution 2015-13 as the Council moved to repeal the Bee
Safe Resolution on July 18, 2017.
• That all public improvements be completed by October 31, 2018, with the exception of the
final wear course of asphalt on streets.
City Council – Staff Report Regular Item # ___
Meeting date: 9/19/2017
Page 2
• The parkland dedication is to be dedicated incrementally with each phase. The total
assessed value of the entire subdivision was $8,000,000.00. The zoning district in which
the development is located requires 10% of the land of the entire subdivision to be
dedicated towards parkland, or a fee in lieu of land. As approved by the City, the developer
has proposed trails instead of a public park. The developer has agreed to not receive credit
for costs of construction of the trails in exchange for an increased amount of impervious
surface for residential lots, as approved with the Final Plat but will receive credit for a 30
foot corridor for trails, less wetland buffer encroachments. The parkland dedication for the
first phase was calculated as follows:
Factors Considered Running Totals
$800,000.00 for required parkland
dedication
Less $188,543.00 for appraised value of
land underneath trail (8,085 lineal feet of
trail with a 30-foot wide corridor, less
5,010 wetland buffer encroachment)
Total: $611,457.00
Divided by 291 lots (number of lots for
entire development)
Total: $2,101.00
Multiplied by 73 lots (number of lots for
1st Addition)
Total Owed for 1st Addition:
$153,373.00
• That the developer provide a letter of credit in the amount of $3,570,389.00 related to the
cost of the proposed improvements.
• Six building permits for model homes.
• That the developer pay the City a cash contribution up front of $370,000.00 to reimburse
the City for the estimated future costs of construction of turn lanes on CSAH 10 and
CSAH 17 ($203,000.00 for CSAH 10 and 167,000.00 for CSAH 17). If the actual
construction costs exceed the estimated amounts, the Developer shall be responsible for
reimbursing the City for all "City costs" associated with the City’s cost participation in
the CSAH 10 and CSAH 17 turn lane construction.
• The Developer shall pay the City a cash donation of $1,000,000 with the Royal Golf Club
at Lake Elmo 3rd Addition final plat, or with that phase of the development when the
Tartan Park ballfields are no longer able to be used by the City.
• The Developer shall pay a cash contribution of $50,000 for the future maintenance costs
of 2 of the 3 lift stations.
• That the developer provide a cash deposit of $1,063,922.00 for SAC and WAC charges,
engineering administration, one year of street light operating costs, lift station maintenance
costs, city cost share of turn lane improvements for CSAH 10 and CSAH 17 and other City
fees. SAC and WAC charges for the clubhouse and maintenance buildings, any semi-
City Council – Staff Report Regular Item # ___
Meeting date: 9/19/2017
Page 2
transient accommodations, and the fitness/recreation facility are to be paid prior to the
issuance of a building permit for each facility (per city ordinance they will be required to
connect within 2 years of the sewer install).
• A credit from a previously submitted letter of credit from Royal Golf’s Grading Agreement
($780,600) was applied so as not to duplicate already in-place securities for grading, tree
preservation, and wetland mitigation and buffers.
The construction plans approval for the project are expected, but had not been given prior to the
preparation of this report. If approved, the final page of the Development Agreement will be
updated to include the final construction plan dates. The Development Agreement will not be
executed until the final construction plans are approved, all fees and securities, and insurance
certificates are received among other requirements. Only after recording of the final plat and the
completion of a pre-construction meeting with the City can the construction commence.
FISCAL IMPACT:
The future financial impacts include maintenance of streets, trails, sanitary sewer mains,
watermains, lift stations, and other public infrastructure, maintenance of storm water ponding areas
(after warranty period), monthly lease payments for street lights, and other public financial
responsibilities typically associated with a new development. The City will collect building permit
fees, Sewer Accessibility Charges and Water Accessibility Charges and property taxes for the 73
lot single family residential subdivision.
OPTIONS:
The City Council has the following options:
1) Adopt Resolution 2017-096 approving the Development Agreement for Royal Golf Club
at Lake Elmo; or
2) Direct Staff to amend the draft Development Agreement to bring back to a future City
Council meeting.
RECOMMENDATION:
Staff recommends the City Council adopt Resolution 2017-096 approving the Development
Agreement for Royal Golf Club at Lake Elmo.
“Move to adopt Resolution 2017-096 approving the development agreement for Royal Golf
Club at Lake Elmo Final Plat”
ATTACHMENTS:
• Resolution 2017-096
• Royal Golf Club at Lake Elmo Development Agreement
CITY OF LAKE ELMO
WASHINGTON COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2017-096
A RESOLUTION APPROVING A DEVELOPMENT AGREEMENT FOR THE ROYAL GOLF
CLUB AT LAKE ELMO 1ST ADDITION PLANNED UNIT DEVELOPMENT
WHEREAS, the City of Lake Elmo is a municipal corporation organized and existing
under the laws of the State of Minnesota; and
WHEREAS, Royal Development, Inc., 11074 Radisson Road NE, Blaine, MN 55449
(“Developer”) has previously submitted an application to the City of Lake Elmo (“City”) for
Final Plat and Planned Unit Development (PUD) Plans to be called The Royal Golf Club at Lake
Elmo 1st Addition, a copy of which is on file in the City Planning Department; and
WHEREAS, the Lake Elmo City Council approved The Royal Golf Club at Lake Elmo
PUD Concept Plan on September 9, 2016; and
WHEREAS, the Lake Elmo City Council adopted Resolution 2017-47 approving The
Royal Golf Club at Lake Elmo Preliminary Plat and PUD Plans on June 6, 2017; and
WHEREAS, the Lake Elmo City Council adopted Resolution 2017-93 approving The
Royal Golf Club at Lake Elmo 1st Addition Final Plat and PUD Plans on September 5, 2017; and
WHEREAS, a condition of approval of said Resolution 2017-93 establishes that prior to
execution of the Final Plat by City officials, the Applicant shall enter into a Development Agreement with
the City; and.
WHEREAS, the Developer and the City have agreed to enter into such a contract and a
copy of the Development Agreement was submitted to the City Council for consideration at its
September 19, 2017 meeting;
NOW, THEREFORE, BE IT RESOLVED THAT the City Council does hereby
approve the Development Agreement for The Royal Golf Club at Lake Elmo 1st Addition and
authorizes the mayor and city Clerk to execute the document.
Passed and duly adopted this 19th day of September, 2017 by the City Council of the City of
Lake Elmo, Minnesota.
___________________________________
Mike Pearson, Mayor
ATTEST:
____________________________________
Julie Johnson, City Clerk
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(reserved for recording information)
DEVELOPMENT AGREEMENT
(Public sewer and water)
Royal Golf Club at Lake Elmo 1st Addition
THIS DEVELOPMENT AGREEMENT is dated September __, 2017, by and between the
CITY OF LAKE ELMO, a Minnesota municipal corporation (the “City”) and Royal Development,
Inc., a Minnesota corporation (the “Developer”).
1. REQUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a
plat entitled “Royal Golf Club at Lake Elmo” (referred to in this Agreement as the “Subdivision”).
The property being platted is situated in the County of Washington, State of Minnesota, and is
legally described on Exhibit A (the “Property”).
2. CONDITIONS OF PLAT APPROVAL. The City hereby approves the Subdivision on
condition that the Developer enter into this Agreement, furnish the security required by it, and
record the plat with the County Recorder or Registrar of Titles within 120 days after the City
Council approves the final plat.
3. RIGHT TO PROCEED. This Agreement is intended to regulate the development of the
Property and the construction therein of certain public and private improvements. The Developer
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may not grade or otherwise disturb the earth, remove trees, or construct public or private
improvements or any buildings within the Subdivision, unless such work is permitted under
separate agreement, until all the following conditions precedent have been satisfied:
A. the Developer has caused H.C. Golf Land, LLC to provide the executed warranty deeds
conveying fee title to Outlots A, C, E, H, J, M, N, and Q to the City and provided copies
of the executed warranty deeds to the City for recording with Washington County;
B. the Developer has executed and recorded with Washington County all drainage and
utility easements required for the Subdivision by the City Engineer and Public Works
Director in the City’s standard form or the easements have been dedicated to the City on
the plat;
C. the Developer has executed and recorded with Washington County the storm water
maintenance and easement agreement in the City’s standard form;
D. this Agreement has been executed by the Developer and the City;
E. the required Security (as hereinafter defined) have been received by the City from or on
behalf of the Developer;
F. final construction plans and specifications have been submitted by the Developer and
approved by the City Engineer;
G. the Developer has paid the City for all legal, engineering, and administrative expenses
incurred by the City regarding the City approvals and has given the City the additional
City Engineering Administration Escrow required by this Agreement;
H. the Developer has paid any outstanding assessments and taxes for the Property
including the property being deeded to the City;
I. the Developer has fulfilled any park dedication requirements as specified under this
Agreement;
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J. the Developer has received all necessary permits from the Minnesota Pollution Control
Agency (“MPCA”), the Minnesota Department of Health (the “MDH”), the Department of
Natural Resources (the “DNR”), applicable watershed districts, Washington County, and
any other government entity or agency having jurisdiction over the Subdivision;
K. the Developer has provided the City with a certificate of insurance required by this
Agreement;
L. the Developer or the Developer’s engineer and the Developer’s contractor(s) have
initiated and attended a preconstruction meeting with the City Engineer, and City staff;
M. the final plat has been recorded with Washington County;
N. the homeowners’ association declaration, covenants, and restrictions and other related
documents have been submitted, reviewed, and approved by the City Attorney; and
O. the Developer has provided a title insurance policy for all property being deeded to the
City and all easements being dedicated to the City in the plat; and
P. the City has issued a written notice that all above conditions have been satisfied and that
the Developer may proceed;
4. PHASED DEVELOPMENT. If the plat is a phase of a multi-phased preliminary plat,
the City may refuse to approve final plats of subsequent phases of the development if the
Developer is not in compliance with any term of this Agreement and the non-compliance has not
been remedied. Development of subsequent phases of the development may not proceed until
development agreements for such phases are approved by the City. Park dedication charges
and availability charges for sewer and water referred to in this Agreement are not being imposed
on outlots that are designated in the plat for future subdivision into lots and blocks, if any, in the
plat. Such charges will be calculated and imposed when these outlots, if any, are platted into lots
and blocks.
5. PRELIMINARY PLAT STATUS. If the Subdivision is a phase of a multi-phased
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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 years after preliminary plat
approval.
6. CHANGES IN OFFICIAL CONTROLS. For five years from the date of this Agreement,
no amendments to the City's Comprehensive Plan or official controls shall apply to or affect the
use, development density, lot size, lot layout or dedications of the 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 Agreement to the contrary, to the full extent permitted by state
law, the City may require compliance with any changes to the City's Comprehensive Plan, official
controls, including, but not limited to, any platting or dedication requirements enacted after the
date of this Agreement.
7. DEVELOPMENT PLANS. The Developer agrees to develop the Property in
accordance with the City approvals, including the terms and conditions of approval of the final plat
as detailed in City Council Resolution No. 2017-093 and to construct all improvements in
accordance with the approved construction plans and specifications (collectively, the “Plans”)
prepared by a professional engineer registered in the State of Minnesota at its sole expense. All
terms and conditions of the City approvals are hereby incorporated by reference into this
Agreement. The documents which constitute the Plans are those on file with and approved by
the City and are listed on Exhibit B. The Plans may not be modified by the Developer without
the prior written approval of the City.
8. IMPROVEMENTS. In developing the Subdivision in accordance with the Plans, the
Developer shall make or install at its sole expense the following public and private improvements
(collectively, the “Subdivision Improvements”):
A. Grading and erosion control;
B. Sanitary sewer;
C. Water system improvements;
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D. Stormwater improvements (storm sewer pipe, control structures, ponds, BMPs,
etc.)
E. Streets and sidewalks;
F. Trails;
G. Underground private utilities;
H. Landscaping;
I. Street lighting and signage;
J. Intersection improvements (turn lanes, by-pass lanes, traffic control, etc.);
K. Tree preservation and reforestation;
L. Wetland mitigation and buffers; and
M. Monuments required by Minnesota Statutes.
All improvements shall be installed in accordance with the approved Plans, the City
approvals, the City Code, the City’s Engineering Design and Construction Standards Manual, and
the City’s Landscape and Irrigation Standards. 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 Plans, the City approvals, the City Code, the City’s Engineering Design and
Construction Standards Manual, and the City’s Landscape and Irrigation 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 or a soil engineer inspect the Developer’s work on 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.
9. CITY ADMINISTRATION AND CONSTRUCTION OBSERVATION.
At the time of the City’s approval of the final plat for the Subdivision, the Developer shall submit
to the City an amount to be escrowed by the City for City administration and construction
observation costs in an amount provided under paragraph 36 of this Agreement - Summary of
Security Requirements. Thereafter, the Developer shall reimburse the City each month, within
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30 days of receiving an invoice, for all administration and construction observation costs incurred
by the City during the construction of the Subdivision Improvements by the City’s engineering,
public works, planning, and landscape architecture staff and consultants. After 30 days of the
invoice, the City may draw upon the escrow and stop the work on site until the escrow has been
replenished in its full amount. City administration and oversight will include monitoring of
construction progress and construction observation, consultation with the Developer and the
Developer’s professionals 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 the Security. Construction observation shall include, at the discretion of
the City, part or full time inspection of proposed public utilities and street construction. Services
will be billed by the City on an hourly basis.
The direction and review provided by the City through the inspection of the Subdivision
Improvements should not be considered a substitute for the Developer-required management of
the construction of the Subdivision Improvements. The Developer must require the Developer’s
contractor(s) to furnish the City with a schedule of proposed operations at least five days prior to
the commencement of construction of each type of Subdivision Improvement. The City shall
inspect all Developer-installed Subdivision Improvements during and after construction for
compliance with the Plans, the City approvals, the City Code, the City’s Engineering Design and
Construction Standards Manual, and the City’s Landscape and Irrigation Standards. The
Developer will notify the City at such times during construction as the City 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 the Developer is thereby created.
10. 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 percent ownership interest or in which they are an
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officer or director may not act as contractors or subcontractors for the Subdivision Improvements
identified in Paragraph 8 above.
11. TIME OF PERFORMANCE. The Developer shall install all required Subdivision
Improvements by October 31, 2018, with the exception of the final wear course of asphalt on
streets. The Developer shall install the bituminous wearing course of streets after the first course
has weathered a winter season, consistent with warranty requirements, however, final acceptance
of the Subdivision Improvements by the City 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.
12. MAINTENANCE DURING CONSTRUCTION. The Developer shall be responsible for
all maintenance of the Subdivision Improvements including the snow plowing of the streets, roads
and alleys until the Subdivision Improvements are accepted by the City in writing. The Developer
is also responsible to locate all underground utilities until the Subdivision is accepted in writing by
the City. Warning signs shall be placed by the Developer when hazards develop in streets to
prevent the public from traveling on them and to direct attention to detours. If and when streets
become impassable, such streets shall be barricaded and closed by the Developer. In the event
residences are occupied prior to completing streets, the Developer shall maintain a smooth
surface and provide proper surface drainage to ensure that the streets are passable for traffic and
emergency vehicles. The Developer shall be responsible for keeping streets within and without
the Subdivision clean and clear of dirt and debris that may spill, track, or wash onto the street
from the Developer’s operations. The Developer shall contract for street cleaning for streets within
and immediately adjacent to the Subdivision. At a minimum, scraping and sweeping shall take
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place on a weekly basis.
Prior to the City’s acceptance of the streets, the City may agree, at the City’s sole
discretion, to keep the streets open during winter months by plowing snow. The City will consider
snow plowing streets on a case-by-case basis and under the following conditions: 1) the
Developer must request in writing the streets in question to be plowed by the City, with such
request received prior to October 1st of each winter season that plowing is requested; 2) the
streets must be occupied by residents of the City; 3) for streets that do not have the bituminous
wear course placed, the Developer must install paved wedges along all curb lines and catch
basins; 4) gate valves and manholes must be level with the pavement surface; 5) street curves,
center medians, and other protrusions in the right-of-ways must be delineated with “High-vis”
fiberglass stakes; 6) a site review must be scheduled and conducted with the Public Works
Department, and attended by the Developer, to accept the streets for plowing prior to the
commitment of plowing by the City; 7) the City shall not be responsible for any damage caused
by snow plowing operations to the streets, curb and gutter, manholes, catch basins or other
infrastructure; and 8) the Developer shall enter into an Agreement with the City for plowing of the
streets.
13. LICENSE. The Developer hereby grants the City, its agents, employees, officers, and
contractors a license to enter the Property to perform all work and inspections deemed
appropriate by the City in conjunction with the development of the Property and this Agreement.
14. CONSTRUCTION ACCESS. Construction traffic access and egress for grading, public
utility construction, and street construction is restricted to access the Subdivision via 10th Street
North and 20th Street North as identified on the approved construction plans. No construction
traffic is permitted on other adjacent local streets including loading and unloading of equipment.
15. CONSTRUCTION SEQUENCE AND COMPLIANCE. The City will require the
Developer to construct the Subdivision Improvements in a sequence which will allow progress
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and compliance points to be measured and evaluated. The Developer and the Developer’s
representatives are required to supervise and coordinate all construction activities for all
Subdivision Improvements and must notify the City in writing stating when the work is ready for
the inspection at each of the measurable points defined in the following paragraphs.
16. EROSION CONTROL. All construction regarding the Subdivision Improvements shall
be completed in a manner designed to control erosion and in compliance with the City Code, the
City’s Engineering Design and Construction Standards Manual, all watershed district permits, the
MPCA’s best management practices, and other requirements including the City’s permit with the
MPCA for the municipal separate storm sewer system program. Prior to initiating any work on
the site, an erosion control plan must be implemented by the Developer and inspected and
approved by the City. Erosion and sediment control measures shall be coordinated with the
various stages of development. The City may impose additional erosion control requirements at
any stage in development as deemed necessary to maintain a compliant site. All areas disturbed
for site improvements must be reseeded by the Developer promptly after the work in the area is
complete unless construction of the next stage of the improvements will begin in that area within
seven days. 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 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
by the City unless the Subdivision is in full compliance with the approved erosion control plan.
If building permits are issued prior to the acceptance of public Subdivision Improvements,
the Developer assumes all responsibility for erosion control compliance throughout the
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Subdivision 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 Engineer.
17. SITE GRADING. In order to construct the Subdivision Improvements and otherwise
prepare the Property for development, it will be necessary for the Developer to grade the
Subdivision. All grading must be done in compliance with this Agreement and the approved
grading plans. Within 30 days after completion of the grading, the Developer shall provide the
City with an “as built” grading plan and a certification by a registered land surveyor or engineer
as required in the City’s Engineering Design and Construction Standards Manual.
18. STREET AND UTILITY IMPROVEMENTS. All storm sewers, sanitary sewers,
watermain, and streets, including turn lane and intersection improvements, shall be installed in
accordance with the approved Plans, the City approvals, the City Code, and the City’s
Engineering Design and Construction Standards Manual. Curb and gutter, the first lift of the
bituminous streets, sidewalks, the grading of boulevards, the installation of street signs, and all
restoration work on the site shall be completed in accordance with the approved Plans. Once the
work is completed, the Developer or the Developer’s 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 must be notified to re-inspect the improvements. The final bituminous wear course shall be
installed by the Developer after the first bituminous course has weathered a winter season. Prior
to placement of the final bituminous wear course, the Developer shall repair or replace all broken
or failing curbs, sidewalks, and damaged or settled streets as determined by the City from a pre-
wear course walk through inspection.
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19. LANDSCAPING AND TREE REPLACEMENT IMPROVEMENTS.
A. The Developer agrees to install landscaping in accordance with the approved Plans,
the City approvals, the City Code, the City’s Engineering Design and Construction
Standards Manual, and the City’s Landscape and Irrigation Standards. All
landscaping materials such as trees, shrubs, grasses, or other vegetation installed
by the Developer must be warrantied and maintained for a period of two years. The
two year warranty period shall be deemed to start once all required landscaping
identified as responsibility of Developer in the approved Plans has received
acceptance by the City. The Developer agrees to have the installer of the
landscaping complete an inspection 30 days prior to the end of the two year warranty
period and provide the City with a written report identifying the condition of all
landscaping. In the event that any landscaping installed by the Developer is deemed
to be in poor condition or dead, the Developer is to replace the landscaping with like
kind materials or as otherwise approved by the City.
B. The Developer shall be responsible for maintaining regular watering, fertilizing, and
over-seeding necessary to establish final lawns and yards as identified in the
approved Plans for outlots, public rights-of-way, and any disturbed areas outside the
Subdivision boundaries according to a landscape maintenance plan approved by the
City. The Developer agrees to achieve “substantial performance” on all seeded or
sodded lawns and yards disturbed during the construction of Subdivision
Improvements. For the purpose of this Agreement “substantial performance” shall
be defined for areas seeded or sodded with a turf or lawn mix as “square foot turf
areas with an average blade height of three inches, free of eroded, bare, or dead
spots, and free from perennial weeds or unwanted grasses with no visible surface
soil.” For areas seeded with a native grass or flower mix “substantial performance”
shall be defined as “square foot native grass or flower areas with an average height
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of eight inches free of eroded, bare, or dead spots and no visible surface soil.”
C. Notwithstanding anything herein to the contrary, the Developer may reduce the
number of trees it is required to plant within the Subdivision, as such number is
reflected currently in the landscape plan referenced in Exhibit C attached hereto, by
(i) implementing woodland management and/or pollinator friendly native seeding
practices within the Subdivision, in a manner approved by the City’s Landscape
Architect, provided that the number of trees that may be removed from the
Developer’s plantings will be agreed upon by the Developer and the City at the time
such practices are approved, and/or (ii) paying to the City a per-tree parkland
dedication fee of $500.00 per 2.5 caliper inch tree that the Developer elects not to
plant within the Subdivision. In the event the Developer elects to utilize either or
both of the foregoing to reduce its tree planting requirements and the Developer and
the City reach agreement on mutually acceptable terms relating to the same, the City
and the Developer shall execute an amendment to this Agreement that memorializes
the parties’ agreement relating to such reduction in tree planting requirements and
that includes a revised landscape plan for the Subdivision the reflects the reduced
number of trees that will be planted.
20. SIGNAGE, STREET LIGHTING, AND OTHER UTILITIES. The Developer agrees
to install street signs, traffic and parking signs, and pavement markings within the Subdivision all
in accordance with the approved Plans and the City Engineering Design Standards Manual.
Street and traffic sign details shall be submitted by the Developer to the City for approval prior to
installation. In addition, the Developer shall be responsible for the cost and all coordination work
to extend private utilities along with street lighting within the Subdivision all in accordance with
the approved plans and right-of-way permits.
21. OWNERSHIP OF IMPROVEMENTS. Upon completion of the work and construction
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required by this Agreement, the Subdivision Improvements lying within public easements shall
become City property. Prior to acceptance of the public Subdivision Improvements by the City,
the Developer must furnish the City with a complete set of reproducible "record" plans and 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
Agreement. 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 that the public Subdivision
Improvements have been completed in accordance with the terms of this Agreement, the City
Engineer will accept the completed public Subdivision Improvements.
22. PARK DEDICATION. The Developer shall dedicate 8.8 acres of land or pay a cash
contribution of $611,457.00 in satisfaction of the City's park dedication requirements for the entire
Subdivision, all phases, to be dedicated incrementally with each phase of development. The park
dedication for the entire Subdivision was calculated as follows: $800,000.00 (10 percent of
$8,000,000 (the total appraised value of the entire Subdivision), less $188,543 for the total
appraised value of the land being conveyed to the City for trails (8,085 lineal feet of trail with a 30
foot wide corridor, less 5,010 square feet of buffer encroachment).
In the first phase, the Developer shall cause H.C. Golf Land, LLC to deed Outlots A and C
(1.03 gross acres of land) to the City upon the recording of the final plat and shall pay a cash
contribution of $153,373 to satisfy the City’s park dedication requirements for the first phase. The
first phase park dedication was calculated as follows: 73 lots at $2,101.00 per lot ($2,749.00 per
lot, less $648.00 for the appraised value of land for the trails being conveyed to the City per lot).
23. SANITARY SEWER AND WATER UTILITY AVAILABILITY CHARGES (SAC
AND WAC). The Developer shall be responsible for the payment of all sewer availability charges
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(SAC) and all water availability charges (WAC) with respect to the Subdivision 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 REC shall be paid by
the Developer to the City prior to recording the final plat. The total amount to be paid by the
Developer for the first phase of the Subdivision is $219,000.00. This shall include 73 residential
units. The sewer availability charge (SAC) for future connections to clubhouse and maintenance
buildings, any semi-transient accommodations, and the fitness/recreation facility, to be located on
Lot 2, Block 1 of the plat, shall be paid prior to the issuance of a building permit for each facility.
The water availability charge (WAC) in the amount of $3,000.00 per REC shall be paid by
the Developer to the City prior to recording the final plat. The total amount to be paid by the
Developer for the first phase of the Subdivision is $219,000.00. This shall include 73 residential
units. The water availability charge (WAC) for the future clubhouse and maintenance buildings,
any semi-transient accommodations, and the future fitness/recreation facility, to be located on Lot
2, Block 1 of the plat, shall be paid prior to the issuance of a building permit for each facility, or,
with respect to the future connections to the clubhouse and maintenance buildings, at the time
such hook-ups occur.
In addition, a sewer connection charge in the amount of $1,000.00 per REC, a
Metropolitan Council sewer availability charge in the amount of $2,485.00 per REC, and a water
connection charge in the amount of $1,000.00 per REC will be payable by the Developer and
collected by the City at the time the building permit is issued for each lot.
24. STREET LIGHTS. The Developer is responsible for the cost of street light installation
consistent with a street lighting plan approved by the City. Before the City signs the final plat, the
Developer shall post a Security for street light installation consistent with the approved plan. The
required Security is $36,000.00 and consists of six decorative lights at $6,000.00 each. The
Developer shall also pay the City $774.00 to reimburse the City for the first year operating costs
for the street lights.
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25. WETLAND MITIGATION. The Developer shall complete wetland mitigation/restoration
in accordance with the approved Plans 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 to perform the work
if the Developer fails to take corrective measures after being provided reasonable notice by the
City.
26. BUILDING PERMITS/CERTIFICATES OF OCCUPANCY.
A. No building permit shall be issued for any lot within the Subdivision, or within a
completed phase of the Subdivision in a City preapproved phasing plan until such
time that sanitary sewer and water mains have been tested and approved by the
City, storm sewer inverts have verified by the City, curb and gutter and one lift of
asphalt have been installed and tested for all public streets; property monuments
have been installed, and lot grading and lot drainage has been verified and approved
by the City through as-built lot corner elevations and as-built elevations for all
emergency overflow elevations and downstream drainage systems. Driveways are
not permitted for any lot until sidewalks are in place. If a preapproved phasing plan
is in place, the Developer is only obligated to complete the items listed in this
paragraph with respect to that phase in order to receive building permits. A
“preapproved phasing plan” is defined as a phased construction plan that has been
submitted by the Developer and approved by the City in advance of the
preconstruction meeting for the Subdivision. Once the construction has started, the
City will not consider revisions to the phasing plan for the purpose of issuing building
permits.
B. Issuance of building permits for six “model homes” may be authorized by the City
Planning Director prior to the completion of the Subdivision Improvements described
16
in paragraph 26 (A) above, if there is safe public access to the lot that is sufficient to
allow construction to proceed and there is a grading as-built plan approved by the
City for the lot and all downstream storm water drainage facilities. However, the City
will not issue a certificate of occupancy for any “model home” until all conditions
identified in paragraph 26 (G) below have been completed. The Developer shall use
the model home only for real estate sales purposes and no other purposes.
C. 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 Planning Department.
D. Breach of the terms of this Agreement by the Developer, including nonpayment of
billings from the City, shall be grounds for denial of building permits, certificates of
occupancy, and withholding of other permits, inspections, or actions and the halting
of all work in the Subdivision.
E. If building permits are issued prior to the acceptance of the public Subdivision
Improvements by the City, the Developer assumes all liability and costs resulting in
delays in completion of public Subdivision Improvements and damage to public
Subdivision Improvements caused by the City, the Developer, the Developer’s
contractors, subcontractors, materialmen, employees, agents, or any third parties.
F. No sewer and water connection permits will 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. No certificate of occupancy will be issued for any lot within the Subdivision in a City
preapproved phasing plan until such time that street and traffic control signs have
been installed in such phase; grading as-built plans have been submitted and
approved by the City in such phase; sidewalks have been installed continuously from
end of street to end of street in such phase without exceptions; and lift stations must
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be operational.
27. RESPONSIBILITY FOR COSTS.
A. In the event that the City receives claims from labor, materialmen, or others that work
required by this Agreement has been performed and the amounts due to 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 Security 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 funds deposited with the District Court, except that the Court shall
retain jurisdiction to determine attorneys' fees pursuant to this Agreement.
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 Subdivision, including but
not limited to, legal, planning, engineering, and inspection expenses incurred in
connection with the City’s approval and acceptance of the plat and the Subdivision,
the preparation of this Agreement, the City’s review of construction plans and
documents, and all costs and expenses incurred by the City in monitoring and
inspecting the Subdivision. All amounts incurred and due to the City at the time of
the recording of the final plat must be fully paid by the Developer prior to the City
executing and releasing the final plat for recording.
C. The Developer shall hold the City and its officials, employees, and agents harmless
from claims made by itself and third parties for damages sustained or costs incurred
resulting from the City’s approval of the plat and the development of the Subdivision.
The Developer shall indemnify the City and its officials, employees, and agents for
18
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
Agreement, including reasonable engineering and attorneys' fees.
E. The Developer shall pay, or cause to be paid when due, and in any event before any
penalty is attached, all special assessments referred to in this Agreement. This is a
personal obligation of the Developer and shall continue in full force and effect even
if the Developer sells one or more lots, the entire Property, or any portion of it.
F. The Developer shall pay in full all bills submitted to it by the City for obligations
incurred under this Agreement within 30 days after receipt. Bills not paid within 30
days shall be assessed a late fee per the City adopted fee schedule. Upon request,
the City will provide copies of detailed invoices of the work performed by the City
and its consultants.
28. SPECIAL PROVISIONS. The following special provisions shall apply to the
Subdivision:
A. Implementation of the recommendations listed in the August 24, 2017 Engineering
memorandum.
B. Upon the recording of the final plat, the Developer shall cause H.C. Golf Land, LLC
to convey Outlots A, C, E, H, J, M, N, and Q to the City by warranty deed, free and
clear of any and all encumbrances, unless otherwise agreed to by the City.
C. The Developer must obtain a sign permit from the City Building Official prior to
installation of any subdivision identification signs.
D. All public trails shall be located within outlots that are at least 30’ wide and must be
deeded to the City by warranty deed. A title insurance policy shall be provided for
the outlots.
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E. The Developer shall enter into a License and Maintenance Agreement for
Landscaping Improvements with the City that clarifies the individuals or entities
responsible for maintenance of any landscaping installed in areas outside of land
deeded to the City or dedicated as public park and open space on the final plat.
F. The Developer shall reimburse the City for all “City Costs” incurred by the City for
the City’s cost participation in the CSAH 10 and CSAH 17 turn lane improvements
to be designed and constructed by Washington County. The Developer shall pay the
City up front, when payment is due under the terms of this Agreement, a cash
contribution of $370,000.00, the estimated City cost share of turn lanes on CSAH 10
and CSAH 17 ($203,000.00 for CSAH 10 and $167,000.00 for CSAH 17). If the
actual City cost share exceeds this estimated amount, the Developer shall be
responsible for reimbursing the City for all "City costs" associated with the City’s cost
participation in the CSAH 10 and CSAH 17 turn lane construction within 30 days of
being invoiced for such amounts by the City.
G. The Developer shall pay the City a cash donation of $1,000,000.00 upon the Royal
Golf Club at Lake Elmo 3rd Addition final plat being approved by the City, or upon
approval by the City of that phase of the development where the Tartan Park
ballfields are no longer able to be used by the City, whichever happens first.
H. The Developer shall pay the City a cash contribution of $50,000.00 for the future
maintenance costs of two of the three lift stations that will be serving the Subdivision.
The contribution shall be paid prior to the City signing the final plat.
I. A temporary access road providing access to the Outlot N lift station and sanitary
manhole structures along Outlot R must be provided by the Developer. The
Developer also hereby agrees to pave such road within one year from the date that
the lift station is operational.
29. MISCELLANEOUS.
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A. The Developer may not assign this Agreement without the written permission of the
City Council. The Developer's obligations hereunder shall continue in full force and
effect even if the Developer sells one or more lots, the entire Property, or any portion
of it.
B. Retaining walls that require a building permit shall be constructed in accordance with
plans and specifications prepared by a professional 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. All retaining walls identified on
the Plans or by special conditions referred to in this Agreement shall be constructed
before any other building permit is issued for a lot on which a retaining wall is
required to be built.
C. Homeowners’ association documents, covenants, and restrictions and other
documents related to the homeowners’ association shall be submitted to the City
prior to recording of the final plat for review and approval by the City Attorney.
D. The Developer shall take out and maintain or cause to be taken out and maintained
until six months after the City has accepted the public Subdivision 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 $1,500,000 for each occurrence; limits for property damage shall be not less
than $200,000 for each occurrence; or a combination single limit policy of $1,500,000
or more. The City shall be named as an additional insured on the policy, and the
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Developer shall file with the City a certificate of insurance evidencing coverage prior
to the City signing the plat. The certificate shall provide that the City must be given
30 days’ advance written notice of the cancellation of the insurance.
E. Third parties shall have no recourse against the City under this Agreement.
F. 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.
G. 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.
H. This Agreement shall run with the land and may be recorded against the title to the
Property at the Developer’s expense. The Developer covenants with the City, its
successors and assigns, that the Developer has fee title to the Property being final
platted and has obtained consents to this Agreement, in the form attached hereto,
from all parties who have an interest in the Property, including, but not limited to,
mortgagees; 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
addition to every other right, power, or remedy, express or implied, now or hereafter
arising, available to the 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
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thereafter any other right, power, or remedy.
J. The Developer represents to the City that the Subdivision and the Subdivision
Improvements comply or will comply 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
Subdivision is not in compliance, the City may, at its option, refuse to allow
construction or development work in the Subdivision until it is brought into
compliance. Upon the City’s demand, the Developer shall cease work until there is
compliance.
30. 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 the Developer to commence and complete
construction of the public Subdivision Improvements pursuant to the terms,
conditions and limitations of this Agreement.
B. Failure by the Developer to substantially observe or perform any material covenant,
condition, obligation, or agreement on its part to be observed or performed under
this Agreement.
31. 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
assurances from the Developer, deemed adequate by the City, that Developer will
cure its default and continue its performance under the Agreement. Suspension of
performance includes the right of the City to withhold permits including, but not
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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 the Developer, or immediately
draw on the Security, as set forth in this Agreement.
32. 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. In the event of a
default by the Developer as to construction or repair of any of the Subdivision Improvements or
any other work or undertaking required by this Agreement, the City may, at its option, perform the
work and the Developer shall promptly reimburse the City for any expense incurred by the City.
This Agreement is a license for the City to act, and it shall not be necessary for the City to seek
an order from any court for permission to enter the Subdivision for such purposes. If the City
does such work, the City may, in addition to its other remedies, levy special assessments against
the land within the Subdivision to recover the costs thereof. For this purpose, the Developer, for
itself and its successors and assigns, expressly waives any and all procedural and substantive
objections to the special assessments, including, but not limited to, hearing requirements, and
any claim that the assessments exceed the benefit to the land so assessed. The Developer, for
itself and its successors and assigns, also waives any appeal rights otherwise available pursuant
to Minnesota Statutes Section 429.081.
The Developer also acknowledges that its failure to perform any or all of the Developer’s
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.
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33. WARRANTY. During the warranty period, the Developer warrants that all Subdivision
Improvements will be free from defects and that they will continue to meet all technical
specifications and standards. During the warranty period, the Developer agrees to repair or
replace any Subdivision Improvement, or any portion or element thereof, which shows signs of
failure, normal wear and tear excepted. If the Developer fails to repair or replace a defective
Subdivision Improvement during the warranty period, the City may repair or replace the defective
portion and may use the Security to reimburse itself for such costs. The Developer agrees to
reimburse the City fully for the cost of all Subdivision Improvement repair or replacement if the
cost thereof exceeds the remaining amount of the Security. Such reimbursement must be made
within 45 days of the date upon which the City notifies the Developer of the cost due under this
paragraph. The Developer hereby agrees to permit the City to specially assess any unreimbursed
costs against any lots in the Subdivision which have not been sold to home buyers if the Developer
fails to make required payments to the City. The Developer, on behalf of itself and its successors
and assigns, acknowledges the benefit to the lots within the Subdivision of the repair or
replacement of the Subdivision Improvements and hereby consents to such assessment and
waives the right to a hearing or notice of hearing or any appeal thereon under Minnesota Statutes,
Chapter 429.
A. The required warranty period for all work relating to the public sewer and water shall
be two 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 one
year from the date of final written City acceptance of the work.
C. The required warranty period for sod, trees, and landscaping is two years from the
date of final written City acceptance of the installation.
34. SUMMARY OF SECURITY REQUIREMENTS. To guarantee compliance with the
25
terms of this Agreement, payment of special assessments, payment of the costs of all public
Subdivision Improvements, and construction of all public Subdivision Improvements, the
Developer shall furnish the City with an irrevocable letter of credit or a cash escrow or a
combination of a cash escrow and letter of credit (the “Security") in the amount of $3,570,389.00.
The bank originating the letter of credit shall be determined by the City to be solvent and
creditworthy. The letter of credit shall substantially be in the form attached to this Agreement and
must be approved by the City. The amount of the Security was calculated as itemized on Exhibit
C. If at any time the City reasonably determines that the bank issuing the letter of credit no longer
satisfies the City’s requirements regarding solvency and creditworthiness, the City shall notify the
Developer and the Developer shall provide to the City within 45 days a substitute for the letter of
credit from another bank meeting the City’s requirements. If the Developer fails to provide the
City within 45 days with a substitute letter of credit from an issuing bank satisfactory to the City,
the City may draw under the existing letter of credit.
This breakdown is for historical reference; it is not a restriction on the use of the Security.
The City may draw down the Security, without notice, for any violation of the terms of this
Agreement or if the Security is allowed to lapse prior to the end of the required term. If the required
public Subdivision Improvements are not completed at least 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 by the City to cure the default.
35. REDUCTION OF SECURITY. Upon written request by the Developer and upon receipt
of proof satisfactory to the City Engineer that work has been completed in accordance with the
approved Plans and the terms of this Agreement and that all financial obligations to the City have
been satisfied, the City Engineer may approve reductions in the Security in the following
instances:
A. Upon completion of grading operations, including temporary site restoration. The
Developer must submit an as-built grading survey to the City that at a minimum
26
establishes the as-built grades at all lot corners and downstream drainage
conveyance systems and storm water ponds. Upon inspection of the site and
approval of the as-built survey by the City, 100 percent, or $0.00, of the Security
associated with grading may be released. This Security reduction does not include
amounts related to erosion and sedimentation control.
B. Up to 75 percent of the Security associated with the itemization on Exhibit C may
be released upon completion of the following key milestones of the project as
determined by the City Engineer:
1. Construction Categories 2 and 3: The amount of $1,024,111.50 may be
released when all sanitary sewer and watermain utilities have been installed,
all testing and televising has been successfully completed, sanitary sewer as-
built inverts have been verified, and the utilities are considered ready for use
by the City Engineer.
2. Construction Categories 4 and 5: The amount of $1,219,884.00 may be
released when all streets, sidewalks, and storm sewer have been installed and
tested, and have been found to be complete to the satisfaction of the City
Engineer including all corrective work for any identified punch list items and
including verification of storm sewer as-built inverts, but not including the final
wear course.
3. Construction Categories 6-10 and 14-17: The amount of $200,280.00 may be
released when all remaining Developer’s obligations under this Agreement
have been completed including: (1) bituminous wear course; (2) street lighting
and private utilities; (3) trails; (4) bio retention facilities; (5) iron monuments for
lot corners have been installed, if required; (3) all financial obligations to the
City have been satisfied; (4) the required "record" plans in the form of the City
standards have been received and approved by the City; and (5) the public
27
Subdivision Improvements are accepted by the City Engineer and the City
Council.
4. Construction Categories 11, 12, and 13: The amount of $233,515.50 may
be released when landscaping Subdivision Improvements have been installed
to the satisfaction of the City including all corrective work for any identified
punch list items.
C. Twenty-five percent of the original Security amount, excluding grading and
landscaping improvements shall be retained until: (1) all Subdivision
Improvements have been fully completed and accepted by the City, including all
corrective work and warranty punch list items; (2) all financial obligations to the
City have been satisfied; and (3) the warranty period has expired.
D. Twenty-five percent of the original Security amount associated with landscaping
shall be retained by the City until: (1) all landscaping Subdivision Improvements
have been fully completed and accepted by the City, including all corrective work
and warranty punch list items being completed by the Developer; (2) all financial
obligations to the City have been satisfied; and (3) the warranty period has expired.
E. In addition to the above project milestone-based Security reductions, the
Developer may submit a written request and upon receipt of proof satisfactory to
the City Engineer that work is progressing in accordance with the approved Plans
and the terms of this Agreement and that all financial obligations to the City have
been satisfied, the City Engineer may approve a one-time reduction in the Security
for Construction Categories 2-5 in an amount not to exceed 50 percent of the initial
Security amount.
F. It is the intent of the parties that the City at all times have available to it Security in
an amount adequate to ensure completion of all elements of the Subdivision
Improvements and other obligations of the Developer under this Agreement,
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including fees or costs due to the City by the Developer. To that end and
notwithstanding anything herein to the contrary, all requests by the Developer for
a reduction or release of the Security shall be evaluated by the City in light of that
principle.
36. SUMMARY OF CASH REQUIREMENTS. The following is a summary of the cash
requirements under this Agreement which must be paid to the City prior to recording the final plat:
Sewer Availability Charge (SAC): $219,000.00
Water Availability Charge (WAC): $219,000.00
Park Dedication: $153,373.00
Street Light Operating Fee: $774.00
City Base Map Upgrading: $1,775.00
City Engineering Administration Escrow $50,000.00
Lift Station Maintenance Cost Fee: $50,000.00
City Cost Share of Turn Lane Improvements: $370,000.00
TOTAL CASH REQUIREMENTS: $1,063,922.00
37. 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: 11074 Radisson Road NE, Blaine, MN 55449, Attn: Hollis Cavner.
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.
38. EVIDENCE OF TITLE. The Developer shall furnish the City with evidence of fee
ownership of the property being platted by way of a title insurance commitment dated not earlier
than 30 days prior to the execution of the plat.
39. COMPLIANCE WITH LAWS. The Developer agrees to comply with all laws,
ordinances, regulations, and directives of the state of Minnesota and the City applicable to the
Subdivision. This Agreement shall be construed according to the laws of the Minnesota.
40. SEVERABILITY. In the event that any provision of this Agreement shall be held invalid,
29
illegal, or unenforceable by any court of competent jurisdiction, such holding shall pertain only to
such section and shall not invalidate or render unenforceable any other provision of this
Agreement.
41. NON-WAIVER. Each right, power, or remedy conferred upon the City by this Agreement
is cumulative and in addition to every other right, power or remedy, express or implied, now or
hereafter arising, or available to the City at law or in equity, or under any other agreement. 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.
If either party waives in writing any default or nonperformance by the other party, such waiver
shall be deemed to apply only to such event and shall not waive any other prior or subsequent
default.
42. COUNTERPARTS. This Agreement may be executed simultaneously in any number of
counterparts, each of which shall be an original and shall constitute one and the same Agreement.
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CITY OF LAKE ELMO
By: ____________ __________________ Mike Pearson Its: Mayor By: __________________ _____________ Julie Johnson Its: City Clerk
STATE OF MINNESOTA )
) ss.
COUNTY OF WASHINGTON )
The foregoing instrument was acknowledged before me this ___ day of ________________,
2017, by Mike Pearson and Julie Johnson, the Mayor and City Clerk, respectively, 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
31
Royal Development, Inc.
By: ___________________________________
Its: ___________________________________
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this ___, day of _________________,
2017, by _______________________, the _______________________of Royal Development,
Inc., a Minnesota corporation on behalf of the corporation.
NOTARY PUBLIC
DRAFTED BY: City of Lake Elmo 3800 Laverne Avenue North Lake Elmo, MN 55042 (651) 747-3901
32
33
MORTGAGE CONSENT TO
DEVELOPMENT AGREEMENT
, which holds a
mortgage on the Property, the development of which is governed by the foregoing Development
Agreement, agrees that the Development Agreement shall remain in full force and effect even if
it forecloses on its mortgage.
Dated this day of , 2017.
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this ___ day of ________________,
2017, by _______________________________________________________________.
NOTARY PUBLIC
DRAFTED BY:
City of Lake Elmo 3800 Laverne Avenue North Lake Elmo, MN 55042 (651) 747-3901
34
35
EXHIBIT A TO
DEVELOPMENT CONTRACT
Legal Description of Property Being Final Platted as
THE ROYAL GOLF CLUB AT LAKE ELMO
The North Half of the Northeast Quarter of Section 25, Township 29 North, Range 21 West.
Washington County, Minnesota, except therefrom that portion of the Northeast Quarter lying
North and East of the public highway known as County State Aid Road No. 15.
AND
Government Lot 2 of Section 25, Township 29 North, Range 21 West, Washington County,
Minnesota.
AND
Government Lot 1 of Section 25, Township 29 North, Range 21 West, Washington County,
Minnesota.
AND
The Northwest Quarter of Section 25, Township 29 North, Range 21 West, Washington
County, Minnesota.
AND
The Northeast Quarter of the Southwest Quarter of Section 25, Township 29 North, Range 21
West, Washington County, Minnesota.
AND
Government Lot 3 of Section 25, Township 29 North, Range 21 West,
Washington County, Minnesota.
A-1
506298v2 SJS LA515-23
AND
The Southwest Quarter of the Southeast Quarter of Section 25, Township 29 North, Range 21
West, Washington County, Minnesota.
AND
That part of Government Lot 4, Section 25, Township 29, Range 21, Washington County,
Minnesota, described as follows:
Commencing at the Southwest corner of said Government Lot 4; thence North 00 degrees
08 minutes 17 seconds East, assumed bearing, along the West line of said Government
Lot 4, a distance of 1119.38 feet to the point of beginning of the parcel to be described;
thence continuing northerly along said West line of Government Lot 4, a distance of 584
feet, more or less, to the shoreline of Horseshoe Lake; thence southeasterly, southerly,
and southwesterly along said shoreline to the intersection with a line that bears South 89
degrees 51 minutes 43 seconds East from the point of beginning; thence North 89 degrees
51 minutes 43 seconds West, 21.5 feet, more or less, to the point of beginning.
AND
That part of Government Lot 4, Section 25, Township 29, Range 21, Washington County,
Minnesota, lying southwesterly, southerly, and westerly of the following described line:
Commencing at the Southwest corner of said Government Lot 4; thence North 00 degrees
08 minutes 17 seconds East, assumed bearing, along the West line of said Government
Lot 4, a distance of 482.61 feet to the point of beginning of the line to be described; thence
southeasterly 221.89 feet along a non-tangential curve concave to the southwest having
a radius of 490.00 feet, a central angle of 25 degrees 56 minutes 46 seconds, a chord
length of 220.00 feet, and a chord bearing of South 43 degrees 56 minutes 35 seconds
East; thence North 63 degrees 42 minutes 45 seconds East, not tangent to the last
described curve, a distance of 10.23 feet; thence South 32 degrees 27 minutes 51 seconds
East, 334.35 feet; thence South 00 degrees 08 minutes 17 seconds West, 45.00 feet to
the South line of said Government Lot 4 and said line there terminating.
Parcel Identification Numbers:
25-029-21-12-0001
25-029-21-13-0001
25-0 29-21-14-0001
25-029-21-21-0001
25·029-21-31-0001
25-029-21-42-0001
25-029-21-43-0001
A-2
506298v2 SJS LA515-23
25-029-21-43-0002
25-029-21-44-0002
B-1
506298v2 SJS LA515-23
EXHIBIT B TO
DEVELOPMENT CONTRACT
List of Plan Documents
The following documents prepared by Carlson McCain, and Pioneer Engineering, collectively
constitute the Plans:
THOSE DOCUMENTS BY AS FOLLOWS:
SHEET TITLE REVISION
DATE
The Royal Golf Club at Lake Elmo
1st Addition Sanitary Sewer, Water
Main, Storm Sewer and , Street
Construction Plans, Lake Elmo MN
1 of 37
Cover
The Royal Golf Club at Lake Elmo
1st Addition Sanitary Sewer, Water
Main, Storm Sewer and , Street
Construction Plans, Lake Elmo MN
2-3 of 37
Index
The Royal Golf Club at Lake Elmo
1st Addition Sanitary Sewer, Water
Main, Storm Sewer and , Street
Construction Plans, Lake Elmo MN
4 of 37
Sanitary Sewer & Watermain –
Sheet Index
The Royal Golf Club at Lake Elmo
1st Addition Sanitary Sewer, Water
Main, Storm Sewer and , Street
Construction Plans, Lake Elmo MN
5-17 of 37
Sanitary Sewer & Watermain –
The Royal Golf Club at Lake Elmo
1st Addition Sanitary Sewer, Water
Main, Storm Sewer and , Street
Construction Plans, Lake Elmo MN
18 of 37
Storm Sewer Sheet Index
The Royal Golf Club at Lake Elmo
1st Addition Sanitary Sewer, Water
Main, Storm Sewer and , Street
Construction Plans, Lake Elmo MN
19-26 of 37
Storm Sewer
The Royal Golf Club at Lake Elmo
1st Addition Sanitary Sewer, Water
Main, Storm Sewer and , Street
Construction Plans, Lake Elmo MN
27-29 of 37
Street Construction
The Royal Golf Club at Lake Elmo
1st Addition Sanitary Sewer, Water
Main, Storm Sewer and , Street
Construction Plans, Lake Elmo MN
30-31 of 37
Signing, Striping & Lighting Plan
The Royal Golf Club at Lake Elmo
1st Addition Sanitary Sewer, Water
Main, Storm Sewer and , Street
Construction Plans, Lake Elmo MN
32-33 of 37
Trail Construction
B-2
506298v2 SJS LA515-23
The Royal Golf Club at Lake Elmo
1st Addition Sanitary Sewer, Water
Main, Storm Sewer and , Street
Construction Plans, Lake Elmo MN
34-36 of 37
Details
The Royal Golf Club at Lake Elmo
1st Addition Sanitary Sewer, Water
Main, Storm Sewer and , Street
Construction Plans, Lake Elmo MN
T1-T4
Turn Lane Plans
L1-L4 Landscape Plan
L5 Groundcover Plan
L6 Irrigation Connection Points
L7 City Planting Details
C-1
506298v2 SJS LA515-23
EXHIBIT C TO
DEVELOPMENT CONTRACT
Subdivision Improvements Cost/Security Amount Estimate
CONSTRUCTION CATEGORY COST 125 percent
1 Grading
Addressed in
Site Grading
Agreement
Security
Addressed in
Site Grading
Agreement Security
2 Sanitary Sewer
$723,897.00 $904,871.00
3 Watermain
$368,489.00 $460,611.00
4 Storm Sewer (includes pond structures
and outfall pipes)
$429,087.00 $536,359.00
5 Streets and Sidewalks
$872,122.00 $1,090,153.00
6 Trails
$76,050.00 $95,063.00
7 Surface Water Facilities (ponds,
infiltration basins, other BMPs)
Addressed in
Site Grading
Agreement
Security
Addressed in
Site Grading
Agreement Security
8 Street Lighting
$36,000.00 $45,000.00
9 Street and Traffic Signs
$11,403.00 $14,253.00
10 Private Utilities (electricity, natural gas,
telephone, and cable)
$0.00 $0.00
11 Landscaping Improvements
$249,083.00 $311,354.00
12 Tree Preservation and Restoration
Addressed in Site
Grading
Agreement
Security
Addressed in Site
Grading Agreement
Security
13 Wetland Mitigation and Buffers
Addressed in Site
Grading
Agreement
Security
Addressed in Site
Grading Agreement
Security
14 Monuments
$7,300.00 $9,125.00
15 Erosion and Sedimentation Control $71,880.00 $89,850.00
C-2
506298v2 SJS LA515-23
16 Miscellaneous Facilities
$0.00 $0.00
17 Developer’s Record Drawings
$11,000.00 $13,750.00
TOTALS
$2,856.310.00
$3,570,389.00
506298v8 SJS LA515-23
FORM OF 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.
The draft must:
a) Bear the clause, "Drawn under Letter of Credit No.____________, dated ______________, 2017,
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, 20___.
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