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HomeMy WebLinkAbout#06 - Easton Village 6th and 7th DA Amendment1 STAFF REPORT DATE: 07/2/24 CONSENT ITEM #: ______ MOTION TO: City Council FROM: Jenni Faulkner, Planning Consultant AGENDA ITEM: Amendment to Development Agreement Eastong Village 6/7th Addition REVIEWED BY: Sophia Jensen, City Planner Sarah Sonsalla, City Attorney BACKGROUND: The City Council approved the Development Agreement for Easton Village 6th and 7th Additions on 3/19/2024. Easton Village 6th Addition is one lot that was an outlot providing temporary access for the 4th Addition. That temporary access is no longer needed (4th Addition is built out) and the lot can be built on. At the time Easton Village 6th final plat was being reviewed, city staff were also reviewing the final plat for Easton Village 7th Addition. At that time, the infrastructure for the 6th addition was in place, however other conditions related to the development of the lot were outstanding. Rather than prepare separate development agreements, one agreement was prepared and approved that included both plats. One of the details in the Development Agreement is that the public infrastructure needs to be installed and approved by the city prior to issuance of building permits, with the exception of a model home. In this case the infrastructure for the one lot of 6th Addition is in and has already been accepted by the city. However, this is not for a model home as it’s an infill lot in an exiting neighborhood. The developer is asking for an amendment to the Development Agreement to allow for issuance of a building permit and future certificate of occupancy for the one lot of the 6th Addition. ISSUE BEFORE THE CITY COUNCIL: To consider whether to approve an amendment to the Development Agreement. PROPOSAL DETAILS/ANALYSIS: The developer’s request is reasonable and appears to be an oversight when the original agreement was approved. The City Attorney has prepared the amendment. The developer owes outstanding escrow for the 5th Addition, which will be collected prior to release of the amendment and building permit. A condition is in the resolution. The amendment also includes a condition regarding a requirement for additional railroad crossing easements. Since the approval of the Development Agreement, Union Pacific Railroad has brought to the city’s attention that additional easement area is needed to facilitate the future public crossing of Village Parkway. A provision has been added to this amendment requiring the execution of the revised railroad crossing easements prior to issuance of a building permit. 2 FISCAL IMPACT None. OPTIONS The City Council should consider the following options: 1)To approve the amendment to the Development Agreement. 2)To reject the amendment to the Development Agreement. RECOMMENDATION: Staff is recommending that the City Council approve the amendment to the Development Agreement as part of tonight’s consent agenda. If removed from the consent agenda, then Staff recommends the City Council approve the request with the following motion: “Move to adopt Resolution No. 2024-080, amending the Development Agreement for Easton Village 6th and 7th Additions” ATTACHMENTS: 1.Resolution 2024-080 2.First Amendment to Development Agreement 1 LA515\89\960022.v3 CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2024-080 A RESOLUTION APPROVING FIRST AMENDMENT TO DEVELOPMENT AGREEMENT FOR EASTON VILLAGE 6TH AND 7TH ADDITIONS WHEREAS, the City of Lake Elmo (the “City”) is a municipal corporation organized and existing under the laws of the State of Minnesota; and WHEREAS, Chase Development, Inc., a Minnesota corporation (the “Developer”) and the City entered into that certain Development Agreement on ______________, 2024 (the “Development Agreement”) relating to the development of Easton Village 6th Addition and Easton Village 7th Addition; and WHEREAS, the Developer and City have agreed to amend the approved Development Agreement in order to allow for the Developer to obtain a building permit and a certificate of occupancy for Lot 1, Block 1 in Easton Village 6th Addition prior to completing the subdivision improvements in Easton Village 7th Addition; and NOW, THEREFORE, based on the information received, the City Council of the City of Lake Elmo does hereby approve the First Amendment to Development Agreement and authorizes the Mayor and City Clerk to execute the First Amendment to Development Agreement with a condition that any outstanding escrows for any of the Easton Village additions be paid by the Developer prior to execution of this Amendment by the City. Passed and duly adopted this ______, day of ____________, 2024 by the City Council of the City of Lake Elmo, Minnesota. __________________________________ Charles Cadenhead, Mayor ATTEST: ________________________________ Julie Johnson, City Clerk 1 LA515\89\959440.v3 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (EASTON VILLAGE 6TH AND 7TH ADDITIONS) THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (this “First Amendment”) is entered into this ___ day of _____________, 2024, by Chase Development, Inc., a Minnesota corporation (the “Developer”) and the City of Lake Elmo, a Minnesota municipal corporation (the “City”). R E C I T A L S WHEREAS, the City and the Developer entered into that certain Development Agreement on _________________, recorded as Document No. __________________ (the “Agreement”), relating to the development of Easton Village 6th Addition and Easton Village 7th Addition, the property of which is legally described on the attached Exhibit A; and WHEREAS, the Developer has completed the Subdivision Improvements in Easton Village 6th Addition; and WHEREAS, the City and the Developer desire to amend the Agreement in order to allow for the Developer to obtain a building permit for Lot 1, Block 1 in Easton Village 6th Addition prior to completing the Subdivision Improvements in Easton Village 7th Addition; and WHEREAS, the City has requested and the Developer has agreed to provide the City with temporary and permanent easements to allow the construction of a railroad crossing within the Easton Village Development and both parties wish to document this agreement; and NOW, THEREFORE, in consideration of the foregoing and the covenants and obligations contained in this Amendment and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is agreed by and between the City and the Developer as follows: 1. Section 27 of the Development Agreement shall be amended to read as follows: 27.BUILDING PERMITS/CERTIFICATES OF OCCUPANCY. A.The City will not issue a building permit for any lot within the Subdivision until all public Subdivision Improvements are completed and have been accepted by the City, with the exception that the wear course for the streets must be placed after one winter 2 LA515\89\959440.v3 freeze/thaw cycle. The City may issue a building permit and a certificate of occupancy for Lot 1, Block 1, Easton Village 6th Addition prior to the completion of all public Subdivision Improvements. B. The City Planning Director may authorize the issuance of a single building permit for a “model home” before the completion of the Subdivision Improvements described in paragraph 27 (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 27 (A) above have been completed. The Developer or Home Builder shall use the model home only for real estate sales purposes and no other purpose. C. Before the City issues building permits for lots within Easton Village 7th Addition, the Developer shall place wetland buffer monuments in accordance with the City’s zoning ordinance. The monument design shall be approved by the City 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. 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. F. If the City issues building permits before 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, Developer, the Developer’s contractors, subcontractors, materialmen, employees, agents, or any third parties. 2. Section 30 of the Development Agreement shall be amended to read as follows: 30. SPECIAL PROVISIONS. The following special provisions shall apply to the Subdivision: A. The Developer must notify all home builders about the City’s outdoor watering restrictions and that all home builders must notify all home buyers that the City has imposed limits on outdoor water use including a limit of two days per week of watering, unless the Developer is notified by the City that this notice is no longer required. Said decision about whether this notice is no longer required shall be made at the sole discretion of the City. The Developer shall have the City approve the notification message before the release of the final plats by the City for recording. 3 LA515\89\959440.v3 B. The Developer must obtain a sign permit from the City Building Official before the installation of any subdivision identification signs. C. All public trails shall be located within outlots, at least 30’ feet in width and either be dedicated to the City in the plats or an easement in a form acceptable to the City be provided. The title policy to be provided to the City shall insure the City’s easement interests. D. The Developer shall enter into a Landscape License and Maintenance Agreement with the City in the City’s standard form that clarifies the individuals or entities responsible for maintenance of any landscaping installed within homeowners’ association and City outlots and rights-of-way before the release of the final plats for recording. E. The Developer shall provide a disclosure statement to all initial home buyers in the Subdivision advising them of the location of the Lake Elmo Airport and associated over-flights. The Developer shall encourage builders within the Subdivision to incorporate interior noise reduction measures into single family residential structures based on the Metropolitan Council’s Builder Guide. F. The Developer shall incorporate the conditions listed by the City’s Landscape Architect in the memo dated April 23, 2021 into the final construction/landscape plans before the final plats are released for recording. G. The Developer must address the comments listed by the Fire Chief in his memo dated April 6, 2021 to the satisfaction of the Fire Chief in the Plans before the final plats are released for recording. This includes, but is not limited to, building address numbers must be plainly visible from the street fronting the property and shall be a contrasting color from the background to the satisfaction of the Fire Chief. H. The Developer shall grant the City a permanent roadway and utility easement and a temporary construction easement that grant additional easement areas for the future Village Parkway railroad crossing. Prior to the issuance of any building permits, the Developer must provide the City with these executed easements in a form drafted and approved by the City Attorney. 3. Amendment Controls; Ratification and Affirmation. In the event that the terms of this Amendment and the Agreement are held to be inconsistent, the terms of this Amendment shall control. The parties each agree and warrant that, in all other respects, the Agreement is unmodified, in full force and effect, and each party hereby ratifies and affirms the Agreement and any terms contained therein not otherwise modified by this Amendment. 4. Counterparts. This Amendment may be executed in counterparts, each of which shall be deemed an original but all of which, taken together, shall constitute one and the same instrument. Each party may rely upon facsimile or electronic mail counterparts of this Amendment signed by the other party with the same effect as if such party had received an original counterpart signed by such other party. 4 LA515\89\959440.v3 IN WITNESS WHEREOF, the parties have executed this First Amendment as of the date first written above. DEVELOPER: CHASE DEVELOPMENT, INC. By: _____________________________________ Its: _____________________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ____ day of ________________, 2024, by __________________ as ____________________ of Chase Development, Inc., a Minnesota corporation, on behalf of the corporation. ________________________________________ Notary Public 5 LA515\89\959440.v3 CITY: City of Lake Elmo By: Charles Cadenhead 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 __________________, 2024, by Charles Cadenhead and Julie Johnson, the Mayor and City Clerk, respectively, of the City of Lake Elmo, a Minnesota municipal corporation on behalf of the City. ________________________________________ Notary Public This instrument was drafted by: Kennedy & Graven, Chartered (SJS) 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 (612) 337-9300 6 LA515\89\959440.v3 EXHIBIT A Legal Description of the Property Lot 1, Block 1, Easton Village 6th Addition, according to the recorded plat thereof, County of Washington, State of Minnesota. Lots 1-11, Block 1, Lots 1-8, Block 2, Lots 1-7, Block 3, Easton Village 7th Addition, according to the recorded plat thereof, County of Washington, State of Minnesota.