2013-04-30 CC Agenda PacketPLEASE TURN OFF AT CELL PHONES & PAGERS IN COUNCIL CHAMBERS.
AGENDA
MOUND CITY COUNCIL
SPECIAL MEETING
Open meeting
2. Action on Resolution approving Subdivision
Agreement for The Landings on Lost Lake
Adjourn
TUESDAY, APRIL 30, 2012, 8:30 PM
MOUND CITY COUNCIL CHAMBERS
Page
1 -23
5341 Maywood Road
Mound, MN 55364
(952) 472 -0604
TO:
Honorable Mayor and City Council, Staff and Consultants
FROM:
Sarah Smith, Community Development Director
DATE:
April 26, 2013
SUBJECT:
Subdivision Agreement - The Landings on Lost Lake
APPLICANT:
Lost Lake Homes and Marina, LLC
Background. At its April 23, 2013 meeting, the Council approved a number of actions related
to The Landings on Lost Lake project to replat the 26, undeveloped lots in the Villas on Lost
Lake 2nd Addition to a (16) lot configuration which includes a 2 story design.
One of the requested Council actions included review and approval of a Subdivision Agreement
for The Landings on Lost Lake project. The Council did not take action on the Subdivision
Agreement and scheduled a special meeting to be held on Tuesday, April 30, 2013 at 8:30 PM
so as to allow time for Staff and the applicant to work on a number of issues related to the
Agreement including but not limited to, items that are to be included in the letter of credit.
The Council also directed Staff to include optional language in the proposed agreement to:
1) Require payment of Trunk Water Area Charges, Trunk Sewer Area Charges,
Sewer Connection Charges and Water Connection Charge; or
2) Waive the City fees that were previously waived in the original Subdivision
Agreement with Mound Harbor Renaissance in 2005 which was done as an
inducement to the original developer to do the project.
The Council also requested that language be included to address possible damage to the
private streets which currently have a 2nd bituminous lift.
Additional Information.
• The applicant has submitted a letter to the Council explaining his request for waiver of
the fees that were waived in the original Subdivision Agreement with MHR. The current
rates for these items are:
$ 2000.00 Trunk Water Area Charge per unit
240.00 Water Connection Charge / per unit
240.00 Sewer Connection Charge / per unit
$2480.00 x (16) units
$ 39,680 Total
-1-
It is important to note that the proposed Subdivision Agreement requires the payment
of the Sewer Area Trunk Charge by the applicant. These fees were not waived in the
Subdivision Agreement with MHR. The current fee for the Sewer Area Trunk Charge
is $2000.00 per unit.
• Staff supports waiver of the fees that were previously waived for the MHR project as it
serves the greater good of getting the properties built and on the tax base and gets the
properties on line with the TIF sooner over later. See attached Memorandum from
Finance Director Catherine Pausche regarding TIF analysis related to the project.
• Staff and the Subdivider are in agreement with the letter of credit items in Paragraphs 5
and 7. Council is advised, however, that Staff and Subdivider are currently evaluating
the "private utilities' amount and will provide further comment at next Tuesday's
meeting.
• Changes to the Paragraph 11 were made to clarify that the Agreement and Subject
Property are subject to and will continue to be subject to a number of agreements, as
referenced on Page 4 of the Agreement, but only to the extent the Subdivider is an
owner of units in The Villas on Lost Lake Common Interest Community No. 1653.
• Language was included in Paragraph 12 C to address possible damage to the private
streets that had a second lift prior to the execution of the Subdivision Agreement.
Recommendation. Staff recommends approval of the proposed Resolution that has been
prepared.
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MEMORANDUM
Date: April 26, 2013
5341 MAYWOOD ROAD
MOUND, MN 55364 -1687
YH: (9b2) 472 -0600
FAX: (952) 472 -0620
WEB: www.cityofmound.com
To: Mayor and City Council Members
From: Catherine Pausche, Finance Director /Clerk/Treasurer
Subject: TIF 1 -3 Projections
The Mayor requested an analysis of the projected tax increment that would result if the Landings of
Lost Lake Development was completed. Assuming the same city, county and school district tax
rates as Taxes Payable 2013 and no change in values for the existing 11 units, I project an additional
$29,926 in tax increment if the final market value is $5.5M for the 16 units.
The market value of the 26 parcels for payable 2013 was $1,325,000 and the purchase price noted
on Hennepin County's website was $600,000, therefore there will be a decline in tax increment in
the short term. The sooner the units are built and the market values increase, obviously the more
tax increment will be captured. TIF District 1 -3 decertifies on 12/31/203 1. It is estimated that all of
the tax increment received between now and then will be used for debt service on the 2009D bonds
and to repay inter fund loans to the General Fund and Dock Fund.
Please see the attached analysis and let me know if you have any more questions.
-3-
printed on recycled paper
CITY OF MOUND
TIE 1 -3: PROJECTIONS
2013 Projected
Last 4 Market TIE Market Homestead Tax TIF
PID Value Tax Value Exclusion Capacity Tax
33 -0129
$
59,000.00
$
586.68
$
285,000.00
$
11,590.00
$
2,734.10
$
2,193.25
33 -0130
$
59,000.00
$
586.68
$
450,000.00
$
-
$
4,500.00
$
3,609.82
33 -0131
$
53,000.00
$
527.05
$
450,000.00
$
$
4,500.00
$
3,609.82
33 -0132
$
59,000.00
$
586.68
$
450,000.00
$
-
$
4,500.00
$
3,609.82
33 -0133
$
59,000.00
$
586.68
$
450,000.00
$
-
$
4,500.00
$
3,609.82
33 -0134
$
53,000.00
$
527.05
$
450,000.00
$
$
4,500.00
$
3,609.82
33 -0135
$
53,000.00
$
527.05
$
450,000.00
$
-
$
4,500.00
$
3,609.82
33 -0136
$
59,000.00
$
586.68
$
450,000.00
$
-
$
4,500.00
$
3,609.82
33 -0145
$
59,000.00
$
586.68
$
450,000.00
$
-
$
4,500.00
$
3,609.82
33 -0146
$
53,000.00
$
527.05
$
243,000.00
$
15,370.00
$
2,276.30
$
1,826.01
33 -0147
$
49,000.00
$
487.30
$
243,000.00
$
15,370.00
$
2,276.30
$
1,826.01
33 -0148
$
53,000.00
$
527.05
$
243,000.00
$
15,370.00
$
2,276.30
$
1,826.01
33 -0149
$
59,000.00
$
586.68
$
243,000.00
$
15,370.00
$
2,276.30
$
1,826.01
33 -0150
$
59,000.00
$
586.68
$
243,000.00
$
15,370.00
$
2,276.30
$
1,826.01
33 -0151
$
49,000.00
$
487.30
$
200,000.00
$
19,240.00
$
1,807.60
$
1,450.02
33 -0152
$
53,000.00
$
527.05
$
200,000.00
$
19,240.00
$
1,807.60
$
1,450.02
33 -0153
$
59,000.00
$
586.68
$
-
$
-
$
-
$
-
34 -0133
$
44,000.00
$
437.22
$
-
$
-
$
-
$
-
34 -0134
$
41,000.00
$
407.81
$
$
$
-
$
34 -0135
$
41,000.00
$
407.81
$
$
$
-
$
34 -0136
$
44,000.00
$
437.22
$
$
$
-
$
34 -0137
$
44,000.00
$
437.22
$
$
$
-
$
34 -0138
$
41,000.00
$
407.81
$
$
$
-
$
34 -0139
$
41,000.00
$
407.81
$
$
$
-
$
34 -0140
$
41,000.00
$
407.81
$
$
$
-
$
34 -0141
$
41,000.00
$
407.81
$
$
-
$
-
$
-
33 -0106
$
277,000.00
$
2,20104
$
277,000.00
$
12,310.00
$
2,646.90
$
2,202.04
33 -0107
$
249,000.00
$
1,861.80
$
249,000.00
$
14,830.00
$
2,341.70
$
1,861.80
33 -0108
$
260,000.00
$
2,066.90
$
260,000.00
$
13,840.00
$
2,461.60
$
2,066.90
33 -0109
$
256,000.00
$
1,922.22
$
256,000.00
$
14,200.00
$
2,418.00
$
1,922.22
33 -0137
$
276,000.00
$
2,095.52
$
276,000.00
$
12,400.00
$
2,636.00
$
2,095.52
33 -0138
$
289,000.00
$
2,297.44
$
289,000.00
$
11,230.00
$
2,777.70
$
2,297.44
33 -0139
$
286,000.00
$
2,273.59
$
286,000.00
$
11,500.00
$
2,745.00
$
2,273.59
33 -0140
$
285,000.00
$
2,173.43
$
285,000.00
$
11,590.00
$
2,734.10
$
2,173.43
33 -0141
$
324,000.00
$
2,575.67
$
324,000.00
$
8,080.00
$
3,159.20
$
2,575.67
33 -0142
$
199,000.00
$
1,581.97
$
199,000.00
$
19,330.00
$
1,796.70
$
1,581.97
33 -0143
$
275,000.00
$
2,086.78
$
275,000.00
$
12,490.00
$
2,625.10
$
2,086.78
$ 4,301,000.00 $ 36,312.90 $ 8,476,000.00 $ 268,720.00 $ 82,072.80 $ 66,239.25
Change: $ 4,175,000.00 $ 29,926.35
Notes:
26 Parcels 2013 Market Value: $1,325,000 Purchase Price: $600,000
16 Parcels Projected Final Market Value: $5,500,000
Move from undeveloped land to Homestead will reduce tax capacity.
10
S:AFINANCE DEPT \TIF \TIF 1 -3 MHR \Saliterman Projection.xlsx
LOST LAKE HOMES AND MARINA, LL
4725 Highway 7
St. Louis Park, MN 55416
Phone: 952- 920 -8555 Fax: 952- 955 -8455
April 24, 2013
Honorable Mayor Mark Hanus and
Members of the City Council
City of Mound
5341 Maywood Road
Mound, MN 55364
Dear Honorable Mayor Harms,
Thank you very much for your approval of my plans for the project on Lost Lake. I am looking
forward to building the townhomes and selling them to people who will enjoy Mound as much as
I have. I also appreciate you allowing the lawyers a little more time to resolve the last 10% of
the project puzzle. I know you are will be discussing the waiver of some fees and I felt that you
should understand my side before making your decision.
When I initially investigated doing this project, I met with the City Staff, and they mentioned
that several fees had been waived to help entice me to move forward. They did not say anything
more than the fees had been waived and probably would be again. At that time I explained that I
was not a replacement developer, but really a builder.
When I fast met the Association, they considered me the new developer. I explained that this
was not the case. The Association asked who was going to pay the cost of putting a second lift
on the paving. I explained that since the previous developer was gone and that I was not a
replacement, the Association would probably have to pay for it. Needless to say, they were not
happy. As we worked through our issues, I felt it was fair for me to pay for the second lift on the
paving as I believed that the fees would be waived by the City. I intended to use the waived
money to also upgrade the landscape from the required minimum.
I would also be willing to work with City Staff to determine a way to have access from the trail
to Caribou without passing through the middle of the project. Perhaps a little wood bridge would
work.
I would appreciate your consideration of this letter before you make your decision
Sincerely,
Mark Saliterman, Managing Member
MAS /vhl
-5-
CITY OF MOUND
RESOLUTION NO 13-
RESOLUTION TO APPROVE THE SUBDIVISION AGREEMENT FOR
THE LANDINGS ON LOST LAKE
WHEREAS, the subject property includes 26 lots in the Villas on Lost Lake 2nd Addition
and is proposed to be replatted as The Landings on Lost Lake, which includes a 16 lot
major subdivision of the property legally described on the attached Exhibit A; and
WHEREAS, the applicant for The Landings on Lost Lake project is Lost Lake Homes and
Marina, LLC; and
WHEREAS, a condition of Resolution No. 13- is the execution of a Subdivision
Agreement between the City and the applicant; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mound,
Minnesota, to approve the Subdivision Agreement for The Landings on Lost Lake
subject to the following conditions:
1. The final form and content of the Subdivision Agreement shall be in
substantially the same form as Exhibit B and shall be subject to the review
and acceptance of the City Attorney; and
2. Pursuant to the requirements of paragraph 2, the Mayor and City
Manager are authorized to execute the final form of the Subdivision
Agreement and all other documents and amendments arising out of or as
required by said Subdivision Agreement; and
3. The applicant shall be responsible for recording the Subdivision
Agreement and all other documents and amendments arising out of or
required by said Subdivision Agreement and providing evidence of such
recording to the City of Mound.
Adopted by the City Council this 30th day of April, 2013.
Catherine Pausche, City Clerk
01
Mayor Mark Hanus
EXHIBIT A
LEGAL DESCRIPTION
-7-
xamm
SUBDIVISION AGREEMENT
in
Draft
April 26, 2013
SUBDIVISION AGREEMENT
THE LANDINGS ON LOST LAKE
This SUBDIVISION AGREEMENT ( "Agreement ") dated as of the day of
, 2013, by and between the City of Mound, a Minnesota municipal corporation
( "City "), and Lost Lake Homes and Marina, LLC, a Minnesota limited liability company
( "Subdivider ").
1. Request for Plat Approval. The Subdivider has asked the City to approve the
subdivision of land and a plat of land to be known as The Landings on Lost Lake,
which land is legally described on Exhibit A' attached hereto and hereby made a part
hereof (hereinafter referred to as the "Subject Property ").
2. Plat Approval- Related Documents. The City has approved the preliminary plat via
Resolution No. 13 -49; the conditional use permit and variances via Resolution No. 13 -51;
and the final plat via Resolution No. 13 -50. Numerous approvals, permits and licenses
necessary for the original construction and operation contemplated in the development
plan for Villas on Lost Lake and Villas on Lost Lake 2nd Addition were previously
obtained. Those approvals, permits and licenses are on file in the office of the Mound
City Clerk.
3. Effect of Subdivision Approval. For two 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
preliminary plat unless required by state or federal law or agreed to in writing by the City
and the Subdivider. Thereafter, notwithstanding anything in this Agreement to the
contrary, to the full extent permitted by state law the City may require compliance with
any amendments to the City's Comprehensive Plan, official controls, platting or
dedication requirements enacted after the date of this Agreement.
4. Development Plan. The Subject Property will be developed in accordance with the Site
Development Plans received by the City on March 22, 2013, copies of which are on file
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422170v12 MIM MU200 -171
with the City. If the Site Development Plans vary from the written terms of this
Agreement, the written terms shall control.
5. Improvements. The Subdivider shall pay for and install or cause to be installed,
including any relocation of existing improvements on the Subject Property and within the
drainage and utility easements to be vacated, the following Improvements to be installed
within the boundaries of the Subject Property in accordance with plans reviewed and
approved by the City and shown on the referenced plan sheets on file with the City:
A. Streets (private) — 2" a bituminous lift; and
B. Landscaping, including but not limited to plantings and seeding; and installation
of a landscape irrigation system, if not installed pursuant to that certain
Subdivision Agreement dated November 23, 2005 and recorded as Document No.
4194005 on November 28, 2005 with the Hennepin County Registrar of Titles;
and
C. Utilities (private).
(5A., 5B., and 5C. hereinafter referred to collectively as the "Improvements. ")
And other items as necessary to complete the development as stipulated herein.
The locations of the Improvements are as shown on the referenced plan sheets on file and
of record in the office of the Mound City Clerk. A listed Improvement for which no plan
sheet is identified will be subject to review and approval by the Public Works Director.
None of the Improvements will be constructed until the City has reviewed and approved
the plans and specifications, which review shall be consistent with standard city practices.
6. Time of Performance. The Subdivider shall install, or cause to be installed, the
Improvements, enumerated in Paragraph 5 by no later than September 1, 2015. The
Subdivider may, however, request additional time from the City to complete the
Improvements. If an extension is granted, it shall be conditioned upon updating the
security posted by the Subdivider to reflect cost increases and the extended completion
date.
7. Security for Cost of Subdivider Installed Improvements. To guarantee compliance
with the terms of this Agreement relating to the installation of and payment for the
improvements listed in the following schedule, the Subdivider will furnish the City an
irrevocable letter of credit ( "Security "), approved by the City Attorney, in the amount of
in the amount of $68,750.00, which is 125% of the estimated cost of the relevant
Improvements. The initial term of the letter of credit shall be to December 31, 2014,
provided that the City will approve a letter of credit containing a shorter initial term upon
a showing that the requested initial term is not available. The Security must contain a
provision that prohibits the issuer or surety from terminating the Security without first
giving 30 days' written notice to the City of the proposed termination or expiration of the
Security. Failure of the Subdivider to post a substitute Security within five days after
422170v12 MJM MU200 -171 _10
notice by the City shall constitute a default that shall be grounds for drawing on the letter
of credit. The City Council may grant a reduction in the Security upon written request by
the Subdivider based upon the value of the completed work at the time of the requested
reduction. The Security may not be reduced to less than 20% of the original amount until
all work required of the Subdivider by this Agreement has been completed and accepted
by the City. Upon failure of the Subdivider to perform, the City may declare the
Agreement to be in default and the amount of the Security shall be paid over to the City.
From the proceeds of the Security, the City shall be reimbursed for any attorneys' fees,
engineering fees or other technical or professional assistance, including the work of the
City staff and employees, and the remainder thereof shall be used by the City to complete
the Improvements. The Subdivider shall be liable to the City to the extent that the
Security is inadequate to reimburse the City its costs and pay for the completion of the
work. The amount of the Security was calculated as follows:
Improvement
Cost
125%
5A. Private streets
$30,000.00
$37,500.00
5B. Landscaping
$20,000.00
$25,000.00
5C. Private Utilities
$5,000.00
$6,250.00
Total
$55,000.00
$68,750.00
No work shall be commenced under this Agreement until the Security has been delivered
to the City.
8. License. Each party hereby grants to the other, its agents, employees, officers and
contractors a license to enter the Subject Property to perform all the Improvements
contemplated under this Agreement and all work and inspections legally required by the
City. Each party, as grantee of such license hereby indemnifies and agrees to defend and
hold harmless the other party as grantor from any claims or causes occasioned by or
arising out of said grantees activities pursuant to the license.
9. Erosion Control. Before any utility construction is commenced or building permits are
issued, the Subdivider shall comply with all erosion control measures required by the
City and the Minnehaha Creek Watershed District permit.
10. Landscaping. The Subdivider shall grade and install sod or seed and landscape
plantings, and landscape the Subject Property in accordance with the landscape plan
submitted as part of the Site Development Plans, as referenced in paragraph 5 above, and
specifications on file with the City and shall also install an irrigation system, if not
previously installed, as stated in paragraph 5 of this Agreement. The City may refuse to
issue a certificate of occupancy for the last townhome unit to be constructed until
landscape work has been completed.
11. Subiect To. Superseding and Replacing.
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422170v12 MJM MU200 -171
A. Subiect To. The City and the Subdivider understand, acknowledge, and agree that
this Agreement and the Subject Property are subject to and will continue to be
subject to the following, but only to the extent the Subdivider is an owner of units in
The Villas on Lost Lake Common Interest Community No. 1653:
1. Disbursing and Escrow Agreement dated September 13, 2007 by and
between Mound Harbor Renaissance Development LLC, The Villas
on Lost Lake Common Interest Community No. 1653, acting and
through its association board, and the City of Mound; and
2. Memorandum of Understanding by and between the City of Mound
and Mound Harbor Renaissance Development, LLC dated November
23, 2005; Supplement to Memorandum of Understanding by and
between the City of Mound and Mound Harbor Renaissance
Development, LLC, and the Villas on Lost Lake Homeowner's
Association dated November 25, 2008; Second Supplement to
Memorandum of Understanding by and between the City of Mound
and Mound Harbor Renaissance Development, LLC, and the Villas on
Lost Lake Homeowner's Association dated February 24, 2009; Third
Supplement to Memorandum of Understanding by and between the
City of Mound and Mound Harbor Renaissance Development, LLC,
and the Villas on Lost Lake Homeowner's Association dated March
24, 2009; and Fourth Supplement to Memorandum of Understanding
by and between the City of Mound and Mound Harbor Renaissance
Development, LLC, and the Villas on Lost Lake Homeowner's
Association dated May 12, 2009 (hereinafter collectively, the
"MOU "). The Subdivider further understands, acknowledges, and
agrees that the activities undertaken on the Subject Property pursuant
to this Agreement will require an amendment of the MOU to
acknowledge the reduction in the number of units in the Residential
Portion; and the Subdivider agrees to cooperate in the execution of
such an amendment to the MOU; and
3. Stormwater Maintenance Agreement among the Minnehaha Creek
Watershed District, the City of Mound, and the Mound Harbor
Renaissance Development, LLC as described in Article 7.16 of the
Common Interest Declaration recorded as Document No. 4235086 on
March 8, 2006, as amended by Document No. 4333471 on December
1, 2006 with the Hennepin County Registrar of Titles.
B. Superseding and Replacing; Subject To. This Agreement supersedes and replaces
the Subdivision Agreement dated November 23, 2005 and recorded as Document No.
4194005 on November 28, 2005 with the Hennepin County Registrar of Titles
( "2005 Subdivision Agreement "); as amended by Document No. 4333448 on
December 1, 2006 with the Hennepin County Registrar of Titles ( "Amendment ");
and as further amended by the partial Release dated April 20, 2011 ( "Partial
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422170v12 MJM MU200 -171
Release "), except that the Subdivider will continue to be subject to and to
acknowledge the following:
The Amendment (but only insofar as it incorporates additional
property into the Subject Property); and
2. The Partial Release; and
3. Pursuant to the last paragraph of Section 7 of the 2005 Subdivision
Agreement, the Subdivider and City acknowledge and agree that the
Developer, Mound Harbor Renaissance Development, LLC, has not
been fully reimbursed for the Developer's Off -Site Public
Improvements described as 7D [Stormwater treatment facilities,
including rain gardens, dry creek beds, and wetlands — C4.1, C4.2,
L2.1]; the Subdivider is not entitled to said reimbursement; and the
City has no responsibility to undertake or liability for not undertaking
any activities arising out of that certain last paragraph of Section 7;
and
4. Pursuant to Section 15 of the 2005 Subdivision Agreement and the
last paragraph of Section 5 of the 2005 Subdivision Agreement
discussing the On -Site Improvements described in 5 I of the 2005
Subdivision Agreement, the City acknowledges that the Subdivider is
not a successor to the Developer, Mound Harbor Renaissance
Development, LLC; and the City agrees to cooperate with any
attempts by the Subdivider to obtain a release from the Minnehaha
Creek Watershed District indicating the same.
C. The City and the Subdivider understand and agreed that this Agreement supersedes
and replaces all previous oral agreements and oral negotiations between the City and
the Subdivider in relation to the Subject Property.
12. Construction Hours, Noise; Dust; Clean um; Restoration.
A. The Subdivider shall clean the Subject Property streets of dirt and debris that has
resulted from erosion, siltation or construction work by the Subdivider, its agents or
assigns. The City will inspect the site on a regular basis and determine whether it is
necessary to take additional measures to clean dirt and debris from said streets. After
24 hours verbal notice to the Subdivider from the City, the City Public Works
Director, or designee, will complete or contract to complete the cleanup at the
Subdivider's expense.
B. The Subdivider will comply with all requirements of the City pertaining to the hours
and days during which construction activities may take place. The Subdivider shall
provide dust control to the satisfaction of the City Engineer.
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422170x12 MJM MU200 -171
C. The Subdivider shall restore any damage caused to those portions of the Subject
Property streets that had a second lift of bituminous prior to the execution of this
Agreement. Upon the issuance of the final certificate of occupancy or upon the
Subdivider's default of this Agreement, the City will inspect the Subject Property
streets to determine if said restoration is necessary. If restoration is necessary, the
City will notify the Subdivider; and thereafter, Subdivider shall have fourteen days to
restore. If Subdivider fails to restore within fourteen days, then after 24 hours verbal
notice to the Subdivider from the City, the City Public Works Director, or designee,
will complete or contract to complete the restoration at the Subdivider's sole
expense.
13. Warranty. The Subdivider warrants all work required to be performed by it against
defective material and faulty workmanship for a period of two years after its completion
and acceptance by the City. All landscaping set forth in subparagraph 5B of this
Agreement shall be warranted to be alive, of good quality, and disease free for two years
after planting.
14. Responsibility for Costs.
A. The Subdivider will reimburse the City for all third party legal, planning, engineering
and inspection expenses incurred by the City in connection with approval and
acceptance of the subdivision and the plat, the preparation of this Agreement, and all
costs and expenses incurred by the City in monitoring and inspecting development of
the Subject Property. The Subdivider will pay all accrued but unpaid costs, charges
and expenses at the time of execution of this Agreement. Estimated future costs are
described in paragraph C below.
B. Except as to the negligence, bad faith or the intentional torts of the City, the
Subdivider shall hold the City and its officers and employees harmless from claims
made by itself and third parties for damages sustained or costs incurred resulting
from plat or subdivision approval and development of the Subject Property. The
Subdivider shall indemnify the City and its officers and employees for all costs,
damages or expenses that the City may pay or incur in consequence of such claims,
including attorney's fees. The provisions of this subparagraph B shall not be
construed as limiting in any way the right of the Subdivider to commence and
prosecute actions against the City for breach of this Agreement.
C. The Subdivider shall reimburse the City for pre - agreement costs incurred for the
preparation of this Agreement (and not included in the amounts described in
paragraph A above), for costs incurred in the enforcement of this Agreement,
including engineering, planning and attorney's fees. Prior to the execution of this
Agreement, the Subdivider deposited with the City an escrow deposit of $5,000.00.
Such amount is the estimated amount of such costs. The deposit is security for
Subdivider's obligation under this subparagraph C, and the City may apply the
escrow to the payment of all costs covered by this paragraph. In the event that the
amount of the deposit is reduced below $1,500.00, the Subdivider will have five
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business days following written notice of such to make a sufficient additional deposit
to return the balance to at least $5,000.00. Any unused portion of the escrow will be
returned to the Subdivider within 15 business days after the issuance of the final
certificate of occupancy as set forth on the Site Development Plans.
D. The Subdivider shall pay in full all bills submitted to it by the City for obligations
incurred under this Agreement within thirty (30) days after receipt. If the bills are
not paid on time, the City may halt development work and construction including,
but not limited to, the issuance of building permits, until the bills are paid in full.
Bills not paid within thirty (30) days shall accrue interest at the rate of nine percent
(9 %) per year.
4'
b. Water Connection Charge per unit. Waived*
c. Sewer Connection charges per unit. Waived*
d. Trunk Area Water Charge. Waived*
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16. Occupancy Permits. In addition to the other requirements for the issuance of an
occupancy permit, unless otherwise authorized in writing by the Public Works Director,
no occupancy permits shall be issued until (as to the unit to which the permit relates):
A. all utilities serving the unit are tested and approved by the City, and have been placed
in service;
B. the second lift of bituminous for the street serving the unit is in place and approved
by the City; except that certificates of occupancy for up to two model units will be
issued if the first lift of bituminous for the street serving the unit is in place; and
C. all building permit fees for the unit have been paid in full.
17. Subdivider's Default. In the event of default by the Subdivider as to any of the work to
be performed by it hereunder, the City may, at its option, perform the work and the
Subdivider shall, upon written notice from the City, promptly reimburse the City for any
expense incurred by the City, provided the Subdivider is first given notice of the work in
default, which notice shall be of sufficient length to allow the Subdivider to complete the
necessary corrective action, but in any event not less than five calendar days in advance
(except in an emergency) and the Subdivider fails to correct the item of default within
this time period. This Agreement is a license for the City to act, and it shall not be
necessary for the City to seek a court order for permission to enter the Subject Property.
When the City does any such work, the City may, in addition to its other remedies, levy
the cost in whole or in part as a special assessment against the Subject Property. Nothing
in this paragraph shall be construed as a waiver of the City's rights pursuant to paragraph
7 of this Agreement.
18. Declaration Compliance Evidence. No building permits will be issued until the
Subdivider has provided the City with evidence that the Subdivider has obtained the
necessary approvals required by Section 7.2 of the Declaration recorded as Document
No. 4235086 on March 8, 2006, as amended by Document No. 4333471 on December 1,
2006 with the Hennepin County Registrar of Titles.
19. Vacation of Existing Drainage and Utility Easements; Installation of Utilities. The
Subdivider agrees to vacate the existing drainage and utility easements as dedicated on
the plat on Villas of Lost Lake 2nd Addition, lying under, over, and across the Subject
Property. The Subdivider shall contact the electric, telephone, gas and cable companies
that are authorized to provide service to the Subject Property for the purpose of
ascertaining whether and when any of those utility providers intend to install
underground lines within the Subject Property. The Subdivider agrees to comply with
applicable requirements of franchise ordinances and other requirements in effect in the
City, copies of which are available from the Mound City Clerk.
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20. Consent. The Subdivider represents and warrants that there are no other persons or
entities with interests in the Subject Property except such lenders, if any, who hold
mortgages on the Subject Property and have consented to this Agreement by executing
the Consent attached as Exhibit B.
21. Insurance. The Subdivider shall furnish proof of insurance acceptable to the City,
covering any public liability or property damage by reason of the operation of the
Subdivider's equipment, laborers, and hazard caused by the Improvements. The
Subdivider must keep the insurance in force at all times that construction on the Subject
Property is in progress. The insurance must name the City as an additional insured and
must provide that the insurer will give the City not less than 30 days' written notice prior
to cancelation or termination of the insurance policy.
22. Indemnification. Notwithstanding anything to the contrary in this Agreement, the City, its
officials, agents and employees shall not be personally liable or responsible in any manner
to the Subdivider, the Subdivider's contractor or subcontractor, material suppliers, laborers
or to any other person or persons for any claim, demand, damages, actions or causes of
action of any kind or character arising out of or by reason of the execution of this
Agreement or the performance and completion of the work required by this Agreement to be
performed by the Subdivider. The Subdivider will hold the City, its officials, agents and
employees harmless from all such claims, demands, damages, or causes of action and the
costs, disbursements, and expenses of defending the same, including but not limited to,
attorneys' fees, consulting engineering services, and other technical or professional
assistance, including the work of City staff and employees. The indemnity obligations
contained in this paragraph shall survive termination of this Agreement. Nothing in this
Agreement shall be construed as a waiver of any liability limits or immunities contained in
Minnesota Statutes, Chapter 466.
23. Miscellaneous.
A. The Subdivider represents to the City that the proposed development of the
Subject Property, and the subdivision and the plat 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 or the plat or the development of the Subject
Property do not so comply, the City may, at its option, refuse to allow
construction or development work on the Subject Property until the Subdivider
does comply. Upon the City's demand, the Subdivider shall cease work until
there is compliance.
B. Third parties have no recourse against the City or the Subdivider under this
Agreement.
C. Breach of the terms of this Agreement by the Subdivider shall be grounds for
denial of building permits, including lots sold to third parties.
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D. If any portion, section, subsection, sentence, clause, paragraph or phase of this
Agreement is for any reason held invalid, such decision shall not affect the
validity of the remaining portion of this Agreement.
E. 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.
F. This Agreement shall run with the land and may be recorded against the title to
the Subject Property. The Subdivider shall be responsible for recording this
Agreement, and take such steps, including execution of amendments to this
Agreement, as are necessary to effect the recording hereof. After the Subdivider
has completed the work required of it under this Agreement and is approved by
the City, at the Subdivider's request, the City will execute and deliver to the
Subdivider a release. As the Subdivider sells individual lots to individual third
party buyers, the City Manager is authorized to execute releases of individual lots
from the terms of this Agreement, but said individual lot releases shall not in any
way release the Subdivider from any of its obligations pursuant to this
Agreement.
G. 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 thereafter any other right, power or remedy.
H. The Subdivider may not assign this Agreement without the written permission of
the City Council, which permission will not be unreasonably withheld, and will be
given in all instances in which the proposed assignee is owned or controlled by
the Subdivider; or when the assignee demonstrates a capability to complete the
development at least equal to the Subdivider. Such assignment will not relieve
the Subdivider of its obligations pursuant to this Agreement unless the assignee
executes an agreement with the City undertaking all of the obligations of the
Subdivider and agreeing to be bound by all of the provisions of this Agreement
that are binding on the Subdivider.
I. This Agreement shall be governed by and construed in accordance with the laws
of the State of Minnesota. The Subdivider agrees to comply with all laws,
ordinances, and regulations of the United States, Minnesota, the County, and the
City that are applicable to the Subject Property.
422170v12 MJM MU200 -171 _18
J. 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.
24. Notices. Required notices to the Subdivider shall be in writing, and shall be either hand
delivered to the Subdivider, its employees or agents, or mailed to the Subdivider by
registered mail at the following address:
Lost Lake Homes and Marina, LLC
4725 Highway 7
Saint Louis Park, MN 55416
Attn: Mark Saliterman, Chief Manager.
Notices to the City shall be in writing and shall be either hand delivered to the City
Manager, or mailed to the City by registered mail in care of the City Manager at the
following address, or such other address provided to the other party in compliance with
this paragraph:
Kandis M. Hanson, City Manager
Mound City Hall
5341 Maywood Road
Mound, MN 55364
with a copy to:
Melissa Manderschied
Kennedy & Graven
200 South 6a' Street, Ste 470
Minneapolis, MN 55402.
[The balance of this page was left blank.]
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422170v12 MUM MU200 -171
IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first
above written.
CITY OF MOUND
Mark Hanus, Mayor
STATE OF MINNESOTA )
) ss
COUNTY OF HENNEPIN )
0
Kandis Hanson, City Manager
The foregoing instrument was acknowledged before me this day of
, 2013, by Mark Harms, Mayor, and Kandis Hanson, City Manager, of the
City of Mound, a Minnesota municipal corporation, on behalf of the corporation and pursuant to
the authority granted by its City Council.
Notary Public
LOST LAKE HOMES AND MARINA, LLC
By: Mark Saliterman
Its: Chief Manager
STATE OF MINNESOTA )
) ss
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
2013, by Mark Saliterman, its Chief Manager, on behalf of the company.
Notary Public
Drafted by:
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
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422170v12 MJM MU200 -171
Exhibit A
Legal Description of Subject Property
Lots I, 2, 3, 4, 5, 6, 7, and 8, Block 1, Villas on Lost Lake 2nd Addition, CIC No. 1653,
Hennepin County, Minnesota; and
Lots 2, 3, 4, 5, 6, 7, 8, 9 and 10, Block 3, Villas on Lost Lake 2nd Addition, CIC No. 1653,
Hennepin County, Minnesota; and
Lots 1, 2, 3, 4, 5, 6, 7, 8, and 9, Block 4, Villas on Lost Lake 2nd Addition, CIC No. 1653,
Hennepin County, Minnesota; and
to be platted as The Landings on Lost Lake.
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Exhibit B
Bank Consents
( "Bank ") holds a mortgage encumbering the Subject
Property.
The Subject Property is subject to the foregoing Agreement and, accordingly, Bank hereby consents
to the Agreement; provided, that in doing so, Bank shall not be liable to the City or any other person
for the performance or non - performance of the Agreement by the Subdivider; provided further, that
in the event that Bank acquires fee title to the Subject Property by foreclosure or sale in lieu of
foreclosure, Bank shall not be required to perform any of the obligations required of the Subdivider
in said Agreement during the Bank's term of ownership so long as Bank is actively marketing the
Subject Property for sale and maintaining the Subject Property in compliance with applicable
ordinances.
Dated: 20
Lm
Its:
ACKNOWLEDGEMENT FOR BANK
STATE OF MINNESOTA )
)ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
20_, by
a
on behalf of the
8174
under the laws of
Notary Public
[Subdivider to provide the required consents to the City, if applicable at any time]
-22-
of
CONSENT
The Subdivider hereby consents to the provisions of the forgoing letter and agrees that said letter
does not modify or restrict the authorization granted by the undersigned and Lender.
Lost Lake Homes and Marina, LLC
A Minnesota limited Liability Company
C
Mark Saliterman
Its: Chief Manager
Dated:
-?b3�
422170v12 MJM MU200 -171