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Home My WebLink AboutItem 06.gAugust 29, 2012 Proposed Action Staff recommends adoption of the following motion: Move to approve the Second Amendment to the St. Frances Woods 7 Addition Development Contract and the First Amendment to the St. Frances Woods 8 Addition Development Contract, as presented. Passage of this motion will allow the letter of credit for St. Frances Woods 7 and 8 additions to be released. Overview Dale and Frances Pexa of Dale Pexa Construction, Inc. are requesting the release of their remaining security obligation (letter of credit) for St. Frances Woods 7t and 8 additions. St. Frances Woods 7 Addition consists of 32 attached townhome units and was approved by the City Council on July 6, 1999. St. Frances Woods 8 Addition consists of 29 attached townhome units and was approved by the City Council on May 20, 2002. The remaining letter of credit balance for the two additions is $21,000 to cover individual townhome unit construction foundation landscaping and erosion control. Due to the lack of townhome construction activity in St. Frances Woods and the cost associated with carrying the letter of credit for an indefinite period into the future, the Pexas would like to be released from their security obligation and have the security for foundation landscaping and erosion control tied to the building permits for the 16 townhome units remaining to be constructed in St. Frances Woods 7t and 8 additions. Staff recommends approval of the amendments to the St. Frances Woods 7 Addition and 8th Addition development contracts as prepared by the City Attorney. Primary Issues to Consider • What are the implications of releasing the letter of credit? Supporting Information • Staff analysis of issues • Second Amendment to the St. Frances Woods 7t Addition Development Contract First Amendment to the St. Frances Woods 8 Addition Development Contract Item No. ST. FRANCES WOODS DEVELOPMENT CONTRACT AMENDMENTS SEPTEMBER 4, 2012 CITY COUNCIL MEETING Daryl I\lorey, Plate g Director Financial Impact: $ None Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): Notes: St. Frances Woods Development Contract Amendment Page 2 Staff Analysis of Issues • What are the implications of releasing the letter of credit? Allowing the remaining security that is tied to individual dwelling unit construction (and not the overall site improvements for residential developments) to be released and resubmitted with building permit applications has been approved by the City in the past. Because the St. Frances Woods 7 th Addition and 8 th Addition development contracts do not utilize the current language for grading and erosion control, the development contracts for both additions need to be amended to include the current language as well as to allow the foundation planting landscape security to be submitted with the individual townhome unit building permits. There will be security in place as required for individual townhome unit foundation landscaping and erosion control, however, the obligation for this security will be transferred from the developer to the townhome builder similar to the City's individual lot tree preservation security. (reserved for recording information) SECOND AMENDMENT TO DEVELOPMENT CONTRACT ST. FRANCES WOODS 7 ADDITION AGREEMENT dated , 2012, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation ( "City "), and DALE PEXA CONSTRUCTION, INC., a Minnesota corporation (the "Developer "). 1. DEVELOPMENT CONTRACT. The City and the Developer entered into a Development Contract for ST. FRANCES WOODS 7 ADDITION dated July 6, 1999, and recorded with the Dakota County Recorder on August 25, 1999, as Document No. 1632094 (the "Development Contract ") as amended by First Amendment to Development Contract for St. Frances Woods 7 Addition, dated December 6, 1999 and recorded with the Dakota County Recorder on December 13, 1999, as Document No. 1659249 ( "First Amendment "). The Development Contract shall remain in full force and effect except as specifically amended by this Second Amendment to Development Contract ( "Second Amendment "). 2. AMENDMENT. Paragraph 15 of the Development Contract is amended to provide that before a building permit is issued, a cash escrow of Three Hundred Fifty and No /100 ($350.00) Dollars per lot shall be furnished to the City to guarantee compliance with the erosion control and grading requirements. If the final grading and erosion control is not timely completed, the City may enter the lot, perform the work, and apply the cash escrow toward the cost. Upon satisfactory completion of the grading and erosion control, the escrow funds, without interest, less any draw made by the City, shall be returned to the person who deposited the funds with the City. IN WITNESS WHEREOF, this Second Amendment to Development Contract was executed by the parties the day and year first above written. (SEAL) STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) CITY OF LAKEVILLE BY: AND The foregoing instrument was acknowledged before me this day of 2012, by Mark Bellows and by Charlene Friedges, the Mayor and City Clerk of the City of Lakeville, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. 166022v1 2 Mark Bellows, Mayor Charlene Friedges, City Clerk NOTARY PUBLIC STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) DRAFTED BY: CAMPBELL, KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 Telephone: 651- 452 -5000 RNK:cjh The foregoing instrument was acknowledged before me this ' - day of A O j "f 2012, by Dale Pexa and Frances Pexa, the President and Vice President of Dale Pexa Construction, Inc., a Minnesota corporation on behalf of said corporation. NOTARY P B IC 166022v1 3 DEVELOPER: DALE PE CONSTR TION, INC. BY: Dale Pexa, President Frances Pexa, Vice Pres' ent PENNY BREVIG NOTARY PUBUC- MINNESOTA My Commission Expires Jan. 31, 2015 ✓r�ryrrrrrli -.:ice- _�rrl�r�.i��i:.i� (reserved for recording information) FIRST AMENDMENT TO DEVELOPMENT CONTRACT ST. FRANCES WOODS 8 ADDITION AGREEMENT dated , 2012, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation ( "City "), and DALE PEXA CONSTRUCTION, INC., a Minnesota corporation (the "Developer "). 1. DEVELOPMENT CONTRACT. The City and the Developer entered into a Development Contract for ST. FRANCES WOODS 8 ADDITION dated May 20, 2002, and recorded with the Dakota County Recorder on June 5, 2002, as Document No. 1902849 (the "Development Contract "). The Development Contract shall remain in full force and effect except as specifically amended by this First Amendment to Development Contract ( "First Amendment "). 2. AMENDMENT. Paragraph 15 of the Development Contract is amended to provide that before a building permit is issued, a cash escrow of Three Hundred Fifty and No /100 ($350.00) Dollars per lot shall be furnished to the City to guarantee compliance with the erosion control and grading requirements. If the final grading and erosion control is not timely completed, the City may enter the lot, 166023v! 1 perform the work, and apply the cash escrow toward the cost. Upon satisfactory completion of the grading and erosion control, the escrow funds, without interest, less any draw made by the City, shall be returned to the person who deposited the funds with the City. IN WITNESS WHEREOF, this First Amendment to Development Contract was executed by the parties the day and year first above written. (SEAL) STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) CITY OF LAKEVILLE BY: AND 166023v1 2 Mark Bellows, Mayor Charlene Friedges, City Clerk The foregoing instrument was acknowledged before me this day of , 2012, by Mark Bellows and by Charlene Friedges, the Mayor and City Clerk of the City of Lakeville, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. NOTARY PUBLIC STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) DRAFTED BY: CAMPBELL, KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 Telephone: 651- 452 -5000 RNK:cjh 166023v1 3 DEVELOPER: DALE P CONST BY: 1 � Dale Pexa, President NOTARY Pt LIC CTION, INC. Frances Pexa, Vice Pr ident The foregoing instrument was acknowledged before me this ' day of A t,k JG 2012, by Dale Pexa and Frances Pexa, the President and Vice President of Dale Pexa Construction, Inc., a Minnesota corporation on behalf of said corporation. PENNY BREVIG NOTARY PUBLIC • MINNESOTA My Commission Expires Jan. 31, 2015