HomeMy WebLinkAboutItem 06.yo
December 12, 2013
Propos -ed Action
FOX MEADOWS 2" ADDITION
ASSIGNMENT OF DEVELOPMENT CONTRACT
Decemhc .16, 2013 City Council
Item No.
Staff recommends adoption of the following motion: Move to approve the Assumption of
Development Contract Obligations for the Fox Meadows 2nd Addition Development Contract
with Cyclone Partners L.L.C.
Passage of this motion will result in transferring the Fox Meadows 2nd Addition Development
Contract, as amended, from Fox Meadows of Lakeville, LLC to Cyclone Partners L.L.C.
Overview
The Fox Meadows 2 Addition Development Contract with Fox Meadows of Lakeville, LLC
was approved by the City Council on July 31, 2003. Cyclone Partners L.L.C. is acquiring the
property and is requesting the City's approval to reassign the development contract. Cyclone
Partners L.L.C. will be responsible for the obligations of the Fox Meadows 2 Addition
Development Contract as amended.
Prin y Issues to Consider
® What are the remaining obligations of the Fox Meadows 2'd Addition Development
Contract? The primary remaining items include the following: retaining wall
construction adjacent to Kenwood Trail (CSAF -5o); landscaping and erosion control.
Cyclone Partners L.L.C. has submitted a cash escrow to guarantee compliance with the
terms of the development contract and secure completion of the remaining items.
Supporting Information
0 Assumption of Development Contract Obligations for Fox Meadows 2' Addition
Financial impact: $o
Related Documents (CIP, ERP, etc.):
Notes:
Budgeted: N/A Source:
[reserved for recording information]
ASSUMPTION OF DEVELOPMENT CON'T'RACT OBLIGATIONS
AGREEMENT dated , 2013, by and between the CITY OF
LAKEVILLE, a Minnesota municipal corporation ( "City "); and CYCLONE PARTNERS L. L. C.,
a Minnesota limited liability company (the "Successor Developer ").
Recitals
A. The City and Fox Meadows of Lakeville, LLC ( "Developer ") entered into a
Development Contract dated July 31, 2003 concerning the plat of FOX MEADOWS 2 nd
ADDITION ( "Subject Property "), recorded with the Dakota County Registrar of Titles office on
May 19, 2004 as Document No. 537466 ( "Development Contract ").
B. The Developer has not performed its obligation under the Development Contract.
C. The Successor Developer will acquire fee title to the Subject Property and has
agreed to assume the obligations of the Developer under the Development Contract,
NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS
THE PARTIES AGREE AS FOLLOWS:
I. ASSUMPTION OF OBLIGATIONS The Successor Developer hereby agrees to
perform all of the Developer's obligations under the Development Contract and agrees to be bound
by the terms of the Development Contract as specifically modified by this Agreement.
2. AMENDMENTS For purposes of this Agreement, the following paragraphs of the
Development Contract are amended:
A. Paragraph 10 of the Development Contract is amended to provide:
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10. TIME OF PERFORMANCE. The Developer shall install all
required public improvements by November 30, 2014, with the exception of
the final wear course of asphalt on streets. The final wear course on streets
shall be installed between August 15th and October 15th the first summer
after the base layer of asphalt has been in place one freeze thaw cycle. 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 the extended
completion date. Final wear course placement outside of this time frame
must have the written approval of the City Engineer.
B. Paragraph 29 of the Development Contract is amended to provide:
29. SUMMARY OF SECURITY REQUIREMENTS. To guarantee
compliance with the terms of this Agreement, payment of real estate taxes,
including interest and penalties, payment of special assessments, payment of
the costs of all public improvements, and construction of all public
improvements, the Developer shall furnish the City with a cash escrow
( "security ") for $320,188.00. The City may draw down the security,
without notice, for any violation of the terms of this Contract. If the
security is drawn down, the proceeds shall ba used to cure the default.
Upon receipt of proof satisfactory to the City that work has been completed
and financial obligations to the City have been satisfied, with City approval
the security may be reduced from time to time by ninety percent (90 %) of
the financial obligations that have been satisfied. Ten percent (10 %) of the
amounts certified by the Developer's engineer shall be retained as security
until all improvements have been completed, all financial obligations to the
City satisfied, the required "as constructed" plans have been received by the
City, a warranty security is provided, and the public improvements are
accepted by the City Council. The City standard specifications for utilities
and street construction outline procedures for security reductions.
C. Paragraph 35 of the Development Contract is amended to provide:
35. 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: 4700
County Road 19, Medina, Minnesota 55357. 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: Lakeville City Hall, 20196 Holyoke Avenue, Lakeville,
Minnesota 55044.
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3. BINDING EFFECT/RECORDING This Agreement may be recorded against the
title to the land described in the attached Exhibit "A." and is binding upon the parties, their
successors, heirs, and assigns.
(SEAL)
STATE OF MINNESOTA )
( ss.
COUNTY OF DAKOTA )
CITY OF LAKEVILLE
_.
Matt Little, Mayor
Charlene Friedges, City Clerk
CYCLONE PARTNERS L. L. C.
BY:
Its C°
The foregoing instrument was acknowledged before me this day of
2013, by Matt Little and Charlene Friedges, .respectively 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
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STATE OF MINNESOTA )
(ss.
COUNTY OF A r -j )
The foregoing instrument was acknowledged before me this 94", day of
�, v^ 2013, by a ,� the
� Z —e aw of CYCLONE PARTNERS L L. C., a Minnesota Limited
Liability Company on behalf of said limited liability company.
Notary Public
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
317 Eagan.dale Office Center
1380 Corporate Center Curve
Eagan, Minnesota 55121
(651) 452 -5000
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MORTGAGE CONSENT
4 which holds a mortgage on the subject property, the development of
which is d governed by the Development Contract described in the foregoing Assumption of
Development Contract Obligations, agrees that the Development Contract and the Assumption of
Development Contract Obligations shall remain in full force and effect even if it forecloses on its
mortgage.
Dated this day of ����G , 2013.
BY:
Its ?�c) t�
AND
Its tc-'f
STATE OF MINNESOTA )
( ss.
COUNTY OF v )
The foregoing instrument was acknowledged before me this 11 day of
il l-e "N 2013, by - r� Witi Aw and by
ve, h
X�t C t tey ti
... - - -- - € and
on behalf of the ho Ak
Notary
r�• r
CAMPBELL KNUTSON
Professional Association
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, Minnesota 55121
(651) 452 -5000
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EXHIBIT "A"
TO
ASSUMPTION OF DEVELOPMENT CONTRACT OBLIGATIONS
Legal Description of Property Being Assigned
Lots 1 through 13, inclusive, Block 1;
Lots 1 through 13, inclusive, Block 2;
Lots 1 through 15, inclusive, Block 3;
All in FOX MEADOWS 2 " ADDITION, according to the recorded plat thereof, Dakota County,
Minnesota.
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