HomeMy WebLinkAboutItem 06.i
April 29, 2015 Item No. _____
PERFORMANCE AGREEMENT FOR ADMINISTRATIVE SUBDIVISION
MAY 4, 2015 CITY COUNCIL MEETING
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Performance
Agreement for Administrative Subdivision for Steven Nelson and Laura Nelson.
Adoption of this motion will authorize the Nelsons to complete the public utility and other
required improvements in conjunction with the subdivision of their property located at 10127
199th Street.
Overview
Steven and Laura Nelson have applied for an administrative subdivision of their property.
Staff has completed a review of the proposed administrative subdivision and has determined
that the subdivision meets Zoning Ordinance and Subdivision Ordinance requirements. The
Nelsons are proposing to sell the new parcel for the construction of a new single family
home. The existing single family home will remain on the east side of the property.
Primary Issues to Consider
Why is the performance agreement required? The applicant and current property owner will
have to excavate into 199th Street as well as bury existing overhead utilities to the existing house.
This work requires financial security to guarantee completion of the work and maintenance of
related erosion control measures.
Supporting Information
• Performance Agreement
• Location Map
_________________________________
Frank Dempsey, AICP, Associate Planner
Financial Impact: $ None Budgeted: Y/N ____ Source: _________________________________
Related Documents (CIP, ERP, etc.): Zoning Ordinance _______________________________________________
Envision Lakeville Community Values: A Home for All Ages and Stages of Life____________________________
2
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PERFORMANCE AGREEMENT: ADMINISTRATIVE SUBDIVISION
THIS AGREEMENT, made and entered into this _____ day of ____________, 2015, by and
between the CITY OF LAKEVILLE, a Minnesota municipal corporation (“City”), and STEVEN A.
NELSON AND LAURA S. NELSON, husband and wife (the “Developers”) (“Agreement”).
RECITALS
WHEREAS, the Developers have requested that the City grant site plan approval and an
administrative subdivision upon land legally described in Exhibit “A” and depicted on Exhibit “B”
attached hereto and made a part hereof (the “Property”); and
WHEREAS, on ________________, 2015, the Developers received approval of the site plan
and administrative subdivision, subject to terms and conditions as set forth in the Lakeville
Engineering Report dated April 17, 2015; and
WHEREAS, the City and the Developers have agreed, as a condition of the approvals and in
exchange for the approvals, that the Developers will enter into this performance agreement and that
the Developers will faithfully perform the terms and conditions contained herein.
NOW THEREFORE, in consideration of the premises and the mutual promises and
conditions hereinafter contained, it is hereby agreed as follows:
1. Administrative Subdivision Approval. The City hereby approves the administrative
subdivision of the Property (Parcels A and B) as identified in Exhibits A and B on condition
that the Developer enter into this Agreement, furnish the security, escrow and fees required by
it, and record this Agreement and the documents required under this Agreement.
2. Representations of Developers. As inducement to the City’s approval of the administrative
subdivision and entering into this Agreement, the Developers hereby represent and warrant to
the City:
A. That the Developers are currently the fee owners of the Property and have authority
to enter into this Agreement.
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B. That the intended use of the Property is for residential purposes. There is an existing
single family home and detached garage on the easterly parcel, Parcel A. Proposed
improvements to the westerly parcel, Parcel B includes the construction of a new
single family home.
C. The Developers shall provide the City with separate easement documents for wetland
buffer purposes over the areas described on the attached Exhibit “C” and for lot
perimeter drainage and utility purposes over the areas described on attached Exhibit
“D” to be recorded with this Agreement and prior to issuance of a building permit or
sale or encumbrance of the Property.
3. Plans. The Property shall be developed in accordance with the Grading Utility, Tree
Preservation Erosion Control Plan. The plans shall not be attached to this Agreement. The
City Engineer may approve minor amendments to the Grading Plan without City Council
approval. If the plans vary from the written terms of this Agreement, the written terms shall
control. Prior to issuance of a building permit, the Developers shall provide a comprehensive
sediment and erosion control plan to be approved by the City. The plan must include the
following:
A gravel construction entrance, if necessary
Temporary seed/mulch
Silt fence installed to protect offsite areas from sediment transport
Streets must be cleared of debris at the end of each day during construction
Developers shall comply with any additional erosion control measures that may be required
during construction as deemed necessary by City Staff or by the Dakota County Soil and
Water District.
4. Performance and Securities to Ensure Performance:
A. The Developers shall post a $5,000.00 security with the City to ensure that sanitary
sewer and water services are connected to service Parcel B and the street section is
properly reconstructed to its existing condition per City standards. The City will hold
50% of this security over a period of one freeze/thaw cycle to verify if corrective
actions should be taken based on settlement due to freeze/thaw conditions.
B. An existing overhead utility line is located along the south side of 199th Street. Buried
power lines have been installed along 199th Street to service Parcel B when it is
constructed. The Developers must bury any utility service lines that are extended from
the existing utility poles along 199th Street to the existing building structures located
on Parcel A. The Developers shall post a $2,000.00 security with the City to ensure
that the overhead utility lines are buried.
C. The Developers shall post a $1,500.00 security with the City to ensure that compliance
with the tree preservation plan.
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D. The Developers shall post a $2,500.00 security with the City to ensure compliance
with the sediment and erosion control plan.
E. The performance items listed above must be completed on or before November 30,
2015.
F. To ensure performance, the Developers shall furnish the City with a cash escrow or
letter of credit, in the form attached hereto, from a bank, ("security") in the amount of
$11,000.00, calculated as follows:
SECURITY REQUIREMENTS
Bury Utility Service Lines $ 2,000.00
Street Restoration for Sewer and Water Connection 5,000.00
Erosion and Sediment Control 2,500.00
Tree Preservation 1,500.00
TOTAL SECURITY REQUIREMENTS $ 11,000.00
If the Developers fail to complete the required performance items by November 30,
2015, the City may, upon 5 days written notice to the Developers, draw upon the cash
escrow or letter of credit to complete the work. The Developers agree and permit the
City and its employees or contractors to enter upon the Property to complete the
required performance items. The cash escrow or letter of credit shall be released upon
completion of all required performance items.
5. Cash Requirements
A. A park dedication fee is required for Parcel B and must be paid in cash at the time of
administrative subdivision approval. The 2015 park dedication fee is $3,781.00 per
dwelling unit.
B. The Trunk Storm Sewer Area Charge has not been collected on the parent parcel and
shall be paid in cash at the time of administrative subdivision approval. The 2015
Trunk Storm Sewer Area Charge is calculated as follows:
18,161 s.f. + 24,637 s.f. x $0.178/s.f. = $7,618.04
Gross Area of Parcel A Gross Area of Parcel B 2015 Area Charge Total
C. A cash fee for the preparation of record construction drawings and for upgrading the
City base map will be paid at the time of administrative subdivision approval and is
calculated as follows:
2 lots/outlots x $75.00/unit = $150.00
Lots/Outlots City Base Map Updating Fee Total
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D. The Developers must pay the following cash fees at the time of administrative
subdivision approval:
CASH REQUIREMENTS
Park Dedication Fee $ 3,781.00
Trunk Storm Sewer Area Charge 7,618.04
City Base Map Updating Fee 150.00
TOTAL CASH REQUIREMENTS $ 11,549.04
6. Construction Access. Construction access and egress for site grading, private utility and
building construction shall be from 199th Street via Jaguar Avenue and Kenwood Trail (CSAH
50).
7. Grading. A drainage swale shall be provided along the property line to be located between
Parcels A and B to direct water from Parcel A away from the proposed building structure to be
located on Parcel B. Prior to issuance of a building permit on Parcel B, the City may require
completion of minor grading within the existing ditch on 199th Street and installation of a new
culvert to accommodate the new driveway on Parcel B and maintain positive drainage. The
new driveway to the proposed home to be located on Parcel B shall not exceed a 10% grade.
The final grading plan shall identify if the building footing for the structure on Parcel
B is to be placed on fill material. The grading specifications shall also indicate that all
embankments meet FHA/HUD 79G specifications. The Developers shall certify to the City
that all lots with footings placed on fill material are appropriately constructed.
8. Easement Vacation and Other Approvals. The Developers shall abide by and follow all the
other terms and conditions set forth in any City approval of easement vacations and site plans.
9. Responsibility for Costs.
A. Except as otherwise specified herein, the Developers shall pay all costs incurred by it
or the City in conjunction with the subdivision and development of the Property,
including but not limited to Soil and Water Conservation District charges, legal,
planning, engineering and construction observation inspection expenses incurred in
connection with approval and acceptance of the Subdivision, the preparation of this
Agreement, review of construction plans and documents, and all costs and expenses
incurred by the City in monitoring and inspecting development of the subdivision.
B. The Developers shall hold the City and its officers, employees, and agents harmless
from claims made by itself and third parties for damages sustained or costs incurred
resulting from subdivision approval and development. The Developers shall indemnify
the City and its officers, employees, and agents for all costs, damages, or expenses
which the City may pay or incur in consequence of such claims, including attorneys'
fees.
181331v3 5
C. The Developers shall reimburse the City for costs incurred in the enforcement of this
Agreement, including engineering and attorneys' fees.
D. The Developers 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 subdivision development and construction until the
bills are paid in full. Bills not paid within thirty (30) days shall accrue interest at the
rate of eighteen percent (18%) per year.
E. In addition to the charges and special assessments referred to herein, other charges and
special assessments may be imposed such as but not limited to sewer availability
charges ("SAC"), City water connection charges, City sewer connection charges, and
building permit fees.
10. Developers’ Default. In the event of default by the Developers as to any of the terms of this
Agreement or work to be performed by it hereunder, the City may, at its option, perform the
work and the Developers shall promptly reimburse the City for any expense incurred by the
City, provided the Developers, except in an emergency as determined by the City, are first
given notice of the work in default, not less than forty-eight (48) hours in advance. 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 land. When the City does any such work, the City may,
in addition to its other remedies, assess the cost in whole or in part.
11. Miscellaneous
A. The Developers represents to the City that the subdivision complies 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 does not comply, the City may, at its option,
refuse to allow construction or development work in the subdivision until the
Developer does comply. Upon the City's demand, the Developers shall cease work
until there is compliance.
B. Third parties shall have no recourse against the City under this Agreement.
C. Breach of the terms of this Agreement by the Developers shall be grounds for denial of
building permits, including lots sold to third parties.
D. 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.
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.
181331v3 6
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
property. The Developers covenant with the City, its successors and assigns, that the
Developers are well seized in fee title of the Property and/or has obtained consents to
this Agreement, in a form approved by the City, from all parties who have an interest
in the property; that there are no unrecorded interests in the Property; and that the
Developers will indemnify and hold the City harmless for any breach of the foregoing
covenants.
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 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 Developers may not assign this Agreement without the written permission of the
City Council. The Developers’ obligation hereunder shall continue in full force and
effect even if the Developers sell one or more lots.
12. Notices. Required notices to the Developers shall be in writing, and shall be either
hand delivered to the Developers or agents, or mailed to the Developers by certified mail at the
following address: 10127 199th Street West, Lakeville, Minnesota 55044. 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,
20195 Holyoke Avenue, Lakeville, Minnesota 55044.
IN WITNESS WHEREOF, the City and Developers have signed this Agreement the day and
year first written above.
[The remainder of this page has been intentionally left blank.
Signature pages follow.]
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CITY OF LAKEVILLE
BY: _________________________________
Matt Little, Mayor
AND: _________________________________
Charlene Friedges, City Clerk
STATE OF MINNESOTA )
) ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this ____ day of ___________,
2015, by Matt Little and by 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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DEVELOPERS:
_____________________________________
Steven A. Nelson
_____________________________________
Laura S. Nelson
STATE OF MINNESOTA )
)ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this _____ day of ________, 2015, by
Steven A. Nelson and Laura S. Nelson, husband and wife.
_________________________________
Notary Public
THIS INSTRUMENT DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, Minnesota 55121
AMP/cjh
181331v3 9
EXHIBIT “A”
TO
PERFORMANCE AGREEMENT: ADMINISTRATIVE SUBDIVISION
Property Description
EXISTING PROPERTY DESCRIPTION
Lots Five (5) and Six (6), Block Seventeen (17), Lenihan’s Lots, Antlers Park,
Together with that portion of Pocahontas Avenue (also known as Jaguar Lane) in Lenihan’s
Lots, Antlers Park, lying Southerly of the Northerly lot line extended in a Westerly direction
of Lot Five (5), Block Seventeen (17) in said Lenihan’s Lots, Antlers Park, and lying
Northerly of the Northerly boundary line of Euclid Avenue (also known as 199th Street) in
said Lenihan’s Lots, Antlers Park;
Also together with that portion of that certain vacated alley described below lying Southerly of
a line running from the Northeast corner of Lot Five (5), Block Seventeen (17), Antlers Park,
to the Northwest corner of Lot Seven (7), Block Seventeen (17) of said Antlers Park, and lying
Northerly of the Northerly right-of-way of Euclid Avenue (also known as 199th Street);
According to the duly recorded plat thereof, Dakota County, Minnesota.
Said “vacated alley” consists of that certain alley that extends from the Northerly right-of-way
of Euclid Avenue to the Southerly right-of-way of Hiawatha Avenue (as dedicated in the
following referenced plats) and that lies within Block 17, ANTLERS PARK, and also within
Block 17, LENIHAN’S LOTS, ANTLERS PARK, according to the plats thereof on file and
of record in the office of the Registrar of Deeds, Dakota County, Minnesota.
PROPOSED DESCRIPTION OF PARCEL A
That part of the following described tract of land:
Lots Five (5) and Six (6), Block Seventeen (17), Lenihan's Lots, Antlers Park,
Together with that portion of Pocahontas Avenue (also known as Jaguar Lane) in
Lenihan's Lots, Antlers Park, lying Southerly of the Northerly lot line extended in a
Westerly direction of Lot Five (5), Block Seventeen (17) in said Lenihan's Lots, Antlers
Park, and lying Northerly of the Northerly boundary line of Euclid Avenue (also known
as 199th Street) in said Lenihan's Lots, Antlers Park;
Also together with that portion of that certain vacated alley described below lying
Southerly of a line running from the Northeast corner of Lot Five (5), Block Seventeen
181331v3 10
(17), Antlers Park, to the Northwest corner of Lot Seven (7), Block (17) of said
Antlers Park, and lying Northerly of the Northerly right-of-way of Euclid Avenue (also
known as 199th Street);
According to the duly recorded plat thereof, Dakota County, Minnesota.
Said "vacated alley" consists of that certain alley that extends from the Northerly right-
of-way of Euclid Avenue to the Southerly right-of-way of Hiawatha Avenue (as
dedicated in the following referenced plats) and that lies within Block 17, ANTLERS
P A R K , and also within Block 17, LENIHAN'S LOTS ANTLERS PARK, according
to the plats thereof on file and of record in the office of the Registrar of Deeds, Dakota
County, Minnesota.
Lying easterly of the following described line:
Commencing at a point on the north line of said Lot 5, Block 17, said point being the
most westerly corner of Lot 17, Block 1, MARION PINES THIRD ADDITION, Dakota
County, Minnesota; thence North 79 degrees 11 minutes 03 seconds West, assumed
bearing, along the north line of said Lot 5 and along the south line of Lot 13, Block 1,
said MARION PINES THIRD ADDITION, a distance of 37.10 feet to the point of
beginning of the line to be described; thence South 08 degrees 50 minutes 02 seconds
West 100.85 feet; the nce South 16 degrees 15 minutes 34 seconds East 56.27 feet to the
southeasterly line of Lot 6, Block, 17, said LENIHAN'S LOTS ANTLERS PARK, and
said line there terminating.
PROPOSED DESCRIPTION OF PARCEL B
That part of the following described tract of land:
Lots Five (5) and Six (6), Block Seventeen (17), Lenihan's Lots, Antlers Park,
Together with that portion of Pocahontas Avenue (also known as Jaguar Lane) in
Lenihan's Lots, Antlers Park, lying Southerly of the Northerly lot line extended in a
Westerly direction of Lot Five (5), Block Seventeen (17) in said Lenihan's Lots, Antlers
Park, and lying Northerly of the Northerly boundary line of Euclid Avenue (also known
as 199th Street) in said Lenihan's Lots, Antlers Park;
Also together with that portion of that certain vacated alley described below lying
Southerly of a line running from the Northeast corner of Lot Five (5), Block Seventeen
(17), Antlers Park, to the Northwest corner of Lot Seven (7), Block (17) of said
Antlers Park, and lying Northerly of the Northerly right-of-way of Euclid Avenue (also
known as 199th Street);
According to the duly recorded plat thereof, Dakota County, Minnesota.
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Said "vacated alley" consists of that certain alley that extends from the Northerly right-
of-way of Euclid Avenue to the Southerly right-of-way of Hiawatha Avenue (as
dedicated in the following referenced plats) and that lies within Block 17, ANTLERS
P A R K , and also within Block 17, LENIHAN'S LOTS ANTLERS PARK, according
to the plats thereof on file and of record in the office of the Registrar of Deeds, Dakota
County, Minnesota.
Lying westerly and southwesterly of the following described line:
Commencing at a point on the north line of said Lot 5, Block 17, said point being the
most westerly corner of Lot 17, Block 1, MARION PINES THIRD ADDITION, Dakota
County, Minnesota; thence North 79 degrees 11 minutes 03 seconds West, assumed
bearing, along the north line of said Lot 5 and along the south line of Lot 13, Block 1,
said MARION PINES THIRD ADDITION, a distance of 37.10 feet to the point of
beginning of the line to be described; thence South 08 degrees 50 minutes 02 seconds
West 100.85 feet; the nce South 16 degrees 15 minutes 34 seconds East 56.27 feet to the
southeasterly line of Lot 6, Block, 17, said LENIHAN'S LOTS ANTLERS PARK, and
said line there terminating.
181331v3 12
EXHIBIT “B”
TO
PERFORMANCE AGREEMENT: ADMINISTRATIVE SUBDIVISION
Survey / Administrative Subdivision Sketch
181331v3 13
EXHIBIT “C”
TO
PERFORMANCE AGREEMENT: ADMINISTRATIVE SUBDIVISION
An easement for wetland buffer, drainage and utility purposes over, under and across that part of the
following described tract of land:
Lots Five (5) and Six (6), Block Seventeen (17), Lenihan’s Lots, Antlers Park,
Together with that portion of Pocahontas Avenue (also known as Jaguar Lane) in Lenihan’s Lots,
Antlers Park, lying Southerly of the Northerly lot line extended in a Westerly direction of Lot
Five (5), Block Seventeen (17) in said Lenihan’s Lots, Antlers Park, and lying Northerly of the
Northerly boundary line of Euclid Avenue (also known as 199th Street) in said Lenihan’s Lots,
Antlers Park;
Also together with that portion of that certain vacated alley described below lying Southerly of a
line running from the Northeast corner of Lot Five (5), Block Seventeen (17), Antlers Park, to the
Northwest corner of Lot Seven (7), Block Seventeen (17) of said Antlers Park, and lying
Northerly of the Northerly right-of-way of Euclid Avenue (also known as 199th Street);
According to the duly recorded plat thereof, Dakota County, Minnesota.
Said “vacated alley” consists of that certain alley that extends from the Northerly right-of-way of
Euclid Avenue to the Southerly right-of-way of Hiawatha Avenue (as dedicated in the following
referenced plats) and that lies within Block 17, ANTLERS PARK, and also within Block 17,
LENIHAN’S LOTS, ANTLERS PARK, according to the plats thereof on file and of record in the
office of the Registrar of Deeds, Dakota County, Minnesota.
Lying northwesterly, westerly and southwesterly of the following described line:
Commencing at a point on the north line of said Lot 5, Block 17, said point being the most
westerly corner of Lot 17, Block 1, MARION PINES THIRD ADDITION, Dakota County,
Minnesota; thence North 79 degrees 11 minutes 03 seconds West, assumed bearing, along the
north line of said Lot 5 and along the south line of Lot 13, Block 1, said MARION PINES
THIRD ADDITION, a distance of 49.46 feet to the point of beginning of the line to be described;
thence South 58 degrees 39 minutes 14 seconds West 86.82 feet; thence South 10 degrees 48
minutes 57 seconds West 67.98 feet; thence South 17 degrees 21 minutes 45 seconds East 82.38
feet to the Northerly right-of-way line of said 199th Street, and said line there terminating.
181331v3 14
EXHIBIT “D”
TO
PERFORMANCE AGREEMENT: ADMINISTRATIVE SUBDIVISION
An easement for drainage and utility purposes over, under and across the northerly and
northeasterly 10.00 feet, the easterly 5.00 feet and the southeasterly 10.00 feet of the following
described tract of land:
Lots Five (5) and Six (6), Block Seventeen (17), Lenihan's Lots, Antlers Park,
Together with that portion of Pocahontas Avenue (also known as Jaguar Lane) in
Lenihan's Lots, Antlers Park, lying Southerly of the Northerly lot line extended in a
Westerly direction of Lot Five (5), Block Seventeen (17) in said Lenihan's Lots, Antlers
Park, and lying Northerly of the Northerly boundary line of Euclid Avenue (also known as
199th Street) in said Lenihan's Lots, Antlers Park;
Also together with that portion of that certain vacated alley described below lying Southerly
of a line running from the Northeast corner of Lot Five (5), Block Seventeen (17), Antlers
Park, to the Northwest corner of Lot Seven (7), Block (17) of said Antlers Park, and lying
Northerly of the Northerly right-of-way of Euclid Avenue (also known as 199th Street);
According to the duly recorded plat thereof, Dakota County, Minnesota.
Said "vacated alley" consists of that certain alley that extends from the Northerly right-of-
way of Euclid Avenue to the Southerly right-of-way of Hiawatha Avenue (as dedicated in
the following referenced plats) and that lies within Block 17, ANTLERS P A R K , and also
within Block 17, LENIHAN'S LOTS ANTLERS PARK, according to the plats thereof on
file and of record in the office of the Registrar of Deeds, Dakota County, Minnesota.
Together with an easement for drainage and utility purposes over, under and across that part of the
above described tract of land lying within a strip of land 10.00 feet in width, the center line of
which is described as follows:
Commencing at a point on the north line of said Lot 5, Block 17, sai d point being the most
westerly corner of Lot 17, Block 1, MARION PINES THIRD ADDITION, Dakota County,
Minnesota; thence North 79 degrees 11 minutes 03 seconds West, assumed bearing, along
the north line of said Lot 5 and along the south line of Lot 13, Bl ock 1, said MARION
PINES THIRD ADDITION, a distance of 37.10 feet to the point of beginning of the center
line to be described; thence South 08 degrees 50 minutes 02 seconds West 100.85 feet;
thence South 16 degrees 15 minutes 34 seconds East 56.27 feet to the southeasterly line of
Lot 6, Block, 17, said LENIHAN'S LOTS ANTLERS PARK, and said line there
terminating.
181331v3 15
IRREVOCABLE LETTER OF CREDIT
No. ___________________
Date: _________________
TO: City of Lakeville
20195 Holyoke Avenue
Lakeville, Minnesota 55044
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 ________________,
2_____, of (Name of Bank) ";
b) Be signed by the City Administrator or Finance Director of the City of Lakeville.
c) Be presented for payment at (Address of Bank) , on or before 4:00 p.m. on November 30,
2_____.
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 Lakeville Finance Director 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: Lakeville
Finance Director, Lakeville City Hall, 20195 Holyoke Avenue, Lakeville, MN 55044, and is actually received
by the Finance Director 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. 600.
We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly
honored upon presentation.
BY: ____________________________________
Its ______________________________