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HomeMy WebLinkAboutItem 06.dJuly 18, 2016 Item No. TREEHOUSE PRIVATE BRANDS SITE IMPROVEMENT PERFORMANCE AGREEMENT Proposed Action Staff recommends adoption of the following motion: Move to approve the Site Improvement Performance Agreement (SIPA) for Treehouse Private Brands Inc. Overview Treehouse Private Brands, Inc., (located in the building formerly occupied by ConAgra) located at 21340 Hayes Avenue, proposes to construct a 9,180 square foot food processing addition, a 1,200 square foot mechanical room addition to the south side of the building, and a 56 stall parking lot west of Hayes Avenue. The SIPA is required to assure and secure completion of certain public improvements and performance standards associated with the project. Primary Issue to Consider Are the development plans and related improvements consistent with 1-2, General Industrial District Zoning Ordinance requirements? The development plans for the Treehouse Private Brands, Inc. addition are consistent with the performance standards outlined in the Zoning Ordinance for the 1-2 District. Supporting Information • Signed Site Improvement Performance Agreement (SIPA) • Aerial Photo of the Site • Site plan Financial Impact: $ None Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): Zoning Ordinance Community Values: Diversified Economic Development Report Completed By: Frank Dempsey, AICP, Associate Planner (reserved jar recording information) SITE IMPROVEMENT PERFORMANCE AGREEMENT TREEHOUSE PRIVATE BRANDS, INC. AGREEMENT dated 2016, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation ("City") and TREEHOUSE PRIVATE BRANDS, INC., f/k/a Ralcorp Holdings, Inc., a Missouri corporation ("Developer"). 1. BACKGROUND. A. The Developer has submitted to the City a site plan and grading, drainage and utility plan for improvements on property in the City of Lakeville, Minnesota, legally described as Lots 1, 2, and 3, Block 1, Grist Mill Second Addition, Dakota County, Minnesota (hereinafter referred to as the "Subject Property"). B. The proposed site plan improvements to the above-described property include a 9,194 square foot manufacturing building addition, a 1,209 square foot compressor room addition, and a new parking lot. The new bituminous parking lot contains 56 stalls and 24 -foot wide access aisles. A loading dock area will be repaved to match the new manufacturing building addition. 2. CONDITIONS OF APPROVAL. This Agreement is a condition of City site plan approval and will be recorded against the subject property. 2263505.v2 3. PLANS. The subject property shall be developed in accordance with the following plans which are on file with the City. The plans shall not be attached to this Agreement. If the plans vary from the written terms of this Agreement, the written terms shall control. The plans are: Plan A — Site Plan Plan B — Grading and Drainage Plan Plan C — Utility Plan No work can occur outside of the areas indicated on the plans without modifying this Agreement or obtaining a separate grading permit. 4. LICENSE. Developer hereby grants the City, its agents, employees, officers and contractors a license to enter the Subject Property to perform all work and inspections deemed appropriate by the City in conjunction with site development. 5. CONSTRUCTION ACCESS. Construction access and egress for site grading, utility and building construction is restricted to the existing site entrances onto Hemlock Avenue and Hayes Avenue. 6. HAYES AVENUE RESTORATION. The Developer shall construct two new driveways onto Hayes Avenue to provide access to the new parking lot. The Developer must post a $6,000.00 security at the time of City approval of this Agreement to ensure the proper restoration of Hayes Avenue after construction of the driveways. 7. SANITARY SEWER. The Subject Property is located within SC -52 and SC -57 of the South Creek sanitary sewer district as identified in the City's Comprehensive Sanitary Sewer Plan. Public trunk sanitary sewer is routed through the property from Hemlock Avenue and Hayes Avenue to Hamburg Avenue and provides service to all buildings in the development. A public sanitary manhole will be adjusted as part of the reconstruction of the loading dock area. The Developer must post a $350.00 security at the time this Agreement is approved by the City. 2263505.v2 2 8. WATERMAIN. No modifications to the existing watermain or existing services will be made as part of this development. Bollards must be installed around existing hydrants located in the loading dock area being modified with this project. 9. STREETLIGHTS. The Developer must post a $1,400.00 security at the time this Agreement is approved by the City which consists of one mast -arm streetlight. The Developer must work directly with the utility service provider to have the streetlight installed along Hayes Avenue according to the approved site plan. 10. SECURITY REQUIREMENTS. To guarantee compliance with the terms of this Agreement and all of the above plans, the Developer shall furnish the City with a letter of credit in the form attached hereto, from a bank ("security") for $19,748.75, plus a cash fee of $472.50 for City engineering administration. The amount of the security was calculated as follows: A. Removal and Restoration of Hayes Avenue for Driveways B. Sanitary Sewer Manhole Adjustment C. Erosion & Sediment Control, Grading, and Restoration CONSTRUCTION SUB -TOTAL OTHER COSTS: A. Developer's Design (6.0%) B. Developer's Construction Survey (2.5%) C. City Legal Expenses (Est. 0.5%) D. City Construction Observation (Est. 7.0%) E. Developer's Record Drawings (0.5%) F. Streetlights OTHER COSTS SUB -TOTAL TOTAL PROJECT SECURITIES: $ 6,000.00 350.00 9.400.00 $ 15,750.00 $ 945.00 393.75 78.75 1,102.50 78.75 1.400.00 $ 3,998.75 � 19.748 75 This breakdown is for historical reference; it is not a restriction on the use of the security. The bank shall be subject to the approval of the City Administrator. The City may draw down the security, on five (5) business days written notice to the Developer, for any violation of the terms of this Contract or without notice if the security is allowed to lapse prior to the end of the required term. If the security is drawn down, the proceeds 2263505_v2 3 shall be used to cure the default. Upon receipt of proof satisfactory to the City that work has been substantially completed and financial obligations to the City have been satisfied, with City approval the security may be reduced 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. 11. SUMMARY OF CASH REQUIREMENTS. The following is a summary of the cash requirements under this Contract which must be furnished to the City: City Engineering Administration (3.00%) 472.50 TOTAL CASH REQUIREMENTS S 472.50 12. RESPONSIBILITY FOR COSTS. A. The Developer shall pay all costs incurred by it or the City in conjunction with the development of the site, including but not limited to legal, planning, engineering and inspection expenses incurred in connection with approval of the site plan, the preparation of this Agreement, review of any other plans and documents. B. The Developer 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 site approval and development. The Developer 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 attomeys' fees. C. The Developer shall reimburse the City for costs incurred in the enforcement of this Agreement, including engineering and attorneys' fees. D. The Developer shall pay in full all bills submitted to it by the City for obligations incurred under this Agreement within thirty (30) days after receipt. Bills not paid within thirty (30) days shall accrue interest at the rate of eight percent (8%) per year. 2263505.v2 4 13. MISCELLANEOUS. A. 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. B. 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. C. This Agreement shall run with the land and may be recorded against the title to the Subject Property, The Developer covenants with the City, its successors and assigns, that the Developer has fee title to the Subject Property and/or has obtained consents to this Agreement, in the form attached hereto, from all parties who have an interest in the property; that there are no unrecorded interests in the property; and that the Developer will indemnify and hold the City harmless for any breach of the foregoing covenants. Upon satisfaction of Developer's obligations hereunder, the City shall promptly upon Developer's request, record a release of this Agreement against the title to the Subject Property, D. 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. E. 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 and certificates of occupancy, and the halting of all work on the property. F. The Developer represents to the City that, to its knowledge, the development complies with all city, county, metropolitan, state, and federal laws and regulations, including but not limited 2263505.v2 5 to: subdivision ordinances, zoning ordinances, and environmental regulations. If the City determines that the development does not comply, the City may, at its option, refuse to allow construction or development work in the development until the Developer does comply. Upon the City's demand, the Developer shall cease work until there is compliance. 14. DEVELOPER'S DEFAULT. In the event of default by the Developer as to any of the work to be performed by it hereunder, the City may, at its option, perform the work and the Developer shall promptly reimburse the City for any expense incurred by the City, provided the Developer, except in an emergency as determined by the City, is 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. 15. 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: 2021 Spring Road, Suite 600, Oak Brook, Illinois 60523, Attention: David Varalli. 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. [The remainder of this page has been intentionally left blank. Signature pages follow.] 2263505.v2 6 CITY OF LAKEVILLE M (SEAL) :►O STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) Matt Little, Mayor Charlene Friedges, City Clerk The foregoing instrument was acknowledged before me this day of 2016, 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 2263505.v2 PRIVATE BRAN (, Its:1lP 44 LL81 STATE OF .ltmcs } )ss. COUNTY OF4 The regoing instrument wad nowledged fore m th' t y of c 2016, by / ar S 'ff. 0 W , the �r of TreeH a Private Brands, Inc., f/k/a Ralcorp Holdings, Inc., a Missouri corporation, on behalf of saia corporation. 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