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HomeMy WebLinkAboutItem 06.g Date: Item No. RAVEN LAKE THIRD ADDITION DEVELOPMENT CONTRACT ASSIGNMENT Proposed Action Planning Department staff recommends adoption of the following motion: Move to approve a development contract assignment for Lot 2, Block 1, Raven Lake Third Addition. Overview On September 8, 2020 the City Council approved an access easement agreement for Lot 2, Block 1, Raven Lake Third Addition to accommodate the sale of the lot by the developer. The development contract assignment was supposed to accompany the access easement agreement but was inadvertently not included on the September 8th agenda for this item. The development contract assignment, which was prepared by the City Attorney, will transfer the obligations related to the construction of the single family home on Lot 2 from the developer to the home buyer. The preliminary and final plat of Raven Lake Third Addition, which included two single family lots located on the west side of Jaguar Path, was approved by the City Council in 2016. Primary Issues to Consider None Supporting Information • Signed development contract assignment Financial Impact: $ Budgeted: Y☐ N☐ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: A Home for All Ages and Stages of Life Report Completed by: Daryl Morey, Planning Director October 5, 2020 City Code 211855v1 1 ASSIGNMENT ASSIGNMENT made this __________ day of _________________, 2020, by, between and among the CITY OF LAKEVILLE, a Minnesota municipal corporation ("City"), R.E.C., INC., a Minnesota corporation (“R.E.C.”) and TAIT HOTVET, a single person (“Assignee”). RECITALS A. The City and R.E.C. entered into a development contract and planned unit development agreement for RAVEN LAKE THIRD ADDITION dated June 20, 2016, and recorded with the Dakota County Recorder on October 27, 2016 in the Office of the Registrar of Titles of Dakota County, Minnesota as Document No. 768806 (“Development Contract”). B. R.E.C. has requested the Development Contract be assigned to Assignee for the property legally described as Lot 2, Block 1, Raven Lake Third Addition, Dakota County, Minnesota, according to the recorded plat thereof (“Property”), except for setting of lot monuments and Assignees have agreed to the assignment. C. Paragraph 38.L. of the Development Contract prohibits R.E.C. from assigning the Development Contract without written permission of the City Council. AGREEMENT 1. ASSIGNMENT. R.E.C.’s rights and obligations under the Development Contract as Developer with respect to the Property are assigned to the Assignee subject to the terms of this Assignment. R.E.C. retains all responsibility for the setting of iron monuments as required under Paragraph 32C of the Development Contract and all provisions related thereto. R.E.C. shall be responsible for all legal expenses related to this Assignment. Assignee accepts the assignment and agrees to be bound by the terms of the Development Contract with respect to the Property. R.E.C. retains all rights and obligations under the Development Contract, except as provided under this Assignment. 211855v1 2 2. BINDING EFFECT. Assignee agrees to be bound by the Development Contract to the same extent as if it had been the original party to the Development Contract. Assignee shall be responsible for all work previously performed by R.E.C. under the Development Contract for the Property. 3. CASH ESCROWS AND UNPAID BILLS. Cash escrows established by R.E.C. for remaining work required under the Development Contract for the Property shall be replaced by Assignee subject to the requirements of the Development Contract. Upon replacement, the cash escrow for the Property deposited by R.E.C. shall be released to R.E.C. Any unpaid bills or obligations of R.E.C. that are due or that may become due under the Development Contract are assumed by Assignees. 4. NOTICES. Required notices to the Assignee shall be in writing, and shall be either hand delivered to Assignees, its employees or agents, or mailed to Assignee by registered mail at the following address: 18095 Jaguar Path Lakeville, MN 55044 5. EFFECTIVE DATE. This Assignment shall be effective when the City has received from Assignee: a certificate of insurance in the amount and on the form required by the Development Contract for the Property, and cash escrow in the amount of $14,700 as required by the Development Contract for the Property replacing the cash escrow furnished by R.E.C. 6. RECORDING. This Assignment may be recorded against the property and is binding upon the parties, their successors, heirs, and assigns. [Remainder of page intentionally left blank] [Signature pages to follow] 211855v1 3 CITY OF LAKEVILLE BY: ________________________________ Douglas P. Anderson, Mayor (SEAL) AND _______________________________ Charlene Friedges, City Clerk STATE OF MINNESOTA ) ( ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ______ day of ______________, 2020, by Douglas P. Anderson 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