HomeMy WebLinkAbout[08e] 15th Avenue NE - Amendment to Dev. Agreeement9.tirt '`~
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Council Agenda Item
MEETING DATE: July 17, 2008
AGENDA ITEM: 1St" Avenue Extension
SUBMITTED BY: Administration
BOARD/COMMISSION/COMMITTEE RECOMMENDATION:
PREVIOUS COUNCIL ACTION: When Northland Heights was developed, a Development Agreement
was executed between the City of St. Joseph and Avon lumber One. This agreement included the
provision that the extension of 1St" Avenue must be completed no later than September 30, 2008. The
City entered into a separate agreement requiring Avon Lumber One to pay for the right-of-way costs and
acquisitions costs including cost if the City must use eminent domain authority. These documents are
still in place.
Earlier this year Ted Schmid of Lumber One approached the Council and requested to be either relieved
of the requirement to extend 1St" Avenue or extend the timeline for construction. The request is a
result of the down turn in the housing market. The Council instructed City Staff to work with the
developer to come to some sort of understanding.
The agreement also required the construction of Jasmine Lane by the same time requirement as 15tH
Avenue. The Council agreed that Jasmine needed to be constructed regardless of the housing trends.
BACKGROUND INFORMATION: City staff has been working with Ted Schmid and Lumber One to come
to an understanding for the construction of 1St" Avenue. Since the Development Agreement has been
signed, the property on which Jasmine was to be constructed has since been sold to a private party. Ted
Schmid has offered to work with the City to secure the needed easements for the roadway and design
the road for construction. The City staff has a meeting scheduled with the new owners on Friday, July
18. The issue with Jasmine is the inclusion of sewer. It is a relatively small section of street with water
already installed. The land that was sold could be subdivided into 8 to 10 lots and the sewer cost should
be borne by the owner/developer. It does not make sense to construct a street only to tear it out later
and install sewer. This is the discussion we will be having with the new owners next week.
With regard to 1St" Avenue, staff originally proposed that Schmid be provided a two year window or
when 50 percent of the lots in phase one are built. Schmid objected to this as the housing market is has
slowed considerably. We have since met with Schmid and have agreed to recommend the Council
extend the timeframe for 1St" Avenue upon one of the following four events occurring:
1. Sale of the property from Lumber One to a third party; or
2. When 80 percent of the 88 lots in Northland Heights are sold; or
3. When development starts in phase 2 of Northland Heights; or
4. By September 30, 2012
Judy Weyrens
From: Chad Carlson [ccarlson@lumber-one.com]
Sent: Thursday, July 03, 2008 11:57 AM
To: Judy Weyrens
Cc: Ted Schmid
Subject: Northland Heights Improvements
Good Morning Judy,
We received the letter from Mr. Jovanovich today. We appreciate the time staff has spent on this and
working us to come up with a resolution. We are comfortable with the recommendations made in the
letter and hope the City Council agrees with the recommendations. I want to address a couple if
items and some language regarding 15tH
First. Randy Sabart and I met on site this week to discuss Jasmine Lane. I agree with Randy that a
rural section will not work based on the topography of the land. We will need curb and gutter to
effectively manage the drainage. It is my understanding that Randy will look at the existing holding
pond capacities and start working on a design. We are scheduled to talk after I return to the office.
Second. The information for the new home owners of the Rothfork property should be available from
your utility records. As far as the title commitment/abstractaHd mortgage information, you will need
to contact the property owners to get that information. Lumber One would not have the ability to
access this private information. I would suggest contacting the county first for their records and then
the new owners to find out where the closing took place. I would guess that the new owners would
have all this information available for you. Pete Rothfork will be calling the new owners to give them
a "heads up" that they will be contacted shortly.
Last. We agree with the recommended terms for the construction of 15th Street. However, there is
one point !think we failed to discuss, which is the reimbursement of cost to Lumber One once the
property adjacent to and/or access to 15th Street is sold or developed. While we understand that the
cost of securing the land and improvements for 15th is in the developer's agreement, Lumber One
must have some reimbursement from future development. So we have some suggestions and also
some language needs to be added to any amendment to the NLH developer agreement.
A) Lumber One will receive reimbursement of costs PLUS carrying interest from the purchase,
street and utility construction and turn lane construction when property adjacent to or has
access to 15th street is sold and/or developed. A recorded document must be done so
during the title search, this cost is discovered at the time of sale.
OR
B) 15th Street is constructed as part of a public improvement project where Lumber One is
assessed for our appropriate % of costs for the 15th Street and the remaining costs are
recorded as a deferred assessment to adjacent property owners. Similar to what was done
with Northland Drive and other examples from the area.
I think we all agree that 15th Street is not just a road for Lumber One and Northland Heights. 15th
Street will open up new areas for development (commercial and residential) in the future. It is only
fair that Lumber One receives some reimbursement in the future or is only assessed their fair share of
the road.
Please forward this to Mr. Jovanovich for his thoughts as well. I will be on vacation next week.
Please contact Ted with any comments or further discussion. I will be back in the office on July 14tH
Thanks.
Chad A. Carlson
Land Development Coordinator
P. O. Box 7
Avon, MN 56310
Ph: 320-356-7342
Fax: 320-356-7631
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'~~~~~ •
Ra j kows lei H a n s m e i e r :,~.••.:. Attorneys at law practicing in Minnesota, North Dakota, South Dakota, Wixonsin and Michigan.
prodding a clear dYtcHon :J~ i
'~:~i .
Thomas G. Jovanovich
117tH avenue North tjovanovich(ra~,rajhan.com
P.0. Box 1433
St. Cloud, MN 56302
320.251.1055
800.445.9617 toll-free
320.251.5896 fax Jay 2, 2008
www.rajhan.com
Mr. Ted Schmid
Lumber One
P.O. Box 7
Avon, MN 56310
]tE: Northland Heights Improvements
Our File No. 27185
Dear Mr. Schmid:
This letter is in response to our meeting of June 19`" and your letter of June 20,
2008.
The staff has had time to discuss both your letter and review the actual
topography of the proposed Jasmine Lane extension. Based on the above
discussions and review, the staff is willing to make the following
recommendations to the City Council in response to your letter of June 20, 2008.
Based on a review of the site topography for the Jasmine Lane extension by both
the City Engineer and City Public Works Director, staff believes that a temporary
road or rural design road is not feasible. Because of the topography an urban
design is required. This is currently required in the in the Developer's Agreement
and would include street, curb, gutter and appropriate drainage as necessary.
In order for the City to draft the appropriate easement document for the Jasmine
Lane extension, the City will need the following information: (1) name and
addresses of new owners; (2) a title insurance commitment or abstract of title
showing title in the new owners with all encumbrances and easements over the
property. If there is a mortgage on the property, the City will need a partial
release of the mortgage for the road and utility easement.
~ j~• •
Rajkowski Hansmeier :;:••;;:
providinfl a clew drection ';,~ ~ ~
•;is's
Mr. Ted Schmid
July 2, 2008
-2-
Staff has also reviewed your proposal that the 15a' Avenue extension not be built until either 90
percent of the development has been sold or 2014, whichever occurs first. This is not acceptable.
However, staff is willing to make the following recommendations to the City Council with
respect to changes. to the Developer's Agreement. The recommendations would be to change the
Developer's Agreement to provide that 15a' Avenue be constructed upon the happening of the
first of any of the following four events: (1) sale of the property from Lumber One to a third
party; or (2) when 80 percent of the 881ots in Northland Heights are sold; or (3) when
development starts in phase 2 ofNorthland Heights; or (4) by September 30, 2012, whichever
occurs first.
You indicate in your letter that the City should reconfirm that it is their responsibility to acquire
the easement on the property not owned by Lumber One for purposes of 15~' Avenue and that
Lumber One's cost is limited to $17,000.00. A review of the original Developer's Agreement
indicates that your contentions are incorrect. The original Developer's Agreement acknowledges
that you do not own property which is contiguous to County Road 133. It provides that the City
would attempt to negotiate purchase of the land contiguous to County Road 133 and if that
negotiation was not successful, the City would then utilize its powers of eminent domain to
acquire the land. However, you agreed that the full cost of such acquisition would be paid by
Lumber One. The Developer's Agreement specifically provides that Lumber One would pay for
"all costs, including but not limited to survey costs, the acquisition price for a condemnation
award, legal fees and costs and recording fees, relative to the acquisition of the right-of--way
needed to provide access from the Development to County Road 133."
In order to keep this matter moving, would you kindly obtain the names and addresses of the new
owners of the property for the Jasmine Lane. connection. The City also needs a title commitment
or abstract of title showing the current owner and all encumbrances upon the proposed property.
The City will also need to ensure that the City has legal title to build the road and utility
easements.
Also, please let Judy Weyrens or myself know whether the proposed recommendations of the
staff are acceptable. If they are acceptable, staff will make the recommendation to the City
Council. However, we have no assurance that the City Council or the County will go along with
the recommendations.
Rajkowski Hansmeier:,:~~:;:
pravidKy a clam cruection •M ~.•
.~ ~, .
~iT'{s
Mr. Ted Schmid
July Z, 2008
-3-
If you have any questions in the meantime, please advise.
Sincerely,
RAJKOWSI~
By
Thom G.
TGJ/tnf
LTD.
C: Judy Weyrens
Randy Sabart
Terry Thane
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Lumber One
P.O. Box 7, Avon, Minnesota 56310
Phone (320) 356-7342 FAX (320) 356-7631
June 20, 2008
Ms. Judy Weyrens
City of St. Joseph
P.O. Box 668
St. Joseph, MN 56374
Dear Judy,
Thank you for spending time with Lumber One staff on June 19tH to discuss the 15tH
Avenue connector street. City legal counsel Tom Jovanovich and engineer Randy Sabart
were present at the meeting as well.
We came to an agreement that Lumber One would work with SEH directly with the
design of the Jasmine Lane extension. Mr. Sabart said there will be some drainage issues
that will come about due to the construction of this road and Lumber One agrees. Randy
and Chad Carlson are to set up a time to begin the design work in the near future.
The unresolved issue is the timeline on the construction of 15tH Avenue. I presented the
argument that Northland Drive is a collector road and was supported by engineering
Randy Sabart. Currently with 20 residents in Northland Heights, there are NO LIFE
SAFETY issues without having 15tH Avenue constructed. With the completion of
Jasmine this year, there will be two (2) accesses for Northland Heights. The question
proposed by the City attorney was, "when does Lumber One propose to install 15tH
Avenue?"
First and foremost, there needs to be an easement dedicated for this road on the properties
not owned by Lumber One Development Company. This has always been the
responsibility of the City of St. Joseph. It would be premature for Lumber One to
guarantee any participation until we know where the road easement is exactly located.
The city of St. Joseph has seen single family home permits plummet from 159 in 2005
down to 76 in 2006 to 25 in 2007 to we are on pace for 5 in 2008. That is a 97% DROP
in single family home permits. Currently, Northland Height has 221ots sold. The current
phase contains 88 single family lots and we have a current rate of sale of seven lots per
year. For the five years prior to 2005, Lumber One consistently sold 20 to 301ots per
year. Under current market conditions, we can expect to se1171ots per year. It will take
9 +/- years to sell out this phase. Lumber One Development WILL NOT START the 2°a
JUN 2 4 2008
,..
~~~tf~r;
phase until 90% or 801ots are sold and closed. Aging development roads without homes
do not sell well. If the market would return to the levels of 2005 and 2006, we would
look at starting the 2°d phase upon 80% of the lots sold and closed.
With that said, Lumber One Development Company proposes that the city modify the
development agreement with Northland Heights and extend the construction of 15th
Avenue until 2014 and or 90% of the development has been sold, with stipulation if
housing is still soft that the agreement would be extended. The agreement would be
accelerated if Lumber One Development Company approaches the City with the next
phase of Northland Heights prior to 2014.
In addition, the city should reconfirm that it is their responsibility to acquire the easement
on the property not owned by Lumber One Development Company. If this happens
through eminent domain, Lumber One did acknowledge that it would participate in the
cost. According to previous correspondence with city staff, the cost of was
approximately $17,000.00.
The property to the East of the Lumber One Development site is being actively marketed.
We support the sale of this property. As we did in the past, we will work with the
property owners and supply assistance where we can. We do expect the city to hold the
developers to same zoning and density criteria as Lumber One Development Company.
Lumber One would consider selling to the City, at competitive pricing, a portion of our
undeveloped property if it and the county determine an eminent need to construct a East
West connector corridor.
We look forward to hearing from you soon and I'm sure we can come to a resolution
regarding this issue. Thank you for your time.
Sincerelyrf~~
~~.~ ~~~~~
Ted R. Sci
COO
Lumber One, Avon Inc.
Cc: Tom Jovanovich
Chad A. Carlson
i. yfi.~.
JUN U 6 2008
C(7~Y OF ST, JOSEPH
um er ne
P.O. Box 7, Avon, Minnesota 56310
June ~,1~~~320) 356-7342 FAX (320) 356-7631
Ms. Judy Weyrens
City of St. Joseph
P.O. Box 668
St. Joseph, MN 56374
Dear Judy,
We received a response to our letter from Tom Jovanovich on May 28, 2008. We
appreciate the dialogue and we need to continue discussions regarding the extension of
15~' Avenue from County Road 133.
With that said, it has been Lumber One's intention all along to complete the segment of
Jasmine Lane from Northland 8 to Northland Heights. As you may be aware, the home
and property owned by the Rothfork family has been sold, but there is an agreement in
place with the new property for Jasmine Lane. Mr. Jovanovich stated that an easement
agreement would be drafted soon for Jasmine Lane, but it needs to be with the new land
owner and not Lumber One.
The connection of Jasmine Lane has not been formally designed to the best of our
knowledge. Since Lumber One does not own the property in question for the road, the
design and engineering needs to be initiated by the City of St. Joseph. However, Lumber
One would like to be involved in the design and engineering process with S.E.H to ensure
the expectations of the new property owner and Lumber One are being met. Again,
Lumber One has agreed to pay for design, engineering and construction of this "road
segment" according our development agreement for Northland Heights. The construction
of water and sewer if any with this road segment needs to be discussed. Lumber One has
no future development plans for the property. Our understanding at the time the Rothfork
family closed with the new owner was that they were not planning on subdividing the
land.
After the construction of Jasmine Lane, Northland Heights will have two accesses that
connect to a "collector street", Northland Drive. Northland Drive has been a collector
street since it was constructed, intended or not, and now has a controlled intersection at
County Road 75. Mr. Jovanovich is correct in his assessment of the Planning
Commission comments. However, circumstances have changed on Northland Drive, and
it is functioning as a collector street for all of the Northland. The safety concerns have
been addressed with the lights at the intersection of CR 75, nor will the Northland
Heights impact traffic volumes on Northland Drive anymore then Northland 4, 5, 6, 7 and
8. If the City believes differently, we need to see some proof regarding traffic volumes
counts, accident reports, speed violations, etc. In addition, has Stearns County's
assessment changed since our plat was approved now that the intersection is controlled?
Regarding 15`f' Avenue NE, we would like to meet with City Officials as soon as
possible. Lumber One understands that this connection needs to be done sometime in the
future, but it's need must be warranted and not just part of wish list for the City. There
are too many unknowns regarding this connection to discuss via letters. So, please
schedule a meeting within the next 30 days. Please contact Chad or myself to set up a
meeting.
Sincerely, ..9
t ~,~
Ted R. ~hnf d
COO
Lumber One, Avon Inc.
Cc: Tom Jovanovich
Chad A. Carlson
~~~~l~l~~o~l- ~~~.
,x~..
11 Seventh Avenue North ATTORNEYS P7 LAW
P.O. Box 1433
St. Cloud, MN 56302-1433
320-25 t -i 055
May 28, 2008
7011 Free 800-445.9617 Mr. Ted Schmid
Fax 320-257-5896 P.Q. BOX r7
Avon, MN 56310
rajhan@rajhan.com ~; Northland Heights Improvements
www.rajhan.com Our File No. 2'7185
Dear Mr. Schmid:
The City of St. Joseph has asked me to respond to your letter to Judy Weyrens, dated
March 13, 2008, regarding the proposed amendment to the Developers Agreement.
CO Your letter sets forth your opinions with respect to overall development policies within
Frank J. Rajkowski the City of St. Joseph. Although the City disagrees with many of your opinions, this
Gordon H. Hansmeier letter will not address those general issues. Rather, it will address the issue currently
Thomas G.lovanovich° before the City, which is your request to anlend the original Developers Agreement to
connect 15`h Avenue to County Road 133 and connect Jasmine Lane to Northland Plat 8.
Paul A. Rajkowski °
Kevin F. Gray There are two agreements between Lumber One and the City of St. Joseph that control
your obligation to construct the above roads. The first is dated May 24, 2005, and the
William J. Cashman
second is the Developers Agreement, dated September 7, 2005.
Richard W. Sobalvarro
ill When you proposed the initial plat for Northland Heights, both the Planning Commission
er
LeAnne D. M and the City Council expressed serious concerns about approving the plat because they
Susan M. Dege felt the plat was premature. The concern with respect to the plat being premature had to
Troy A. Poetz do with the location of the land in relation to existing arterial and collector streets. The
location of the plat was essentially an island separated by other land to collector and
Gregory J. Haupert arterial streets. Youx initial proposal was to run traffic from Northland Heights through a
Matthew W. Moehrle residential street lIl the Northland Addition. The City Engineer, Planning Commission,
Council and Steams County Engineer all expressed concern and opposition to this plan
Melissia R. Mogen since your plat was essentially using a residential street to act as a collector street for your
Kristi D. Stanislawski subdivision. The Engineer; Planning Coirunission and City Council did not believe this
Lori 1. Athmann was good policy, nor was it in conformance with City planning documellts. As a
compromise, the City agreed to allow you to initially develop Northland Heights and run
Eric 5. Oelrich traffic through Northland Drive in the Northland Addition.
Jessie L Becker
Frankl Rajkovaki and Kevin F. Gray are admitted to Aractice ir, Ncrih Dakota, Gordon N. Hansmeier in North Dakota, South Dakota and Wisconsin,
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~~
May 28, 2008
Page -2-
However, this was conditioned on your agreement to provide a connection of 15th Avenue to
County Road 133 and a connection of Jasmine Lane to Northland Plat $ by September 30, 2008, or
with the development of Phase 2, whichever occurs first.
Because of the current housing market, you are now requesting relief from that condition. The City
Council has agreed to amend the Developers Agreement to allow you additional time to make these
improvements. The amendment provides that the connection of 15th Avenue to County Road 133
shall completed when 50 percent of the development (4Q of the 88 homes to be erected) has been
completed or by September 30, 2010, whichever occurs first. It was my understanding staff was
directed to prepare an amendment which extended the time frame for the construction of 15tH
Avenue and the extension was to be related to ratio of homes built in phase 1. At the same time the
Council confirmed that Jasmine Lane must be constructed before September 30, 2008 as stated in
the original Development Agreement. Our office was then asked to prepare an amendment to the
Developers Agreement with respect to the above change.
Upon receipt of the amendment, you raised the objections in your March 13, 2008, letter. I will
address each of those issues.
1. You state the Lumber One does not own a contiguous piece of property to connect 15"'
Avenue to County Road 133. You also indicate that your costs for the connection should be limited
to approximately $17,000. A review of the original Developers Agreement indicates that your
contentions are incorrect. The original Developers Agreement acknowledges that you do not own
property which is contiguous to County Road 133. It provides that the City would attempt to
negotiate purchase of the land contiguous to County Road 133 and if that negotiation was not
successful, the City would then utilize its powers of eminent domain to acquire the land. However,
you agreed that the fiill costs of such acquisition would be paid by Lumber One. This would
include "all costs, including but not limited to survey costs, the acquisition price for a condemnation
award, legal fees and costs, and recording fees, relative to the acquisition of the right-of--way needed
to provide access from the Development to County Road l33".
2. You question why a third connection tied to Phase 1 is necessary. I do not understand what
you mean by a third connection. Your responsibility was to provide right-of--way access from your
plat to County Road 133, and connection of Jasmine Lane to Northland Plat 8.
3. You also indicate that you want a further amendment which specifically acknowledges that
Lumber One does not have to plat the lots at the time of extending Iris Lane. The City is not
opposed to such a suggestion, so long as the City can insure itself that all future improvements
would not be affected by a construction of only the road at this time.
As I stated earlier in this letter, the Jasmine Lane connection between Northland Plat 8 and
Northland Pleights must be completed by September 30, 2008. If this is to be completed on a timely
basis, the City needs to review the engineering plans by June 16, 2008. ~~Vould you kindly provide
~~ ~'
1Vlay 28, 2008
Page -3-
those plans to the City. Additionally, the City needs the easement for the full width of the street
right-of--way and utility easement for this connection. I will be sending you the easement
documents shortly for your conveyance to the City.
The City is willing to negotiate an amendment to the Developers Agreement based on the above
comments. However, any amendments must be accomplished within the next month or two since
the current Developers Agreement requires that these road improvements be completed by
September 30, 2008. If you fail io meet the obligations under the current Developers Agreement,
the City has a number of remedies, to include a "halt [off all further approvals regarding platting,
improvements or issuance of building permits or occupancy permits relating to the Development
Property ... "
Sincerely,
RA.JKOWSK.I HANSME)~~ LTD.
.~~ ;~ ~
;; ~~
By !'~ ~f
Thomas G. Jo~;ariovicir
TGJ/baw `~
c. Judy Weyrens
St. Joseph City Council
_.~
LumberOne
P.O. Box 7, Avon, Minnesota 56310
Phone (320) 356-7342 FAX (320) 356-7631
March 13, 2008
Judy Weyrens
City of St. Joseph
PO Box 668
St. Joseph, MN 56374
Dear Judy Weyrens,
~~~~~~~D
MAR 13 2008
CITY OF ST. JQSEE;H
Thanks for sending a submittal for the draft amendment to the Developers Agreement. I would
like the city to consider additional language in the Amendment to the developer's agreement to
deal with several of the issues raised from the beginning of the development process. The
housing market has changed dramatically since 2004 and 2005 when the first phase of the
development was in the planning stages. It is important for the City to take into account the
realities of the housing market.
Lumber One is the ONLY solvent business developing single family lots in St. Joseph today.
Rick Popalinski, Rick Packard of Arcon, Rick Heid, Viper Construction are either no longer paying
taxes on time or not paying all their development and professional fees. This'can not be because
all 4 are bad business people running bad businesses. The city is partly to blame for these
businesses failing. The city has 4 failing million to multimillion dollar businesses in the City of St.
Joseph at 1 time. The city is at fault for negotiating too many concessions from and allowing or
demanding from these businesses to create developments too extravagant or large for it's
population to support. Ultimately the city may recoup from these failing businesses any capital it
has invested in them through collections of letters of credit. However the real problem is that if
these businesses fail completely, quality of life and values of surrounding homes will drop. Unsold
lots will bG foreclosed and au:.ticned ou at distressed prices. Unoccupied medals will eventually
be sold to unqualified buyers (see Liberty Point Development) or rented out. The quality of the
residents renting unsold homes is generally poorer than people who own their own homes. The
City of St. Joseph has Belt with plenty of rental properties in the past. Crime also increases in
areas under economic duress. The city did not win.
As. you are well aware the second city engineer on the Northland Heights project Tracy Ekola had
a distinctly different opinion from the very experienced unfortuantely retired first city engineer Joe
Bettendort as to what was the best development plan for Northland Heights. Prior to purchasing
the property I met with you, Joe Bettendorf, Dick Taufen, BWK and myself. We agreed in
concept that Northland Heights could be developed in 3 phases. At that time Joe Bettendort
insisted that Northland Heights at some point would need 2 road accesses into the development.
Lumber One with this information then entered in to a purchase agreement for the property.
Soon after this meeting, Joe Bettendort retired and Tracy was hired to be the new city engineer
for St.Joseph. She fundamentally changed the original understanding and originally required
Lumber One to build Iris Drive to complete the connection from Northland Drive to Cty Road 133.
I literally had to consider legal action protesting this change. The city and Lumber One
Development reached a poor compromise in that Lumber One agreed to develop 80 lots in our
first phase rather than our original 40 lots we intended. We also agree to connect Jasmine to
Northland Drive in our expanded first phase. The compromise with Tracy is that she FORCED
Lumber One to develop 80 lots and install the 2 access road in the first phase. We very
specifically went to the city to develop only 1 phase consisting of approximately 40 lots.
Developing 80 lots was a bad decision but we already had the land purchased based on the
information the city originally provided so Lumber One agreed to the development agreement with
the 80 lots and 2 accesses for our first phase. While Northland Heights is selling, it would have
been a much more successful development if we were allowed to develop 40 lots for the first
phase. Then develop additional lots when the market warranted.
There is absolutely no reason to begin improvements for the 3`d phase (developer suicide) before
the market is ready. See above 4 examples when developers who either chose to develop too
many lots at one time or the city required more from the developer than was economically
possible. When poor development happens the entire community suffers.
This agreement does not address these issues:
1) Lumber One does not own a contiguous piece of property to connect to Cty Road 133.
See attached correspondence, the City of St. Joseph was going to be responsible for
gaining the easement and the owner of the adjacent property was going to pay for the
road going through that portion of the property. There was a cost of approximately
$15,000.00 to $17,000.00 Lumber One was to contribute for an access lane on Cty Rd
133. I do not see this in the language.
2) Why is a 3`d connection tied to Phase one. If there is a 3`d connection it should really be
tied to the next phase when we extend Iris. When this development agreement was
written it was believed that Northland Drive was NOT going to have a set of lights at Hwy
75 intersection. The idea that Tracy had was that traffic from Northland Phase 5, 6, 7, 8
would use Iris Lane to the East then Turn onto Cty Rd 133 going South to the light
controlled Cty Rd 133 Hwy 75 intersection. With the changes to the traffic control
systems AFTER this plat was approved, the future traffic use by residents in Northland
Phase 5,6,7,8 for Iris Lane will be greatly diminished. The idea that Iris Lane, Jasmine
Lane and Northland Drive will be at a capacity the requires additional traffic route options
when adding 20 more residents 40 residences total X 10 trips per day per resident for
400 trips daily on Iris and Jasmine COMBINED per day does not require a third access
point.
3) Lumber One wants to have language in the amendment that specifically acknowledges
that we do not have to plat the lots at the time of extending Iris Lane. We can allow for a
larger utility easement for Iris Lane for the installation of FUTURE sewer and water
utilities. Our responsibility would only be for the road and the road easement through our
prcperty. At the current rate of lot sales it may be 6 years till we are ready. The next
phase at that time will be significantly smaller maybe only 10 to 15 lots per future phase.
The outlot land can be developed in 3 additional phases not 1.
It is premature to enter into an agreement till the above issues are addressed. The big picture is
that the City of St. Joseph is a place where quality people want to live, work, and do business.
Lumber One has no interest in signing the current draft amendment that would result in a poor
development. Lumber One has been working in the Cityof St. Joseph the longest of any single
family developer. We are very committed to help keep the City of St. Joseph successful. We are
the ONLY solvent developer left in St. Joseph and have no desire to being grouped or associated
in any way with the above named failing developers.
Since ,
~Tecf'S"ch irrfd
/~_
~~~ ~ ~ 2005
~,
., . .
SEN ~-~
March 30, 2005 RE: St. Joseph, Minnesota
2005 Northland Heights
SEH No. A-STJOE 0503.00 14
Chad Carlson
Lumber One Avon
101 2°d Street NW
Avon, MN 56310
Dear shad:
We are requiring a street connection from Northland Heights to County Road 133 as a part of the
development. While we prefer that the access be a part of the plat, it can also be provided as a perpetual
road, drainage and utility easement. The access must locate directly across from 15`s Avenue NE where it
intersects with the County Road.
County Road 133 is designated as a minor arterial on the County system, which makes access to this road
highly restricted. We designed 15"' Avenue NE to provide access to the industrial park at a location that
would also serve the land to the northwest. Given the functional classification of County Road 133 as a
minor arterial, the County requires a minimum intersectien spacing of 500 feet. The City is looking for a
minimum of a quarter mile (1320 feet) between intersections. The Koenig property has a frontage along
CR 133 of approximately 800 feet. With the proposed 15`s Avenue NE bisecting the property, this will be
the only access to CR 133 allowed.
In view of this, 15~' Avenue will be the single connection point for the land to the northwest (Northland
Heights and Koenig property). Any future connections to 15~' Avenue as it progresses up the hill through
the Koenig property must be kept as far back from CR 133 as possible. Given the land constraints and the
steep slopes between CR 133 and Northland Heights, it will be difficult to make a road connection to 15`~
Avenue as it goes up the hill. For this reason, we should consider a road connection between 15`'' Avenue,
as it travels through Northland Heights at the top of the hill, and the Koenig property to the east. This will
allow Koenig an access to 15`s Avenue where the terrain is more conducive to an intersection.
We will have our formal comments on the Northland Heights plat to you later in the week. Please contact
Tracy Ekola at 320.229.4406 or me at 320.229.4346 if you have any questions.
Sincerely,
~~~~'
ph Bettendorf, PE
City Engineer
Jm~'
c: Judy Weyrens, City of St. Joseph
Dick Taufen, City of St. Joseph
x:ls\stjoe\050300kortU-jweyrens 032905.doc
Short Elliott Hendrickson Inc., 1200 25th Avenue South, P.O. Box 1717, 5t. Cloud, MN 56302-1717
SEH is an equal opportunity employer ~ www.sehinc.com ~ 320.229.4300 ~ 800.572.0617 ~ 32~?.229.4301 fax
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Aitxchmcnt: Yes or No
REQYI',r+'ST ~'OR COUNCIX, ACTION
Northland APigh#s ~ Pre~iminal-y ptat
I1.A.TE: dune 1 ~; 2005
Administration
ORIGINATING DEPARTMENT
bEPARTMENT APPRn'~IA1',
AGENDA ITEM .
Northland Heights -• Preliminary plat
Pltl~,VIOUS AC.T):ON
The Planning Commission considered the Preliminary Plat for Northland Heights on May 16, 2005. Ai
that licaliiib Oic Planning Commission concurred wyth siatt~ that access from Northland Heights to CR 133
is in the best interest of public safCty. The proposed housing development contains 154 single fan3ily
hnmec., o ,rieaating app~,-oxirnately ].600 ixips rcr day. The inter6cctiori at NurLhland brive cannot
accommodate the additional traffic and both the City and County &ngineer have identif ed that access to
CR 133 is crucial. The Council BnL~ineer has re~uPCtPd that the. connection to CF, 133 be aan„truetcd with
phase one, The City ap*rees the access is needed but would agree that the connection does not need to be
completed until one of the later phases. The matter was fabled ai this meeting and a reconunendation was
forwarded w the Council to consider utilirati.on of the eminent domain proceedings for the RUW if an
ap~reement could not he reached with the affected property owtlers,
On June 2, ?005 the City Council passed resolution ?005-14 authorizing eminent domain for the ROW if
an agreement cannnt he r.~^ached a/ith the property o~vnera. T'cd Schmid was nlsu roelttircd to execute an
agreement whereby he would pay all costs for the ROW acquisition. This,agrcement has been executed.
On 3~u~ae 6, 2005 the Planning; Commission re-considered the Preliminary Plat and recoinrnended the
Council approve thG plat with conditions. That motion is included in fo]lowing this page and has Ueen
prepared lay Tom 7ovanovich.
RECOMMENDED C:c~T.1NC`TI., ACTION
Accept the reoonu7zendation of the Planning Commission
I,'ISCAL YMPACT
CUMMENTS/RECOMMENDATIONS
Received Time Juo~16. 9;35AM
rage i or i
Ghad ~arls_Qn
From: Ted Schmid.
Sent: Tuesday, May 16, 2048 2:31 PM
To: 'Judy Weyrens'; Chad Carlson
Subject: RE: proposed agreement
Judy,
l haue 2 issues with the agreement:
1) i agreed to pay to the Gity, of St. Joseph an amount equal to the value. of the properly in which the
future road was going through. The value the City o_f St. Joseph had for the the road properly vas $15,000.00 to
$18,000.00 which was'/. of an acre at $20,000 to $24,000.00 per acre. I said that whether Lumber One has to
pay the legal costs of the eminent domain proceedings or if it was to pay for road improvements, we did not care
as tong as it fit the budget. Half of $64,4U0.QQ is $32,04Q.04 which is double. v,~hat my agreement was with the
aiy council. tam not ready to sign an agreement like this with preliminary number twice the amount what the
counci! and Lumber Qne Development Company originally agreed ta. Either the tum land needs to be adjusted in
cost or the percentage of responsibility needs to be adjusted.
2) Wtth the current proposed plat of Crescent Hills. t am very against the sub R-1 threshold on lot
suing. Lumber one was not allowed any substandard sized R-t lots in Northland Heights and l was
very sper~fically told by BATH the planning commission and the aty council NOT to come back with
Northland Heights H showing lots narrower than 75'. I will NOT support a higher density
development, that also includes the destruction of greater environmentally signi~can# features
(mature hardwood trees verses turkey barns and corn fields) adjacent to Northland Heights without
the city council in writing acknowledging. that they will accept higher density development {55' lots) in
Northland Heights II. whsa I. submit my Etna! plat.
Please cal! with any comrxrents. 1 will be out of the. office from Thursday May 1 &~' fill May 29~'. Ghad Garleson
from- my office will be available while ! arts away.
Tsd
From: Judy Weyrens [mailto:jweyrens@cityofstjaseph.comj
Sent:- Tuesday, lHay;16Y 2(1061:36- PM
To: Ted Schmid
Subject:.
Judy Weyrens
Administrator
City of St. Joseph
PO Box -868
St. Joseph MN. 574
(324} 363-y2p1
(320) 363-0342 (Fax}
jLnr,~yreRS~ afstjc~seph com
5!17/2 -006
CQN~~'RIJ~'~~Q1~T ~~~~1t~~N`f ANt3
COS~'.~y~;~.I1~G ~l.~~R~T,I<!IENT
This Agreement is entered into this day of May, 2006, by and between the City
of St. JQS.eph, a Minnesota municipal. corporation (hereinaler the. "Caty»~ Lumber One
Development Company, LLC., a Minnesota limited liability company (hereinafter "Lumber
Ope") .and. MN Land. I~evelapznent soup, Inc., a 11rlinnesota coporation, (hereinafter
«~G„~
Recitals:
I. Lumber One is the Developer of a multi-phase pla fora sidential development
1€nown as Northland Heights ("Northland I~eights").
2. Pursuant to the Developer Agreement with the City, d August T, 2005, Lumber
tine agreed to construct a connection, 'ncluding turn anes, from 1 Avenue to
County Road 133 (the "connection") i order le to traffic gen ated by the
Ne,~thland ~Ieiglsts. Lumber One is red ' ed o construct the ection in
conjunction with Phase 2 f the Develo en , or y Septembe 30, , whichever
occurs: first.
3. MLDG is the owner of th property esi ted far t,~e ection, as well as
ac~slitiQnal property. _ ~~
4. MLDG intends to con ct a esiden al dev opment nth property known as
Crescent Bill ("Crescent Iii "); with a c mpletion date of
2~OU The Cresce '11 d elopment will require the
consttuction of the 1 ~ ~enue Connection before.... ber One s deadline.
5. MLDG intends to installsewer and water improvements to serve Crescent Bill.
6. MLI~G desires to construct. the I Sa` Avenue. connection, as part of Crescent Hill:
?. In order to construct 15a' Avenue, Capitol Builders will need to obtain temporary
constniction easements and temporary right of way easements from Lumber One.
8. Due to #~ increased traffic that the developments are expected to generate, the
Stearns County Highway Department is requiring that a turn lane be constructed on
Comity ;Road 133 to serve 15a' Avenue coincident with the construction of l5a'
Avenue.
NOW, THEREFORE, in consideration of the mutual covenants expressed herein, IT IS
HEREBY ~A.GREED AS FOLLOWS:
1. MLDG agrees to construct the 15~` Avenue connection as part of Crescent Hili. The
connection shall consist of bituminous street and concrete curb and gutter with specifications as
approved by the Gity Engineer. MLDG agrees to complete said improvements on or before
As# ~0, X007. Final wear course shall be completed by June 30th of the following year.
2. MLDG agrees to install the following utilities coincident with the connection:
~e "I:Ttility Improvements".
u uiv-1 o-cuuc i nu ua ~ 4C til7 li 1 1 Y ur ~ i ~u~t:rn r Hx Nu, ~CUUti~U~4L t', UU/U !
AGREEMENT
f
This Agreement is entered into this 24 day of May, 2005, by and beta,een the
City of ~f. Joseph, a Minnesota municipal co;rpurdtivn (hereinafter the "City"), and Lumber
One Development Company, LLC., a Minnesota limited liability company (hereinafter
"Lumber t7nP"}.
Recitals:
l • Lumber One hoc submitted a prel.iminory plat fo,,~" approy~ by the City for a
residential development known as Northland Heights (Development").
~• The City has determined that because of the number of Iivutcs proposed in the
bevelopment, right of way access from the Development to County Road 133 will be
required to alleviate traffic safety iss~iec on Northland Drive.
3. The property encompassed by the Developrne~it is not adjacent to County Road 133.
Additional land is required.
~• The City is willing to obtain the property necessary for the right of way by exercise
of eminent domain,
5• Lumber One is willing to pay fox all costs associated with obtaining the right of way
property.
NOW, THEREFOr.E, in consideration of the mutual covenants Pxpressed herein, TT IS
13EREBY' AGREED Pis k'ULLOVVS:
Y. Tizc City shall deternune the legal description for ~e necessary right of v~ay acquisition and
shall negotiate the purchase with the affected property owners}. rn the event t'has a negotiated
purchu.~c a.~rcclue,f,1, cannot be reached, the City shall proceed with aequi.sitian of the property by
eminent domain. It is estimated that one acre{s) of property will be needed for the right. of way.
?• Lurxtber One shall pay alJ costs, including but not limited to survey costs, the acquisition
price or condemnation awvard, 1caal fees. and costs, anal recording fees, relative to the acquisition
of the right of ~vay needed to provide access from- the Development to County Road 133 •
3. Lumber One shall deposit with the City a cash escrow or letter. of credit in the amount of
~ 0-00 as security for the costs of tlic acquisition, The City shall provide Lumber One
with invoices on a monthly basis. Lumber One shall pay the invoices within I S days of receipt.
~ the event that Lumber nne ages not timely pay tllc invoices, the Cifiy may draw dovcrp the
security to pay such invoices.
4. Lumber One a~~rees that the acquisition of the right of way is reasonable and necessary due
to the number of residences proposed in, the DeveIopme~,~t aucl Ll,e resulting impact they wiII have
on Norttzland Drive.
~• Ass j~nment. This A~•eement may not. be assigned by Lumber One except upon obtaining
tlae express written consent of the City. ,
Received Time Jun~16. 9~35AM
Judy Weyrens
From: Judy Weyrens
Sent: Tuesday, March 04, 2008 5:04 PM
To: 'Ted Schmid'
Subject: Amendment to Development Agreement
Attachments: Proposed Amendment, extenstion of time for 15th.tif
Ted -
Please find attached the proposed amendment to the Development agreement. As you can see the time frame is
extended to when 50% of the homes are constructed or 2010 whichever comes first. I would like to try and resolve this
matter for the March 20 Council meeting. Please let me know your thoughts.
Thanks
Judy
CITY OF ST. JOSEPH
AMENDMENT TO DEVELOPER AGREEMENT
THIS AGREEMENT, made and entered into this _ day of March, 2008, by and between
Lumber One Development Company, LLC hereinafter called the "Developer", and the City of St.
Joseph, Minnesota, a municipal corporation, hereinafter called the "City".
RECITALS:
Whereas, the Developer and the City entered into a Developer Agreement on September
7, 2005, (the "Agreement") regarding the Development of real property platted as Northland
Heights, legally described in the attached Exhibit A (the "Development");
Whereas, the Agreement provides at Section 4.0 that certain improvements will need to
be constructed at some future date to complete service to the Development. Such improvements,
identified in the Agreement as "future improvements", included, but are not limited to, the
connection of 15th Avenue to County Road 133 (hereinafter referred to as "the Connection"),
including turn lanes on County Road 133 to be completed in coordination with and as approved
by the Stearns County Highway Department;
Whereas, the Developer agreed to complete the Connection in conjunction with the
development of Phase 2, or by September 30, 2008, whichever occurred first. The final wear
course is to be completed by June 30th of the following year;
Whereas, the Developer has used best efforts to complete the Connection, but has been
unsuccessful;
Whereas, both parties desire that the Agreement be modified to allow for the extension of
time by which to complete the Connection to the Development.
Now, therefore, in consideration of the mutual covenants expressed herein, IT IS
HEREBY AGREED AS FOLLOWS:
1
1. The connection of 15th Avenue to County Road 133, including turn lanes on
County Road 133, shall be completed in coordination with and as approved by the Stearns
County Highway Department, when fifty percent (50%) of the Development (or 44 of the 88
homes to be erected), have been completed or by September 30, 2010, whichever occurs first.
2. All other terms and conditions of the Developer Agreement, not expressly
modified by this Amendment, shall remain in full force and effect, including, but not limiting,
the improvement of the connection of Jasmine Lane to Northland Plat 8.
3. Nothing in this agreement shall amend, change, or modify any of the terms and
conditions of the Agreement entered into by the parties dated May 24, 2005, with regard to the
acquisition of property needed to provide access from the Development to County Road 133.
Signed and executed by the parties hereto on this _ day of January, 2008.
ATTEST
By
Judy Weyrens, City Administrator/Clerk
CITY OF ST. JOSEPH
By
Alan Rassier, Mayor
(SEAL)
DEVELOPER:
LUMBER ONE DEVELOPMENT
COMPANY, LLC
By_
Name
Title
2
STATE OF MINNESOTA )
)ss
COUNTY OF STEARNS )
On this day of March, 2008, before me, a notary public within and for said County,
personally appeared Alan Rassier and Judy Weyrens, to me personally known, who, being each
by me duly sworn did say that they are respectively the Mayor and the City Administrator/Clerk
of the City of St. Joseph, the municipal corporation named in the foregoing instrument, and that
the seal affixed to said instrument is the municipal seal of said corporation, and that said
instrument was signed and sealed in behalf of said municipal corporation by authority of its City
Council and said Mayor and City Administrator/Clerk acknowledged said instrument to be the
free act and deed of said corporation.
Notary Public
STATE OF MINNESOTA )
)ss
COUNTY OF STEARNS )
On this day of March, 2008, before me, a notary public within and for said County,
personally appeared Ted Schmid, to me personally known, who, being by me duly sworn, did
say that he is the Chief Manager of Lumber One Development Company, LLC, the company
named in the foregoing instrument, and that said instrument was signed and sealed on behalf of
said company by authority of its Board of Governors and said person acknowledged said
instrument to be the free act and deed of said company.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Lori L. Athmann - 0353450
Rajkowski Hansmeier Ltd.
11 Seventh Avenue North
P.O. Box 1433
St. Cloud, Minnesota 56302
Telephone: (320) 251-1055
L:\city\stjoe
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
Lots 1 through 6, Block One, Lots 1 through 28, Block Two, Lots 1 through 30,
Block Three, Lots 1 through 16, Block Four; Lots 1 through 3, Block Five; Lots 1
through 5, Block 6; and Outlots A, B and C, of Northland Heights according to
the plat thereof on file and of record in the Office of the Stearns County Recorder.
4