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Home My WebLink About[09a] Jasmine Lane Extension Council Agenda Item 9a MEETING DATE: September 21, 2015 AGENDA ITEM: Amended Development Agreement-Jasmine Lane Extension SUBMITTED BY: Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: In 2005 the City entered into a Development Agreement with Lumber One for the development entitled Northland Heights. The proposed subdivision would include two phases which were referenced in the Agreement. One of the provisions included in the Agreement is the responsibility of Lumber One to build the extension of Jasmine Lane to Northland Drive. The matter again came to light in 2008 when the City was discussing the proposed subdivision Cresent Hills, adjacent to Northland Heights and CR 133. The economic slowdown occurred and housing came to a standstill. BACKGROUND INFORMATION: During the discussion of Jasmine Lane, it was discussed that the existing agreement with Lumber One required Lumber One to construct the road. Lumber One has argued that they are not responsible for the construction but would make a one-time contribution of$75,000 to the cost provided the City relieve them of future terms in the Development Agreement. Attached is a proposed amendment that would acknowledge that the original agreement is not in force and when the remaining property of Northland Heights is developed the developer must meet all terms and conditions of development in place at the time of development, which includes road access utility connections BUDGET/FISCAL IMPACT: REQUESTED COUNCIL ACTION: Authorize the Mayor and Administrator to execute the amended development agreement. This page intentionally left blank AGREEMENT REGARDING DEVELOPER AGREEMENT BETWEEN CITY OF ST. JOSEPH AND LUMBER ONE DEVELOPMENT COMPANY, LLC. THIS AGREEMENT, made and entered into effective as of the day of , 2015, 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 is or was the owner of certain real property known as Northland Heights, which is legally described on Exhibit A, (hereinafter called the "Property" or "Development" or"Development Property") attached hereto and made a part hereof, and WHEREAS, the Developer and City entered into a Developer Agreement, dated September 7, 2005, and recorded in the Office of the County Recorder for Stearns County, Minnesota, as Document No. 1177244 and filed on November 29, 2015, an Amendment to Developer Agreement dated June 29, 2006, and an Agreement dated May24, 2005 (hereinafter collectively, the "Developer Agreement"); WHEREAS, the Developer Agreement required the construction of certain improvements including the following: A. Connection of 15th Avenue to County Road 133, including turn lanes on County Road 133, to be completed in coordination with and as approved by the Stearns County Highway Department; B. Connection of Jasmine Lane between Northland Plat 8 and Northland Heights; WHEREAS, the City and Developer desire to resolve all outstanding obligations with respect to the Developer Agreement; [17088-0002/2120283/1] I NOW, THEREFORE, in consideration of the mutual covenants expressed herein, it is hereby agreed as follows: 1.0 JASMINE LANE CONNECTION. Developer hereby agrees to pay the City $75,000 as a contribution for the construction of Jasmine Lane between Northland Plat 8 and Northland Heights ("Jasmine Lane"). Said amount shall be due and payable within 10 days following full execution of a development agreement for construction of the Jasmine Lane connection and start of actual construction of the Jasmine Lane connection. If the Jasmine Lane connection is not completed and accepted by the City within 24 months after payment of the $75,000, then the City will refund the $75,000 to Developer. E"Dre 1^rer's r pt of wfitten netiee f em the City that the City has aeee-pted the cemplotea�l The City shall not assess the Developer or any of the lots in Northland Heights for any costs related to the construction of Jasmine Lane. 2.0 CONNECTION OF 15TH AVENUE TO COUNTY ROAD 133. Developer shall be released from any and all obligations of connecting 15th Avenue to County Road 133 with respect to the existing improved Blocks One (1), Two (2), Three (3), Four(4), Five (5) and Six (6) of Northland Heights. At the time of the replat of Outlots A, B and C, the Developer agrees that the replat will be subject to all subdivision and zoning regulations which are required at the time of the replat of said outlots. 3.0 HOLDING PONDS. The existing holding ponds constructed for the existing improved Blocks 1, 2, 3, 4, 5 and 6 may have some residual capacity for drainage at the time of any replat Outlots A, B, and C of Northland Heights (the "Outlots") or the platting of other property. However, additional holding pond capacity may be required at the time of any replat of any Outlots or the platting of other property based on the permitting requirements in place at the time of the replat and the design criteria of the replat. 4.0 STORMWATER FEES. Stormwater fees paid-credited to the Developer by the City pursuant to the Developer Agreement covered the platting and development of Blocks 1, 2, 3, 4, 5, and 6-only and all of the n,,,-lets of Nefthland Heights and have been paid i ffill. Notwithstanding anything in this Agfeement of ethefwise appafently tE) the At the time of any replat of the Outlots, any such replat will Abe subject to any stormwater fees at the time of any such replat of any of said Outlots. 5.0 REPLATTING OF OUTLOTS. Developer and City acknowledge that future development of any of the Outlots twill require the replatting of such Outlots. Except as specifically provided otherwise in this Agreement, any such replatting of any of the Outlots will be subject to all subdivision and zoning regulations in effect at the time of any such replatting. 6.0 RESCISSION OF EXISTING DEVELOPER AGREEMENT. The Developer and City agree that, except as may be specifically provide in this Agreement, all of the obligations of either party under the Developer Agreement are and shall be rescinded and the Developer Agreement shall be considered terminated and of no further force or effect as of the Effective Date. [17088-0002/2120283/1] 2 7.0 BINDING EFFECT ON PARTIES AND SUCCESSORS. The terms and provisions of this Agreement shall be binding upon and accrue to the benefit of the parties and the respective heirs, representatives, successors and assigns of the parties hereto and shall be binding upon and inure to the benefit of all future owners of all or any part of the Outlots and shall be deemed covenants running with the land. This Agreement, at the option of the City, shall be placed on record so as to give notice hereof to subsequent purchasers and encumbrances of all or any part of the Property. 8.0 INTEGRATION. This Agreement contains all of the understandings and arrangements between the Developer and City regarding the Property. This Agreement may not be amended, changed, or modified without the express, written consent of the parties hereto. 9.0 GOVERNED BY MINNESOTA LAW. This Agreement shall be interpreted under the laws of the State of Minnesota. 10.0 REPRESENTATION. Jovanovich, Kadlec & Athmann, PA represents the City with regard to this Agreement, and Developer has been represented by Rinke Noonan with regard to this Agreement. [17088-0002/2120283/1] 3 Signed and executed by the parties hereto effective as of the day of , 2015. ATTEST CITY OF ST. JOSEPH By By Judy Weyrens Richard Schultz, Mayor City Administrator/Clerk DEVELOPER: LUMBER ONE DEVELOPMENT COMPANY, LLC By Ted Schmid, Chief Manager STATE OF MINNESOTA ) ss. COUNTY OF STEARNS ) On this day of 2015, before me, a notary public within and for said County, personally appeared Richard Schultz 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 on 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 [17088-0002/2120283/1] 4 STATE OF MINNESOTA ) ) ss. COUNTY OF STEARNS ) On this day of 2015, before me, a notary public within and for said County, personally appeared Ted Schmid, to me personally known, who, being each 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 LLC. Notary Public THIS DOCUMENT DRAFTED BY: Thomas G. Jovanovich - 5284X Jovanovich, Kadlec & Athmann, PA 1010 W. St. Germain, Suite 420 St. Cloud, MN 56301 Telephone: (320) 230-0203 [17088-0002/2120283/1] 5 EXHIBIT A Blocks One (1), Two (2), Three (3), Four(4), Five (5) and Six (6) and Outlots A, B and C of Northland Heights, a plat and survey on record in and for the City of St. Joseph, Stearns County, Minnesota. [17088-0002/2120283/1] 6