CR 05-035 Development Agreement - Starbucks
CiTY OF
March 10,2005
m
HOPKINS
Council Report 05-35
DEVELOPMENT AGREEMENT - STARBUCKS
Proposed Action.
Staff recommends the following motion: Move to approve a development agreement to
construct a Starbucks Coffee.
With this action is it understood that staff is authorized to make minor changes that do not
impact the overall intent ofthis agreement.
Overview,
Last year the City Council approved the construction of a Starbucks Coffee, located on a
commercial pad east of the Walgreens on Highway 7. The agreement outlines the terms and
conditions for this specific development. The basic agreement is similar to other
development agreements that the City Council has approved.
The development agreement, as presented, was prepared by Jerry Steiner of the City
Attorney's office.
Primarv Issues to Consider.
· What will the development agreement allow to be constructed on the site?
. What are the main points of the agreement?
Supportin2 Documents.
. Development agreement
~(k.bMDY\
Nancy . Anderson, AICP
Planner
Financial Impact: $_N/A_Budgeted: Y/N
Related Documents (CIP, ERP, etc.):
Notes:
Source:
CR05-35
Page 2
Primary Issues to Consider.
. What will the development agreement allow to be constructed on the site?
The development agreement will allow the construction of a Starbucks Coffee.
. What are the main points of the agreement?
. The project will be developed in compliance with the plans
. Any improvements will be constructed according to City codes and ordinances
. Any improvements on City-owned land will be transferred to the City of Hopkins
. Developer warrants City improvements for two years
. The developer reimburses the City for out-of pocket costs for development
. Developer agrees to restrict the use of the B- 3 property
Alternatives.
1. Approve the development agreement. By approving the development agreement,
Mathwig Development and the City agree to the details of the construction of a Starbucks
Coffee.
2. Deny the development agreement. By denying the development agreement, the site south
of the former Hopkins House Hotel site will not be developed into a Starbucks Coffee. If
the City Council considers this alternative, findings will have to be identified that support
this alternative.
3. Continue for further information. If the City Council indicates that further information is
needed, the item should be continued.
Draft Dated 3/1 0/05
Miller, Steiner & Curtiss, P.A.
DEVELOPMENT AGREEMENT
This Development Agreement (this "Development Agreement") is made and executed
this
day of
,2005, by The Crossroads of Minnesota LLC, a
Minnesota limited liability company, ("Developer"), and the City of Hopkins, a municipal
corporation under the laws of Minnesota ("City").
RECITALS
A. Developer is the fee owner of certain real property (the "Real Property") located in
the City of Hopkins, Hennepin County, State of Minnesota, legally described in Exhibit A
attached hereto and incorporate herein by reference.
B. The Developer has applied to the City for approval of a Site Plan for development
and construction of a single story commercial building on the Real Property, together with
related parking and access improvements (the "Project") and for approval of a plat of the Real
Property known as Crossroads Addition (hereinafter referred to as the "Plat"). The City has
approved the Site Plan for the Project and the Plat, but upon and subject to the agreements, terms,
covenants and conditions of this Development Agreement.
C. On August 4, 2004, the City Council of the City adopted Resolution No. 04-56
approving the Plat. On September 7,2004, the City Council of the City adopted Resolution 04-
69 approving the Site Plan for the Project. As a condition of such approvals, the City has
required Developer to execute and record this Development Agreement and to comply with and
perform all of the agreements, terms, covenants, conditions and restrictions hereof. Developer
has agreed: i) to accept such agreements, terms, covenants, conditions and restrictions, ii) to
execute this Development Agreement, and iii) to record this Development Agreement as a
servitude upon the title to the Real Property.
D, Minn. Stat. 462.358, Subd. 2a, and Section 526.02 of the Hopkins City Code
provide the City may require the Developer to enter into a Development Agreement stating the
terms and conditions for the City's approval of the Plat and the Site Plan for the Project. The
City has required Developer to enter into this Development Agreement under the authority
provided in said Statute and Ordinance.
NOW, THEREFORE, in consideration of the foregoing Recitals and the approval of the
Site Plan for the Project and the Plat, Developer agrees to the terms and conditions stated in this
Development Agreement and declares that all of the Real Property, shall be held, transferred,
leased, occupied, used, improved and developed subject to the following agreements, terms,
covenants, conditions and restrictions:
1. Recitals Incorporated. The foregoing Recital Paragraphs A through D, are
incorporated in and made a part of this Development Agreement in their entirety.
2, Development Improvements. Developer shall construct, install, complete and
pay
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for the work, labor, materials, facilities and improvements required for the development of the
Project, including all of the facilities and improvements described in Plans identified in
Paragraph 3 of this Development Agreement, all of which work, labor, materials, facilities and
improvements are herein collectively referred to as the "Improvements." The Improvements
shall be completed in accordance with: i) the Plans defined and identified in Paragraph 3 of this
Development Agreement; and ii) all of the other terms of this Development Agreement.
Developer's obligation to construct, install and pay for the Improvements shall include
completion of and payment for any and all labor, skill, material, equipment and other work
required during the course of construction to complete the Improvements in compliance with the
requirements of this Development Agreement.
3, Identification of and Compliance With Plans. The Real Property and the
Project shall be developed and the Improvements constructed and completed in accordance with
the following plans which are herein collectively referred to as the "Plans." The Plans shall not
be attached to this Development Agreement. If any of the Plans are designated as "Preliminary",
such Plan(s) shall, subject to City approval, be modified, at Developer's expense, after the date of
this Development Agreement to be suitable for final construction purposes before
commencement of any of the work described or depicted in the Plan in question or issuance of a
building permit for the work depicted in such Plan. At such time as a preliminary Plan has been
replaced by a final Plan approved by the City, all references in this Development Agreement to
such Plan shall refer to the final Plan. In the event of any conflict or inconsistency between the
Plans and the provisions of this Development Agreement, the provisions of the Plans shall
control. The Plans are:
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Description of Plan
Plan A Final Plat prepared by Gronberg &Associates, as approved by the City
Council on September 7,2004
Plan B Grading, Drainage Plan and Erosion Control Plan prepared by Schoell &
Madson, dated July 9,2004.
Plan C Landscape Plan prepared by Damon Farber Associates, dated August 25,
2004.
Plan D Utility Plan prepared by Schoell & Madson, dated July 9,2004.
Plan E Site Plan prepared by BVK Group, dated August 25, 2004.
4. Additional Improvements. [intentionally omitted]
5. Construction Standards and Procedures. The Improvements shall be constructed and
installed in accordance with the final Plans, City standards, codes, regulations and ordinances.
All plans and specifications for the Improvements shall be prepared and certified by a registered
professional engineer or engineers, and shall be furnished to the City and approved by the City
Engineer prior to issuance of a Permit for the work depicted in such plans.
In connection with the construction of the Improvements, Developer shall restore all City streets,
utilities and other public facilities and property disturbed or damaged as a result of Developer's
construction activities to substantially the same condition as existed prior to commencement of
construction.
Within sixty (60) days after the completion of the Improvements, Developer shall supply the City
with the following relating to the Improvements: (a) a complete set of reproducible mylar as-
built plans, (b) two complete sets of utility tie sheets, (c) location stationing and swing ties of all
utility stubs, (d) benchmark network and (e) digital as-builts conforming with the following
c:Hopcivil\MathwigPUD2ndBL 4
requirements:
(i) Digital Files in Microstation DGN Format in NAD 83 Hennepin County Ground
Coordinates.
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(ii) All Cell Libraries and Line Styles shall be included.
(iii) Level structure shall conform to current Hopkins Level Structure.
6. License. Developer hereby grants the City, its agents, employees and inspectors a
license to enter the Real Property, as necessary, to perform all work and inspections deemed
appropriate by the City in conjunction with construction of the Improvements. Such license shall
terminate upon completion of the Improvements, as evidenced by final inspection and approval
thereof by the City Engineer and building official.
7. Improvements to be Transferred to City. Upon completion of construction of
the Improvements, and final acceptance and approval of the Improvements by the City, all of the
streets, curbs and gutters, sidewalks, trails, underground utilities or drainage facilities and other
public improvements that are part of the Improvements which are located within or upon any
public easements, including drainage and utility easements, public streets or other rights-of-way
or other City-owned land and any landscaping improvements located within or upon any public
streets or other rights of way or other City-owned land shall become the sole property of the
City. Those Improvements that are to become the sole property of the City as provided in the
first sentence of this Paragraph 7 are herein referred to as the "City Improvements." Developer
shall transfer the City Improvements to the City free and clear of all liens and encumbrances.
At such time as the City Improvements have been completed, representatives of
Developer's contractors, and a representative of Developer's Engineer will make a final
inspection of the City Improvements with the City Engineer. The City Engineer shall be entitled
to review and approve any punch list items or lists of incomplete or defective work comprising
the City Improvements to be submitted by Developer or its representatives to the contractor(s)
c:Hopcivil\MathwigPUD2ndBL 6
responsible for completion of the City Improvements to assure that the same are completed in
accordance with the requirements of this Development Agreement. As a condition of its
acceptance of title to any of the City Improvements, the City shall receive from Developer
written evidence, in form and content reasonably acceptable to the City, that Developer has
caused all incomplete or defective work to be completed or corrected and has made payment in
full for all work comprising the City Improvements. Before the City accepts title to the City
Improvements, the City Engineer shall be reasonably satisfied that all of the City Improvements
have been completed in accordance with the Plans and the requirements of this Development
Agreement and that Developer has made payment in full for all of the work comprising the City
Improvements. Final acceptance of the City Improvements by the City shall be evidenced by a
resolution duly adopted by the City Council of the City, which approval shall be granted if
Developer is in full compliance with all of the terms, conditions, agreements, and requirements
of this Development Agreement.
8, Warranty. Developer warrants that all work comprising the City Improvements
shall be free from defective materials or faulty workmanship for a period of two (2) years after
acceptance of the City Improvements by the City as evidenced by a resolution duly adopted by
the City Council, except that trees and landscaping plantings shall be warranted for twelve (12)
months from the date of planting. All work and materials comprising the City Improvements
which are found to be defective within two years after acceptance thereof by the City (or twelve
(12) months from the date of planting in the case oflandscaping improvements) shall be repaired
or replaced by Developer at Developer's sole expense,
9, Reimbursement of Costs to City, Developer shall reimburse the City for all out-
c:Hopcivil\MathwigPUD2ndBL 7
of-pocket costs incurred by the City in connection with the preparation, negotiation and
execution of this Development Agreement, construction of the Improvements and the
administration, performance and enforcement of this Development Agreement. Such out-of-
pocket costs to be reimbursed by Developer shall include, but are not limited to, all fees due to
consultants retained by City, whether incurred before or after the date of this Development
Agreement, including, without limitation, traffic, development, fiscal, environmental,
geotechnical, surveying, engineering, and legal services of the City Attorney, which are to be
reimbursed at the rate of $200.00 per hour, and are subject to increases of no more than 5% per
year, on January 1 st of each year. Such reimbursements from Developer shall be due and payable
within ten (10) business day of delivery of a copy of the invoice or statement therefor to the
Developer, and shall bear interest at the rate of one percent (1%) per month, if not paid by
Developer within thirty (30) days of the date the applicable invoice or statement has been
delivered to Developer.
10. Other Governmental Approvals. Developer shall obtain, all required approvals
and/or permits from the Minnesota Pollution Control Agency, Hennepin County, the Minnehaha
Creek Watershed District, Minnesota Department of Health, Metropolitan Council
Environmental Services Division and any other governmental authorities whose approval is
required for the construction of the Improvements and development of the Project on the Real
Property. Developer shall maintain all such required permits and comply therewith at all times.
11. Time of Performance. Developer shall commence construction of the
Improvements as soon as reasonably possible after execution of this Development Agreement by
Developer and the City and shall substantially complete construction of the Improvements within
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24 months of commencement of construction.
12. Additional Conditions, Restrictions and Requirements. Developer agrees that
the Improvements shall be completed and the Real Property shall be developed, held,
transferred, occupied, used and improved subject to and in compliance with the following
requirements and additional terms and conditions:
A. All storm drainage and other related drainage facilities depicted in the Plans shall
also be constructed by Developer, at Developer's sole expense, in accordance with the terms and
conditions of this Development Agreement and ,my additional terms and conditions required by
the Minnehaha Creek Watershed District.
B. The Developer will execute the required form of Access and Right-of-Entry
Agreement or similar agreement in favor of the City or the Minnehaha Creek Watershed District
relating to the maintenance and repair of any storm drainage and storm water retention
improvements constructed on the Real Property that are connected to the municipal storm sewer
system. Such Access and Right-of-Entry Agreement will be executed by the Developer,
consented to by any lien holders, recorded as an encumbrance against the title to the Real
Property and require Developer and its successors and assigns to repair and maintain the storm
drainage and storm water retention improvements in perpetuity.
C. The Developer shall provide evidence of title to the Real Property and any
property over which public easements are to be obtained to the City. Such evidence of title shall
be acceptable to the City Attorney.
D. The Final Plans shall be acceptable to and approved by City Staff and shall
incorporate all revisions and requirements of the City's Planning Department and Director of
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Public Works that are communicated to Developer in writing.
E. No final Certificate of Occupancy shall be issued for the commercial building
comprising the Project until all of the Improvements, with the exception of the final lift of
asphalt and any landscaping constituting a part of the Improvements, have been substantially
completed in compliance with the requirements of the Plans and this Development Agreement.
F. As provided in Paragraph 3 of this Development Agreement, all Plans, including
any preliminary or final plans, shall be submitted for approval by City Staff. If Developer
proposes any changes to the Plans, new or revised conditions for construction of Improvements
may be imposed upon Developer, based upon revisions to any Plans. All future plans must be
signed by the consultant preparing the same, and shall include revision dates.
G. A park dedication fee in an amount determined as specified in City Ordinance
500.75, Subd. 7, shall be due and payable at the time of execution and release of the final Plat by
the City, as a condition of execution of the Plat.
H. The Plans must clearly state that the contractor( s) retained by Developer to
construct the Improvements will be responsible for all utility locates and Gopher State One call
requirements.
1. Any request for closure of any City street by Developer must be accompanied by a
detailed traffic control and detour plan acceptable to City Staff.
J. Any soil retaining system installed by Developer within the right of way of any
public street must be temporary in nature and must be removed after completion of construction,
all at Developer's sole expense.
K. All parking lot lighting and street lighting to be installed by Developer must be
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shown on the final Plans. The design and location of such lighting must be approved by and
acceptable to City Staff.
L. The following uses shall be prohibited within any part of the Real Property, as
either primary or accessory uses, whether or not the same are permitted by the underlying B-3
zoning: automobiles sales or leasing, automobile repair or body shop, adult establishments, adult
motion picture theater, adult novelty business or book store, amusement device establishment,
cabinet, electrical, heating, plumbing, upholstery or air conditioning sales or service shop, fix-it
shop, liquor store, open sales lot, pawn shop, warehouse, taxi terminal, tatoo parlor, currency
exchange or tobacco shop. If any of the words and phrases used in the preceding sentence are
defined in the Hopkins Code of Ordinances, such words and phrases shall have the same
meanings stated in the Hopkins Code of Ordinances.
M The Site Plan approval for the Project includes a drive-through window for a
coffee shop use. With the exception of such drive-through coffee shop use, no drive-through
restaurant use shall be permitted on the Real Property in the future, whether or not the same is
permitted by the underlying B-3 zoning, without obtaining approval of an amendment to the
original Site Plan approval from the City upon the terms and conditions stated in Section 526 of
the Hopkins Code of Ordinances, including submission of a traffic study to the City at
Developer's expense.
N. It is a condition of the City's approval of the Plat and the Site Plan for the Project
that all access, driveway and parking easements benefitting the Real Property and established by
the Reciprocal Easement Agreement with Covenants, Conditions and Restrictions recorded as
Hennepin County Registrar of Titles Document No. 3511140 shall remain in effect for the
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benefit of the Real Property.
O. Developer shall dedicate and/or transfer to the City permanent public drainage and
utility easements as shown on the final Plat. Such easements shall be established either by
dedication in the Plat or by conveyance to the City from Developer.
P. As provided in Paragraph 22 of this Development Agreement, all paved surfaces
and utilities constructed within the Real Property including all of the Improvements, other than
the City Improvements, shall be private, and the City shall have no responsibility for the
operation, maintenance or repair of any such private paved surfaces, utilities or Improvements.
Q. All City water meters shall be located in a designated meter room vault, accessible
and designed and installed in such a manner that they can be read by the City's radio read system.
R. The Developer shall otherwise comply with all conditions stated in City Council
Resolutions R 04-56 and R 04-69; and with the requirements of any applicable statutes,
ordinances, codes or regulations, including the City's Engineering Guidelines.
S. In the event Developer has not commenced construction of the Project, as
evidenced by issuance of a building permit for construction of all or any part of the Project, by
September 7, 2005, the City's approval of the Site Plan for the Project shall terminate and be
rescinded, and Developer shall be prohibited from proceeding with construction of the Project
unless Developer has obtained approval from the Hopkins City Council for extension of the Site
Plan approval, which approval maybe withheld or granted in the City's sole discretion.
13. Compliance With Other Requirements. Assi2nment bv Developer,
Termination. Developer agrees that it shall complete the Improvements in compliance with this
Development Agreement, the conditions listed in the City Council Resolutions identified in
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Recital Paragraph C of this Development Agreement and the provisions of the City's Code of
Ordinances.
The terms, conditions and restrictions established by this Development Agreement shall
run with the title to the Real Property and apply to and bind the Developer and each and every
subsequent owner of any part of the Real Property and their respective successors and assigns,
and shall operate as a covenant passing with the title to the Real Property and any part thereof.
All of said terms, conditions and restrictions are imposed upon the Real Property as a servitude
in favor of the City of Hopkins, Minnesota, for its benefit only. The Developer shall not assign
its rights or obligations nnder this Development Agreement without the prior written approval of
the City, which approval may be withheld or granted subject to or based upon reasonable terms
and conditions. Developer shall not otherwise assign its rights or obligations under this
Development Agreement without the prior written approval of the City.
The terms, conditions and restrictions established by this Development Agreement are
perpetual in duration except: a) upon satisfactory completion of the City Improvements in
compliance with the requirements of this Development Agreement, the City shall execute and
deliver to Developer a certificate, in recordable form, certifYing as to Developer's compliance
with the provisions of this Development Agreement applicable to construction of the City
Improvements; and b) upon Developer's full compliance with the remaining agreements,
warranties, terms, covenants, conditions and restrictions of this Development Agreement related
to completion of landscaping Improvements, the City shall execute and deliver to Developer,
upon written request by Developer, a Certificate, in recordable form, certifying as to the
Developer's compliance with such agreements, warranties, terms, covenants, conditions and
c:Hopcivil\MathwigPUD2ndBL 13
restrictions.
14. Security and Claims. To guaranty Developer's compliance with the terms of this
Development Agreement, payment of the cost of all Improvements and completion of
construction thereof, Developer shall deliver to the City the following Letter(s) of Credit and/or
surety bond( s)acceptable to and in favor of the City (the "Security") issued by a bank or surety
reasonably acceptable to the City:
A. The Security for the landscaping improvements comprising a part of the
Improvements shall be delivered to the City before the execution and release of the Plat by the
City. The amount of such Security for landscaping improvements shall be equal to 150 percent
of the estimated cost of the landscaping improvements, as established by a written estimate
submitted by Developer's landscaping contractor.
B. The Security for the remaining Improvements, other than landscaping
improvements, shall be delivered to the City before commencement of construction of such
Improvements or issuance of a permit by the City permitting commencement of such
construction. The amount of such Security for the remaining Improvements, other than
landscaping improvements, shall equal 100 percent of the cost of the Improvements as
established by: i) the actual cost of completion of construction of such Improvements as stated in
the written contracts or subcontracts for their construction and installation with the contractors or
subcontractors retained by Developer or Developer's general contractor (which written contracts
or subcontracts shall be delivered to the City), or ii) a written estimate from Developer's Engineer
approved by the City Engineer.
The Security shall be conditioned upon Developer's completion of the Improvements for
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which the Security is provided, performance of Developer's warranty under Paragraph 8 of this
Development Agreement including replacement of any defective or nonconforming
Improvements and payment of the entire cost thereof, and the form and content of the Security
shall be subject to the reasonable approval of the City. Developer shall maintain the Security in
effect for a term ending two (2) years after the date acceptance of the City Improvements by the
City as evidenced by a Resolution duly adopted by the City Council (which latter date is herein
referred to as the "Termination Date"). Developer shall initially deliver to the City the original
Security expiring no earlier than one (1) year after the date of delivery of the original Security to
the City. Thereafter, no later than thirty (30) days before the expiration of the Security,
Developer shall deliver to the City original written evidence, in form reasonably acceptable to the
City, extending the term of the Security for successive one (1) year periods, but in no event
extending beyond the Termination Date. If Developer fails to deliver such original written
evidence of extension of the Security at least thirty (30) days before expiration of the Security,
Developer shall be deemed to be in default under this Development Agreement and the City may
draw upon the Security. With City approval, upon receipt of evidence acceptable to the City of
payment of financial obligations related to the construction of the Improvements, the Security
may be reduced from time to time as financial obligations relating to the construction of the
Improvements are paid, but in no case shall the Security be reduced to an amount less than forty
percent (40%) of the cost of the City Improvements (such cost to be determined in the manner
specified in Subparagraph B of this Paragraph 14) until the Termination Date. Notwithstanding
the provisions of the preceding sentence, the Security for the landscaping improvements
comprising a part of the Improvements may not be reduced, and shall be maintained at its
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original amount until one (1) year after completion of such landscaping improvements. The City
may draw upon or enforce the Security for any violation of the terms of this Development
Agreement which is not cured within ten (10) business days after written notice to the Developer,
provided, in the event the default is such that it cannot be cured with reasonable diligence within
ten (10) business days, the City shall not draw upon the Security so long as Developer is
proceeding with all due diligence to cure such default and such default is, in fact, cured within
thirty (30) days after the initial written notice of default to Developer. If the Improvements
(other than the final lift of asphalt) are not completed on , 200_, the City
may also draw upon or enforce the Security. If the Security is drawn upon, the draw shall be
used to cure the default (including completion of the Improvements by the City, provided the
City shall have no obligation to complete the Improvements) and may also be used to payor
reimburse the City for any cost, expenses or damages recoverable under Paragraph 15 of this
Development Agreement. The Security shall be released to Developer on the Termination Date.
In the event the City receives notice of or claims from laborers, materialmen or others
contributing to the Improvements that any amounts due them have not been paid when due, and
such laborers, materialmen or others are seeking payment out of the Security or intend to assert
claims against the City, the Improvements or the real property on which the Improvements have
been installed, and if such claims are not fully resolved at least ninety (90) days before the
Security will expire, Developer hereby authorizes the City to commence an Interpleader action
pursuant to Rule 22, Minnesota Rules of Civil Procedure for the District Courts, to draw upon
the Security in an amount up to 125 percent of the claims and deposit the amount so drawn with
the District Court Administrator in compliance with said Rule 22, and, upon such deposit,
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Developer shall release, discharge and dismiss the City from any further proceedings as it
pertains to the sums deposited with the District Court Administrator, except that the Court shall
retain jurisdiction to determine attorneys' fees. Developer agrees that it shall protect, indemnify
and hold the City and its agents, representatives and employees harmless from and against all
costs, damages and liabilities, including reasonable attorneys' fees and Court costs, resulting from
or incurred in connection with Developer's failure to comply with the terms, covenants,
conditions and requirements of this Development Agreement.
15. Enforcement of Development A2reement. The terms, conditions, requirements
and restrictions established by this Development Agreement shall be enforceable exclusively by
the parties to this Development Agreement, and shall be enforceable by injunctive relief,
prohibitive or mandatory, to prevent the breach of or enforce performance or observance of the
terms, conditions, requirements and restrictions established by this Development Agreement, or
by any other available legal proceeding or remedy, including, but not limited to:
a. Legal proceedings to recover, collect, payor reimburse the City for the cost of
completing construction of the Improvements.
b. All costs and expenses incurred by the City in curing any other default by
Developer in the performance of any of the terms, covenants and conditions of
this Development Agreement.
c. All reasonable costs, fees and expenses for engineering, legal and administrative
expenses incurred by the City in enforcing Developer's performance of this
Development Agreement or the completion of construction of the Improvements.
d. Any other remedy or sanction provided by Minnesota Statutes or the Ordinances
of the City of Hopkins.
The City agrees that it shall give Developer written notice and a reasonable opportunity to cure
any default by Developer in the performance of its obligations under this Development
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Agreement before incurring third-party costs and expenses that are recoverable from Developer
under Subparagraphs a-d of this Paragraph 15, provided Developer shall proceed with all due
diligence to cure any such default and, in no event, shall the time for Developer to cure a default
exceed thirty (30) days after delivery of Notice of Default to Developer. If Developer fails to pay
any amount due to the City under this Development Agreement after thirty (30) days' written
notice to Developer demanding such payment, Developer agrees the City shall be entitled to levy
a special assessment against the Real Property in the amount stated in the Notice to Developer in
accordance with Minn. Stat. Chapter 429, and Developer waives all objections to or appeals of
the final amount of such special assessment levied against the Real Property. Developer
acknowledges that the rights of the City to enforce performance of the terms, conditions,
requirements and restrictions established by this Development Agreement are special, unique,
and of an extraordinary character and that, in the event Developer violates or fails or refuses to
perform any term, condition or restriction established by this Development Agreement, the City
shall have no adequate remedy at law. Developer agrees, therefore, that in the event Developer
violates any term, condition or restriction established by this Development Agreement, the City,
may, at its option, initiate and prosecute an action to specifically enforce the performance of the
terms, conditions and restrictions established by this Development Agreement. No remedy
specified in this Development Agreement is intended to be exclusive, and each remedy shall be
cumulative, and in addition to each and every other remedy. Failure of the City to enforce any of
the terms, conditions and restrictions established by this Development Agreement in any
particular instance shall in no event be deemed to be a waiver of the right to do so as to any
subsequent violation. Developer agrees that Developer shall pay the City's reasonable attorneys'
c:Hopcivil\MathwigPUD2ndBL 18
fees and expenses incurred in the enforcement of the terms, conditions and restrictions of this
Development Agreement.
16. Notices. Any notice, request or other communication required or provided to be
given under this Development Agreement shall be in writing and shall be deemed to be duly
given when delivered personally to an officer, manager, general partner or authorized agent of
Developer or to the City Manager of the City or when mailed by first class United States Mail,
postage prepaid, addressed as follows:
To Developer:
Mathwig Development Co.
5353 Wayzata Boulevard, Suite 208
St. Louis Park, MN 55416
To City:
City of Hopkins
1010 First Street South
Hopkins, MN 55343
Attention: City Manager
or to such other address as either party, by notice given as herein provided, shall designate.
Mailed notice shall be conclusively deemed to have been given two (2) business days after the
date of mailing.
17. Severability. Invalidation of any of the terms, conditions, provisions or
restrictions of this Development Agreement, whether by Court Order or otherwise, shall in no
way affect any of the other terms, conditions, provisions and restrictions, all of which shall
remain in full force and effect.
18. Headin2s. The headings and captions at the beginnings of paragraphs of this
Development Agreement are for convenience of reference only and shall not influence its
construction.
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19.
Execution of Counterparts.
This Development Agreement may be
simultaneously executed in several counterparts, each of which shall be an original, and all of
which shall constitute one and the same instrument.
20. Construction. This Development Agreement shall be construed and enforced in
accordance with the laws of the State of Minnesota.
21. Evidence of Title and Recordation of Development A2reement. Prior to the
execution of this Development Agreement, Developer shall provide the City with evidence of
title to the Real Property, at Developer's expense, in the form of a current Commitment for
Owners' Title Insurance or other evidence of title acceptable to the City and in compliance with
Minn. Stat. 505.03. Developer shall cause this Development Agreement to be executed by or
consented to by all persons holding any interest in the title to the Real Property, or lien thereon,
as deemed necessary by the City. Developer agrees to cause this Development Agreement to be
filed for record as a restriction against the title to the Real Property.
22. Ownership. Maintenance and Repair of Improvements. The City shall not be
responsible for the maintenance or repair of any of the Improvements other than the City
Improvements, which responsibility shall not accrue until acceptance of the City Improvements
by the City, and shall have no liability whatsoever for any costs, expenses, liabilities, obligations,
claims and demands related to or arising from, either directly or indirectly, the design,
construction, use, maintenance, repair, reconstruction or replacement of the Improvements,
together with all modifications or replacements thereof or additions thereto. The Improvements
which are to be the sole property of the Developer, and its successors, shall include, but are not
limited to, all utility improvements, streets or driveways located within the boundaries of the
c:Hopcivil\M:athwigPUD2ndBL 20
Real Property other than the City Improvements. The Developer and its successors shall be
solely responsible for all repair, maintenance (including, but not limited to, snowplowing, snow
removal, sweeping and resurfacing), restoration and replacement of any private street, driveway
or parking improvements and the repair and maintenance of any utility improvements, at the sole
cost and expense of the Developer and its successors in interest. The Developer shall protect,
indemnify and hold the City, and its officials, representatives, agents and employees, harmless
from and against all liabilities, obligations, responsibilities, claims, costs, expenses (including
reasonable attorney's fees), demands and causes of action relating to or arising out of, directly or
indirectly, the design, construction, maintenance, repair, reconstruction, replacement, ownership
or use of the Improvements (provided that the City shall be responsible for maintenance and
repair of the City Improvements following their acceptance by the City, but subject to the
Developer's warranty of the City Improvements), and any replacements or substitutions therefor,
including, but not limited to, claims for injury to persons or property. The recordation of this
Development Agreement shall constitute notice to all successors and assigns of Developer of the
non-liability of the City for maintenance, repair, reconstruction or replacement of the
Improvements as herein provided.
IN WITNESS WHEREOF, Developer and the City have executed this Development
Agreement as ofthe date and year first above written.
THE CROSSROADS OF MINNESOTA
LLC
By
c:Hopcivil\MathwigPUD2ndBL 21
c:Hopcivil\MathwigPUD2ndBL 22
Its
STATE OF
)
)SS
)
COUNTY OF
The foregoing instrument was acknowledged before me this day of
2005, by the
, of The Crossroads of Minnesota LLC, a limited liability
company under the laws of the State of Minnesota, on behalf of the limited liability company.
Notary Public
CITY OF HOPKINS
By
Its
By
Its
)
)SS
)
STATE OF
COUNTY OF
The foregoing instrument was acknowledged before me this day of
2005, by the
and the
, of The City of Hopkins, a municipal corporation, under the laws of
the State of Minnesota, on behalf of the municipal corporation.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Miller, Steiner & Curtiss, P.A.
400 Wells Fargo Bank Building
c:Hopcivil\MathwigPUD2ndBL 23
.
1011 First Street South
Hopkins, Minnesota 55343
c:Hopcivil\MathwigPUD2ndBL 24
MORTGAGEE'S CONSENT
, a
corporation, the mortgagee
named in that certain mortgage, dated
(the "Mortgage"), which Mortgage
was recorded
, as Hennepin County
's Document
No.
, hereby consents to the foregoing Development Agreement and agrees
that the Mortgage shall be subject and subordinate to said Development Agreement.
By
Its
STATE OF
COUNTY OF
)
)SS
)
The foregoing instrument was acknowledged
2005, by
and
before me this
day of
the
the
, a corporation, under
, of
the laws of the State of Minnesota, on behalf of the corporation.
Notary Public
c:Hopcivil\MathwigPUD2ndBL 25
K
.
EXHIBIT A
LEGAL DESCRIPTION OF REAL PROPERTY
Lot 2, Block 1, Crossroads Addition, according to the recorded plat thereof, Hennepin County,
Minnesota
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