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CR 2000-173 Conditional Use Permit Agreement- Hopkins House CITY Or: ~ HOPKINS . October 12, 2000 Council Report 2000-173 CONDITIONAL USE PERMIT AGREEMENT - HOPKINS HOUSE ProDosed Action. Staff recommends the following motion: Move to approve the conditional use permit agreement to remodel the Hopkins House Hotel. Overview. As part of the conditional use permit approval for the remodeling of the Hopkins House, National Lodging was required to sign a conditional use permit agreement. The conditional use permit agreement is a document that spells out the specifics of the action and timetable that will need to be complied with to implement the various conditions of the conditional use permit. Jerry Steiner of the City Attorney's office prepared the conditional use permit agreement. Also on tonight's agenda is the approval of the final plat. The approval ofthe conditional use . permit agreement and the final plat are the final actions that are necessary for National Lodging to proceed with this project. Semper Development is also required to sign a conditional use permit agreement. Jerry Steiner will prepare a memo summarizing the agreement. The memo will be completed on Monday. Jerry Steiner will be present at the meeting to respond to specific questions. Primary Issues to Consider. . What are the specifics of the conditional use permit agreement? . What is the assurance that a portion of the Hopkins House will be removed and the rest remodeled? SUDDortine Documents. . Agreement . ;(bm::~ ~ (.l:n:jO!lf){lY\ NancYl . Anderson, AICP Planner Financial Impact: $ N/A Budgeted: YIN_ Source: Related Documents (CIP, ERP, etc.): Notes: . -- CR2000-173 Page 2 . Primary Issues to Consider. . What are the specifics of the conditional use permit agreement? The following are the main points addressed in the agreement: . Developer improvements Reciprocal access and parking easements I . . County Road 73 access . Submission of a storm water management plan . Evidence of financing . Road and traffic improvements . Demolition and site grading . Reimbursement of costs to City . Compliance with conditional use permit requirements . What is the assurance that a portion of the Hopkins House will be removed and the rest remodeled? . The agreement requires National Lodging to provide the City, prior to the issuance of a demolition permit, written evidence that they have financing or cash to complete the improvements. The agreement with Semper Development does not allow Semper to obtain a building permit to construct the Walgreens until the portion of the Hopkins House that is to be demolished is removed. Also, National Lodging will not be able to get a building permit until the portion of the Hopkins House is demolished. Alternatives. 1. Recommend approval of the conditional use permit agreement. By approving the conditional use permit agreement, the Hopkins House Hotel will be remodeled as proposed. 2. Recommend denial of the conditional use permit agreement. By denying the conditional use permit agreement, the Hopkins House Hotel will not be able to be remodeled as proposed. 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. . . Miller, Steiner & Curtiss, P.A. Draft 10/12/00 CONDITIONAL USE PERMIT AGREEMENT This Conditional Use Permit Agreement (this "Agreement") is made and executed this day of , 2000, by Hopkins Midwest Hotel Limited Partnership, a . Minnesota limited partnership ("Developer"), in favor of and for the benefit of the City of Hopkins, Minnesota ("City"). RECIT ALS A. Developer is the fee owner of 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. The real property described in Exhibit A hereto is hereinafter referred to as the "Real Property" . B. Developer applied to the City for a Conditional Use Permit to remodel, reconstruct and operate a hotel facility, parking lot and related improvements (the "Project") on the Real Property in accordance with the Plans identified in Paragraph 3 of this Agreement. C. On August 2, 2000, the City Council of the City adopted its Resolution No. 2000-56 . approving Conditional Use Permit No. CUP 00-4 ("Conditional Use Permit") for the construction c: hopci vil\CondUse.lll-l . of the Project on the Real Property, subject to the terms, conditions and restrictions stated in this Agreement, Resolution No. 2000-56 and in the Conditional Use Permit. As a condition of the approval of the Conditional Use Permit, the City has required Developer to construct, install and pay for the Public Improvements defined and identified in Paragraph 2 ofthis Agreement and to execute and record this Agreement. Developer has agreed: i) to accept such terms, conditions and restric- tions, ii) to execute, comply with and perform the obligations of Developer under this Agreement, and iii) to record this Agreement as a servitude upon the title to the Real Property. i D. Subdivision 4 of Section 525.13 of the Hopkins Zoning Ordinance provides that the City may require an applicant for a Conditional Use Permit to enter into a Conditional Use Permit Agreement establishing the terms, conditions and restrictions imposed upon approval of a Conditional Use Permit. This Agreement is entered into by the City and Developer pursuant to . Subdivision 4 of Section 525.13 of the Hopkins Zoning Ordinance. NOW, THEREFORE, in consideration of the foregoing Recitals and the approval and issuance of the Conditional Use Permit, Developer agrees to the terms and conditions stated in this Agreement and declares that all of the Real Property and the Proj ect shall be held, transferred, leased, occupied, constructed, used and developed subject to the following agreements, terms, covenants, conditions and restrictions~ as the same may subsequently be terminated in accordance with the terms of this Agreement: 1. Recitals Incorporated. Recital Paragraphs A through D, above, are incorporated in and made a part of this Agreement. 2. Construction ofImprovements. As a condition of approval of the Conditional Use Permit, Developer has agreed to construct thesuch "Public Improvements" (helcillaftel dcfincd)ill! . may be defined and identified in Subparagraph A, below. The terms, covenants, conditions, c: hopcivil\CondU se.HH - 2 - . restrictions and agreements stated in this Agreement shall apply both to the construction of said Public Improvements and to the construction, occupancy, use and development of all of the other facilities and improvements constituting a part ofthe Project as described herein and required hereb-y. A. Public Improvements. Developer shall construct, install and pay for all of the facilities and improvementsJf any, described in Exhibit B hereto and in Subparagraphs 6. G., ii., iv and v. of this Agreement, which facilities and improvements, are herein collectively referred to as the "Public Improvements." The Public Improvements shall be completed in accordance with: i) the terms and conditions stated in said Exhibit B, ii) the Plans defined and identified in Paragraph 3 of this Agreement; and iii) all ofthe other terms of this Agreement. Developer's obligation to construct, install and pay for the Public 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 Public Improvements in compliance with the requirements of this Agreement. B. Developer Improvements. In addition to the Public Improvements, Developer shall also construct, install and pay for all other facilities and improvements constituting a part of the Project, including those depicted in the Plans, which facilities and improvements are herein referred to as the "Developer Improvements." The Developer Improvements shall include all of the work and improvements described in Paragraph 6. of this Agreement other than any Public Improvements. The Developer Improvements shall be completed in accordance with: i) the Plans defined and identified in Paragraph 3 of this Agreement; and ii) all of the other terms of this Agreement. . 3. Identification of Plans. The Project shall be developed and the Public Improvements and Developer Improvements constructed and completed in accordance with the following plans c:hopcivil\CondUse.HH - 3 - . which are hereinafter collectively referred to as the "Plans". The Plans shall not be attached to this Agreement. If any of the Plans are designated as "Preliminary", such Planes) shall, subject to City approval, be modified, at Developer's expense, after the date of this 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 Project. At such time as a Preliminary Plan has been replaced by a final Plan approved by the City, all references in this 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 Agreement, the provisions of this Agreement shall controL The Plans are: Description of Plans Plan A Prelinlillaty Site Plan (Sheets ) prepared by Landform Engineering Company, dated June 23, 2000. August 7. 2000. . Plan B rrelilhinary Landscaping Plan prepared by Landform Engineering Company, dated Jul, 24, 2000.August 7~ 2000. Plan C rreliIllil1af)' Grading and Erosion Control Plan prepared by Landform Engineering Company, dated June 23, 2000.AuEust 7. 200Q, Plan D rreliulilJat)' Utility Plan prepared by Landform Engineering Company, dated JUlie 2J, 2000.!\u.&-ust 7.2000. PlanE. The Storm Water Management Plan described in Paragraph 6.E. of this Agreement. Plan F rldinlillaly Drainage Plan prepared by Landform Engineering Company, dated July 24, 2000.Auzyst 7.. 2000. Developer agrees that the final grading plan and utility plan for the Project will show erosion control measures, details of storm control structures, public utilities and proposed utility connections which shall be subject to approval by City Staff. . 4. Construction Standards and Procedures. The Public Improvements and the Developer Improvements shall be constructed and installed in accordance with City standards, codes, c:hopcivil\CondUse.HH - 4 - . regulations and ordinances. All Plans and specifications for the Public Improvements shall be prepared and certified by a registered professional engineer or engineers employed by Developer, ("Developer's Engineer"), and shall be furnished to the City and approved by the City Engineer prior to issuance of a Building Permit for the Project. The City Engineer shall review and approve preliminary and final design Plans and contract specifications for the Public Improvements. Developer shall retain a qualified inspector or engineer experienced in inspection and supervision of road construction ("Developer's Inspector") to perform site inspections of the Public Improvements during the course of construction. Developer's Inspector shall be present, on site to perform inspections at all times from time to time while construction activities on the Public Improvements are being performed. Developer shall require Developer's Inspector to cooperate with and respond to requests and questions from the City's Engineer and City Inspectors to confirm that . construction of the Public Improvements is being completed in accordance with the Plans and all applicable ordinances, regulations and standards. As provided in Paragraph 7 of this Agreement, Developer or Developer's Inspector shall notifY the City Engineer when the Public Improvements, or any portion thereof, are completed and ready for a final inspection. In connection with the construction of the Public Improvements, Developer shall restore all City streets, sidewalks, public and private 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 Public Improvements, Developer shall supply the City with the following: (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 requirements: c:hopciviIlCondUse.HH - 5 - - --- . I. Digital Files in Microstation DGN Format in NAD 83 Hennepin County Ground Coordinates. II. All Cell Libraries and Line Styles shall be included. Ill. Level structure shall conform to current Hopkins Level Structure. 5. 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 Public Improvements and the Developer Improvements. Such license shall terminate upon the latter of i) the date of final acceptance of the Public Improvements by the City in accordance with the provisions of Paragraph 7 of this Agreement; or ii) the date of completion of the Developer Improvements, as evidenced by issuance of a Certificate of Occupancy for the Project. . 6. Additional Conditions and Requirements. Developer agrees that the Conditional Use Permit has been issued subject to and that Developer shall perform and satisfY the following conditions and requirements: A. Platting. As part of the development of the Project, Developer has submitted the preliminary plat of Maggie's Addition ("Plat") for approval by the City. Prior to execution of the Plat by the City or the issuance ofa Building Permit for the Project, Developer shall, at Developer's sole expense, satisfy all terms, conditions and requirements of final approval of the Plat by the Hopkins City Council and the ordinances, statutes and requirements of the City, Hennepin County, Minnesota, and the State of Millilesota, applicable to the Plat. Prior to execution of the Plat by the City or issuance of a Building Permit for the Project, a Park Dedication Fee in the amount of$23,394.00 (amount for Real Property only) shall be paid . to the City, as required by Section 500.75 of the Hopkins City Code. c:hopciviIlCondUse.HH - 6 - --. --. . . B. Lot Variance. Prior to execution of the Plat by the City or issuance of a Building Permit for the Project, Developer shall have obtained and shall thereafter comply with and satisry all terms, conditions and requirements of the irregular lot variance for Lot 1, Block 1, of the Plat. C. Reciprocal Access and Parking Easements. Prior to execution of the Plat by the City or issuance of a Building Permit for the Project, the Developer shall have entered into the following easements: i) A Reciprocal Easement Agreement with Semper Development, Ltd. ("Semper"), the owner of Lot 1, Block I, and Outlot A, of the Plat ("Lot 1 and Outlot A"), establishing reciprocal easements over the Real Property and Lot 1 and Outlot A for access to Robinwood Lane and 5th Street North as depicted in the Plans. Such . Reciprocal Easement Agreement shall be subject to approval by City staff and the City Attorney and shall be recorded by Developer as an encumbrance against the title to the Real Property. ii) A Parking and Access Easement Agreement with the owner of the adj acent commercial property ("Adjacent Property") located in the southeast quadrant of the intersection of 17th Avenue North and Fifth Street Northithe so-called "White Wolf Proj!e(ty"). Such Easement Agreement shall provide for the shared use of certain parking facilities and driveway access between the Project and the Adjacent Property, and shall be subject to approval by City Staff and the City Attorney l including confirmation that parking for the Project and for the Adjacent Property shall comply . with parking requirements of the Hopkins City Code. Such Parking And Access c:hOJlcivillCondU se.HH - 7 - -- - ---- . Easement Agreement will be recorded by Developer as an encumbrance against the title to the Real Property. iii) A Reciprocal Parking Easement (which may- be incorporated in the Parking And Access Easement referred to in Sub.Qaragraph ii1 above) between Developer and Semper which shall provide for shared use of parking facilities between the Project and the retail drugstore facility to be constructed by Semper on Lot 1 and Outlot A, and shall be subject to approval by City Staff and the City Attorney, including confirmation that parking for the Project and the retail drugstore to be operated by Semper shall comply with parking requirements of the Hopkins City Code. Such Reciprocal Parking Agreement will be recorded by Developer as an encumbrance against the title to the Real Property. . D. SheetVacation. Plior to execution of the Plat by th, City or issuance ofa Duilding PClluitfor the PlOjCGt, DCvdopc.1 slI<1ll havc obtailicd and shall thelc.aftcr POfOInI and satisfy all terms, conditions and rcquiICltlcnts fOI the ploposed v <1catioh of a portion oftk public right of way at tile ilItcl'scction of Robin wood Lane and fifth StIcet North as shown in tIle Plans: D. County Road 73 Access. Reference is made to the "right in/right out" access to Hennepin County Road 73 ("Counh: Road 73 Access"), which is denicted in the Plans. As stated in the letter, dated Se.l2tember 28~ 2000~ from the Henne.l2in County Transportation De.l2artment attached to this Agreement as Exhibit C, Henne.l2in County will issue an entrance nermit for the CounJ:y Road 73 Access, upon the tenus and conditions identified in Exhibit . C. Pursuant to a Conditional Use Permit Agreement of even date herewith executed W H Investments LLC,-a Delaware limited liabilin: companx ("W H Investments")~ in favor ofthe c:hopcivi I\CondUse.HH - 8 - . City. W H Investments has agreed to construct the County Road 73 Access and comply with all of the terms and conditions stated in Exhibit C, and to also. dedicate the additional 17 feet of right-of-way for County Road 73 recommended thereby. In the eventl as referenced in Exhibit C, the State of Minnesota DeJ2artment of Transportation ("MN DOT"} withholds or reduces funding for the future construction or re.construction of intersection improvements at State Trunk Highway-7 and County Road 73 as a result of the location of the County Road 73 Access2 DeveloQer shall reimburse the City for the amount ofI\1N DOT fundinK withheld 9r reduced, un to a maximum reimbursement amount of % of Fifty Thousand Dollars ($50.,000.00). At such time as tl:le amount of the reduction or withholding offunds from MN DOT has been determinedl the City shall notify Developer of the amount of reimbursement to the City, and Developer shall12a-y such reimbursement to the City within . thirty (3D) days of delivery of such notice. If DeveloQer fails to .Qay such reimbursement to the Ci!):' within said thirty (30) da'yperiod~ the City shall be entitled to assess the full amount of such reimbursement, together with interest thereon at a rate not to exceed eight .nercent (8%}.ner annum, against the Proiect as a special assessment pursuant to Minn. Stat. Chap.ter 429.l and Developer hereby waives all rights notice of such assessment, objection to the assessment or the amount to be assessed and an"'y rights to allI?eal such assessment. Develo.Qer acknowledges that Developer and the Re~l Pro12ertY shall receive a benefit as a result of the ill1proval of the Countc Road 73 Access eg.ual to or greater than the amount of the reimbursement due to the City under this Paragraph 6D. E. Storm Water Management Plan. Prior to issuance of a Building Permit for the . Project, Developer shall submit a Storm Water Management Plan to the City together with such other evidence as the City shall reasonably require demonstrating that the storm water c:hopcivil\CondUseJili - 9- . management measures and improvements for the Project shall comply with the standards and requirements of Section 546 of the Hopkins City Zoning Ordinance. The Storm Water Management Plan must be approved by and acceptable to the City Engineering Staff. The Developer shall also comply with all requirements of the approved Storm Water Management Plan and execute and deliver to the City a Maintenance and Right of Entry Agreement in the form required by the City for access to and maintenance of storm water management improvements to be constmcted on the Real Property. Applicant shall also, prior to issuance of a Building Permit for the Project, obtain approval and any required permits and approvals from the Nine Mile Creek and/or Minnehaha Creek Watershed Districts of the Storm Water Management Plan for the Project. F. Evidence Of Financin~. Prior to issuance of a demolition permit or building . permit for the Project, Developer shall submit to the City written evidence, in form and content acceptable to the City, demonstrating that Developer has obtained unconditional and immediately available financing or cash in amounts sufficient to complete all facilities and improvements included as part of the Project, including the Public Improvements. The written evidence of financing to be submitted to the City shall describe and disclose in detail the estimated cost of completion of the Project and Public Improvements, the terms and conditions of all financing for the Project, shall include copies of all documents and submissions provided by Developer to the lender(s) providing financing for the Project, and shall otherwise be acceptable to the City, in the City's sole discretion, to demonstrate Developer's financial ability to complete the Project and the Public Improvements in accordance with the terms and conditions of this Agreement and the Plans. Developer . acknowledges that the City may retain a consultant for the purpose of analyzing the c:hopcivil\CondU se.fill - 10- . documents and information to be submitted to the City under this Paragraph F. and making recommendations to the City regarding the Developer's financing, and Developer shall reimburse the City for all fees of such consultant. G. Road and Traffic Improvements. The final Plans shall comply with those recommendations of the Traffic Study Memorandum, dated July 18, 2000, prepared by Benshoof & Associates, Inc. ("Traffic Study"), which are described below. Dc vdopel shall also cOlllplcte, at Dc velopel' s sok expense, all ohlle roadway, intel.'ieetion and other traffic inlprovel1lents. sidewalks and tlails recommended by thc Traffic Study 1l1at alG described in this Agleelflent, illduding wmk and irllpro veruer1ts locatGd 011 Cit}-o w'hcd light of way that is not part of the Real Property. Specifically, Developer agrees that it shall comply with, perform and complete the following terms, conditions, improvements and recommendations . of the Traffic Study: I. The final Plans for the Project shall incorporate those parking and access modifications and improvements shown as Note C in Figure 4 of the Traffic Study. Prior to issuance of a Building Permit for the Project, the City shall have approved the final Plans, including the incorporation of Note C in Figure 4 of the Traffic Study. ii. The final Plans for tIte Project shall incor pOTate the construction of a I Ig11t turn lane and related traffic imprOvements at the intcrsection of Count} Road 7J/l J1f1 f~YeflUC Noftll and 5th Stleet North, as depicted in l'igmc G ofth, Traffic Study. Prim to issu1l11cC ofa Building PeBnlt for the Ploject, the City shall have apploved tlte Plans, iIlduding the inc01pmMion of such rigid tUln l1l11e and r dated traffic irflpIo venlcnts. . ili;ii. To accommodate future construction of the~ right turn lane at the intersection of County Road 73/I 7th A venue North and 5th Street North, the Developer shall transfer c:hopcivil\CondUsc.HH - 11 - . fee title to the additional right-of-way area located north of SIll Street North at the intersection with County Road 73/17th A venue North, as depicted in the Preliminary Site Plan (Plan A) and in Figure 6 ofthe Traffic Study. The right-of-way area to be transferred to the City shall be approximately 12 feet in width from north to south and 170 feet in length from east to west. The transfer of the additional right-of-way area to the City shall occur prior to the City's execution of the Plat, and Developer shall, at Developer's expense, provide the City with evidence of title to such additional right-of-way area and obtain releases from all mortgagees or lienholders so that the additional right-of~way area will be transferred to the City free and elear of all liens and encumbrances. i,. The final PlaIts fO! the PlOjcct shall provide EO! and depict the Icccnstruct~oh of the . intersectiOI! cfRobin W ODd Lane and Sth Street North as SRown in thc Preliminary Site Plan (Plan A). Dc vdopcr shall, at De" eloper's sck eXpellSG, ('()Iapkte. all wOlk alld ImrIo v cmc.nts requiI cd fO! the leColl~truction of such il(t'CISC:Gtioll, as pIC v ideJ ill the. final r lans. v-:-iii. Developer shall also complete all grading and landscaping work that is required to restore all public right-of-way and easement areas in conjunction with completion of any Public Improvements. vi:iv. All of the facilities and improvements recommended by the Traffic Study and described in Subparagraphs ii., iv. Zlhd v. of this Paragraph 6.G. shall be Public Improvements subject to all terms, covenants and conditions of this Agreement applicable to the Public Improvements. . c:llopcivil\CondUse<HH - 12 - . v. Developer shall not be required to perform anv traffic signal construction work as P.art of the Public Improvements. H. Demolition and Site Grading. The final Plans for the Project shall provide for and depict the demolition and removal of the existing Hopkins House Hotel facility and all related improvements ("Hopkins House") from the Real Property, with the exception of that part of the Hopkins House that is to be retained and remodeled in accordance with Conditional Use Permit, as approved by the Hopkins City Council for the demolition and reconstruction of the Hopkins House. Prior to issuance of a Building Permit for the Project, demolition ofthat part of the Hopkins House that is to be removed from the Real Property shall have been completed as well as all rough grading work and other work required to prepare the Real Property for construction of the Project and the remodeling and . reconstruction of the Hopkins House. I. Li!;htin~ Plan. (Intentionally Omitted.) J. Easements. The Developer shall grant to the City permanent utility and drainage, trail, sidewalk or other easements, if any, as lua) be Ieqmlcd shown on the Plans or the Plat for the establishment, use, repair or maintenance of any of the Public Improvements. K. Design Requirement. The final design and final Plans for the Project shall incorporate the design for the reconstructed Hopkins House depicted in the elevations for such reconstruction attached to this Agreement as Exhibit C. 7. Acceptance of Ownership of Public Improvements. Upon completion of construction of the Public Improvements, and final acceptance and approval of the Public . Improvements by the City, all of the Public Improvements located within or upon any public c:hopdvil\CondUse,HH - 13 - . easements, rights-of-way or City-owned land shall become the sole property of the City, and Developer shall transfer the Public Improvements to the City free and clear of all liens and encumbrances. At such time as the Public Improvements have been completed, Developer's Inspector, representatives of Developer's contractors, and a representative of Developer's Engineer will make a final inspection of the Public 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 Public Improvements to be submitted by Developer or its representatives to the contractor(s) responsible for completion of the Public Improvements to assure that the same are completed in accordance with the requirements of this Agreement. As a condition of its acceptance of title to any of the Public 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 Public Improvements. Before the City accepts title to the Public Improvements, the City Engineer shall be reasonably satisfied that all of the Public Improvements have been completed in accordance with the Plans and the requirements of this Agreement and that Developer has made payment in full for all of the work comprising the Public Improvements. Final acceptance of the Public Improvements by the City shall be evidenced by a resolution duly adopted by the City Council of the City. 8. Warranty. Developer warrants that all work comprising the Public Improvements shall be free from defective materials or faulty workmanship for a period of two (2) years after acceptance of the Public 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 c:hopcivil\CondUse< HH - 14 - . from the date of planting. All work and materials comprising the Public 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 reasonable out-of-pocket costs incurred by the City in connection with the preparation, negotiation and execution of this Agreement and the administration, performance and enforcement of this Agreement and the Conditional Use Permit. 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 Agreement, including, without limitation, traffic, development, fiscal, noise level consultants and third parties retained by the City, environmental, . geotechnical, surveying, engineering, inspections or legal services. Upon request by the City, Developer shall pay such reimbursements directly to the third party or consultant to whom such fees are due. Developer's failure to reimburse or pay such consultant and third-party fees within thirty (30) days of request for payment shall be in event of default under this Agreement. 10. On-Site Improvements. (Intentionally Omitted) 11. Other Governmental Approvals. Developer shall obtain, all required approvals and/or permits from the Minnesota Pollution Control Agency, Minnesota Department of Transportation, Hennepin County, the Nine Mile Creek and/or Minnehaha Creek Watershed Districts and any other governmental authorities whose approval is required for the construction of the Public Improvements or the Developer Improvements and operation of the Project on the Real Property. Developer shall maintain all such required permits and comply therewith at all times. . c:hopcivil\CondUse.HH - 15 - . 12. Time of Performance. Developer shall commence construction of the Public Improvements~ if any, within 3B 60 days of the date of tllis Aglccmcntjssuance of a buildin.,gpennit forthePrQie91 and substantially complete construction of all of the Public Improvements IN ithin 270 day 5 of conuncncen!cnt of construction.no later than December 31 , 2001. Developer acknowledges it has been advised that Subdivision 7 of Section 525.13 of the Hopkins City Code of Ordinances requires that Developer's use of the Project be in effect within one (1) year after the date of issuance of the Conditional Use Permit, subject to extension of such one (1) year period, in accordance with said Subdivision 7. 13. Compliance With Conditional Use Permit Requirements. Developer agrees that it shall complete the Public Improvements in compliance with this Agreement, the Conditional Use Permit and the provisions of the City's Code of Ordinances, including, but not limited to Hopkins . City Ordinance Section 525.13. The terms, conditions and restrictions established by this Agreement and the Conditional Use Permit 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 successor and assigns, and shall operate as a covenant passi.ng 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 terms, conditions and restrictions established by this Agreement are perpetual in duration, except as may be specifically otherwise provided in this Agreement. To the extent this Agreemc;:nt expresslj: provides for the future termination of any of its termsl conditions and restrictions or Developer's obligations hereunder,. such The-terms, conditions and restrictions or Developer's obli{tations established by this Agreement mayshalI, however, be terminated and released at any time, in whole . or in part, by the City by means of a written Release, in recordable form, duly executed by the City, c:ho])civi I\CondUse.flli - 16- ------ . within a reasonable time after deliven: of a written request for su~h Release from Developer. pIO vided that the City shall be undGr 110 obligation to release an} of stIch tell115, conditiom 01 restlictiolIS except tllat, uDpon satisfactory completion of the Public Improvementsin compliance with the requirements of this 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 Agreement applicable to construction of the Public Improvements-=.- 14. Security and Claims. To guaranty Developer's compliance with the terms of this Agreement, payment of the cost of all Public Improvements ,-if anx., and completion of construction thereof, Developer shall deliver to the City the following Letters of Credit~ cash and/or surety bond acceptable to and in favor of the City (the "Security") issued by a bank or surety reasonably acceptable to the City. The Security for the landscaping improvements comprising a part of the e Developer Improvements or the Public Improvements shall be delivered to the City before issuance of a Building Permit for the Project. 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. The Security for the Public Improvements shall be delivered to the City before commencement of construction of the Public Improvements or issuance of a permit by the City permitting commencement of such construction. The amount of such Security for the Public Improvements, other than landscaping improvements, shall equall 00 percent of the cost of such Public Improvements, as established by: i) the actual cost of completion of construction of such Public 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 c:hopcivillCondUse.llH - 17 - -------- . Engineer. The Security shall be conditioned upon Developer's completion of the Public 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 one (1) year after the date on which Developer has substantially completed the Public Improvements as certified by Developer's Inspector and delivered proof of payment therefore to the City (which latter date is herein referred to as the "Termination Date"). The Securitr may be reduced to fifty Qercent (50%) of its original amount immediately after the date on which DeveloQer has substantially com12leted the Public Improvem~nts as certified by DeveloQer's InsQector and deliver proof of payment therefor to the City. 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 above-reguired 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 Agreement and the City may draw upon or enforce the Security. The City may draw upon or enforce the Security for any violation of the terms of this Agreement which is not cured within ten (10) business days after written notice to the Developer.Qr, if the violation is of such a nature that it cannot reasonably be cured within ten (10) business days, such longer Qeriod of time as is necessarY to cure the violation Qrovided: il Developer is proceeding with all due diligence to cure the violation~and ii) the violation is cured no later than thirty (30) days before the eXQiration of the Securi!);:. If the Public Improvements are not completed by the dates for . their completion stated in Paragraph 12 of this Agreement, the City may also draw upon or enforce c:hopciYiI\CondU.. Jill - 18 - ---.. - -- . the Security. If the Security is drawn upon, the draw shall be used to cure the default (including completion of the Public Improvements by the City) and may also be used to payor reimburse the City for any cost, expenses or damages recoverable under Paragraph 15 of this Agreement. The Security, minus any amounts drawn thereon, shall be released to Developer on the Termination Date, provided: i) Developer is not in default in the performance of its obligations under this Agreement; and ii) the Security shall not be released on the Termination Date if a demand or proceeding is then pending to enforce the Security. I In the e~Gtlt the City leceives llotiec. of 01 dainls flom labolcl5, materialmch or othelS conttibuting to the Public Inlprovc.mcnt5 that an)' <imOUl.t5 Jlle theIn have not been paid when Jue, and 5ucl.laborer5, matelialmen 01 othCIS are 5eekihg pa)'n.ent out anIle SCGUliry OI intend to aS5eli daim5 against the Cit), the Public ImplOvemel1t5 Ot the Real PlOpert]' on ~hich the Public . In.plo~e.ments have be.w ih5talled, MId ifsue.h claim5 ale. Ilot fully IcsolvGd at least ninGty (90) days beforc the. Scemit)' will e.xpile, De.vdopGl hGlcb)' authotizC3 the City to COI{unenCe an IntCIplcadcr action pmsuantto Rule 22, Mim.e.5otaRulcs ofCi v H Ploeedme fOl thG District CaUl t5, to Jrclw upon the Se.clliity in Ml at110tl11t up to 125 pe.lceat o[t11" clain15 and depo5it tk OluOU1it 50 drawn ~itll tile District Court Adlllinistlatol in compliance ~ith said Rule 22, and, upon 5udl deposit, De. v dopel shall rdease, di5CIlaIge and dismiss the Cry. nom any furth"l ploGcedillg5 a5 it pe.liail1s to t1.c sums dGposited '\:'VitIl the Di5trict Court Admilli5tlatol, except that tile Court 5l.all retain jdlisdictioh to detclll1inc. attorney 5' fCG5. DeveloQer shall timely pay all valid claims of contractors, material sU.Qpliers and others contributin~ any labori material or services to the construction of the Public Improvements. 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 c :hopcivil\ConliU sc.HH - 19 - . failure to comply with the terms, covenants, conditions and requirements of this Agreement,1... including failure to timet:' pay nersons sUP12lying labor, material or services to the construction of the Public Im.Q.fovements. Notwithstanding any provision of this Agreement ap.narently to the contrary "- the City may- retain the Security~ and Developer shall extend the term thereof, until such time as Develo12er has provided the City with evidence reasonably acceQtable to th~ Ci!y that all laborers, materials suppliers and others contributing to the construction of the Public ImQrovements have been paid, in full. Develorrer's failure to so extend the Security at least thi[!y (30) days before its expiration shf!.ll be a default by DeveloJ?er entitling the City to draw upon or retain the full amount of the Security. In addition, the City shall be entitled to retain and draw upon the Security in the event Develoner fails to protect, indemnify and hold the City and its agents, representatives and ~mployees harmless from costs, damaEes and liabilities, including reasonable attorney's fees and . Court costs, as .vrovided above. 15. Enforcement of Agreement. The terms, conditions, requirements and restrictions established by this Agreement shall be enforceable exclusively by the City of Hopkins, Minnesota, 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 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 Public Improvements. B. All reasonable 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 . Agreement. c:hopcivil\CondUse.HH - 20- . c. All reasonable costs and expenses for engineering, legal and administrative expenses incurred by the City in enforcing Developer's perfonnance of this Agreement or the completion of construction of the Public Improvements. D. Any other remedy or sanction provided by Minnesota Statutes or the Ordinances of the City of Hopkins. Developer acknowledges that the rights of the City to enforce performance of the terms, conditions, requirements and restrictions established by this 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 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 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 Agreement. No remedy specified in this Agreement is intended to be exclusive, and each remedy shall be cumulative, and in addition to each and every other remedy. Failure ofthe City to enforce any ofthe terms, conditions and restrictions established by this Agreement in any particular instance shall in no event be deemed to be a \vaiver of the right to do so as to any subsequent violation. Developer agrees that Developer shall pay the City's reasonable attorneys' fees and expenses incurred in the enforcement of the terms, conditions and restrictions ofthis Agreement. 16. Notices. Any notice, request or other communication required or provided to be given under this Agreement shall be in writing and shall be deemed to be duly given when delivered personally to an officer of Developer or to the City Manager of the City or when mailed by first class . United States Mail, postage prepaid, addressed as follows: c:hopcivil\CondUse.HH - 21 - . To Developer: Hopkins Midwest Hotel Limited Partnershp Attention: c/o National Lodging Companies, Inc. 9855 West 78th Street, Suite 220 Eden Prairie, MN 55344 To City: City of Hopkins Attention: City Manager 1010 First Street South Hopkins, Minnesota 55343 i 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 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. Headin~s. The headings and captions at the beginnings of paragraphs of this Agreement are for convenience of reference only and shall not influence its construction. 19. Execution of Counterparts. This 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 Agreement shall be construed and enforced in accordance with the laws of the State of Minnesota. 21. Evidence of Title and Recordation of Conditional Use Permit. Prior to the execution of this Agreement, Developer shall provide the City with evidence of title to the Real Property, at Developer's expense, in the form of a current Title Opinion or Commitment for Owner's . Title Insurance showing fee title to all of the Real Property in the name of Developer. Developer c:hopcivil\CondUseJlli - 22- . shall cause this 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 that this Agreement and the Conditional Use Permit shall be filed for record as a restriction and encumbrance upon the title to the Real Property. i I IN WITNESS WHEREOF, Developer has executed this Agreement as of the date and year first above written. HOPKINS MIDWEST HOTEL LIMITED PARTNERSHIP By National Lodging Companies, Inc. General Partner By Its . STATE OF ) )SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2000, by , the ----~ , of National Lodging Companies, Inc., a Minnesota corporation the General Partner of Hop kills Midwest Hotel Limited Partnership, a limited partnership W1der the laws of Minnesota, on behalf of the corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Miller, Steiner & Curtiss, P.A. 400 Wells Fargo Bank Building 101 1 First Street South Hopkins, Minnesota 55343 . c:hopcivil\CondUse,HH - 23 - _.n . EXHIBIT A LEGAL DESCRIPTION OF REAL PROPERTY Lot 2, Block 1, Maggies Addition, according to the recorded plat thereof. . . c:hopcivil\CondUse.HH - 24- __.n_____ . EXHIBIT B PUBLIC IMPROVEMENTS Intentionally left blank . . c ;hopcivil\CondUse.HH - 25 - t':'fti Hennep!l1_CQ'ynty !!I~ii\ i~~ .,..)1; '(31: '.', ...1ri"p.. ,....,,~..M t. !;C., -....... .. . '" W'f ,t.' ~';';~$ . ,J{.i'i ( .~ ,,,:::r:. .~;;!~rl'..~?' 'r " ...~' ~~~. ?...~'1.;i '.~~:,...,J;...~.. . '",":'j.'!t;r",;::~:">YM:~ . . "'~H i, JI..--t-':'~'~:'i ..~. ~". '. ' '. . .;., . 1"' .l~~.1 0: . . ',{ . ...'"-', ii' .~... -. I~~f~~.~~~f:~ , 'r I ':. h/ September 28. 2000 Nancy S. ADderson. Planner City of Hopkins 1010 Firat Street South HopJcins. MN 55345.7573 Re: Proposed WalgrceIl! Redevelopment TH-7 / CSAH-73 - Northeast Quadrant Review of Preliminary Plat (County Review No. 2542) Dear Ms. Anderson: This prclimibuY plat review is performed in accordance with MiMcsota Statutes 505.02 and 50S.03, Plats and SUIVeyS. and MS 462.358, County Review of Plats. Besides the plat itself. this review is based on preliminay infonnation that W1.S transmitted in August by Landform Engineering, and the July 1811I traffic study perfonned by Benshoof Associates that was forwarded to the COtmty by Jim Kerrigan. Future improvements of CSAH.73 are being considered in this area. and SRF Consulting Group has prepared a proposed concept layout for the City of MiMetonka. A meeting was recently held on September 1St. with Hopkins. MiMctonka. MnlDOT and Hennepin County to consider this proposed improvement conccpt. MnIDOT is planning e:c upgrading 1lI.7 next year to improve the medians, turn lanes, and to remove some direct accesses similar to their ent improvements to the west on TH-1 in Minnetonka. Our primary comments concern the proposed access from this site to CSAH~73 and the need for additional right-of- way dedication to ac:commodate the proposed roadway improvements. . As you are aware, Herm.epin County is responsible for the iS5UaD.cc of entrance permits for access to CSAH.73. The proposed Walgreens redevelopment proposes the closure of the lH-7 frontage road access while retaining a nearby CSAH-73 acceS5. It is this access which necessitates a pennit from the county . As one examines thc CSAH-73 corridor between nIp 7 and so, Street North. one recoJDizes the potential for conflict as site redevelopment oceurs and site access occurs as proposed. Both MnIDOT and the county believe the removal of the '"no right turn on red" restriction for westbound TII-7 turns [0 northbound CSAH-73 would help ease congestion at and within the proximity of the htb.1~tion. The proposed distance between the intersection and site access may preclude res~ction rcnlOval. A second impact of site access along CSAH-73 as proposed is the conflict which occurs as left turning vehicles enter and exit the site. The left t1mLing movements will be especially difficult during the rush hours. It is with these circumstances in mind that the county has established access SPacinl &Uidelines. Not lurpr1sina1y, the proposed site access does not meet the minimum auidelines for luch access. Refenina to the agency meeting of September 1811I, a MnlDOT representative indicated to the parties that the introduction of the proposed Walgreens site access via CSAH-73 may be cause for it (MnIDOT) to withhold significant funding from the proposed TIl-7 / CSAH-73 improvements offered by SRF . Consulting Group. The county Transportation Deparbnent stdf considers the proposed TI{- 71 CSAH.73 to be of benefit to many. and the potential loss of ftmding from 8 project whose budget is already suspect causes county staff concern. r.....,_ HIM D....- .. 1600 PIIid8 DIM ~/''P'' MIICIna, MN ~)u1 (612) 76-7500 ,AX: ('12) "I-4OQO TDD: (612) as:2~760 Whde county staff prefers no acc~ss be provided to CSAH~73 for the reasons identified. it will issue an entrance permit with the understanding that; 1. Access will be limited to right-in I right-out. This will eliminate (or at least reduce) the left . turning conflicts into and from the site, thus improving safety along CSAH-73. 2. IfMnlDOT withholds any funding for the TH-7 I CSAH~73 intersection improvements because of access, Hennepin County will not finance any portion of the withheld amount. 3. The proposed TII~7 I CSAH-73 improvement is important to a nwnber of parties. The right-of- way need along CSAH-73, as described below, is essential to the success of the improvement and futm-e improvements. . It 1S recommended that an additional 17 feet of right-of-way. be dedicated to provide a 50-foot half section in accordance with county guidelines for an urban 4-1ane divided roadway. CSAH-73 is designated as part of the county bicycle system and acconunodations for bicycles will need to be discussed as part of the concept layout. We are not aware if Hopkins has any pedes1rian or bicycle systems defined in this area, our files do not contain an updated Comprehensive Plan nor a trail I sidewalk plan. . All proposed construction within county right-of~way requires an approved Hennepin County permit prior to beginning construction. This includes, but is not limited to. access, drainage and utility construction. trail development, and landscaping. The Pennits Section should be contacted at (763) 745- 760 1 for the appropriate permit forms. . The developer must restore all areas within the COWlty right-of-way that are disturbed dwing construction. . Questions rcgardin~ these comments can be directed to Dave Zetterstrom at (763) 745-7643 or Bob Byers (763) 745~ 7633. We remind you that recent changes in state stanrtes MS 462.358 now requires that the city submit to the county a notice of its approval of this plat, along with a statement addressing the disposition of the comments and recormnendations made in this letter. Sincerely, ~/?~ James N. Gube, P.E. Director, Tramportation Department JNG:rhb c: Steve Stadler, Hopldnl Oir. of Public Works Plu R.eview Committee - Byers , Johns(jn , Lin4grcn , Moc , SIMek.' Zcttcmrom pere TuIW . Hennepin Counry Surveyors 00" Paul TobJdn ~ HenJlepln COUJIty Permits Office hut Czcck - MnIDOT Pill Review Office . - TOTfl. P.03 -->.:.:...-