Loading...
CR 2000-172 Conditional Use Permit Agreement- Semper Development . CITY OF ~ HOPKINS . November 1,2000 Council Report 2000-172 CONDITIONAL USE PERMIT AGREEMENT - SEMPER DEVELOPMENT Proposed Action. Staff recommends the following motion: Move to approve the conditional use permit agreement to construct a Walgreens. Overview. As part of the conditional use permit approval for the construction of the Walgreens, Semper Development is 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 of the conditional use permit agreement and the final plat are the final actions that are necessary for Semper . Development to proceed with this project. National Lodging was also required to sign a conditional use permit agreement. 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? . Are there changes with the development? SUDDortine Documents. . Agreement . Memo from Jeremy Steiner Nancy . Anderson, AICP Planner Financial Impact: $ N/A Budgeted: Y/N Source: - Related Documents (eIP, ERP, etc.): Notes: . CR2000-172 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: . Description of the public improvements Semper will complete . The construction standards and procedures for the public improvements . Reciprocal access easements . County Road 73 access . Submission of a storm water management plan . Parking easements . Road and traffic improvements . Site demolition and site grading . Acceptance and warranty of public improvements by the City . Reimbursement of costs to the city from this development . Timetable for the performance of the public improvements . Compliance with conditional use permit requirements . Are there changes with the development? . There are no changes to the site plan, but there is a change in the plat. The applicant will be dedicating an additional 17 feet of right-of-way on County Road 73. This will not affect the site plan. The county, when reviewing the plat, recommended closing the access from County Road 73. The county has allowed this access, but if MNIDOT withholds any funding for the intersection improvements, the county will not finance any portion of the withheld amount. The staff has estimated this amount at approximately $50,000. The agreement with Semper provides that Semper will pay up to $50,000 to the City when the intersection is improved. The agreement allows for the fee to be assessed. Alternatives. 1. Recommend approval of the conditional use permit agreement. By approving the conditional use permit agreement, Semper Development will be able to construct the Walgreens as proposed. 2. Recommend denial of the conditional use permit agreement. By denying the conditional use permit agreement, Semper Development will not be able to construct the Walgreens 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. PROFESSIONAL ASSOCIA nON ATTORNEYS AT LA W JERRE A. MILLER 400 WELLS FARGO BANK BUILDING JEREMY S. STEINER* 10 11 FIRST STREET SOUTH WYNN CURTISS HOPKINS, MINNESOTA 55343 "'Real Property Law Specii1lisl, certified 952-938-7635 by Ihe ~iinne5ota State Bar Associ auon FAX 952-938-7670 MEMORANDUM DATE: October 17,2000 TO: James Kerrigan, Director of Planning Steven Stadler, Public Wor,Director Nancy Anderson, Planner FROM: Jeremy Steiner 1/5> RE: Conditional Use Permit Agreements for Hopkins House and Walgreens . Projects at State Highway 7 and County Road 73 The purpose of this memo is to summarize the substantive provisions of the Conditional Use Permit Agreements to be executed by W H Investments LLC ("W H Investments") and Hopkins Midwest Hotel Limited Partnership ("Hopkins Midwest") documenting the terms and conditions under which the property in the northeast quadrant of the intersection of State Highway 7 and Hennepin County Road 73 will be redeveloped by the construction of a new Walgreens store ("Walgreens Project") and the partial demolition and reconstruction of the Hopkins I-louse Hotel ("Hopkins House Project"). CUP AGREEMENT FOR W ALGREENS PROJECT The proposed CUP Agreement for the Walgreen Project ("Walgreens CUP Agreement") states the terms and conditions under which the City has approved and will issue a Conditional Use Permit for the Walgreens Project. The following are the substantive terms and conditions of the Walgreens CUP Agreement: 1. Paragraphs I through 3 of the Walgreens CUP Agreement require W H Investments to complete all "Public Improvements" and "Developer Improvements" according to the plans previously submitted to and approved by the City. Those plans are listed at Page 4 of the Walgreens CUP Agreement. . c :\fi le\hopcivil\kerrigan3 .mem 1 . 4. Subparagraph 2.B., at Page 3 of the Walgreens CUP Agreement, defines the "Developer Improvements, as all ofthe facilities and improvements constituting a part ofthe Walgreens Project, excluding only the Public Improvements." This subparagraph requires W H Investments to construct the Walgreens Project in accordance with the plans previously approved by the City. 5. Paragraph 6 ofthe Walgreens CUP Agreement also lists specific conditions applicable to the construction ofthe Developer Improvements included in the Walgreens Project. Referencing the Subparagraphs of Paragraph 6, those conditions are: Subparagraph 6.A. This subparagraph requires W H Investments to replat the site into two lots, one which will be occupied by the Walgreens Project and the other by the Hopkins House Project. W H Investments is to pay a $34,104.00 park dedication fee as a condition of approval of the plat. Hopkins Midwest will also pay a separate park dedication fee of $23,394.00. Subparagraph 6.B. This subparagraph requires W H Investments to comply with all of the conditions placed on the irregular lot variance approved by the City Council. Subparagraph 6.C. This subparagraph requires W H Investments to enter into a reciprocal easement agreement with Hopkins Midwest establishing reciprocal access easements for both . Projects for access to Robinwood Lane and 5lh Street North, as shown on the Plans for the Projects. Subparagraph 6.F.1) and ii). These subparagraphs require W H Investments to enter into parking and access easement agreements with the owner of the adjacent property occupied by the White Wolf and MOM Liquor store facilities, and with Hopkins Midwest allowing for the shared use of the parking facilities and driveway access between all three properties. These parking and access agreements are to be reviewed and approved by City staff and the City Attorney to confirm compliance with parking requirements of the Hopkins Zoning Ordinance. Subparagraph 6.0.1). The Developer Improvements for the Walgreens Facility are to incorporate the parking and access recommendations of the Benshoof Traffic Study. Subparagraph 6.H. This subparagraph requires W H Investments to complete the demolition and removal of that part of the improvement for the existing Hopkins House facility that are located on the land on which the Walgreens Project will be located. The Hopkins House CUP Agreement contains a similar provision requiring that demolition and removal of the existing Hopkins House facility be completed by Hopkins Midwest, with the exception of that part of the facility that is to be remodeled and will continue in operation. All demolition is to be completed before building penn its will be issued for the Walgreens Project or reconstruction of the Hopkins House Project. . 6. Paragraphs 7-21 of the Walgreens CUP Agreement contain provisions similar to those in previous CUP Agreements approved by the City Council relating to construction standards for "Public Improvements", construction warranties, the Developer's obligation to reimburse c: \fi Ie \hopcivi I\kerri gan3. mem 3 . 2. The majority of the "Public Improvements" to be completed as part of the overall redevelopment project are the responsibility of W H Investments, and are detailed in Paragraph 6 of the Walgreens CUP Agreement. Referencing the subparagraphs of Paragraph 6, those Public Improvements are: Subparagraph 6.D. This subparagraph states that W H Investments has obtained approval for Hennepin County to construct a "right in/right out" access to Hennepin County Road 73 in the approximate location ofthe existing access for the abandoned gasoline station. A copy of the letter from the Hennepin County Transportation Department approving the access permit to County Road 73 is attached to the Walgreens CUP Agreement as Exhibit C. W H Investments is required to comply with all of the terms and conditions stated in the approval letter from the County. In addition, should MN DOT withhold or reducing funding for the future reconstruction orthe intersection of State Highway 7 and County Road 73 because the access point to County Road 73 is to be maintained by Walgreens in it's present location, W H Investments and Hopkins Midwest have agreed to reimburse the City for this reduced funding, up to a maximum amount of $50,000.00. W H Investments has agreed to assume responsibility for 50% of this reimbursement, and Hopkins Midwest has assumed responsibility for the remaining 50%. Both CUP Agreements provide that, at such time as the actual amount of the loss of funding from IvfN DOT has been determined, the City will specially assess the reimbursement obligations against both the Walgreens Project and the Hopkins House Project, with interest at 8% per year. . Subparagraph 6.G. This subparagraph requires W H Investments to comply with certain recommendations of the traffic study from Benshoof & Associates, dated July 18, 2000. Paragraph ii) at Page 10 of the Walgreens CUP Agreement, requires W H Investments to remove the north service. road of State Highway 7 in the area immediately south of the Walgreens Project. which is located within a City-owned right-of-way. W H Investments will then install landscaping improvements in accordance with the landscaping Plan approved by the City. The City will retain ownership ofthe north service road right-of-way, and the right to remove the landscaping improvements and return the north service road area to public road use in the future. Subparagraph 6.G.iii). This subparagraph, at Page 11 of the Walgreens CUP Agreement, requires W H Investments to reconstruct the intersection of Robinwood Lane and the north service road of State Highway 7, immediately east of the abandoned north service road. Subparagraph 6.G.iv) This subparagraph requires W H Investments to remove the existing access point to State Highway 7, which is located east of the intersection of Robin wood Lane and the north service road. Subparagraph 6.G.Y). This subparagraph requires W H Investments to restore all public right-of-way and easement areas disturbed as a result of construction activities for the . Walgreens Project. 3. Paragraph 12 of the Walgreens CUP Agreement requires W H Investments to begin construction of the Public Improvements within 60 days after issuance of a building permit for the Walgreens Project and to complete construction no later than December 31,2001. c: \fiIe \hopcivi l\kerrigan3. mem 2 . the City for out-of-pocket costs, letter of credit or other security requirements and the remedies available to the City upon a default by the Developer. HOPKINS HOUSE CUP AGREEMENT The proposed CUP Agreement for the Hopkins House Project ("Hopkins House CUP Agreement") states the terms and conditions applicable to the Hopkins House Project. The following is an outline ofthose provisions ofthe Hopkins CUP Agreement that differ from the Walgreens CUP Agreement: 7. Virtually all of the "Public Improvements" to be completed as part of this redevelopment project are to be completed by W H Investments as part of the Walgreens Project. The Hopkins House CUP Agreement deals almost exclusively with requirements for the private Developer Improvements for the Hopkins House Project. 8. Subparagraph 6.F. at Page lOaf the Hopkins House CUP Agreement, requires Hopkins Midwest to provide the City, prior to issuance of a Building Permit, with written evidence acceptable to the City demonstrating that Hopkins Midwest has "obtained unconditional and immediately available financing or cash in amounts sufficicnt to complete (the Hopkins House Project). 9. Subparagraph 6.G.ii), at Page 11, requires Hopkins Midwest to transfer additional right-of- . way area to the City located north of 5th Street North at the intersection of County Road 73, approximately 12 feet in width, as needed to accommodate the future construction of a right turn lane at this intersection. 10. Subparagraph 6.K., at Page 13, states that the final design for the Hopkins House must incorporate the exterior elevations design for the reconstructed Hopkins House to be attached to the Agreement as Exhibit D. This is to be the exterior elevation design that has previously been submitted to the City Council in connection with Hopkins Midwest's application for a conditional use permit. 11. The remaining terms and conditions of the Hopkins House CUP Agreement are essentially the same as the provisions of the Walgreens CUP Agreement. JSS JW Ene. . c :\filc\hopcivil\kerriganJ. mem 4 . Miller, Steiner & Curtiss, P.A. Draft 10/17/00 CONDnnONALUSEPERNUTAGREEMENT This Conditional Use Pennit Agreement (this "Agreement") is made and executed this day of , 2000, by W H Investments LLC a Delaware limited liability company ("Developerll), in favor of and for the benefit of the City of Hopkins, Minnesota ("Cityll). . RECITALS 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 Propertyll . B. Developer applied to the City for a Conditional Use Permit to construct and operate a retail drug store 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. 2000-55 approving Conditional Use Permit No. CUP 00-3 ("Conditional Use Permit") for the construction of the Project on the Real Property, subject to the terms, conditions and restrictions stated in this . Agreement, Resolution No. 2000-55 and in the Conditional Use Permit. As a condition of the c:hopcivil\CondUse.Semper . 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 of this 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. 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 Project 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 of Imorovements. As a condition of approval of the Conditional Use Permit, Developer has agreed to construct the "Public Improvements" (hereinafter defined). The terms, covenants, conditions, restrictions and agreements stated in this Agreement shall apply both to the construction of said Public Improvements and to the construction, occupancy, use and . c:hopcivil\CondUoe.Semper -2- . 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 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 Site Plan (Sheets ) prepared by Landform Engineering Company, dated August 7, 2000. Plan B Landscaping Plan prepared by Landform Engineering Company, dated August 7,2000. . Plan C Grading and Erosion Control Plan prepared by Landform Engineering Company, dated August 7,2000. Plan D Utility Plan prepared by Landform Engineering Company, dated August 7, 2000. Plan E. The Storm Water Management Plan described in Paragraph 6.E. of this Agreement. Plan F Drainage Plan prepared by Landform Engineering Company, dated August 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 hnprovements shall be constructed and installed in accordance with City standards, codes, . regulations and ordinances. All Plans and specifications for the Public Improvements shall be c:hopcivil\CondUse. Semper -4- . development of all of the other facilities and improvements constituting a part of the Project as described herein and required hereby. A. Public Imorovements. Developer shall construct, install and pay for all of the facilities and improvements, if any, described in Exhibit B hereto and in Subparagraphs 6. G., ii., iii, iv. and v. of this Agreement, which facilities and improvements, are herein collectively referred to as the "Public Improvements. II 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 of the other terms of this Agreement. Developers 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 . which are hereinafter collectively referred to as the "Plansll. The Plans shall not be attached to this c:hopciviIICondUse. Semper - 3 - .-- - --- . 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 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 Developer1s 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 ofDeveloper1s 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:hopcivilICondUse.Sernper - 5 - . i. Digital Files in Microstation DGN Fonnat in NAD 83 Hennepin County Ground Coordinates. ii. All Cell Libraries and Line Styles shall be included. iii. 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 shaU terminate upon the latter of: i) the date of final acceptance ofthe 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. Plattine:. 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 of a 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 Minnesota, 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 $34, 104.00 (amount for Real Property only) shall be paid . to the City, as required by Section 500.75 of the Hopkins City Code. c:hopcivil\CondUsc. Semper - 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 satisfY all terms, conditions and requirements of the irregular lot variance for Lot 1, Block 1, of the Plat. c. Reciorocal Access 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 a Reciprocal Easement Agreement with Hopkins Midwest Hotel Limited Partnership ("Hopkins Midwest"), the owner of Lot 2, Block 1, of the Plat ("Lot 2") establishing reciprocal easements over the Real Property and Lot 2 and 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. D. County Road 73 Access. Reference is made to the "right in/right out" access to Hennepin County Road 73 ("County Road 73 Access"), which is to be completed as part of the Public Improvements and is depicted in the Plans. Pursuant to a letter, dated September 28, 2000, from the Hennepin County Transportation Department attached to this Agreement as Exhibit C, Hennepin County will issue an entrance permit for the County Road 73 Access, upon the terms and conditions stated in Exhibit C. Developer shall comply with all of the terms and conditions stated in Exhibit C, and shall also dedicate the additional 17 feet of right-of-way for County Road 73 recommended thereby. Further, in the event the State of Minnesota Department 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 Access, Developer c:hopoivil\CondUse.Semper -7- . shall reimburse the City for the amount of MN DOT funding withheld or reduced, up to a maximum reimbursement amount of % 50% of Fifty Thousand Dollars [ ($50,000.00). At such time as the amount of the reduction or withholding offunds from MN DOT has been determined, the City shall notifY Developer of the amount of reimbursement to the City, and Developer shall pay sueh reimbursement to the City '.vithin thirty (30) days of deli'/ery of such notice. If Developer fails to pay SUC.fl reimbursement to the City within said thirty (30) day period, the City shall be entitled to assess the full amount of such reimbursement, together with interest thereon at a rate not to exceed eight percent (8%) per annum, against the Project R~a.l..Pf.Qp.~rJy.as a special assessment pursuant to Minn. Stat. I Chapter 429, and Developer hereby waives all rights notice of such assessment, objection to the assessment or the amount to be assessed and any rights to appeal such assessment. . Developer acknowledges that Developer and the Real Property shall receive a benefit as a result of the approval of the County Road 73 Access equal to or greater than the amount of the reimbursement due to the City under this Paragraph 6D. E. Storm Water Mana2:ement 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 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 c:hopciviJlCondUse. Semper - 8 - . improvements to be constructed 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. Parkine: Easements. Prior to execution of the Plat by the City or issuance of a building permit for the Project, Developer shall have entered into the following parking easements: i) A Parking and Access Easement Agreement with the owner of the adjacent commercial property ("Adjacent Property") located in the southeast quadrant of the intersection of 17th Avenue North and Fifth Street North (the so-called "White Wolf Property"). 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, 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 Easement Agreement will be recorded by Developer as an encumbrance against the title to the Real Property. ii) A Reciprocal Parking Easement (which may be incorporated in the Parking And Access Easement referred to in Subparagraph i), above) between Developer and Hopkins Midwest which shall provide for shared use of parking facilities between the project and Lot 2, and shall be subject to approval by City Staff and the City Attorney, including confirmation that parking for the Project and the hotel facility to . be operated by Hopkins Midwest on Lot 2 shall comply with parking requirements of c:hopcivil\CondUse.Semper -9- . the Hopkins City Code. Such Reciprocal Parking Agreement will be recorded by Developer as an encumbrance against the title to the Real Property. G. Road and Traffic ImDrovements. 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. Developer shall also complete, at Developer's sole expense, all of the roadway, intersection and other traffic improvements. sidewalks and trails recommended by the Traffic Study that are described in this Agreement, including work and improvements located on City-owned right of way that is not part of the Real Property all of which is shown on the Plans or is described in the Traffic Study. 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 Notes A and B 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 Notes A and B in Figure 4 of the Traffic Study. ii. The final Plans shall provide for and depict the removal of road improvements within the north service road of State Highway 7 as shown on the Preliminary Site Plan (plan A). Developer shall, at Developer's sole expense, remove all curbs, pavement and other street improvements within that part of the right of way for the north service road of State Highway 7 as depicted in the final plans, and shall otherwise complete all work and improvements shown in the Plans. The final Landscaping Plan (plan B) . for the Project shall include and depict landscaping improvements to be installed c:hopcivil\CondUse.Semper - 10- . within the right of way of the north service road of State Highway 7 following the removal of road improvements, all at Developer's sole expense. The location, design and selection of landscaping improvements to be installed by Developer shall be subject to final approval by the City. The City shall not vacate any part of the North Service Road of State Highway 7, and any use thereof by Developer shall be permissive and shall establish no right, title or interest in Developer other than those rights established by the License And Use Agreement referred to below. Prior to issuance of a Building Permit for the Project, the Developer and the City shall have entered into a License and Use Agreement, on terms and conditions acceptable to the City, which shall require and allow Developer to maintain the landscaping improvements to be installed in the right of way of the north service road, but shall . allow the City to enter such right of way and remove landscaping improvements, in the City's discretion. The License and Use Agreement shall, however, provide that, in the event the City removes landscaping from the right of way area, the City may not require Developer to replace such removed landscaping with new landscaping to be installed on the Real Property. iii. The final Plans for the Project shall provide for and depict the reconstruction of the intersection of Robinwood Lane and the north service road of State Highway 7 as depicted in the Preliminary Site Plan (plan A). Developer shall, at Developer's sole expense, complete all work and improvements required for the reconstruction of such intersection, as provided in the final Plans. iv. The final Plans shall also provide for and depict removal of the access to State . Highway 7 located east of Robinwood Lane. Developer shall, at Developer's sole c:bopcivilICondUse. Semper - 11 - . expense, complete all work and improvements required for the removal of such access and restoration of any public right of way areas. Prior to performing such work or improvements, Developer shall obtain any necessary approvals from the State of Minnesota, Department of Transportation. v. 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. All of the facilities and improvements recommended by the Traffic Study and described in Subparagraphs ii., iii., iv. and 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. . Vll. Developer shall not be required to perform any traffic signal construction work as part of the Public Improvements. H. Demolition and Site Gradin2. 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 No. CUP 00-4, 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 of that 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. c:hopcivil\CondU"" Semper - 12- . I. Lie:htine: Plan. (Intentionally Omitted). J. Easements. The Developer shall grant to the City permanent utility and drainage, trail, sidewalk or other easements, if any, as shown on the Plans or the Plat for the establishment, use, repair or maintenance of any of the Public Improvements. 7. Acceotance of Ownershio 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 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 IS 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 oftide 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 c:hopcivil\CondUse.Semper - 13 - . 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 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 of landscaping 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 and delivery of itemized invoices, 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) c:hopcivil\CondUse.Semper - 14- . 11. Other Governmental Annrovals. 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 ofthe Project on the Real Property. Developer shall maintain aU such required permits and comply therewith at all times. 12. Time of Performance. Developer shall commence construction of the Public Improvements within 60 days of the date of issuance of a building permit for the Project and substantially complete construction of all of the Public Improvements 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 Developers 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. Comnliance With Conditional Use Permit Reauirements. Developer agrees that it shall complete the Public Improvements in compliance with this Agreement, the Conditional Use Permit and the provisions of the CitYs 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 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 terms, conditions . and restrictions established by this Agreement are perpetual in duration, except as may be specifically c:hopcivil\CondUse.Semper - 15 - . otherwise provided in this Agreement. To the extent this Agreement expressly provides for the future termination of any of its terms, conditions and restrictions or Developer's obligations hereunder, such terms, conditions and restrictions or Developer's obligations established by this Agreement shall, however, be terminated and released at any time, in whole or in part, by the City by means of a written Release, in recordable fonn, duly executed by the City, within a reasonable time after delivery of a written request for such Release from Developer. Upon satisfactory completion of the Public Improvements in compliance with the requirements of this Agreement, the City shall execute and deliver to Developer a certificate, in recordable form, certitying as to Developer's compliance with the provisions of this Agreement applicable to construction of the Public Improvements. 14. Securitv and Claims. To guaranty Developer's compliance with the terms of this . Agreement, payment of the cost of all Public Improvements 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, provided the City agrees that a Letter of Credit issued by BNC Bank shall be acceptable to the City. The Security for the landscaping improvements comprising a part of the 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 equal 100 percent c:bopcivil\CondU.c. Semper - 16- . 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 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 I1Termination Dat~I1). The Security may be reduced to fifty percent (50%) . of its original amount immediately after the date on which Developer has substantially completed the Public Improvements as certified by Developer's Inspector and deliver proof of payment therefor to the City. Thereafter, no later than thirty (30) days before the expiration ofthe Security, Developer shall deliver to the City original written evidence, in form reasonably acceptable to the City, extending the term of the above-required 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 or, if the violation is of such a nature that it catlllot reasonably be cured within ten (10) business days, such longer period of time . as is necessary to cure the violation provided: i) Developer is proceeding with all due diligence to c:hopcivillCondUse.Semper - 17- . cure the violation~ and ii) the violation is cured no later than thirty (30) days before the expiration of the Security. 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 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. Developer shall timely pay all valid claims of contractors, material suppliers and others contributing any labor, 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 failure to comply with the terms, covenants, conditions and requirements of this Agreement, including failure to timely pay persons supplying labor, material or services to the construction of the Public Improvements. Notwithstanding any provision of this Agreement apparently to the contrary, the City may retain the Security, and Developer shall extend the term thereof, until such time as Developer has provided the City with evidence reasonably acceptable to the City that all laborers, materials suppliers and others contributing to the construction of the Public Improvements have been paid, in full, Developer's failure to so extend the Security at least thirty (30) days before its expiration shall be a default by Developer 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 Developer fails to protect, c:hopcivil\CondUse.Semper - 18 - . indemnify and hold the City and its agents, representatives and employees harmless from costs, damages and liabilities, including reasonable attorney's fees and Court costs, as provided above. 15. Enforcement of A2reement. 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. All reasonable costs and expenses for engineering, legal and administrative expenses incurred by the City in enforcing Developer's performance ofthis 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 c:hopciviIICondUsc. Semper - 19- . 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 of the City to enforce any of the terms, conditions and restrictions established by this 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' fees and expenses incurred in the enforcement of the terms, conditions and restrictions of this 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: . To Developer: WH Investments LLC 1000 Rand Tower 527 Marquette Avenue Minneapolis, MN 55402 To City: City of Hopkins Attention: City Manager 1010 First Street South Hopkins, Minnesota 55343 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. . c:hopcivil\CondUsc.Sernper - 20- ---- . 17. Severa bilitv. 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. Headinl!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 ofa 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 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. 22. Estoppel Certificates. The City shall, upon no more than twenty (20) days written r~.IJ~~t..t.b~r~f.QJ:_frQm..P~.Y.~J.QP~L._~~~Glll~_.@d.._d~.liY~r..JQ._P~y~lQP.~r.~_~.~n..ifiqJ,t~__~t.~ti'pg;._~1_t.Q_lh~_.bg~J of the City's knowledge. whether Developer is in default in the performance of its obligations under t.bj.~.Agr.~~m~nt.J1JJ,d...jfJ;~Q1jd~QJ.ifying_~.IJ.Gh.Jkf~.IJ.lt.blJb.~t.Jbi.$..Agr.~~.nwn1..i!?jD..fuH.f<;m;:.~__Md..~.ff~~t . and identifYing any amendments to this Agreement as of the date of such certificate; and c) identifYing c:hopcivil\CondU..,.S"""",. - 21 - . tltQ.~~._MQd~f.1:_~g~~.lj@.mti~~..@.d._Qblig~t.iQD.~._Qf.Q~YelQp.~r.JJ_mf.~.Jbi~_.Agr~~m.c~mt_tb~t..b~Ye..be.en.fy.lly satisfied, performed or completed. In no event shall the City or any of its officials, agents or ~mpIQy.~e_s.,..b~y.e.J~QYJnQ.o..~t~r.y..u.~bUity.fQr..f~ilP.r~JQ..PJmid~_.~_lJ.~h.~..~.e[tH:J~~le>-..p'QLSb~lJ.Jhe.. q1Y.~.s. failure to provide such a certificate in any way alter delay or modifY Developer's obligations under tm~.Agr_e~me.ot..Qr.~Ie.~t~_.~y.._G_QY:D:teI~I~.~mnQI.~etQJf.i.o_.f~YQr._QfPe.YeIQp.~L IN WITNESS WHEREOF, Developer has executed this Agreement as of the date and year first above written. WH INVESTMENTS LLC By Its . STATE OF ) )SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2000, by , the , of W H Investments LLC, a Delaware limited liability company under the laws of , on behalf of the company. Notary Public TIllS INSTRUMENT WAS DRAFTED BY: Miller, Steiner & Curtiss, P.A. 400 Wells Fargo Bank Building 10 11 First Street South Hopkins, Minnesota 55343 . e:hopcivil\CondUse. Semper - 22- . . EXHIBIT A LEGAL DESCRIPTION OF REAL PROPERTY Lot 1> Block 1, and Outlot A, Maggies Addition, according to the recorded plat thereof . . c:hopcivil\CondUse. Semper - 23 - . EXHmIT B PUBLIC IMPROVEMENTS Intentionally left blank . . c;hopcivit\CondUse. Semper - 24-