HomeMy WebLinkAbout6.l. Transfer of Rottlund Homes’ PUD and Subdivision Agreement to M/I Homes of Minneapolis, LLC1 5 ROSEMO LINT EXECUTIVE SUMMARY
CITY COUNCIL
City Council Meeting Date: September 20, 2011
AGENDA ITEM: Transfer of Rottlund Homes' PUD and
Subdivision Agreement to M/1 Homes of
AGENDA SECTION:
Minneapolis, LLC
Consent
PREPARED BY: Eric Zweber, Senior Planner
AGENDA NO.
ATTACHMENTS: Estoppel Certificate and Consent
APPROVED BY:
Motion to authorize the Mayor and City Clerk to execute and deliver the Estoppel
Certificate and Consent to M/1 Homes of Minneapolis, LLC.
ISSUE
Rottlund Company, Inc is selling the Harmony Development`to M/I Homes of Minneapolis, LLC.
M/I Homes is a residential developer that works in the Midwest, the East Coast, and the South, but
does not currently operate in Minnesota. To transfer this subdivision and maintain the same
regulations and responsibilities, M/I Homes is asking for an estoppel certificate and consent to
transfer the PUD and Subdivision Agreement to M/I Homes and that City certifies that Rottlund is
up to date in their obligations within Harmony. Engineering and Community Development staff has
reviewed the status of the Harmony development and the City Attorney has reviewed the estoppel and
confirmed that there is no outstanding issue with the Harmony development.
RECOMMENDATION
Staff recommends that the Mayor and City Clerk execute 'and deliver the estoppel certificate and
consent.
ESTOPPEL CERTIFICATE AND CONSENT
To: M/I Homes of Minneapolis, LLC
Three Easton Oval
Suite 500
Columbus, Ohio 43219 -6011
Attn: J. Thomas Mason
Re: Subdivision Agreement (Harmony 5 1h Addition) dated July 15, 2008 filed of record on October 6,
2008 as Document No. 2616359 and Subdivision Agreement (Pickens Property) dated July 15,
2008 filed of record on October 6, 2008, as Document No. 2616356, both by and between The
Rottlund Company, Inc., a Minnesota corporation ( "Rottlund ") and the City of Rosemount, a
Minnesota municipal corporation ( "City ") (collectively referred to as, "Agreements "), copies of
which are attached hereto as Exhibit A and the Planned Unit Development Agreement dated
September 27, 2004; as amended by an amendment dated February 19, 2008; as amended by an
amendment dated July 15, 2008; as amended by an amendment dated March 18, 2009; as
amended by an amendment dated September 15, 2009; as amended by an amendment dated
September 15, 2009; as amended by an amendment dated February 16, 2010; as amended by an
amendment dated March 2, 2010; as amended by an amendment dated November 1, 2010
(collectively referred to as, "PUDs "), copies of which are attached hereto as Exhibit B.
Rottlund is the contract developer under the Agreements for the development of certain real property
described therein. Rottlund is considering the transfer and sale of substantially all of its assets, including
its rights under the Agreements, to M/I Homes of Minneapolis, LLC, a Delaware limited liability
company ( "M /1 "), and an affiliate of M/I Homes, Inc., a public homebuilding company. By its execution
of this Estoppel Certificate and Consent (referred to as "Estoppel Certificate ") and in consideration of the
sum of Ten and NO /100 Dollars ($10.00) and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the City, hereby represents, warrants, consents, and agrees
to the following:
1. The Agreements are presently in full force and effect according to their terms; the
Agreements have not been terminated or assigned. Except as described above, the
Agreements have not been amended or modified in any way and there are no other
written or oral agreements among the parties to the Agreements relating to the
Agreements or the easements, rights, and obligations they create.
2. To the best of the City's knowledge: neither the City nor Rottlund is currently in default
under any of the conditions, provisions or agreements of the Agreements, no event
has occurred or conditions exist which with the giving of notice or passage of time would
constitute a default under the Agreements, and the undersigned has no offsets, claims or
defenses against Rottlund.
3. The PUDs are presently in full force and effect according to their terms; the PUDs have
not been terminated or assigned. Except as described above, the PUDs have not been
amended or modified in any way and there are no other written or oral agreements among
the parties to the PUDs relating to the PUDs or the easements, rights, and obligations
they create.
4. To the best of the City's knowledge: neither the City nor Rottlund is currently in default
under any of the terms, conditions, provisions or agreements of the PUDs, no event has
392030 CLL RS220 -182
occurred or conditions exist which with the giving of notice or passage of time would
constitute a default under the PUDs, and the undersigned has no offsets, claims or
defenses against Rottlund.=
5. Upon the transfer and sale of substantially all of Rottlund's assets to M/I as referred to
above, and upon the assumption of M/I Homes of the obligations of Rottlund under the
Agreements to be performed after such transfer, the undersigned hereby consents to the
assignment of the Agreements and releases Rottlund from any and all further liability
under the Agreements.
6. Effective from and after the date of the sale of substantially all of Rottlund's assets to M/I
Homes, M/I Homes will enjoy the rights and benefits of Rottlund under the Agreements.
7. The individual signing this Estoppel Certificate represents and warrants that he /she is
duly authorized to sign this Estoppel Certificate and bind the City.
[Signature page to follow]
392030 CLL RS220 -182
2
Dated: , 2011 The City of Rosemount,
a Minnesota municipal corporation
LO
Dated: , 2011 The City of Rosemount,
a Minnesota municipal corporation
392030 CLL RS220 -182 3
See attached.
EXHIBIT A
AGREEMENT
392030 CLL RS220 -182
See attached.
541730_4
I
n
EXHIBIT B
PUDs
392030 CLL RS220 -182 5