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HomeMy WebLinkAbout4.a. Modification to the Development Contract for Harmony to Add Additional Builders to the Approved Builders List ROSE\4DUNT EXECUTIVE SUMMARY PORT AUTHORITY Port Authority Regular Meeting: June 19, 2012 AGENDA ITEM: Modification to the Development Contract AGENDA SECTION: for Harmony to Add Additional Builders to the Approved Builders List New Business PREPARED BY: Kim Lindquist, Deputy Director AGENDA NO. 4.a. ATTACHMENTS: Contract for Private Development between Rosemount Port Authority and Contractor Property Developers Company Section 7 and Exhibit G; E -mail from Brandi Anderson Homes; Brand) APPROVED BY Anderson Homes Information; Letter from K Michaels Homes; Letter from Tier 2 Funding regarding Regal Homes and City Construction Services; 13246 Brass Parkway Building Permit RECOMMENDED ACTION: Motion to Authorize the Executive Director to Add Brandt Anderson Homes, City Construction Services, K Michael Homes, and Regal Homes as Approved Builders under Section 7.2 and Exhibit G to Send a Letter to the Builders notifying them that they have been added to the List. DISCUSSION Rotdund Company, Inc and McDonald Homes are no longer operating in the Harmony development. The banks and receivers that control the lots form Rottlund and McDonald are selling these lots to builders who are not on the approved builders list found in the development contract for Harmony. Brandl Anderson Homes and K Michaels Homes have purchased some of the lots formerly owned by Rottlund. Tier 2 Funding has purchased six lots that were formerly owned by McDonald Homes. Tier 2 requests that their sister company, Regal Homes, and the contractor, City Construction services be added to the approved builders list. Attached to this executive summary is the support information that Brandl Anderson, K Michaels, and Tier 2 have provided to support their requests. All the builders will need to meet the standards of the Harmony Planned Unit Development. RECOMMENDATION Staff recommends adding Brandl Anderson Homes, City Construction Services, K Michael Homes, and Regal Homes to the list of Approved Builders within the Harmony development contract. deposit with the Authority a certificate or certificates of the respective insurers as to the amount of coverage in force with respect to the Minimum Improvements. ARTICLE VI Tax Increment; Taxes Section 6.1. Use of Tax Increments. Except for its obligations under this Agreement and the Authorizing Resolution and the Note regarding the application of Available Tax Increment to the payment of the Note, the Authority shall be free to use any Tax Increment for any purpose for which such increment may lawfully be used, pursuant to the provisions of State law, and the Authority shall have no obligation to the Developer with respect to the use of such Tax Increment. Section 6.2. Right to Collect Delinquent Taxes. (a) The Developer acknowledges that the Authority is providing substantial aid and assistance in furtherance of the development of the Property. The Developer understands the Authority's ability to assist the Developer in the manner specified in this Agreement is directly dependent upon the prompt and timely payment of real estate taxes. To that end, the Developer agrees in addition to the obligation pursuant to statute to pay real estate taxes, that it is also obligated by reason of this Agreement to pay when due all real estate taxes assessed against the Property as long as the Developer owns the Property. The Developer acknowledges that this obligation creates a contractual right on behalf of the Authority to sue the Developer to collect delinquent real estate taxes and any penalty or interest thereon and to pay over the same as a tax payment to the County auditor. In any such suit, the Authority shall also be entitled to recover its costs, expenses, and attorney fees. (b) Notwithstanding the foregoing, the parties hereto agree that the Developer, and its successors and assigns, may, at their own expense, contest the real estate taxes assessed with respect to the Property, and permit such taxes to remain unpaid during the period of the contest. ARTICLE VII Prohibitions Against Assignment and Transfer; Indemnification Section 7.1. Representation as to Development. The Developer represents and agrees that its undertakings pursuant to the Agreement, are and will be for the purpose of redevelopment of the Property and not for speculation in land holding. Section 7.2. Transfer of Property. (a) The parties hereto understand and agree that the Developer intends to sell the Property to one or more housing builders, with the intention that, after completion of the Minimum Improvements, approximately 624 residential housing units will be constructed on the Property. The Developer agrees that it will not sell any portion of the Property to a housing builder unless either (i) such housing builder is identified on Exhibit G hereto; or (ii) the prior written approval of the Authority the prior written approval of the Authority is first obtained. 11 (b) Upon transfer or assignment of the Property or any portion thereof to a housing builder identified on Exhibit G, or to any other assignee approved by the Authority, the Developer shall be released from its obligations under this Agreement as to the portions of the Property that are so transferred or assigned, except the obligation to complete the Minimum Improvements with respect to that portion of the Property, if not already completed. (c) The Developer shall submit to the Authority written evidence of any such transfer or assignment. If the Developer fails to provide such evidence of transfer and assumption, the Developer shall remain bound by all it obligations under this Agreement. Section 7.3. Release and Indemnification Covenants. (a) Except for any negligent act of the following named parties, the Developer releases from and covenants and agrees that the Authority, and its governing body members, officers, agents, servants, and employees shall not be liable for, and agrees to indemnify and hold harmless the Authority, and its governing body members, officers, agents, servants, and employees against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Minimum Improvements. (b) Except for any willful misrepresentation or any willful or wanton misconduct or negligence of the following named parties, the Developer agrees to protect and defend the Authority, and its governing body members, officers, agents, servants, and employees, now or forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from this Agreement, or the transactions contemplated hereby or the acquisition of the Property or the construction of the Minimum Improvements. (c) Except for any negligent act of the following named parties, the Authority, and its governing body members, officers, agents, servants, and employees shall not be liable for any damage or injury to the persons or property of the Developer or its partners, officers, agents, servants or employees or any other person who may be about the Property or Minimum Improvements due to any act of negligence of any person. (d) All covenants, stipulations, promises, agreements, and obligations of the Authority contained herein shall be deemed to be the covenants, stipulations, promises, agreements, and obligations of the Authority, and not of any governing body member, officer, agent, servant, or employee of the Authority in his or her individual capacity. ARTICLE VIII Events of Default Section 8.1. Events of Default Defined. Each of the following shall be an "Event of Default" under this Agreement: 12 EXHIBIT G LIST OF APPROVED HOUSING BUILDERS American Classic Homes Butler Housing Corporation Charles Cudd, LLC College City Homes, Inc. D.R. Horton, Inc. - Minnesota DLJ Homes, Inc. Grundhofer Construction, Inc. Hillcrest Homes, Inc. K. Hovanian Homes Kathy Trimble Custom Homes, Inc. Lecy Construction, Inc. Lind Homes, Inc. Lundgren Bros. Construction, Inc. Manley Brothers Construction Inc. McDevitt Homes, Inc. McDonald Construction, Inc. Metro Classic Homes, Inc. Mittelstaedt Brothers Construction, Inc. Pietsch Builders, Inc. R.A. Kot Homes, Inc. Schafer Brothers Const. Co., Inc. Senn & Youngdahl, Inc. Severson Homes, Inc. Sunset Homes Corporation ToII Brothers The Rottlund Company, Inc. The Windwood Company, Inc. Wensmann Homes, Inc. Windwood Homes, Inc. Wright Homes, Inc. G- I Zweber, Eric From: Scott Ervin [servin ©brandlanderson.com] Sent: Wednesday, June 13, 2012 3:12 PM To: Zweber, Eric Subject: Harmony Approval Dear Port Authority Chair, I am asking that you review our information to become an approved builder in Harmony. If there are any questions that you might have please don't hesitate to call me at 952 292 4325 or e -mail servin@brandlanderson.com Thank you for your time Sincerely, Scott Ervin Brandl Anderson Homes 952 898 0230 i Brandl Andersori Homes A great home is not defined by square footage, but by whether it fulfills the expectations and needs for each unique family. Brandl Anderson Homes is a quality home BRAND: building company with over a quarter century working N O s experience in new home construction. We have the experience to build virtually any home to fit any life- style, from an entry -level home to a million - dollar estate. Quality, service and customized plans are the key elements we focus on, and are what make working with Brandl Anderson Homes unique. QUALITY: We realize that the products and craftsmanship put into a home are important. Therefore, we work to ensure that every component used in the construction of your home has a proven reputation for quality. We strive to provide name brand products at affordable prices by using our quantity buying power. SERVICE: Keeping the customer's satisfaction in mind, we have created a homebuilding process to ensure you are well informed. Brandl Anderson Homes encourages customer participation by scheduling meetings between the builder and customer throughout the building process. We provide a full -time warranty staff and Customer Care Representative staff to assist customers throughout the building process and after close. CUSTOMIZED PLANS: Just as no two people are alike, no two homes we have built have been exactly alike. We have a full Computer Aided Drafting (CAD) system and CAD technicians on our staff, allowing us to customize every house to fit every individual. Builder References Five Satisfied Customers: Trade References: Matt & Jessica Olson Lyman Lumber 4637 Kingsdale Drive PO Box 130 Bloomington, MN 55437 Chanhassen, MN 55317 612 - 221 -9535 952 - 470 -4800 Jason Bidwell Burnsville Heating & Air Conditioning 15670 Michele Lane 3451 W Burnsville Pkwy Suite 120 Eden Prairie, MN 55346 Burnsville, MN 55337 952 - 210 -4816 952 - 894 -0005 Jeff Dudman & Heather Zimmerman ABC 19820 Iberis Avenue PO Box 0950 Lakeville, MN 55044 Chanhassen, MN 55317 952 - 937 -9060 Mark Horton 8924 197th Street Lakeville, MN 55044 612 - 250 -5946 Jeff & Stef Wadholm 19640 Iberis Avenue Lakeville, MN 55044 952- 913 -3806 Building Inspectors: City of Farmington 430 Third Street Farmington, MN 55024 651- 280 -6800 City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 952 - 985 -4580 c O Q) c CD d Q) O) C m 111 le _a II N Q .c o Nw �co.a) � 0QOCo`'" o D o o d)Q)X4- c> $ — ca.Q ' a) oc' ° Q �•� Q a � � — w - d a� Qr a) 4.) 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(R C., SIP i . 41 t ▪ cs th ..t-E-9 : i h \ t � � r • /� 1 E A old i . 1 a ` J , ?_5 pi 1 MO I i , v } ,„ - ----' builder & remodeier 1 To: Rosemount Port Authority Chair Re: Request for Builder approval for Harmony & Pickens Plat To whom it may concern, This letter has been sent for the purpose of requesting that K Michael Homes LLC be added to the approved builders list for the developments of Harmony and the Pickens Plat within the City of Rosemount. K Michael Homes was established in January of 2009 for the purpose of constructing custom /semi- custom single family homes. Since 2009 have built single family homes in the developments of Spyglass located in Lakeville MN, Oak Pointe located in Waconia MN , and Boulder Pointe in Elko New Market MN. The types of homes typical of K Michael Homes are single family ramblers and 3 -4 bedroom two story homes. Ranging in size from 1,800 sqft. To 3,700 sqft. I look forward to the possibility of expanding my business to the City of Rosemount. Sincer ly q I4,A -,...."-r......-- ...),..1,4„,..".......D Kevin M Ciancanelli K Michael; Homes LLC 18813 Euclid Path Farmington MN 55024 tit F I�Pi :-`'14 cjh ",?b!P June 14, 2012 Rosemount Port Authority 2875 145 Street west Rosemount, Mn 55068 RE: Tier 2 Funding Our company is finance company that has a number of sister companies under its umbrella, one of those companies is Regal Homes. Our builder for Regal Homes is City Construction Services and these are the cities we've worked in: New Hope Oakdale Chaska Minnetonka Burnsville Maplewood Minneapolis St. Louis Park Our intent in Harmony 2 addition is to build a model home on lot 1 block 1 and one house as a inventory home on lot 13 block 4. We are expecting to dig on Monday June 25 for the model that is currently in for permit review. We currently owe six lots that we purchased from McDonald Const. in Harmony 2 Addition. Please contact Dan Brown at 651 - 295 -2459 with questions. 6200 Baker Road Ste 200 Eden Prairie, MN 55346 952 - 314 -7136 Fax 952 - 314 -7132 4 ROSE MOUNT T Rosemount City Hall Permit Apo_ ation 2875 145 Street West Building .Lt COMMUNITY DEVELOPMENT Rosemount, MN 55068 Plumbing j Heating A il Sewer t.. a�� 2 Private 3 � Ia Site Address: U— S S Pc,r- 1(-- (,J v-, Legal Description: Lot / Block 1 Subdivision i4G..r 4'lz> c - 14- or PID# J1 - 3DTOi / „ ` - CI 1 Owner Name: t 1 C � �- Co Contractor: o ,n.S'�'r• JZ o K Address: C.0 d-D O r Li Address: P. „ t3 0,6 a7 q 86 City /State: F k i c`, e. Zip: STS3 ( 4o City /State: Al 4A2..m. (' s b 4/1 1 3 Zip: - - -- Phone: -- -- - - - - - - -- ---- State l,icerise - 1\76: C., - 6 - 3 - 9 - 1 - 4 - 6 - -- Contact: fir` r_ Phone: (r2 s l (4- 9,S - o9s' Fax: q -s 3 Description of Work: r✓ L.) • 1, r At c Valuation (including labor): - 7 5 _ J 00 APHIMEDY limmoupppr Does this plan qualify- for 551300.0160 ye /' no. If ye , the master plan number is 14O4 mO 1 l The es that be ned acknowledges she has read this application and the above z / �e a/ or n ornzatiorr is correct and accurate. Applicant a a �� .f pplicant ar_a understands by signing this application that he/she could be held re.ponsible as representative of this project for auy violation of :- -- complian with all applicable laws and ordinances of the City of Rosemount. �� ignature of Applicant or Authorized Agent Date NOTICE: This is an application only. Permit will be issued after City approval and payment of fees. * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** FOR OFFICE USE ONLY * ** * * **** ** *** * ** * * * * * *** * * * ** • Engineering Approval T e of Const g Type st Date Planning Approval Occupancy Classification Date Fire Marshal Approval Special Conditions Date ' Building Approval Date m vi E 111 0 0 0 i) 9 Z_ _ m c rV 00 H l III X Si X 6 3 m w 3 • _0 m m 0 m m 0 = N .-, 13 RI ii 3 0 m m 0 w w ■4 Q 0 c c 0 Z 3 3 X J 0>> t m w m r n i Kl 1 M MI' 1 / M ' Q z Ln o 1 111 VMS �' , , > 1 11 WI .L, _I IP411 1111 111,�� , 1111P:k", , , O 111111 1110 1 0 111111 1 X9;11 , t m 1 1 1 1 1 1 1 1 1 1 1 v i s 111111 111;1! I1Uh 1111/119 - , ,,, 111 r 14 A � 1 ��� _ IIIIIIIIIIIIIII!Ilifll P r,- � - -- ®D 4 D ®D uD d ,i�;a Ai. _, - - U it - - e : N - --= -- i:: . .L \ V `L? o _ C N l `7 E s JV 9 2 00 �C V mmw 1`7 CY V w E Dl m ors °moo ill� L