Loading...
HomeMy WebLinkAbout9.d. Development Agreement for Habitat for Humanity` CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: April 4, 2000 AGENDA ITEM: Development Agreement with Habitat AGENDA SECTION: for Humanity NEW BUSINESS PREPARED BY: Thomas D. Burt, City Administrator AGEN # 9 ATTACHMENTS: Development Agreement APPROVED BY: At the advice of legal counsel "Roy's Sports ", which was purchased with Community Development Block Grants (CDBG) was deeded to the City by the Port Authority at their meeting earlier in the evening, The primary reason for this was to reduce the amount of process required under Port Authority rules to easily convey the property to Habitat for Humanity. The Dakota County Community Development Agency held the appropriate hearings for the initial acquisition of the site and also addressed at that hearing that the property would be sold to Habitat for Humanity. The Port Authority has previously reviewed the development and the only changes in the attached document are to reflect the development agreement is between the City and Habitat. RECOMMENDED ACTION: MOTION to approve the Contract for Private Development by and Between the City of Rosemount and Twin Cities Habitat for Humanity. COUNCIL ACTION: CONTRACT FOR PRIVATE DEVELOPMENT by and Between THE CITY OF ROSEMOUNT and TWIN CITIES HABITAT FOR HUMANITY This Instrument Drafted by: Kennedy & Graven, Chartered 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 Telephone: (612)337 -9300 CLL- 175715v4 RS230 -20 PREAMBLE Section 1.1. Section 1.2. Section 1.3. TABLE OF CONTENTS Page .. ................. ................... ... .............. ... ... .1 ARTICLE I Definitions, Exhibits, Rules of Interaretation Definitions ............................................... ............................... ... ..............................1 Exhibits .................................................................................... .............................. Rules of Interpretation .................................................................... .............................. ARTICLE II Representations and Undertaking Section 2.1. By the Developer....... .................................... ............................... ......................3 Section2.2. By the City ..................................................................................... ............................... 3 Section 3.1. Section 3.2. Section 3.3. Section 3.4. Section 3.5. Section 3.6. ARTICLE III Acquisition of Property; Conveyance to Developer ARTICLE IV Construction of Improvements Section 4.1. Demolition; Construction of Improvements ...... ............................... • ......................... • Sale of Property to Developer ........................................................ .............................. Construction Plans ......................................................................... ............................... 6 Cl .............................. Section4.4. Other Conditions ............................................................................. .............................. ..............................4 RecordingFees ............................................................................... Certificate of Completion ............................................................ .............................. Taxes and Special Assessments ...................................................... .............................. ARTICLE V Soil Conditions and Hazardous Wastes .......................................... ..............................4 .............................. Title................................................................................................. ARTICLE IV Construction of Improvements Section 4.1. Demolition; Construction of Improvements ...... ............................... • ......................... • 6 Section 4.2. Construction Plans ......................................................................... ............................... 6 Section 4.3. Schedule of Construction ................................................................ .............................. Section4.4. Other Conditions ............................................................................. .............................. Section 4.5 Certificate of Completion ............................................................ .............................. ARTICLE V Prohibitions Against Assignment and Transfer Section 5.1. Representation as to Redevelopment ........................ ............................... .........7 Section 5.2. Prohibition Against Transfer of Property and Assignment of Agreement ..............7 Section5.3. Approvals ............... ............................... ............................... ..............................8 CLL-175715v4 1 RS230 -20 f ARTICLE VI Events of Default Section 6.1. Events of Default Defined ................ .............:................. .... ..............................8 Section 6.2. Remedies on Default ..............................:............................... ..............................9 Section 6.3. Revesting Interest in City Upon Happening of Event of Default Subsequent to Conveyance of Property to Developer .. ..............................9 Section 6.4. No Remedy Exclusive ............................. ............................... .............................10 Section 6.5. No Additional Waiver Implied by One Waiver ........................ .............................10 ARTICLE VII Additional Provisions Section 7.1. Indemnification ............................................................................ ............................... 11 Section 7.2. Conflict of Interests; Representatives Not Individually Liable ... ............................... 11 Section 7.3. Non - Discrimination ...................................................................... ..............................1 l Section 7.4. Notices and Demands .................................................................... .............................11 Section 7.5 Exemption from Business Subsidy Act ......................................... .............................12 Section 7.6. Provisions Not Merged With Deed ............................................... .............................12 Section7.7. Counterparts ................................................................................... .............................12 Section 7.8. Disclaimer of Relationship ............................................................ .............................12 TESTIMONIUM..............................................................._.................................... .............................13 SIGNATURES....................................................................................................... ............................. EXHIBIT A Form of Certificate of Completion and Release of Forfeiture EXHIBIT B Housing Design and Site Development Criteria EXHIBIT C Form of Quit Claim Deed CLL- 175715v4 RS230 -20 CONTRACT FOR PRIVATE DEVELOPMENT THIS AGREEMENT is made and entered into as of this day of 2000,, by and between the City of Rosemount, a municipal corporation under the laws of Minnesota (the "City "), and Twin Cities Habitat for Humanity, a Minnesota nonprofit corporation (the "Developer "). RECITALS WHEREAS, the City has received funds under the United States Department of Housing and Urban Development's Community Development Block Grant Program (the "CBDG Funds ") for the purpose of acquiring land within the city for redevelopment for housing for persons of low and moderate income; and WHEREAS, pursuant to the terms under which the City received the CDBG Funds, the City, through its Port Authority, acquired certain real property for the purpose of making the site available for housing for persons of low and moderate income; and WHEREAS, the City has proposed an agreement with the Developer which the City has determined will promote and carry out the objectives for which the land has been acquired, will be in the vital best interests of the City and the health, safety and welfare of its residents, and is in accord with the public purposes and provisions of the applicable state and local laws and requirements under which the CDBG Funds have been obtained. NOW, THEREFORE, in consideration of the mutual covenants and obligations of the City and the Developer, each party does hereby represent, covenant and agree with the other as follows: ARTICLE I. DEFINITIONS, EXHIBITS, RULES OF INTERPRETATION Section 1.1. Definitions In this Agreement, the following terms have the meaning given below unless the context clearly requires otherwise: (a) Cam. City of Rosemount, Minnesota. (b) Construction Plans Collectively, the plans, drawing and related documents related to the Improvements. (c) . CDBG Funds The funds received by the City under the United States Department of Housing and Urban Development's Community Development Block Grant Program for the purpose of acquiring the Property. (d) Developer Twin Cities Habitat for Humanity, a Minnesota nonprofit corporation. CLL- 175715v4 1 RS230 -20 (e) (fl (g) Development The Property and the Improvements to be constructed thereon according to the Construction Plans approved by the City. Authorily. The Rosemount Port Authority, a body corporate and politic under the laws of Minnesota. Homeowner A purchaser of the Property, but not including any individual, corporation or entity related to the Developer, (i) whose household income does not exceed 50% of the median income for the Twin Cities, Minnesota, metropolitan statistical area, adjusted for family size, and (ii) who has participated in the construction of the Improvements in order to fulfill the 350 hours "sweat equity" requirement that the Developer has. (h) Improvements The two single- family residential units and all of the accessory structures, landscaping, and site improvements constructed on the Property by the Developer, as specified in the Construction Plans approved by the City. (i) Minimum Value $100,000 per structure, which represents the minimum appraised value of the Development after the Developer has constructed the Improvements. (j) Permitted Encumbrances Permitted Encumbrances shall include the following items: (i) taxes and installments of special assessments payable in 2001 and in subsequent years; (ii) building and zoning laws, and federal, state and local laws, ordinances and regulations; (iii) easements for public streets, drainage, utilities, highways and roads existing now and at closing; (iv) liens, easements, encumbrances, agreements, restrictions, conditions and covenants of record, if any, as of the date hereof; and (v) the terms, conditions, covenants and agreements set forth in this Agreement. (k) Prope . The real property located at 14815 and 14835 Dallara Avenue, the legal description of which is Lots 1 and 2, Block 1, Broback 6th Addition, Dakota County, Minnesota. (1) Unavoidable Delays Delays which are the direct result of strikes, labor troubles, fire or other casualty to the Improvements, litigation commenced by third parties which results in delays or acts of any federal, state or local government, except those contemplated by this Agreement, which are beyond the control of the Developer. Section 1.2. Exhibits The following Exhibits are attached to and by reference made a part of this Agreement: A. Form of Certificate of Completion B. Housing Design and Site Development Criteria C. Form of Quit Claim Deed CLL- 175715v4 2 RS230 -20 Section 1.3. Rules of Interpretation (a) This Agreement shall be interpreted in accordance with and governed by the laws of the State of Minnesota. (b) The words "herein" and "hereof' and words of similar import, without reference to any particular section or subdivision refer to this Agreement as a whole rather than any particular section or subdivision hereof. (c) References herein to any particular section or subdivision hereof are to the section or subdivision of this Agreement as originally executed. (d) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions. ARTICLE IL REPRESENTATIONS AND UNDERTAKING Section 2.1. By the Developer The Developer makes the following representations and undertakings: (a) The Developer has the legal authority and power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement; (b) The Developer has the necessary equity capital or will obtain commitments for financing necessary for construction of the Improvements; (c) The Developer will construct the Improvements in accordance with the terms of this Agreement, and all local, state and federal laws and regulations; (d) The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws and regulations which must be obtained or met before the Improvements may be constructed; and (e) The Developer will sell each of the two single - family residential units to a qualified Homeowner upon completion thereof. Section 2.2. By the City The City makes the following representations as the basis for the undertaking on its part herein contained: (a) The City is authorized by law to enter into this Agreement and to cant' out its obligations hereunder; and cL.- 175715v4 3 RS230 -20 (b) The City will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Developer and will cooperate with the efforts of Developer to secure the granting of any permit, license, or other approval required to allow the construction of the Improvements; provided, however, that nothing contained in this subparagraph 2.2(b) shall be construed to limit in any way the reasonable and legitimate exercise of the City's discretion mi considering any submittal or application. ARTICLE M. ACQUISITION OF PROPERTY: CONVEYANCE TO DEVELOPER Section 3.1. Sale of Pro gM to Developer The City agrees to sell the Property to the Developer and the Developer agrees to purchase the Property from the City in "as is" condition. At closing, the City agrees to convey the Property to the Developer by Quit Claim Deed in the general form of Exhibit C. The City's deed to the Developer will be subject to the Right of Reverter required in Section 6.3 of this Agreement. The purchase price for the Property will be $1.00. Notwithstanding anything herein to the contrary, the City's obligation to convey the Property to the Developer is contingent upon the Authority approving the sale to the City following a public hearing held by the Authority pursuant to 'Minnesota Statutes, section 469.065. Section 3.2. Closing. Closing on the Property will take place on or before April 14, 2000, or such other date as may be agreed to by the parties in writing but in no event later than May 19, 2000. At closing, the Developer will pay the purchase price in cash to the City. Section 3.3. Recording Fees The Developer shall be solely responsible for the cost of any and all state deed or transfer taxes, agricultural land fees, and recording fees. The Developer shall promptly record all transfer documents including, but not limited to, the Quit Claim Deed conveying the Property and the Certificate of Completion. Section 3.4. Taxes and Special Assessments Real estate taxes payable in the year of closing will be prorated between the City and the Developer as of the date of closing. Levied and pending special assessments for improvements installed prior to the date of this Agreement, if any, will be satisfied by the City at the time of closing and the Property will be transferred to the Developer free and clear thereof. Section 3.5. Soil Conditions and Hazardous Wastes The Developer acknowledges that the City makes no representations or warranties as to the condition of the soils on the Property, its fitness for construction of the Improvements or any other purpose for which the Developer may make use of the Property, or regarding the presence of any pollutant, contaminant or hazardous wastes on the Property. The City will allow reasonable access to the Property for the Developer to conduct such tests regarding soils conditions and to investigate the presence of pollutants, contaminations or hazardous wastes as the Developer may desire. The Developer may terminate this Agreement upon a determination the soils are inadequate for the Developer's intended purpose or that there is an unacceptable level of pollutants, contaminants or hazardous CLL- 175715v4 4 RS230 -2Q materials on the Property by giving notice of such termination within 10 days of the date of this Agreement. Failure to give such notice by such date shall constitute a waiver of Developer's right to terminate this Agreement pursuant to this Section 3.5. Permission to enter the Property to conduct such tests must be given in writing under the terms and conditions established by the City Section 3.6. Title (a) The City agrees to deliver to the Developer, at the City's expense, a title commitment covering the Property (such title commitment is referred to herein as the "Title Evidence') from a title insurance company acceptable to the City and Developer. The City shall deliver such abstracts covering the Property as are in the possession of the City , but the City shall not be obligated to recreate any abstract that is not in its possession for the Property. The City shall not be required to deliver any further evidence of title. The Developer shall make written objections to title by written statement delivered to the City within fifteen (15) days after receipt of the Title Evidence. No objection to title shall be made by the Developer based upon this Agreement, or other documents to be executed and delivered pursuant hereto, or any matters contemplated herein, and no objection to title shall be based on the existence of, or a failure by the City to acquire or remove, a Permitted Encumbrance. Any objections not contained in said statement delivered within said fifteen (15) days shall be deemed waived. At the time of delivery of the Quit Claim Deed, the City shall deliver, or cause to be delivered, evidence of satisfaction or correction of those proper objections which have been duly and timely made and which it has been able satisfy or correct. The Developer shall, at its sole cost and expense, pay for any and all premiums for title insurance policies desired by it. (b) If any proper objections to title are duly and timely made as provided above, and if the City is not able to satisfy or correct the objection within thirty (30) days after said objections, the Developer shall, within ten (10) days thereafter, make a written election of one of the following: (i) Termination of this Agreement; or (ii) Agreement to proceed with closing and transfer of possession of the Property without any further obligation or liability of any kind on the City to cure or satisfy any objections to title, whereupon the risk that the objection cannot cured (or that title cannot be rendered marketable) shall be entirely borne by the Developer. If no such written election is given to the City within said ten (10) day period, the Developer shall be deemed to have waived all objections to title. CLL- 175715v4 5 RS230 -28 ARTICLE IV. CONSTRUCTION OF IWROVEMENTS Section 4.1. Demolition: Construction of Improvements (a) The Property contains certain structures and other improvements which must be removed before the Developer can construct the Improvements. The Developer agrees that, within 60 days of closing, it will demolish the existing structures and improvements, grade the Property in preparation for construction of the Improvements and remove all debris from the Property. All such work shall be undertaken by the Developer at its expense and in conformance with all requirements of the City related thereto. (b) Following demolition, grading and site clean -up, the Developer shall construct the Improvements on the Property in accordance with the Construction Plans. The Developer shall maintain, preserve and keep the Property and the Improvements in good repair and condition until sale of the Property to the Homeowner. Section 4.2. Construction Plans Within 30 days of closing, the Developer agrees to submit Construction Plans for review by the City. Developer may not proceed with construction without first securing approval of Construction Plans by the City. No such approval will be given unless the Construction Plans are in conformity with the Minimum Value, this Agreement, including the design standards outlined in Exhibit B, and all local, state and federal regulations. The City shall, within twenty -five (25) days of receipt of Construction Plans submitted in application for a building permit, review such plans to determine whether the foregoing requirements have been met. If the City determines such plans to be deficient, it shall notify the Developer in writing stating the deficiencies and the steps necessary for correction. Issuance of the building permit by the City shall not constitute a determination by the City that the Construction Plans have been approved. Section 4.3. Schedule of Construction Subject to Unavoidable Delays, construction of the Improvements in accordance with the Construction Plans shall commence prior to June 30, 2001, and be completed prior to December 31, 2001. All construction shall be in conformity with the approved Construction Plans. Periodically during construction the Developer shall make reports in such detail as may reasonably be requested by the City concerning the actual progress of construction. If at any time prior to completion of construction the City has cause to believe that the Developer will be unable to complete construction of the Improvements in the time permitted by this Section 4.3, it may notify the Developer and demand assurances from the Developer regarding the Developer's construction schedule. If such assurances are not forthcoming or are deemed by the City at its sole discretion to be inadequate, the City may declare an Event of Default and may avail itself of any of the remedies specified in Section 6.2 of this Agreement. Section 4.4. Other Conditions The City acknowledges that the Developer intends to construct the Improvements in "habitat" fashion, using substantial volunteer labor, donated materials, and contributed funds from local churches, businesses, and individuals. Nonetheless, CLL- 175715v4 6 Rs230 -20 the Developer acknowledges that the Improvements must be constructed in full compliance with the City's building code, zoning and related ordinances and other relevant codes and regulations. Each of the single - family residential units constituting the Improvements will be sold on a no profit, no interest basis to a qualified Homeowner. Section 4.5. Certificate of Completion Promptly after notification by the Developer of completion of construction of each of the single - family residential units constituting the Improvements, the City shall inspect the construction to determine whether the Improvements have been completed satisfactorily. If the City is satisfied with the construction, the City shall furnish the Developer with a Certificate of Completion in the form attached hereto as Exhibit A. Such certification by the City shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect ` to the obligation of the Developer to construct the Improvements. The Certificate of Completion shall be issued only after issuance of a certificate of occupancy by the City. The certification provided for in this Section 4.5 shall be in recordable form. If the City shall refuse or fail to provide certification in accordance with the provisions of this Section 4.5, the City shall within fifteen (15) days of such notification provide the Developer with a written statement, indicating in what respects the Developer has failed to complete the Improvements in accordance with the provisions of this Agreement or is otherwise in default, and what measures or acts will be necessary, in the opinion of the City, for the Developer to take or perform in order to obtain such certification. Prior to the issuance of a Certificate of Completion, no occupancy of the Improvements shall be permitted. ARTICLE V. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 5.1. Representation as to Redevelopment The Developer represents and agrees that its undertakings pursuant to the Agreement, are for the purpose of development of the Property and not for speculation in landholding. The Developer further recognizes that, in view of the importance of the Development of the Property to the general welfare of the City and the financing and other public aids that have been made available by the City for the purpose of making the Development possible, the qualifications and identity of the Developer are of particular concern to the City. Section 5.2. Prohibition Against Transfer of Propertv and Assignment of Agreement For the reasons set out in Section 5.1 of this Agreement, the Developer represents and agrees that prior to issuance of the Certificate of Completion by the City: (a) Except only by way of security for the purpose of obtaining financing necessary to enable the Developer to perform its obligations with respect to the Development under this Agreement the Developer, except as so authorized, has not made or created, and it will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property or any CLL- 175715v4 7 RS230 -20 interest therein, or any contract or agreement to do any of the same, without the prior written approval of the City; and (b) The City shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such approval under this Section 5.2 that: (i) any proposed transferee shall have the qualifications and financial responsibility, as determined by the City, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer; (ii) any proposed transferee, by instrument in writing satisfactory to the City and in form recordable among the land records, shall for itself and its successors and assigns, and specifically for the benefit of the City, have expressly assumed all of the obligations of the Developer under this Agreement and agreed to be subject to such obligations, restrictions and conditions or; provided, that the fact that any transferee of, or any other successor in interest to, the Property, shall, for whatever reason, not have assumed such obligations or agreed to do so, shall not relieve such transferee or successor from such obligations, conditions, or restrictions, or deprive or limit the City of any rights or remedies or controls with respect to the Property or the construction of the Improvements; to the fullest extent permitted by law and equity, no transfer of, or change with respect to, ownership in the Property, or any interest therein, however consummated or occurring, whether voluntary or involuntary, shall operate to deprive or limit the City, of any rights or remedies or controls provided in or resulting from this Agreement with respect to the Property and the construction of the Improvements that the City would have had, had there been no such transfer or change; and (iii) there shall be submitted to the City for review all instruments and other legal documents involved in effecting transfers described herein, and if approved by the City, its approval shall be indicated to the Developer in writing. In the absence of specific written agreement by the City to the contrary, no such transfer or approval by the City thereof shall be deemed to relieve the Developer from any of its obligations with respect thereto. The sale of the Development to the Homeowner shall not be deemed to be a transfer within the meaning of this Section 5.2. Section 5.3. Approvals Any approval required to be given by the City under this Article V may be denied only in the event that the City reasonably determines that the ability of the Developer to perform its obligations under this Agreement will be materially impaired by the action for which approval is sought. ARTICLE VI. EVENTS OF DEFAULT Section 6.1. Events of Default Defined The following shall be deemed Events of Default under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides, any one or more of the following events: CLL- 175715v4 RS230 -20 (a) Failure by the Developer to pay when due the payments required to be paid or secured under any provision of this Agreement; (b) Failure by the Developer to observe and substantially perform any covenant, condition, obligation or agreement on its part to be observed or performed under any provision of this Agreement; (c) Failure by the Developer to sell each of the single- family residential units constituting the Improvements to a qualified Homeowner; (d) If the Developer shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Property; or (e) If the Developer, on a petition in bankruptcy filed against it, be adjudicated a bankrupt, or a court of competent jurisdiction shall enter an order of decree appointing, without the consent of the Developer, a receiver of the Developer or of the whole or substantially all of its property, or approve a petition filed against the Developer seeking reorganization or arrangement of the Developer under the federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or set aside or stayed within sixty (60) days from the date of entry thereof. Section 6.2. Remedies on Default Whenever any Event of Default occurs, the City may, in addition to any other remedies or rights given the City under this Agreement, take any one or more of the following actions: (a) suspend its performance under this Agreement until it receives assurances from the Developer, deemed reasonably adequate by the City, that the Developer will cure its default and continue its performance under this Agreement; (b) cancel or rescind this Agreement; (c) withhold the Certificate of Completion; or (d) revest title to the Property in the City pursuant to section 6.3 of this Agreement; or (e) take whatever action at law or in equity may appear necessary or desirable to the City to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. Section 6.3. Revesting Interest in City Upon Hanuenina of Event of Default Subsequent to Conveyance of Property to Developer If subsequent to the sale of the Property to the Developer and prior to the issuance of the Certificate of Completion: CLLR- 175715v4 9 RS230 -20 the Developer fails to begin construction of the Improvements in conformity with this Agreement, and such failure is not due to Unavoidable Delays; the Developer, after commencement of the construction of the Improvements, defaults in or violates its obligations with respect to the construction of the Improvements, including the nature and the date for the completion thereof, or abandons or substantially suspends construction work, and such act or actions is not due to Unavoidable Delays; (c) the Developer or successor in interest fails to pay real estate taxes or assessments on the Property or any part thereof when due, or places thereon any encumbrance or lien unauthorized by this Agreement, or suffers any levy or attachment to be made, or any materialmen's or mechanic's lien, or any other unauthorized encumbrance or lien to attach; (d) there is, in violation of Article V of this Agreement, any transfer of the Property or any part thereof; or (e) the Developer fails to comply with any of its covenants under this Agreement, including the obligation to sell each of the single - family residential units constituting the Improvements to a qualified Homeowner, then the City shall have the right upon thirty (30) days written notice to Developer and the Developer's failure to cure within such 30 -day period to re -enter and take possession of the Property and to terminate and revest in the City the interest of the Developer in the Property; provided, however, that such revestiture of title shall be subject to the lien of any prior encumbrance permitted under this Agreement. Section 6.4. No Remedy Exclusive No remedy herein conferred upon or reserved to the City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the City or the Developer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in Section 7.4 of this Agreement. Section 6.5. No Additional Waiver Implied by One Waiver If an Event of Default by either party, which Event of Default is thereafter waived by the other party, such waiver shall be limited to the particular Event of Default so waived and shall not be deemed to waive any other concurrent, previous or subsequent Event of Default. CLL•175 M4 10 RS230 -20 ARTICLE VII. ADDITIONAL PROVISIONS Section 7.1. Indemnification - The Developer hereby agrees to hold the City and its officers, elected and appointed officials, employees, administrators, commissioners, agents, and representatives harmless from and indemnified against any and all loss, cost, fines, charges, damage and expenses, including, without limitation, reasonable attorneys' fees, consultants' and expert witness fees, and travel associated therewith, due to claims or demands of any _ kind whatsoever (including those based on strict liability) arising out of (i) the design, construction, reconstruction, maintenance, repair, marketing, sales or leasing of all or any part of the Property, including, without limitation, any claims for any lien imposed by law for services, labor or materials furnished to or for the benefit of the Property and/or the Improvements, or (ii) any claim by the State of Minnesota or the Minnesota Pollution Control Agency or any other person pertaining to the violation of any permits, orders, decrees or demands made by said persons or with regard to the presence of any pollutant, contaminant or hazardous waste on the Property. The Developer shall defend against all such claims and demands at its cost and with attorneys acceptable to the City. This indemnity shall be continuing and shall survive the delivery of the Quit Claim Deed for the Property, shall survive the execution and delivery of the Certificate of Completion for all of the Improvements, and shall survive termination or cancellation of this Agreement. Notwithstanding the foregoing, the Developer shall not be liable for or be required to indemnify against liability caused by any intentional act of the City. Section 7.2. Conflict of Interests: Representatives Not Individually Liable No City officer who is authorized to take part in any manner in making this Agreement in his or her official capacity shall voluntarily have a personal financial interest in this Agreement or benefit financially therefrom. No member, official, or employee of the City shall be personally liable to the Developer, or any successor in interest, for any Event of Default by the City or for any amount which may become due to the Developer or successor or on any obligations under the terms of this Agreement. Section 7.3. Non- Discrimination The provisions of Minnesota Statutes Section 181.59, which relate to civil rights and non - discrimination, and any affirmative action program of the City shall be considered apart of this Agreement and binding on the Developer as though fully set forth herein. Section 7.4. Notices and Demands Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is sent by mail, postage prepaid, return receipt requested or delivered personally: (a) As to the City: City Administrator City of Rosemount 2875 145' St. W. Rosemount, MN 55068 Phone: 651- 423 -4411 CLL- 175715x4 11 RS230 -20 (b) As to the Developer: Twin Cities Habitat for Humanity 3001 Fourth Street, S.E. Minneapolis, Minnesota 55414 Phone: 612- 331 -4090 or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section 7.4. Section 7.5. Exemption from Business Subsidy Act The Developer warrants that the Improvements are intended for sale to a qualified Homeowner and that its intent in entering into this Agreement is to provide decent, safe and sanitary housing for persons of low or moderate income. Based on these representations by the Developer, the parties agree that the conveyance of the Property to the Developer for $1.00 is not subject to the provisions of Minnesota Statutes, sections 1161993 through 1167.995. Section 7.6. Provisions Not Merged With Deed None of the provisions of this Agreement is intended to or shall be merged by reason of any deed transferring any interest in the Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 7.7. Counterparts This Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. Section 7.8. Disclaimer of Relationship The Developer acknowledges that nothing contained in this Agreement nor any act by the City or the Developer shall be deemed or construed by the Developer or by any third party to create any relationship of third -party beneficiary, principal and agent, limited or general partnership or joint venture between the City and the Developer. CLL- 175715v4 12 RS230 -20 ' IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Developer has caused this Agreement to be duly executed as of the day and year first above written. CITY OF ROSEMOUNT By Its Mayor And Its City Administrator STATE OF MINNESOTA ) -)ss COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2000 by and the Mayor and City Administrator, respectively, of the City of Rosemount, a municipal corporation under the laws of Minnesota, on behalf of the municipal corporation. Notary Public CLL- 175715v4 13 P- SMO-20 TWIN CITIES HABITAT FOR HUMANITY By Its President And Its STATE OF MINNESOTA ) )ss COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2000 by and , the President and respectively, of the Twin Cities Habitat of Humanity, a Minnesota nonprofit corporation, on behalf of the corporation. Notary Public CL ,17s715V4 RS230 -20 L' hii1J611 H FORM OF CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE WHEREAS, the City of Rosemount (the "Grantor'), by a deed recorded in the office of the County Recorder in Dakota County, Minnesota, as Document No. ' has conveyed to Twin Cities Habitat for Humanity, a Minnesota nonprofit corporation (the "Grantee "), the land in County of Dakota and State of Minnesota legally described as Lots 1 and 2, Block 1, Broback 6th Addition; and WHEREAS, said deed was executed pursuant to that certain Contract for Private Development by and between the Grantor and the Grantee dated the day of , 2000 and recorded in the office of the County Recorder in Dakota County, Minnesota, as Document No. , which Contract for Private Development contained certain covenants and restrictions regarding completion of the Improvements; and WHEREAS, said Grantee has performed said covenants and conditions in a manner deemed sufficient by the Grantor to permit the execution and recording of this certification. NOW, THEREFORE, this is to certify that all construction of the Improvements specified to be done and made by the Grantee has been completed and the covenants and conditions in the Contract for Private Development have been performed by the Grantee therein and that the provisions for forfeiture of title and right to re-entry for breach of condition subsequent by Grantor is hereby released absolutely and forever, and the County Recorder in Dakota County, Minnesota, is hereby authorized to accept for recording and to record the filing of this instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions relating to completion of the Improvements. DATED: 9 2000. CITY OF ROSEMOUNT By Its Mayor And Its City Administrator CLL- 175715v4 A -1 RS230 -20 STATE OF MINNESOTA ) )ss COUNTY OF ) The foregoing 'instrument was acknowledged before me this day of 2000 by and , the Mayor and City Administrator, respectively, of the City of Rosemount, a municipal corporation under the laws of Minnesota, on behalf of the municipal corporation. Notary Public This instrument was drafted by: Kennedy & Graven, Chartered 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 CLL- 175715v4 A -2 RS230 -20 .K!JAII1D11 D HOUSING DESIGN AND SITE DEVELOPMENT CRITERIA Siding materials, exterior facade presentation, roof, window, siding and building line variability, finished landscape, interior space function and use are all important considerations. The development of all sites shall meet the development objectives listed below. The guidelines were created to ensure that the homes built on the identified lots blend in with the surrounding. neighborhood and respond to specific concerns of the Authority. 1. General: a. One single- family residential structure shall be constructed on each of the two lots. b. The value of each new home must meet or exceed the Minimum Value specified for each property in the Contract for Private Development. 2. Site Standards: a. The entire grounds shall be finish landscaped to be aesthetically pleasing in all seasons. Land forms and plant materials shall be used to define the site and neatly blend with adjoining property. Specific lot line blending requirements are provided in Attachment 1 to this Exhibit B. b. Utility meters shall be screened from street view; locations must be specified on plans. C. Site drainage shall be accommodated on the site so that water is directed away from the new home and the neighboring properties. Neighboring properties should not be disturbed to create drainage swales. Construction and the finished structure must improve or not have a detrimental impact on storm water drainage patterns in the neighborhood. Specific storm water management requirements are provided in Attachment 1 to this Exhibit B. d. Existing trees shall be preserved when possible. Care should be taken to preserve existing root systems. A tree wrap, with board reinforcement shall be used on trees directly adjacent to active grading and construction areas. e. The construction site, neighboring property and adjacent public streets shall be kept free of construction debris at all times. CLL- 175715v4 B -1 RS230 -20 f. All air conditioning units must be located in the rear yard of the house. g. Egress window area well foundations must meet side setback requirements (be a minimum of 5' from the property line), or be located in the rear yard of the house. h. Under no circumstance during the construction period shall construction workers, construction equipment or construction materials enter, disturb, or damage neighboring properties. 3. Building Standards: a. Three and four bedroom homes are preferred. However, a minimum of two finished bedrooms and easily finished space for a third bedroom will be acceptable. b. Two full bathrooms are preferred. However, a minimum of one full bath and a 1/2 bath roughed -in will be acceptable. C. A two car garage, attached or detached, must be provided on the site for all housing units. d. Exterior materials (siding, soffit, doors and windows), should be low maintenance. Aluminum and vinyl are preferred. Natural cedar lap is acceptable if properly stained or painted. Hardboard panels or hardboard lap siding, are not acceptable. e. Unit height and mass of the new homes shall be compatible with the scale of the surrounding neighborhood. f. Plans must present a balanced and pleasing distribution of wall and window areas from all views. g. A full basement shall be provided in the house unless the selected design results in a split level, garden level type of basement. h. All building plans must have been prepared in consultation with an architectural designer with a minimum two year technical degree. An architect may also be consulted. House design is a critical concern. The house building lines, window placement, and orientation to street, must present a balanced and pleasing view from all sides. Garage door dominance in design must be minimiz CLL- 175715v4 RS230 -20 B -2 ATTACHMENT 1 TO EXHIBIT B PROPERTY ADDRESS: Neighborhood compatibility requirements follow: 1. Refer to Section 2(a), 2(e) and 2(h) of "Housing Design and Site Development Criteria ", Exhibit B 2. 3. Storm Water Management requirements follow: 1. Refer to Section 2(c) of "Housing Design Site Development Criteria ", Exhibit B. 2.' 3. CU-175 M4 Rs23a20 B -3 EXHIBIT C FORM OF QUIT CLAIM DEED No delinquent taxes and transfer entered; Certificate of Real Estate Value Ofiled Onot required. County Auditor Deputy (reserved for recording data) STATE DEED TAX DUE HEREON: $ Date: .2000. THIS INDENTURE, between the City of Rosemount, a municipal corporation under the laws of Minnesota, Grantor, and Twin Cities Habitat for Humanity, a Minnesota non -profit corporation, Grantee. WITNESSETH, that the Grantor, in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt whereof is hereby acknowledged, does hereby grant, bargain, quit claim and convey to the Grantee, its successors and assigns, forever, all of the tract or parcel of land lying and being in the County of Dakota and State of Minnesota described on Exhibit A attached hereto and incorporated herein by reference (the Property). To have and to hold the same, together with all hereditaments and appurtenances thereunto belonging or in any way appertaining, to the Grantee, its successors and assigns, forever. Subject to and together with, however, the provisions of the Permitted Encumbrances described and referred to in Exhibit B attached hereto and incorporated herein by reference, including, without limitation, the right of the Grantor upon the happening of an Event of Default under that certain Contract for Private Development between Grantor and Grantee dated as of (date of the Development Contract), to re -enter and take possession of the Property and the Improvements thereon and terminate the estate and all right, title and interest of the Grantee in and to the Property and Improvements thereon, and revest in the Grantor all right, title, estate and interest of the Grantee in the Property and Improvements thereon, free of any lien of any mortgage and other liens, except as permitted pursuant to the provisions of the Development Contract. CLL- 175715v4 C -1 RS230 -20 IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed in its behalf by its Mayor and its City Administrator, on SELLER HEREBY 'CERTIFIES THAT SELLER ` KNOWS OF NO WELLS ON THE DESCRIBED REAL PROPERTY. CITY OF ROSEMOUNT By Its Mayor And Its City Administrator STATE OF MINNESOTA - ) )ss COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2000 by and the Mayor and City Administrator, respectively, of the City of Rosemount, a municipal corporation under the laws of Minnesota, on behalf of the municipal corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Kennedy & Graven, Chartered 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 Property Tax Statements for the Property described in this instrument should be sent to: cis.- 175715v4 C -2 RS230 -2Q CU.-175715v4 RS230 -20 C -3 EXHIBIT B TO TO QUIT CLAIM DEED Permitted Encumbrances 1. Taxes and installments of special assessments payable in 2000 and in subsequent years. 2. Building and zoning laws; federal, state and local laws, ordinances and regulations. 3. Easements for public streets, drainage, utilities, highways and roads now existing. 4. Liens, easements, encumbrances, agreements, restrictions, conditions and covenants of record, if any, as of the date hereof. 5. The terms, conditions, covenants and agreements set forth in the Contract For Private Development between the Grantor and Grantee named in the Deed to which this Exhibit is attached, which Contract for Private Development is hereby made a part hereof by reference thereto CLL- 175715v4 C-4 RS230 -20