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HomeMy WebLinkAbout6.h. Approve Interim Utility Connection Agreement for Caramore CrossingI:\City Clerk\Agenda Items\Approved Items\6.h. Approve Interim Utility Connection Agreement for Caramore Crossing.docx EXECUTIVE SUMMARY City Council Regular Meeting: August 18, 2020 AGENDA ITEM: Approve Interim Utility Connection Agreement for Caramore Crossing AGENDA SECTION: Consent PREPARED BY: Stephanie Smith, PE, Assistant City Engineer AGENDA NO. 6.h. ATTACHMENTS: Agreement APPROVED BY: LJM RECOMMENDED ACTION: Motion to Approve Interim Utility Connection Agreement for Caramore Crossing development BACKGROUND On July 16, 2019 the Rosemount City Council approved the final plat and subdivision agreement for Caramore Crossing. The developer has recently closed on the property and intends to enter into the subdivision agreement within the next few weeks. Caramore Crossing includes a connection to the utilities on Akron Avenue (CR 73), which is currently under construction by Dakota County. The County’s project is at a point in their schedule, where the utility connection must be made presently to avoid significant delays to both the Akron Avenue and Caramore Crossing construction projects. Due to this timeline concern, the attached interim utility connection agreement is proposed to allow the utility connection prior to completion of the subdivision agreement typically required by the City for similar projects. The agreement has been drafted by the City Attorney and is attached to this memo. RECOMMENDATION Staff recommends City Council approve the attached development agreement and authorize the Mayor and City Clerk to enter into this agreement. 1 INTERIM UTILITY CONNECTION AGREEMENT Caramore Crossing THIS AGREEMENT (the “Agreement”) dated this ___ day of ________________________, 2020, by and between the city of Rosemount, a Minnesota municipal corporation, (the "City"), and Forestar (USA) Real Estate Group, Inc., a Delaware corporation (the "Developer"). Recitals WHEREAS, Developer owns that certain real property located in the city of Rosemount, Dakota County, Minnesota and as more particularly described on the attached Exhibit A (the “Property”); WHEREAS, Developer has asked the City to approve the subdivision of the Property containing approximately 75 acres and creating 82 single family residential lots; WHEREAS, the City has subsequently approved Developers request and the final plat to be known as Caramore Crossing subject to certain conditions (the “Plat”); WHEREAS, the Property is located within the city of Rosemount and needs to be connected to certain public utilities within the nearby Akron Ave right-of-way; WHEREAS, the parties acknowledge that due to a Dakota County road project the Developer must act quickly to make the necessary utility connections to avoid significant delays; and WHEREAS, both the Developer and the City acknowledge there is some benefit to both parties for the connection to the municipal utilities prior to the parties entering into that certain Subdivision Agreement typically required by the City for similar projects and therefore the City hereby agrees to allow Developer to begin limited work early in order to timely make the necessary connection to city utilities upon execution of this Agreement. Terms of the Agreement NOW, THEREFORE, in consideration of the mutual premises set forth, it is agreed between the parties as follows: 1. Recitals. The parties agree that all of the recitals set forth above are true and accurate and further agree that each shall be incorporated herein as material terms. 2 2. Utility Connection. On or before ________________ __, 2020, Developer shall make connection to the City’s sewer and water systems for the Property located within the Akron Ave right-of-way in accordance with the City’s specifications and requirements. The City will inspect Developer’s work in accordance with the City’s policies and standard practices. Developer shall be solely responsible for all costs of extension, connection, inspection, and associated costs related to completion of such connections. Nothing herein shall be interpreted to allow Developer to forego any Dakota County specific requirements. Prior to making the connection of any and all utilities contemplated herein, Developer shall comply with all Dakota County requirements including obtaining any permits that may be required. 3. Installation of Connection Improvements by Developer. The Developer shall install or cause to be installed and pay for only those initial improvements necessary and required in order to effectively connect the Property with the public water and sanitary sewer utilities located within and nearby the Akron right-of-way, hereinafter referred to as the “Connection Improvements”. The Connection Improvements are as outlined in Exhibit B. 4. Security for Utility Connection. To guarantee compliance with the terms of this Agreement, payment of the Developers costs estimated herein, the Developer shall furnish the City with a cash deposit (“Security”) in the amount of Four Hundred Twenty-Six Thousand, Seven Hundred Seventy-Five Dollars ($426,775). The amount of the security was calculated as follows: Cost 125% Sanitary Sewer Improvements $ 277,549 $ 346,936 Watermain Improvements $ 63,871 $ 79,839 Total $ 341,420 $ 426,775 In the event of a default under this Agreement by the Developer, the City shall furnish the Developer with written notice by certified mail of Developers default(s) under the terms of this Agreement. If the Developer does not remove said default(s) within two (2) weeks of receiving notice, the City may retain that portion of the Security needed to remedy the default and take such steps as it deems necessary to remedy the default. 5. License. The Developer hereby grants the City, its agents, employees, officers and contractors a license to enter the Property to perform all work and inspections deemed appropriate by the City. Such license shall terminate upon acceptance by the City of the Connection Improvements or the termination of this Agreement as laid out in Section 8 herein. 6. Warranty of Connection Improvements. The Developer warrants all work required to be performed by it herein against poor material and faulty workmanship for a period of two (2) years after its completion and acceptance by the City. 7. Responsibility for Costs. A. Except as otherwise specified herein, the Developer shall pay all costs incurred by it or the City in conjunction with the connection of the Property to the public utilities within the Akron Ave right-of-way including, but not limited to, Soil and Water Conservation District charges, legal, planning, engineering, review and inspection expenses incurred in connection with approval and acceptance of the subdivision and the plat, the preparation of this Agreement and any amendments hereto, and all costs and expenses incurred by the City in monitoring and inspecting the connection of the Property to the public utilities noted herein. 3 B. The Developer shall reimburse the City for costs incurred in the preparation and enforcement of this Agreement, including engineering and attorneys’ fees. The City shall provide invoices, in reasonable detail, as to any such fees and Developer shall be responsible for payment of said invoices within thirty (30) business days of receipt. C. The Developer shall pay in full all bills submitted to it by the City for obligations incurred under this Agreement within thirty (30) business days after receipt. If the bills are not paid on time, the City may halt utility connection work contemplated herein. Bills not paid within thirty (30) days shall accrue interest at the rate of nine percent (9%) per year. 8. Future Agreement & Termination. The parties acknowledge and agree that this Agreement is intended to be an interim agreement entered into in order to allow Developer to make the proper utility connections and install the Connection Improvements in a timely manner in conjunction with the current Dakota County road project over Akron Ave. The parties thereby agree to enter into that certain Subdivision Agreement outlining the obligations of the parties for the overall development of the Property as proposed on the Plat. The parties further agree that upon the successful execution and recording of the Subdivision Agreement this Agreement shall expire by its own terms and be of no further force and effect. In the event, a subdivision agreement is never executed and recorded, Developer agrees to be bound by the terms of this Agreement. Nothing herein shall be interpreted to allow Developer to begin construction or otherwise develop the Property in accordance with the Plat prior to entering into a subdivision agreement with the City. Developer instead may only make the utility connections to the Property and the Connection Improvements as contemplated herein. 9. Indemnification. The Developer shall hold the City and its officers, agents and employees harmless from claims made by itself and third parties for damages sustained or costs incurred resulting from the performance of the obligations contained herein, except for any costs or expenses arising from the intentional acts or gross negligence of the City, it’s agents, employees or contractors. The Developer shall indemnify the City and its officers, agents and employees for all costs, damages or expenses that the City may pay or incur in consequence of such claims, including attorney’s fees. 10. Insurance. The Developer agrees to take out and maintain or cause to be taken out and maintained until six months after the City has accepted the Connection Improvements contained herein, public liability and property damage insurance covering personal injury, including death, and claims for property damage which may arise out of Developer’s work or the work of its contractors or subcontractors. Liability limits shall not be less than $500,000.00 when the claim is one for death by wrongful act or omission or for any other claim and $1,500,000.00 for any number of claims arising out of a single occurrence, and twice said limits when the claim arises out of the release or threatened release of a hazardous substance. The City shall be named as an additional insured on the policy. The certificate of insurance shall provide that the City must be given the same advance written notice of the cancellation of the insurance as is afforded to the Developer. 11. Upfront Fees. The Developer agrees to pay in full the Security prior to, or at the time of execution of this agreement by the City. 12. Developer’s Default. In the event of default by the Developer as to any of the work to be performed by it hereunder, the City may, at its option, perform the work and the Developer shall promptly reimburse the City for any expense incurred by the City, provided the Developer is first given notice of the work in default, not less than 48 hours in advance. This Agreement is a license for the City to act, and it shall not be necessary for the City to seek a court order for permission to enter the land. When the City does any such work, the City may, in addition to its other remedies, utilize the Security, or levy the cost 4 in whole or in part as a special assessment against the Property. Developer waives its rights to notice of hearing and hearing on such assessments and its right to appeal such assessments pursuant to Minnesota Statutes, Section 429.081. 13. Notices. Required notices to the Developer shall be in writing, and shall be either hand delivered to the Developer, its employees or agents, or mailed to the Developer by registered mail at the following address: Thomas H. Burleson, Senior Vice President Forestar (USA) Real Estate Group, Inc. 2221 E. Lamar Boulevard, Suite 79 Arlington, TX 76006 817-769-1860 Notices to the City shall be in writing and shall be either hand delivered to the City Administrator, or mailed to the City by registered mail in care of the City Administrator at the following address: City Administrator Rosemount City Hall 2875 145th Street West Rosemount, Minnesota 55068 14. Miscellaneous. A. Third parties shall have no recourse against the City under this Agreement. C. Breach of the terms of this Agreement by the Developer shall be grounds for denial of building permits, including lots sold to third parties. D. If any portion, section, subsection, sentence, clause, paragraph or phase of this Agreement is for any reason held invalid, such decision shall not affect the validity of the remaining portion of this Agreement. F. The action or inaction of the City shall not constitute a waiver or amendment to the provisions of this Agreement. To be binding, amendments or waivers shall be in writing, signed by the parties and approved by written resolution of the City Council. The City’s failure to promptly take legal action to enforce this Agreement shall not be a waiver or release. G. This Agreement shall run with the land and may be recorded against the title to the Property. The Developer shall take such steps, including execution of amendments to this Agreement, as are necessary to effect the recording hereof. After the Developer has completed the work required of it under this Agreement, at the Developer’s request, the City will execute and deliver to the Developer a release. Notwithstanding the foregoing, upon the recoding of the Subdivision Agreement as contemplated in Section __ herein this Agreement shall be of no further force and affect and shall terminate without further actions by the parties. H. Each right, power or remedy herein conferred upon the City is cumulative and in addition to every other right, power or remedy, express or implied, now or hereafter arising, available to the City, at law or in equity, or under any other agreement, and each and every right, power and remedy herein set forth or otherwise so existing may be exercised from time to time as 5 often and in such order as may be deemed expedient by the City and shall not be a waiver of the right to exercise at any time thereafter any other right, power or remedy. I. The Developer may not assign this Agreement without the written permission of the City Council. J. The Developer acknowledges that the City may issue additional requirements outside of the 2015 General Specifications and Standard Detail Plates for Street and Utility Construction or the 2008 Engineering Guidelines as the City is in the process of updating these documents. The review process may require additional time and expense due to this process, which shall be the Developer’s responsibility. The Developer shall not be billed for the time required for the City to update and approve their revisions to the 2015 General Specifications and Standard Details Plates for Street and Utility Construction or the 2008 Engineering Guidelines. 6 IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first above written. CITY OF ROSEMOUNT BY: William H. Droste, Mayor BY: Erin Fasbender, City Clerk STATE OF MINNESOTA ) ) SS COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this _____ day of _____________________, 2020, by William H. Droste, Mayor, and Erin Fasbender, City Clerk, of the City of Rosemount, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public FORESTAR (USA) REAL ESTATE GROUP, INC. BY: Its STATE OF MINNESOTA ) ) SS COUNTY OF _____________) The foregoing instrument was acknowledged before me this ____ day of ______________________, 2020 by ____________________________________, its ____________________________________, of Forestar (USA) Real Estate Group, Inc. a Delaware corporation, on behalf of said corporation. Notary Public Drafted By: KENNEDY & GRAVEN, CHARTERED 470 US Bank Plaza, 200 South Sixth Street Minneapolis, MN 55402 A-1 EXHIBIT A Legal Description of the Property Outlot B, MCMENOMY ADDITION, according to the recorded plat thereof, Dakota County, Minnesota. B-1 EXHIBIT B Connection Improvements