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HomeMy WebLinkAbout4G, Planning Case 11-011 – Select Senior Living of Arden Hills� EN HILLS Request for Council Action Prepared By: Meagar� Beekman, City Planner Council Meeting Date: August 29, 20I 1 Planning Case 11-011— Select Senior Living of Arden Hiils and TAT Properties Development Agreements Budgeted Amount: Actual Arr�ount: Funding Source: NA NA NA Recommendation: Motion to approve the development agreements between the City and SElect Senior Living, and the City and TAT Properties, as presenied in the August 29, 2011, report to the City Council. Su ortin Documents: 1. Memarandum from Meagan Beekrnan, City Planner. 2. Development Agreemeni between Select Senior Living and the City. 3. Development Agreement between TAT Properties and the City. � EN HXLLS MEM4RA.NDUM DATE: August 29, 2011 TO: Hanorable Mayor & City Cour�cilmembers Patrick Klaers, City Administ�ator FROM: Meagan Beekman, City Planner � SUBJECT; Pla�ning Case 11-011 Applicant: TAT Properties and Select Senior Living Property Loca�ion: 1201 West County Road E Request: Development Agreements approval ReQuested Action Motion ta approve �lie devetapament agreemenis between the City and Select Senior Living, and the Ciiy and TAT Properties, as presented in the August 29, 2011, report to the City Council. Sack�round At �their June 27, 2011, meeting, the City Council approved a zoning code amendrnent, Master and Final PUD, and Prelimir�ary and Final PIa# to a11ow the applicants to reuse the existing building at 1201 County Road E as assisted senior housing. As part of the application, the property will also be subdivided into two separate paxcels, leaving iwo acres at the corner of County Road E and Lexington for future development. As part of any Master and Final PUD, the City requires a development agreemeni between the developer and the City be signed and filed rn�ith the County against ihe deed of the property. At the June 27, 2011, meeting, Staff did not present a development agreement because �here were details within the agree�ent that had not yet been worked out 6etween �ie City and ihe applicants. The Council also raised a number of issues, and add�d several conditions ihat needed to be incorparated into the final development agreement. For this particular application, Staff and the City Attorney have prepared iwo separate developrnent ag�reements; one between Select Senior Living and the City, and one between TAT City ofl4rden Hills City Council Meetingfor �lugust 29, 20II P.� 1PlanninglPlar�ning Cases42011111-01 l- Select Serrror Living PUD (APPROYED}108-29-II - Select Development �Igreements - Memo.doc Page 1 of 2 Properties and the City. Each de�elopment agreemeni describes the obligations af that developex in regards to this application. The reason for this is because there are certain conditions o� approval related to the nevvly created corner parcel that are independent of Select Senior Livings obligations wi� the City. Legally it is cleaner arid easier to keep the agreements separate. Discussion At the June 27, 2011, meeting, ihe Council added the follo�ng conditions to the approval of the Master and Final PUD: 1. The applicant shall add decoraiive wrought iron, or other archiiectural treatment, to the east side of the building on Lot 1, subject to the ap�roval of City Staff. 2. Lighting �hall be added to any fizture proof of parking that is converted to parking lot. 3. No more than 25 percent of the seniar facility an Lat 1 sha11 be co�zprised a� memory care. 4. Additional landscaping, including trees, shall be added to �ie west side of Lot �. In addition to the above mentioned conditions, the City Council directed tl�at the developer pay a cash park dedicatio� up front, and that Staff include conditions requiring a sewer grinder be installed prior to the issuance of a certificate of occupancy. All oi tk�e above provisions have been included in development agreements. Recom�nendafion Staff recommends approval of the deveiopmeni agreements. Requested Action Mation to approve the development agreeme�nts between the City and Select Senior Living, and the City and TAT Properties, as presented in the August 29, 2011, report to the City Council. Attachments A. Development Agreement between Select Senior Living and the City B. Developmeni Agreement beiween TAT Properties and the City. City of�4rden Hzlls City Council Meettng for t4ugust 29, 2011 P:lPlanninglPlanningCases12011171-011 -SelectSeniorLivingPUD{APPRQYED)108-29-11 -SelectDevelopmeratrlgreements-Memo.dac Page 2 oF2 �ttachment Development �Agreement Between Select Sen�or Living and the City City ofArden Hills City Council Meeting for August 29, 2011 CITY OF ARDEN HILLS SELECT COMPANIES, LLC PLANNED UNIT DEVELOPMENT PERMIT DEVELOPMENT AGREEMENT PLANNING CASE NO. � i-011 1.0 Parties. This agreement ("Agreement") is dated the 29th day of Augusi, 2011, and is entered into by the City of Arden Hills, a Minnesoia statuiary city ("City"); and Select Campanies, LLC; and Select Seniar Livin.g of Arden Hills, LLC ("Select"}. 2.0 Recitals. A. 1201 County Road E, LLC and TAT Properties, LLC {jointly "1201 TAT") are the record fee owners of the £oIlowing described property situated in Ramsey County, MN {"Property") which wiil be platted as Lots 1 and 2, Block 1, Select Senior Living-Arden Hills (respeciively "Lot 1" ar�d "Lot 2"}: All that part of the South %z of the Souxheast '/a of the �outheast "/a, Sectian 27, Township 30, Range 23, lying between the Northerly righi of vvap limits of U.S. Highway Na 10, and the Southerly right a� way Iimits of the Minneapolis, St. Paul and Sault Sfe. Mar�e Railroads, and the Westerly right of way limzts of Lexington Avenue and Easterly of the West 250 feet of said Southeast 1/4 of the �outheast '/4 of Section 27, Township 30, Range 23, according to ihe plat thereaf on file or of record in the office of County Recorder, Rarnsey County, Minnesota. B. 120 i TAT has agreed to convey Lot 1 and the improv�ments located thereon ta Select. Select will improve Lot 1 and operate a siate Iicensed assisted senior housing facility far a znixiure of independent, assisted and mennory care units; and for some retail on the first floor of the building. C. 1201 TAT will retain the ownership of Lai 2 far future developme�t pursuant to the terms o� a future PUD and Development Agreernent. D. On the 25�' day of May, 2011, 1201 TAT and Select submit�ed a combined application requesting that the City amend its Zoning Regulations; approve a Pxeliminary and Fin.al Plat for the Property; and approve a Master and Final Planned Unit Development for the Lot 1("Application"). 3.0 C�Plannin� Commission Review. On the 8�' day of June, 2011, at a public hearing, the Arden HilIs Planning Connmission revievcred the Applicatian; considered the comments and materials submitted by the City's staff and consultants; considered the comments and mat�rials submitted by 1201 TAT, Select, and their consultants; and cansidered the cornments and/ar materials submitted by otlier individuals who attended the public hearing. At the conclusion of the public hearing, �he Planning Commission recommended approval of the Application subject to various conditions. �.0 Ci Council Review. On the 27�' day of rune, 2011, the Arden Hills City Council reviewed the recommendations of the Planning Cornrnission; the materials and comments submitted by City staff and its consultants; tlae materials and comments submitted by 1201 TAT, �eleci, and iheir consultants. A� the conclusion of its review, the City Council approved the revision to the City's Zoning Reg�lations; the Preliminary and Final Plat for Select Ser�or Living-Arden Hiils; and Master ar�d Final Planned Unit Development for the Property, all subject to the terms and conditions contained herein. 5.0 Terms and Conditions. In consideration of the undertakings herein e�pressed and in compliance with the City's Development Regulations, Select agrees as follows: A. Proiect Plans. Select shall construct the Project on Lot 1 in compliance with the following plans and specifications ("Approvec� Plans"). Any significant change to the Approved Plans, as cletermined by the City Planner, shall require Planning Commission �eview and City Council appraval. 1. �heet A.1-Site P�an; 2. Sheet A2.1-Monument Sign; 3. Sheei A3.1-Exterior Elevatioz�s; 4. Sheet A3.2-Exterior Elevations; Sheet C.0-Title Sheet and Notes; 6. Sheet C1-Grading, Drainage and Erasion Canirol l'lan; 7. Sheet C2-Utiliiy Plan; 8. Sheet C3-Landscaping P�an; 9. Shee# C4-Deiails; 10. Sheet CS-Stormwater Pollution Prevention Plan; and 11. Sheet SL-1-Site Light�ng Plan. B. Required Improvements. Select shall consiruct the fallowing improvements on Lot 1 pursuant to the Approved Plans. Type of Imt�rovement. a. Grading, Drainage and Erosion Control pursuani to the terms of a permit issued by the City. b. Insta111andscaping improvements according to the Approved Plans. c. Constract a sidevvalk adjacent to County Road E, as approved by the City's Director of Public Works within the sidewalk easement area. d. Install a sewer grinder on Lat � as approved by the City's Director of Public Works. 2. Estimated Cost_ of Tmprovements. 125% of the Estimated Costs of constructing landscaping and sewer grinder improvements shall be escrowed with the City as provided hereinafter, as deterniined by the Public Works Director. 3. Security for Required Irnprovement. The financial surety far ihe above Required Impro�vernents sha11 be in a forrn acceptable io th� City Attorney, and sha11 be in an annount equal to 125% of ihe estimated cost of the Required Improvemenis. In regard ta lar�dscaping, the City sha11 retair� the financial surety for at leasi two {2) years after full implementation of th� landscaping plan. 4. Reductian of Sec�tv. Upon completion of the Developer's Required Improvements and acceptance by the City, the City Council shall reduce the amount of security for the completed improvements, provided that, in no case, shall the �otal remaining security be less thari the 125% of the estimated cost of the incomple�e improvements. C. Development Permits. Select shall obtain a11 necessary non-City permits, including, but not limited to, NPDES, Rice Creek Waiershed District in Ramsey County. Copies of ali necessary permits shal.l be submitted to the City prior to ihe issuance of development permi�s �or Lot i. D. Certi�ica#e of Occunanc� Select shall obtain a Certificate of Qccupancy for struc�ure on Lot 1 within one (1) year of the approval date o� this Deveiopment Agreement, or the Master and Final PUD approval shall expire, unless extended by the City Counci� priar to the approval's expiration date, which approval shall not be unreasonably withhe�d. Extension requests must be submitted to the City in writing at least forty-five (45} days priar to the expiratian date. Prior to the City issuing a Certificate of Occupancy far ihe siructure on Lot 1, the Select shall: ' 1. Comptete the project in accordance with the approved plans as amended by the conditions of approvaL Any significa�t changes to these plans, as determined by the City Planner, shall require review and approval by the Planning Commission a.r�d City Council. 2. Locate fire hydrarits within one-hundred fifiy (150) feet of the fire department connections (FDC). 3. Obtain aIl necessary State and Caunty licensing for the operaiion of a senior housing facility and provide copies of such licensing to the City. No more �an 25% of the senior housing faeility on Lot 1 shall be licensed far memory care units. 4. Comply with Chapter 1306, Special Fire Protection Systems of �he State Building Code, which requires the installation of a f re sprinkler protectian system tha# complies with NFPA 13, subject to the approva� of the Fire Marshall. 3 5. Comply with all provisions of Chapier 14 of the City Code regarding property maintenance, subject to approval o�the Building Official. 6. Provide permanently affixed bicycle racks the pri�nary entrances on the building on Lot 1, subject to approval by the Ciiy. 7. Install additianallandscaping ar�d a 3 foot decorative wrought iron fence between the parking located in the fro�t o� the building on Lot 1 and the sidewa.ik, subject io approval of the Ciiy Planner. S. Tnstall a decorative wraught iron or other architectural �reatment to the east side of the building on Lot 1, subject to the approval b� the City Planner. 9. Add additional landscaping, including trees, to the west side of Lot 1. E. Future Im�rovements/Assessments for the B-2 District Sireetscape. T�e City aniicipates constructing sh'eetscape improvements on County Road E, adjacent to Parcel 1. Select hereby agrees to vvaive its right to appeal ar�y special assessment levied against Lot � for streetscape improvements, associated with the implementa.tion of the guiding plan for the B-2 District, provided that: a. �uch special assessment does not exceed an amour�t equal to $350 per lineal foot on Couniy Road E; b. The Property, subject to the terms of this Agreement, specially assess in tkae same maiuier as ather similarly situated properties; c. Furkher provided that, in ihe ev�nt xhat �he City, as part of its Streetscape Improvement Project, removes any sidewalk improvements construc�ed by Select as part of this Developznent Agreement, Select shall receive credit against its Praposed Special Assessment far Streetscape Tmpro�ements in the following manner: i. If the Sireeiscape �idewalk Improvemenis are constructed wiihin on� year of the execution date of this Agreement, Select sha11 recei�e 100% credit for its sidewalk irnprovement costs; and ii. If such improvements are constructed after one year of ihe execution date of this Agreemenfi, a depreciation rate of 5 percent per year �ha1� be used, and the City shall credit the assessment in the amount of the depreciated cost. 2. Select shall canvey temporary constructian easements over Lot 1 to the City for imptenr�enting the County Road E streetscape improvernents. The City shall reasonably restore the area of the temporary const�zction easement to its condition priar to construction of the streetscape 4 __ improvements. F. Future Parking Lot Li h��. Select shall provide lighting, as appro�ed by the City Plan�er, for any futuare expansion af parking areas. G. Bindin� Effect. The terms and provisions of tlus Agreement shall be bind'zng upon and in�re to the beneiit of �he heirs, representatives, successors and assigns of ihe parties hereto and shall be binding upon aIl fiz#ure owners of all or any part of the Property. This Agreement, at the option o� the City, sha11 be placed of record so as to give natice thereto to any subsequent purchaser� and encurnbrances of all or any part of the Property and all recording fees, if any, shall be paid by Select. H. Default. The occurrence of any o� tl�e �ollawing shall be considered an"Event af Default" in the terms and conditions cantained in this Agreement: 1. Failure of Select to comply with any of the terms and conditions coniained in this Agreement. 2. Failure of Select to comply with any applicable ardinance or statuie rvi�h respect to the development of the Property. I. Remedies. Upon the occurrence of any Event of Defauli, the City, in addition to any other rernedy which may be available to it, shall be permitted to do any of the following: 1. City may make advances or take ather steps to cure tl�e defauit, and, where necessary, enter Lot 1 far that puzpose. Select shall pay ail sums sa advanced ar expenses incurred by the City, upon de�nand, with iniexest from ihe dates of such advances or expenses at the rate af 10% pex annum. No action taken by the City pursuant to this section sha.11 be deemed to relieve Select frorr� curing any such default ta the extent fihat it is not cured by �he City or frorn any other default hereunder. Tk�e City shall not be obligated, by virtue af ihe existence ar exercise of this right, to perform any such act or cure any such defauli. Select shall save, indemni�y, and hold harmiess, including reasonable attorney %es, the City from any liabiliiy ar ather darnages which may be inc�ured as a result of the exercise af the City's rights pursuant to this section. 2. Obtain an Order fram a Court of corr�petent j�arisdiction requiring Select to specifically perform its obligations pursuant to the tertns and provisions af this Agreement. 3. Exercise any other remedies which may be available to it including an action for damages. 4. Withhold the issuance of any or all building permi#s and/or prohibit the occ�pancy of the bu'rlding for which permits have been issued; provided 5 that the completion of minor improvements may continue after issuance o£ occupancy permits if, in the discreiion of the City Planner, such improvements can be completed witlnin 30 days and further provided that Developer escrow 125% of the cost of such improvements with the City prior to the issuance a� the Occupancy Permit for the build'ang. 5. Tn addition to the remedies and amo�nts payable as set forth herein, upon the occurrence of an Event of Default, Select shall pay to the City all fees and expenses, including reasonab�e attorney, engineering and consulting fees, incurred by the City as a result of the Event of Deiault, whether or not a lawsuit or other action is foranally taken. IN WITNESS WHEREOF, the above-narned parties have hereunto set their hands. C�TY OF ARDEN HILLS, a Minnesota �tatu�ory ciiy ATTEST: Patrick Klaers, City Administrator STATE OF MINNESOTA } ) ss. COUNTY OF David Grant, Mayax On this _ day of , 2011, before me, a notary public within an� for said couniy, personaily appeared David Crrant and Patrick Klaers, to me known io be respectively the Mayor and City Ac�ministrator of the City of Arden Hills, and they executed the foregoing Agreement and aclar�owledged that the� executed. ihe same by authority of and on �behalf of City of Arden Hills. Notary Public 7 SELECT SEN�OR LIVING OF ARllEN HILLS, LLC : Printed Naane: Title: STATE OF MINNESOTA ) ) ss. COUNTY OF ) On this day of , 2011, before me, a notary public witl�in and for said county, personally appeared , the of Select Senior Living of Arden Hills, LLC, and has executed the foregoing Agreement and acknowledged that the� e�ecuted the same by authority of and on behaliof the company. Notary Public Arden Hi11s1Agreemen�slSelect.v8.doc �3 Attachment Development Agreement B etween TAT Propertie s and the C ity City of,4rden Hills Ciry Council Meeting for gugust 29, 2011 CITY OF ARDEN HILLS 1201 COUNTY ROAD E., LLC/TAT PROPERTIES, LLC PLANNED UNIT DEVELOPMENT PERMIT DEVELOPMENT AGREEMENT PLANN�NG CASE NO. 11-011 1.0 Parties. This agreernent ("Agreement") is dated the 29t�' day of August, 2011, and is entered into by the City of Arden Hills, a Mirmesota s�atutory cit� {"City"); and 1201 County Road E, LLC and TAT Properties, LLC (jointly "1201 TAT"). 2.0 Recitals. A. 1201 TAT is the record fee owner of the following described property situated in Ra�nsey County, MN ("Property") which will be platted as Lots 1 and 2, Block 1, Davidson Addition (respecti�ely "Lot 1" and "Lot 2"}: All that part of �lie Sauth %z af fhe Sautheast 1/4 of the �outheast `/4, Section 27, Township 30, Range 23, lying between the Northerly right oi way Iimits of U.S. Highway No. 10, and the Southerly right of way limits of the Minneapolis, St. Paul and Sault Ste. Marie Railroads, and the Westerly right of way limits of Lexingion Avenue and Easterly of the West 250 feet of said Southeast 1/4 of the Sautheast f/4 of Section 27, Township 30, Range 23, according to the plat thereof an file or of record in the office of County Recorder, Ramsey� County, Minnesota. B. 1201 TAT has agreed to convey Lot 1 and the improvements located thereon to Seleci Companies, LLC ("Select"). Select will improve Lot 1 and operate a stat� Iicenseci assisted senior housing facility for a rnixture of independent, assisted and memory care units; and ancillary retail on the first floor of the building. C. 1201 TAT will retain the ownership of Lot 2�or fuiure development pursuan# to ihe terms of a future PUD and Development Agreement. D. On the 25�` day of May, 2011, 120I TAT and Select submitted a combined application requesiing that the City amend its Zoning Regulations; approve a Preliminary and Fina1 Plat for the Property; and approve a Master and Final Pfanned Unit Development for the Lot 1("Application"j. 3.0 CiLy Plannin� Cona.�nission Review. On tlle 8th day of 3une, 2011, at a public hearing, the A�rden Hills Plaiuling Co�nmission reviewed the Application; considered the comments az�.d materials submitted by the City's staff and consultants; considered the cor�ents and materials submitted by 1201 TAT, Select, and their consuliants; and considered ihe comments and/or materials submitied by other individua.�s wha attended the public hearing. Ai the conclusion of the public hearing, the Planning Cornanission recomu�nended approval of ihe Applicaiion subject to various conditions. 4.0 Citv Council Review. On ihe 27�' day of June, 2011, the Arden Hills Cify Council reviewed the recommendations of the �lanning Cornmission; the mate�ials and cornrnents submitted b� City staff and the its consultants; and the materials and comments submitted by 1201 TAT, Select, and their consultants. At the conclusion of its revier�v, the City Co�ncil approved the revision to the City's Zoning Regulations; the Preliminary and Final Plat for Select Senior Living-Arden Hi�ls; and Master and Final Planned Unit Development for the Property, a11 subject to the terms and conditions coniained herein. 5.0 Terms and Conditions. In consideratipn of the undertakings herein expressed and in compliar�ce witTi the City's Development Regulations, I20I TAT agrees as follows: A. Execution of Final Plat. Priar to the City executing the Final Plat for Davidson Addition, 1201 TAT shall: 1. Convey a ien-foot wide pedestrian walkway easernent to ihe City along the property lines of Lot 1 and Lot 2 adjacent ta County Road E., within which the six-foot wide sidewalk shall be constructed. 2. Pay park dedicatiox� fees in an amount of $133,350.Op. The park dedication fee shall be paid in full, or in the alternative, the 1201 TAT shall enter into ara agreement to pay the park dedication fee pursuant io a payment plan in accordance with Section 1130A8, �ubd. E of the Arden Hills City Code. B. Recording of Plat. 1201 TAT sha11 fiIe ihe Final Plat of Davidson Ad.dition with Ramsey County within one (1) year of the date of the City's approval of the Finai Plat, or prior io the issuance of development permits for Lot 1, whichever e�rent occurs firsi, or the City's approval shall expire unless extended by approval fro�n the City Council. An extension request must be submitted in writing ta the City at least farty-five {�5} days prior to tl�e expiration date. C. Rec�uared Improvemenis. The applicant shall obtain alI necessary permits, including, but not limited to, NPDES, Rice Creek Watershed District, Ramsey County, and City Erosion Control Permits. Copies of all necessary permits shall be submit�ed to the City prior to the issuance of any development permits. In addition, 120� TAT shall construct the %Ilowing improvements: Type af Improvement. a. Removal of Bituminous. Within six (6} months of the date of the execution of this Agreement, remove all bituminous parking surface on Lot 2, which is nat required by the fire department for access to the rear of �lie building on Lot 1. b. Seed or Soc�. Withiz� six {6) months of the execution of this Agreement, seed and sod all exposed soil which is nat considered an i�proved hard suxiaces or perennial planting area with a grass mi�hu'e approved by the City Planner. c. Sidewalk. Within si� (6) znonths of the execution of this Agreement, construct a sidewalk on Lot 2 adjacent to County Roaci E within the sidewalk easemer�t area; and within ane (1) 2 year of the City's appraval of the Development Agreement, construct a sidewalk on Lot 2 adjacent to Lexington Avenue within the sidewalk or pub�ic right-of way easement area. 2. Estunated Cost of Improvement. 125% of the Estimated Costs of the removal of tt�e bituminous, seeding ar sodding, and canstruction of the sidewalk sha11 be escrowed wiih ihe City as pro�vided hereinafter, as dei�rmiried by the Public Works Directar. 3. Securitv. The financial surety for the above Required Improvements sha11 be in a forn� acceptable to ihe City Attorney, and shail be in an amouni equal to 125% of the es�imaied cost of the Required Improvements. 4. Reduction of Securit . Upon completion of 1201 TAT's Rec�uired Improvements ar�d acceptance by ihe City, the City Cauncil shall reduce ihe arnount of sec�arity for t�e cornpleted iznprovements, provided that, in no case, shail the total remaining security be less than the 125% of the estixnated cost of t1�e incomplete improvements. D. Develo ment of Lot 2. Prior ta the issuance of building pernlits for Lot 2, 1201 TAT shall: Provide the City with a recorded copy af Restricted Covenants wluch guarantee access from Lot 2 to Lo# 1 and wluch describes the maintenance obligaiions of the party in regard to the drivang access area. 2. Trafif c Management shall be implemented ai the eastern most driveway, as illustrated in the June 27, 2011, report to the City Council, subjeci to the approval of the Public Works Direcior, to eff�ctively pxovide efficient and safe ingres� a�d egress to Loi 2. Traffic zxianagement devices may be installed at the time of Lot 2 developr�ent, subject io ihe approval of the Pubtic Works Direcior. 3. Upon future development of Lot 2, or wiihin t�n years from the date of the approval of this Development Agreement, whichever occurs first, the City may incorparate a civic feature inio the southeast corner of Lot 2. E. Future ImprovementslAssessments for the ,B-2 District Streetsca�e. The City anticipates constr�zcting streetscape improvements on County Road E, adjacent ta Lot 2. 1. 1241 TAT hereby agrees to waive its r�ght to appeal any special assessment levied against Lot 1 for streetscape improvements, associated wiih the imple�entation of the guiding plan for the B-2 District, provided that: a. Such special assessment does not exceed an amouni equal to $350 per lineal foot an County Road E; b. The Properry, subject to the terms of this Agreement, specially assess in the same nnanner as other simila,rly situaied properties; 3 c. Furtl�er provided #hat, in �he event that the Ciry, as part of its Streetscape Impro�em�nt Project, removes any sidewalk improvements constructed by 1201 TAT as part a� this Development Agr�ement, 1201 TAT shall receive credit against its Proposed Special Assessment for Sireetscape Irnproveznents in the following manner: i. If the Streetscape Sidewalk Improvements are constructed within one year of the execution date of �iis Agreemeni, 1201 TAT sha11 receive 100% credit for its sidewalk improvement cos�s; and ii. If such improvemen� are constructed after one year of ihe execution date of this Agreement, a depreciation rate of 5 percent per year shall be used, and the Ciiy shail credit ihe assessment in the amount of the depreciated cost. Z. 1201 TAT shall convey temporary construciion easements over Lot 2 to the City for implementing the Coun.ty Road E streetscape irnprovements. The City shall reasonably restore the area of the temporary construciion easement to its condition prior to construction of tlae streetscape improvements. F. Binding Effect. The terms and provisions of this Agreernent sha�l be binding upon and inure to the benefit of the heirs, representatives, successors and assigns of the parties h.ereto and shall be binding upon all future owners af all or any part of the Property. This Agreement, at the option of the City, shall be placed of record so as to give notice thereto to any subsequent purchasers and enc�unbrances of all or any part of the Property and aIl recording fees, if any, shall be paid by the 1201 TAT. G. Default. The occurrence af any of the following shall be consider�d an "Event of Default" in the terrns and conditians contained in this Agreement: 1. Failure of 1201 TAT to comply with any of the ternns and conditions contained in this Agreement. 2. The failure of 1201 TAT to comply with any applicable ordinance or sta.tute with respect to the developmeni of the Property. H. Remedies. Upon the occurrence of any Event af Defauli, the City, i� additian ta any other remedy which may be available to it, shall be permitted to do any of the following: 1. Ciiy ma� make advances or take oiher steps to cure the default, and, where necessary, enter the Property for that purpose. 1201 TAT shall pay alI sums so advanced or expenses incurred by the City, upon demand, with interes# from the dates of such advat�ces or expenses at the raie of 10% per annum. No aciion taken by the City pursuant to this section shall be 4 deemed to relieve 1201 TAT frozn cu�ring azly such default to the extent that it is not cured by the City or from any other default hereunder. The City shall not be abligated, by virt�ae of the existence or exercise of this right, to perform any such act or cure any such defaulf. The 1241 TAT shall save, indemnify, and hold haYmless, including reasonable attoz-ney fees, the City fram any liahilxty ar other damages which may be incurred as a result of the exercise of ihe City's rights pursuant ta this section. 2. Obtain an Order frozn a Caurt of competent jurisdiciion requiring the 1201 TAT to specificaily perform its obligations pursuant to the terms and provisions o£ this Agreement. 3. Exercise any other remedies which may be available to it including an action �ox damages. 4. Withhold the issuance of any or all building permits andlor prohibit the acc�pancy of all building(s) for which permits have been issued. 5. In addition to the remedies ar�d amounts payable as set forth herein, u�on ihe occurrence of an Event of Default, the 1201 TAT shall pay to the City all fees and expenses, including reasonable attorney, enginee�ng and cansulting fees, incurred by the City as a result of the Event a� Default, whether or not a lawsuit or other action is formally taken. 5 IN WITNESS WHEREOF, ihe above-named parties have hereunio set their hands. ATTEST: Patrick Klaers, Ciiy Administrator STATE OF MINNESOTA ) ) ss. COUNTY OF ) CITY QF ARDEN HILLS, a Minnesota statutary city David Garant, Mayor On this day of , 2011, befor� me, a notary public within and for said county, personally appeared David Grant and Patrick Klaers, to me kx�own to be respectively tlie Mayor arid City Administratar of the City of Arden Hills, and they executed the foregoing Agreement and acknowledged that they execut�d the sarne by autharity of and on behalf of City of Arden Hills. Notary Public � 1201 COUNTY R4AD E, LLC & TAT PROPERTIES, LLC : Printed Name: TitIe: �TATE Ok' MINNESOTA ) ) ss. COUNTY OF ) On this day of , 2011, before me, a notary public wiihin and for said county, personally appeared _ , the of 1201 Coun�ty Road E, LLC and TAT Properties, LLC, and has executed the foregoing Agreement and acknowledged that they executed the same by authority of and on be�ialf of the company. Notary Public /�rden HiIIslAgreements11261-TAT.v7.doc %