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HomeMy WebLinkAbout4.C.6. Declaring Adequacy of Petition, Ordering an Improvement and the Preparation of Plans and Specifications for the Opus Northwest Improvements for the Valley Park Business Center Project No. 2013-6-Res. No. 7304 Consent Business 4. C. 6. t' HAKOPE1 TO: Mayor and City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director DATE: 06/18/2013 SUBJECT: Declaring Adequacy of Petition, Ordering an Improvement and the Preparation of Plans and Specifications for the Opus Northwest Improvements for Valley Park Business Center, Project No. 2013 -6, Res. No. 7304 (D) Action Sought Opus Development Company, L.L.C., and Rosemount Inc. will be submitting a petition for the construction of sanitary sewer, watermain, storm sewer and streets within the plat of Valley Park Business Center for Council acceptance and to order the Preparation of Plans and Specifications. Attached is the petition that has been reviewed by the city and the developers. A signed petition is anticipated to be on the table for Tuesday's meeting. Background Opus Development Company, L.L.C. and Rosemount Inc., are submitting a petition for the construction of sanitary sewer, watermain, storm sewer and streets within the plat of Valley Park Business Center and for the "Emerson" building project. Attached is the petition revised by Opus and Emerson that is acceptable to the city attorney in final form. Attached is Resolution No. 7304, declaring adequacy of petition and ordering an improvement. With 100% of the property owners petitioning the improvement, no public hearing is necessary, thus the project can be ordered and design of the improvements can commence. The desire of Rosemount is to have the road improvements by their building by October 15, 2013, thus design of the public improvements needs to commence now to meet that date. Also attached is an extension agreement from WSB & Associates, Inc. to provide engineering services. Part of the petition requirements is for the developer to commit to paying for the cost of preparing the plans in case the project does not move forward. Rosemount is committing to pay all reasonable costs incurred by the City. In discussions with the City Attorney, if these improvements are to be included as a 429 Special Assessment City project, the petitioning for the project is recommended and required as part of the platting process. Opus Development Company, L.L.C. and Rosemount Inc., are requesting to proceed with the project of the major roads and utilities to serve the site. Part of the financial discussions with this project is for the City to install these improvements and assess the cost over a ten -year period. Also this development is required to execute a developer's agreement which requires the developer to have a security for 75% of the assessments. The estimated cost of the improvements listed is $3,200,000.00 with 10% contingency and 20% indirect costs. This amount is the assessment that the developer cannot appeal. The actual assessment will be based on actual costs. If Council agrees to accept the petition, then the appropriate actions would be to approve a resolution declaring the adequacy of the petition and order the preparation of plans. Recommendation Move to approve Resolution No. 7304, declaring adequacy of petition, ordering an improvement and preparation of plans and specifications for improvements within the plat of Valley Park Business Center, as described in the petition and authorize the appropriate City Officials to execute an extension agreement with WSB & Associates, Inc. to provide engineering services. Budget Impact This project will be assessed to the benefiting properties associated with the Valley Park Business Center minus any contributions from the State and any park dedication funds for park improvements. Relationship to Vision This supports Goal D: "Maintain improve and create strong partnerships with other public and private sector entities." Requested Action 1. Offer Resolution No. 7304, A Resolution Declaring the Adequacy of Petition, Ordering an Improvement and Preparation of Plans and Specifications for Improvements within the Plat of Valley Park Business Center, Project No. 2013 -6 and move its adoption. 2. Authorize the appropriate City Officials to execute an extension agreement with WSB & Associates, Inc. to provide engineering services. ' Attachments: Valley Park Business Center Plat RES NO 7304 WSB EXTENSION AGREEMENT PROPOSAL PETITION ■INIIIIIIIM■ J --.... LEGEND Su NI a Pre Mina, Flat Dan '.---...-. 8 ot • ilVr.... f ,.--..1 1.....:--- (: 0 ?.. , , , ..17- y • FOcliOmclaMflfr .•-. - * W. -- -- - sasnansTuel ---- -... 1 VAP. , ' ." r ifi.4j , '.....--- .,,,,,,,,,,,,y .. • - . suerafesEv.ya coKarre con ---".....' NORN - ,...„_, _ - - ,,,..7: - .7.....:, S .., 4 •,... 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I ,:t Project No. OPU19421 ■■ RESOLUTION NO. 7304 A Resolution Declaring Adequacy of Petition And Ordering An Improvement And The Preparation Of Plans And Specifications For Improvements Within The Plat of Valley Park Business Center Project No. 2013 -6 WHEREAS, a certain petition requesting construction of street and public utility improvements within the plat of Valley Park Business Center, has been filed with the Council on June 18, 2013; and WHEREAS, this petition is hereby declared to be signed by 100 percent of the property owners affected thereby, no public hearing or notices are required, as per Minnesota Statutes Section 429.031. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA: 1. That the improvement is ordered as hereinafter described: Innovation Boulevard from Valley Park Drive to Valley Park Drive and Innovation Drive from Innovation Boulevard to Innovation Boulevard including intersection traffic study, street construction, turn lanes, sanitary sewer, watermain, storm sewer, box culvert crossings, signing and stiping, street lighting and other appurtenant work. 2. Bruce Loney, Public Works Director, is hereby designated as the engineer for this improvement. He shall prepare plans and specifications for the making of such improvements. 3. The work of this project is hereby designated as part of the 2013 -6 Public Improvement Program. Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of , 2013. Mayor of the City of Shakopee ATTEST: City Clerk ENGR /2013- PRO3ECISNALLEYPARKBUS WESSCEN7ER /WORD/RES73040RDER- IMPROVEMENTS- WSB & Associates, engineering - planning • et ?vironniental • CO3 ?s°tiCtnon 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763-541-4800 Fax: 763 - 541 -1700 June 12, 2013 Mr. Bruce Loney, PE Public Works Director /City Engineer City of Shakopee 129 Holmes Street South Shakopee, MN 55379 -1376 Re: Extension Agreement for Professional Services Estimate of Cost to Provide Engineering Services OPUS — Valley Park Business Center Dear Mr. Loney: According to our Agreement for Professional Services within the City of Shakopee and Section 1 -C-2 (Major Projects), this extension agreement is written to provide you with an estimate of cost for engineering services for the above - referenced project. We are proposing to complete the work as detailed in the attached Scope of Design Services, Exhibit A and Scope of Construction Administration/Survey Services, Exhibit B. WSB & Associates, Inc. (WSB) understands the significance of the project, to not only the City of Shakopee, but also its fellow stakeholders. WSB has identified Donald Sterna to be the project manager. and he will assign a project specific design team whose sole purpose is to deliver this project within the timeline specified. The attached work plan describes the approach and tasks proposed to be completed by WSB for street and utility design for the Opus — Valley Park Business Center. The work plan includes engineering design services for intersection traffic study, roadway, storm sewer, sanitary sewer and water main, signing and striping, traffic control, box culvert crossings, removals, erosion control. street lighting and conduit crossing plans, along with project coordination. The work scope also includes construction surveying. WSB understands that a majority of the design survey work has been completed; however, we anticipate some additional preliminary topographic survey work will be required. WSB understands the preliminary topographic survey work and plat will be provided to WSB by the City in an electronic AutoCAD format in detail as shown on the latest version of the preliminary Valley Park Business Center plans prepared by OPUS. Based on our review of the site and preliminary plans, additional survey will be likely to spot check the previously completed topographic survey work and pick up any missing information. We have included costs for this work in our proposal. WSB will also perform an evaluation of the previously installed storm sewer and other utilities to determine their condition and capacities. Any replacement or repairs of the facilities will be reviewed with the City and incorporated in the final plans. St. Cloud • Minneapolis • St. Paul Equal Opportunity Employer wsbeng.com P,. !runt •taro, u i+r . x..w,. centrr ... ow. .... n -.... c.M.. Mr. Bruce Loney, PE City of Shakopee May 31, 2013 Page 2 of 3 We understand that no feasibility report will be required for this project and no cost estimate was provided for this work in our proposal. We understand the preliminary plans will be provided to WSB by the City in an electronic AutoCAD format in detail as shown on the latest version of the preliminary Valley Park Business Center plans prepared by OPUS. We are proposing to complete the final design portion of this work, including an intersection traffic study, as described in the attached Scope of Design Services, Exhibit A, on a cost - reimbursable basis in accordance with our current fee schedule. Engineering services for the design are estimated $132,750 to $1.36,500. The intersection study is estimated to range from 8,500 to 9,250 along with permits and expenses estimated at $3,600. It is proposed that all work under the final design portion of the contract would be considered complete after the preconstruction conference. We will review our progress monthly and will not exceed these amounts without your prior approval. We propose the construction and survey phase of this project, as described in the attached Scope of Construction Administration / Survey Services, Exhibit B, on a cost - reimbursable basis in accordance with our current fee schedule. Construction surveying services for the construction phase of the contract are estimated at $47.500 to $49.500. It is proposed that all work under the construction portion of the contract be considered complete after the project is complete. We propose the record drawings phase of this project, as described in the attached Scope of Construction Administration / Survey Services, Exhibit B, on a cost - reimbursable basis in accordance with our current fee schedule. Record drawing services for this phase of the contract are estimated at $6,750 to $7,500. It is proposed that all work under the record drawing portion of the contract be considered complete after the record drawings have been completed and accepted by the City. Listed below is a summary of the Engineering Services Fees: ITEM RANGE FINAL DESIGN SERVICES $132,750 $136,500 INTERSECTION TRAFFIC STUDY $8,500 $9,250 CONSTRUCTION SERVICES / SURVEYING $47,500 $49,500 RECORD DRAWINGS 56,750 $7,500 EXPENSES (PERMITS, SURVEY, LATH, ETC.) $3,600 $3,600 TOTAL $199,100 $206,350 Please see the attached Work Plan and Estimate of Cost for a detail breakdown of the estimated hours for this project. We are available to begin work as soon as authorized by the City, and we anticipate we will complete the project according to the following schedule, assuming that we receive the notice to proceed on June 18, 2013. P''LETTER PROPOSALS'ShakopeetOPUS Valley Park Business Cent r . Valley Park Business Center doc Mr. Bruce Loney, PE City of Shakopee May 31, 2013 Page 3 of 3 We propose to complete the project according to the following tentative schedule: Council Approves Extension Agreement and Authorizes Design June 18, 2013 Commence Final Design Work June 19, 2013 Submit Plans to City and SPUC for review July 12, 2013 Approve Plans and Authorize Bids July 16, 2013 . Open Bids August 16, 2013 Award Contract August 20, 2013 Begin Construction August 26, 2013 South Road Open to Traffic /Paved October 15, 2013 Pave Bituminous Base Course, Water Main and Sanitary Sewer in Service November 1, 2013 Substantially Complete Construction November 15, 2013 Final Wearing Course / Complete Construction June 2014 This letter represents our entire understanding of the project scope. If you are in agreement, please sign on the space provided and return one original signed copy to us for our records. We will start immediately upon receipt of the signed agreement. If you have any questions concerning the work plan or fee as discussed herein, please feel free to contact me at 763- 287 -7189. We look forward to working with you and greatly appreciate the opportunity to assist you and your staff in the completion of this project. Sincerely, WSB & Associates, Inc. Donald W. Sterna, PE Vice President Enclosure City Administrator Mayor Date P'. \LE 1 - 1'EK PROPOSALS \Shakopee \OPUS Valley Park Business Center \OPUS - Valley Park Business Center.doc Exhibit A Scope of Design Services OPUS - Valley Park Business Center City of Shakopee WORK PLAN 1. Project Management This task includes planning and coordination of all work tasks, establishment and monitoring of budgets, meetings, and correspondence with the City of Shakopee, Scott County, SPUC, and if necessary, the Watershed District on a periodic basis. The project manager will provide technical direction on all aspects of the project review, all work products, and prepare monthly progress reports. It is anticipated that some coordination with the adjacent railroad will be required for this project. The project manager will serve a primary role in the many design considerations. Donald Sterna, PE, is proposed to manage the project for WSB & Associates, Inc. (WSB). 2. Data Collection Available data will be collected from the City of Shakopee, Scott County, SPUC, OPUS, private utility companies, and adjacent developers, as necessary, to prepare the construction documents. WSB understands the preliminary topographic survey work and plat will be provided to WSB by the City in an electronic AutoCAD format in detail as shown on the latest version of the preliminary Valley Park Business Center plans prepared by OPUS. 3. Soils Report It is WSB's understanding that no additional soil borings will be required and that Shakopee's typical commercial street section will be used. Any additional soil boring information or infiltration testing required for design will be the responsibility of the developer or the City. 4. Design Survey Through City Staff WSB will collect topographic information from the adjacent developments that will be utilized in the final design. WSB understands the preliminary topographic survey work and plat will be provided to WSB by the City in an electronic AutoCAD format in detail as shown on the latest version of the preliminary Valley Park Business Center plans prepared by OPUS. WSB anticipates some additional detail design survey may he needed to confirm critical design information. This may include: • Additional topo that may be necessary • Survey of existing right -of -way monuments and verification of control • Topo shots on existing private utilities marked by Gopher One Utility Locates • Verification and condition status of installed utilities and storm sewer • Additional survey and research needed for easements and right -of -way Exhibit A 5. Utility Coordination WSB will order a Gopher State One design locate, and from that identify all utilities in the area. We will make contact with those utilities to obtain facility mapping along with establishing our contact to discuss future utility plans. Based on the preliminary layout, utility conflicts will be identified and design measures will be considered to accommodate these conflicts. The cost for these utility conflicts, if any, will be identified and included as part of the overall cost estimate. 6. Construction Plans The construction plan phase involves the bulk of our final design effort. WSB understands the preliminary plans will be provided to WSB by the City in an electronic AutoCAD format in detail as shown on the latest version of the preliminary Valley Park Business Center plans prepared by OPUS and will serve as a starting point for our design. The plans will be developed meeting City standards. WSB will prepare a set of detailed construction plans for the grading, sanitary sewer, water main, surface drainage, paving, signing/striping, and erosion control in accordance with City standards. We will coordinate our work closely with the City of Shakopee, SPUC, and Scott County during the design process to ensure that the City's expectations are satisfied. Design meetings will be held, as appropriate, to discuss design elements and comments during the design process. A final set of plans will be submitted to the City, SPUC, and Scott County for their review and approval. The final construction plans will include the following: • Title Sheet and Index Map • General Layout • Estimated Quantities • Typical Sections • Miscellaneous Details • Construction Staging/Traffic Control Plan • Alignment Plans and Tabulation • Removals • Concrete Pavement Alternative • Construction Plan and Profile • Intersection Details • Box Culvert Plans • Drainage Plan, Details, and Quantities • Water Main /Sanitary Sewer • Turf Establishment/Erosion Control Plans • Signing and Striping Plans • Cross- Sections 7. Box Culvert Design/Hydraulics Analysis WSB understands that the City of Shakopee will be constructing an access road across the Dean Lake /Prior Lake Outlet Channel. This crossing will consist of either a single or multi - barrel box culvert that will require a hydraulic risk assessment and State Aid bridge office review. A DNR Permit will be required to construct the crossing of the channel. This work task does not include any work for a proposed future pedestrian trail crossing of the same Fxhihit A 2 channel. If the City decides to move forward with the separate pedestrian crossing, this would be considered additional services. 8. Drainage Analysis From the previous plans, the roads within the site will be an urban design with storm sewer. With partial installation of the facilities already complete, an analysis of the roadway drainage area will be conducted to determine its existing condition and if additional special stormwater management or ponding needs are required. This analysis would verify the flow rates and determine what water quality and/or rate control will need to be designed for the roadway portions of the project. This analysis would include catch basin spacing, per City requirements, infiltration, pond designs, pipe, and sizing of all storm sewers under the roadway. 9. Easements/Right -of -Way Right -of -way, permanent draining, and utility and temporary easements will be necessary to complete the proposed improvements. It is understood that all right -of -way will be acquired by the City or dedicated by the developers through the platting process with the exception of one parcel in the northwest corner of the development. The proposal includes preparing one parcel drawing and parcel description. Any additional right -of -way acquisition services, parcel drawings, right -of -way, and easement descriptions are not included with this proposal and will be extra work. If the City requires, any right -of -way acquisition services would be coordinated by Sonya Ilenning. 10. Permits Permits will be acquired as part of the construction plan preparation. WSB will prepare and apply for the necessary construction permits. The cost of the permits would be paid by the City of Shakopee. The permits we anticipate that will be necessary for this project are: • MPCA — NPDES Phase 111 Permit • MPCA — Sanitary Sewer Extension Permit • MDH — Water Main extension Permit • Shakopee Grading Permit • DNR Permit (Box Culvert Crossing) • Lower Minnesota WD Permit 11. Project Bidding Upon approval of the bidding documents by the City, WSB will sell and distribute the necessary number of plan and specification sets to the contractors for bidding. The City will be responsible for the expenses of the plan and specification printing. The bid tabulation will be done by the City. 12. Intersection Traffic Analysis /Study The new intersection located in the northwest corner of the development intersects with Valley Park Drive. WSB will conduct a traffic analysis that will include collecting current peak -hour turning movements, traffic count data, and conduct a traffic generation study. This study will be coordinated with Scott County due to its close proximity to the CSAH 101 signalized intersection. WSB will prepare a Technical Memorandum documenting analysis and findings. WSB will also prepare intersection concept layouts for review and approval. Exhibit A 3 13. Railroad Coordination Since the project abuts Union Pacific Railroad's property, potential exists for grading encroachments that may require a permit or an agreement. This work scope only includes contacting and discussing the project with UP Railroad. Permitting, coordination, meeting, and other work tasks associated with obtaining permission to work within their property will be additional work to this contract. 14. Additional Services The following are potential items of additional work that were discussed at the kick - off meeting that may be encountered as the project proceeds: • Temporary easement acquisition/coordination • Railroad permits /agreements • Soil borings • Separate pedestrian bridge crossing of outlet channel Exhibit A 4 Exhibit B Scope of Construction Administration /Survey Services OPUS — Valley Park Business Center City of Shakopee WORK PLAN • Construction Administration WSB's design staff will provide technical direction on the project design and answer questions during construction. The City of Shakopee will run the weekly construction meeting and provide the weekly meeting minutes. The City of Shakopee will be responsible for any monthly work completed to date and summary of quantities for monthly payment vouchers. • Construction Observation All construction observation will be performed by the City of Shakopee. WSB construction staff is available to assist the City, if so requested, and would perform these optional services on an hourly basis as necessary. • Construction Surveying WSB will provide a survey crew to perform construction staking for this project, including construction limits, roadway grading, alignments, storm sewer, water main, sanitary sewer utility, street facilities, signage locations, and other survey needs for this project for the work identified in the construction plans as prepared by WSB for this project. • Material Testing Material testing will be performed by the City and /or the City's designated testing firm. The City of Shakopee will be responsible for coordinating the testing and the costs of the material testing. • Record Drawings This task includes surveying the field- constructed utilities and other constructed improvements to record the field- constructed locations and elevations of the new facilities within the City roadway right -of -way and easements. Once the field survey is complete, WSB will revise the construction plans to reflect the field - constructed conditions and provide record drawing documents for future use by the City. We have included CADD and survey time in our work plan to complete the record drawings in a digital format. Exhibit 13 BC Continents 06;11'13 CITY OF SHAKOPEE PETITION FOR PUBLIC IMPROVEMENTS AND WAIVER OF ASSESSMENT RIGHTS RECITALS A. Opus Development Company, L.L.C., a Delaware limited liability company ( "ODC "), and Rosemount Inc., a Minnesota corporation ( "Rosemount "), are each a contract purchaser of certain real property ( "Property ") legally described on Exhibit A attached hereto and made a part hereof. B. As part of the subdivision and platting process for the Property, Premier Bank, a Minnesota corporation ( "Premier "), will be dedicating right -of -way for Innovation Boulevard (formerly known as Valley Industrial Boulevard North and Broadband Boulevard) (collectively, the "Rinq Road "), and a north -south roadway known as Innovation Drive (the "North -South Road ") running between various portions of the Ring Road, all which will be constructed as Street Improvements (as defined below) as part of the subdivision and platting process. C. As part of the subdivision and platting process for the Property, Premier will also be granting easements for the Sanitary Sewer Improvements, the Water Distribution System Improvements and the Storm Sewer Improvements (as each such term is defined below), all of which will be constructed, upgraded or improved as part of the subdivision and platting process. D. ODC and Rosemount desire that the City of Shakopee construct, install and otherwise undertake and complete the Improvements (as defined below) described in this Petition and assess the costs thereof against the Property. 4111537.2 E. It is understood by ODC and Rosemount that the City will be doing the Improvements solely at the request and for the convenience of ODC and Rosemount and that the City would not be installing the Improvements described in this petition without this waiver. F. Each of ODC and Rosemount is voluntarily submitting this petition and understands that the City is relying on it as a condition of proceeding with the public improvements. NOW, THEREFORE, each of ODC and Rosemount agrees as follows: 1. ODC and Rosemount petition the City to install the following improvements and to assess them against the Property pursuant to Minnesota Statutes, Chapter 429 (collectively, the "Improvements "): (a) Construction of the Ring Road, from near the intersection of Valley Industrial Boulevard North and Valley Park Drive, through the Property and to near the intersection of Valley Industrial Boulevard South and Valley Park Drive, including without limitation: (i) removal of existing roadway alignment, and utilities previously installed, (ii) street and curb construction, turn lanes, storm water drainage and appurtenant work, including without limitation access points for connection to Quarry Lake Park; (iii) grading of the Ring Road to accommodate a bituminous trail from the Ring Road's intersection at Valley Park Drive to the southeast corner of the Property (the "Trail Improvements "); and (iv) undertaking of traffic and related studies to determine the desirability and feasibility for the potential future connection to the Ring Road of property to the west of and adjacent to the Property, and construction of all improvements relating to such future connection to the Ring Road (in addition to those improvements otherwise specifically enumerated in this clause (a)), including but not limited to any such improvements to be located outside of the Property. (b) Construction of the North -South Road, from the northern portion of the Ring Road through the Property to the southern portion of the Ring Road, including without limitation street and curb construction, turn lanes, storm water drainage and appurtenant work (the Improvements described in clause (a) and this clause (b) sometimes collectively referred to herein as the "Street Improvements "). (c) Construction and extension of sanitary sewer mains, pipes, and other appurtenances, together with stubs and extensions to accommodate connections for future building development, and appurtenant work serving the Property or portions thereof (collectively, the "Sanitary Sewer Improvements ") within the North -South Road and other portions of the Property from existing mains within or adjacent to the Ring Road. 2 41 1 1537.2 (d) Construction and extension of all watermain pipes, valves, fire hydrants, and other appurtenances, together with stubs and extensions to accommodate connections for future building development, and appurtenant work serving the Property or portions thereof (collectively, the "Water Distribution System Improvements ") within the North -South Road and other portions of the Property from existing mains within or adjacent to the Ring Road. (e) Construction, upgrade and improvement of storm water detention, sewer and drainage facilities including storm sewer pipes, catch basins, ponds /basins, inlets and other appurtenances, together with stubs and extensions to accommodate connections for future building development, and appurtenant work serving the Property or portions thereof (collectively, "Storm Sewer Improvements "), including without limitation: (i) modifications to existing storm water detention ponds within the Property to accommodate infiltration requirements and (ii) construction of storm sewer lines within the Ring Road, the North -South Road and other portions of the Property, with stubs and extensions to accommodate connections for future building development. (f) Furnishing and installation of all street lighting including poles, arms, lamps, fixtures, conduit, underground wiring, transformers, pedestals and any other appurtenant street lighting facilities (collectively, "Street Lighting Improvements "), with respect to the North -South Road and the Ring Road, from near the intersection of Valley Industrial Boulevard North and Valley Park Drive, through the Property and to near the intersection of Valley Industrial Boulevard South and Valley Park Drive. (g) Undertaking all design, planning, permitting and engineering work, and payment of all governmental permit and approval fees and costs, all as they relate to any or all of the work described in clauses (a), (b), (c), (d), (e) and (f) above. 2. Each of ODC and Rosemount represents and warrants that it is a contract purchaser of all or a portion of the Property and that it has the full legal authority and power to execute this Petition. 3. ODC and Rosemount request that the cost of the Improvements other than the Trail Improvements (the "Project Costs ") be assessed against the Property over a ten (10) year period. The City shall be solely responsible for all costs attributable to the Trail Improvements. The current estimated amount of the assessments is $3,200,000.00. Each of ODC and Rosemount understands that the exact amount of the assessments cannot be determined at the present time, and understands that the final assessment and interest rate payable with respect to the assessment will be determined in accordance with the City's adopted assessment policy; provided that: (a) the assessments against the portions of the Property to be owned by ODC (the "ODC Property") shall not exceed $1,400,000 in the aggregate, and the assessments against the portions of the 3 41115372 Property to be owned by Rosemount (the "Rosemount Property ") shall not exceed $1,800,000 in the aggregate (collectively, the "Maximum Assessment Amounts "); (b) to the extent the final Project Costs are Tess than $3,200,000 in total, the resulting Project Costs savings (i.e., the amount by which $3,200,000 exceeds the final Project Costs) shall reduce the Maximum Assessment Amounts, such that the resulting Project Cost savings shall be allocated forty -five percent (45 %) to the reduction of the Maximum Assessment Amount against the ODC Property and fifty -five percent (55 %) to the reduction of the Maximum Assessment Amount against the Rosemount Property; and (c) such interest rate shall in no event exceed five percent (5 %) per annum. ODC and Rosemount understand that the waivers contained in this Petition are effective for the current estimated amount of the assessments and for any increases that are the result of requests made by ODC and Rosemount or any increases that are otherwise approved in writing by each of ODC and Rosemount. In no event shall any sureties, letters of credit, performance bonds or other financial security be required from either ODC or Rosemount with respect to the Improvements or either party's obligations under this Petition. 4. Each of ODC and Rosemount waives notice of hearing and hearing pursuant to Minnesota Statutes 429.031 on the Improvements and notice of hearing and hearing on the special assessments to be levied to finance the Improvements pursuant to Minnesota Statutes 429.061 and specifically requests that the Improvements be constructed and special assessments be levied without hearing against the Property. 5. Each of ODC and Rosemount waives all right to appeal or otherwise contest or challenge the levy of the special assessments to be levied to finance the Improvements, including but not limited to the right to challenge whether the increase in fair market value resulting from the construction of the Improvements is at least equal to the amount of the Project Cost that is assessed against the Property and that such increase in fair market value is a special benefit to such parcel. Each of ODC and Rosemount further agrees that any requirements of Minnesota Statutes, Chapter 429 are waived to the extent that such requirements are not met. 6. If Rosemount withdraws this request for the City to construct the Improvements at any time before the City orders the Improvements, then Rosemount shall reimburse the City for all reasonable, out -of- pocket costs incurred in connection with the design of the Improvements, including but not limited to reasonable engineering, legal and administrative costs, incurred by the City as of the date of the withdrawal, which reimbursement shall not exceed, in the aggregate, the sum of $175,000. In no event shall Opus be liable for any such Project Costs pursuant to this Paragraph 6. 7. The covenants, waivers and agreements contained herein shall run with the Property following the satisfaction (if any) of the Acquisition Contingency (as 4 4111537.2 defined below) and shall bind the heirs, successors and assigns of each of ODC and Rosemount. It is the intent of the City, ODC and Rosemount that this document be recorded against the Property as a part of the land records of Scott County, Minnesota following the satisfaction (if any) of the Acquisition Contingency. 8. The rights, obligations and liabilities of each of ODC and Rosemount hereunder are conditioned upon the acquisition (the "Acquisition Contingency ") by each of ODC and Rosemount (or their respective affiliates) of their respective portions of the Property by October 31, 2013 (the "Outside Date "). If the Acquisition Contingency fails to be satisfied, and either ODC or Rosemount (or their respective affiliates) fails to acquire its respective portion of the Property, by the Outside Date, then this Petition shall be deemed null and void and of no further force or effect, and thereafter none of ODC, Rosemount and the City shall have any further rights, obligations or liabilities hereunder except for Rosemont's obligation to reimburse the City for certain costs as set forth in Paragraph 6 above. If the Acquisition Contingency shall be satisfied by the Outside Date, then the terms and conditions set forth in this Petition shall terminate upon the final payment of all special assessments levied against the Property regarding the Improvements, and the City shall execute and deliver such documents, in recordable form, as are necessary to extinguish its rights contained herein upon receipt of such final payment. 5 41115372 Dated this day of , 2013. Opus Development Company, L.L.C. By Its STATE OF MINNESOTA ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2013, by the of Opus Development Company, L.L.C., a Delaware limited liability company, on behalf of the limited liability company. Notary Public My Commission Expires 6 4111537.2 Rosemount Inc. By Its STATE OF MINNESOTA ) SS COUNTY OF The foregoing instrument was acknowledged before me this day of , 2013, by the of Rosemount Inc., a Minnesota corporation, on behalf of the corporation. Notary Public My Commission Expires Drafted by: Kennedy & Graven (JJT) 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 7 41115372 EXHIBIT A LEGAL DESCRIPTION Scott County, Minnesota PID No. 27- 9030040: All that part of the Southeast Quarter of Section 3, Township 115, Range 22, lying Southerly of the Chicago, St. Paul, Minneapolis and Omaha Railroad Right of Way, Excepting therefrom that part of the West 200.00 feet, as measured at right angles to the West line thereof of the Southeast Quarter of Section 3, Township 115, Range 22, lying Southerly of the Southeasterly extension of the Northeasterly line of Lot 1, Block 5, Valley Park First Addition, and lying Northerly of the Easterly extension of the Southerly line of Lot 3, Block 5, Valley Park First Addition, according to the plat thereof on file and of record in the office of the Registrar of Titles, Scott County, Minnesota. (Abstract Property) together with a non - exclusive driveway easement over and across Outlot E, Valley Park First Addition, according to the plat thereof on file and of record in the office of the Registrar of Titles, Scott County, Minnesota, as created in Easement Agreement dated February 6, 1987, filed February 17, 1987 as Document No. 37539. (Torrens Property) Scott County, Minnesota PID No. 27- 9100020: That part of the North 824.00 feet (as measured at right angle to the North line) of the Northeast Quarter of Section 10, Township 115, Range 22, Scott County, Minnesota, lying North and East of the South 488.00 feet of the West 179.95 feet of said North 824.00 feet, Except that plat of Valley Park Thirteenth Addition, Scott County, Minnesota. (Torrens Property) Scott County, Minnesota PID No. 27- 0550091: That part of Lot 4, Block 5, Valley Park First Addition, according to the recorded plat thereof and situate in Scott County, Minnesota, lying South of the North line of Section 10, Township 115 North, Range 22 West of the Fifth Principal Meridian. AND That part of Research Boulevard, vacated, Valley Park First Addition, Scott County, Minnesota, lying Easterly of the following described line: Commencing at the Northwest corner of said Lot 4; thence South 00 degrees 57 minutes 28 seconds East along the West line of said Lot 4, a distance of 350.00 feet to the point of beginning of the line to be described; thence continuing South 00 degrees 8 41 1 1537.2 57 minutes 28 seconds east to the South line of Research Boulevard and there terminating. (Torrens Property) 9 4111537.2