HomeMy WebLinkAboutResolution - 2010-59 - Lakewest Holdings, LLC default of Baneberry Hollow Development & Terminating Land Alteration Permit #06-17 - 08/17/2010 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2010-59
A RESOLUTION DELCARING LAKEWEST HOLDINGS, LLC IN DEFAULT OF THE
BANEBERRY HOLLOW DEVELOPMENT AGREEMENT AND TERMINATING
LAND ALTERATION PERMIT#06-17
WHEREAS, Lakewest Holdings, LLC (Developer) and City of Eden Prairie (City)
entered into a Development Agreement (the "Development Agreement") for The Baneberry
Hollow Development (the"Baneberry Hollow") on June 20, 2006; and
WHEREAS, the Development Agreement required certain security be posted by the
Developer; and
WHEREAS, on September 14, 2006 Granite RE, Inc. issued Performance Bond Number
GRMN25487A in the amount of$91,000.00 (Bond 1) listing Lakewest Holdings, LLC as the
contractor and the City of Eden Prairie as the owner and on September 14, 2006 Granted RE, Inc
issued Performance Bond GRMN25488A in the amount of $183,875.00 (Bond II) listing
Lakewest Holdings, LLC as the contractor and the City of Eden Prairie as the owner; and
WHEREAS, as of April 16, 2009 and continuing through the date hereof the Contractor
has not completed certain work required under the Development Agreement; and
WHEREAS, City sent notice to Lakewest Holdings, LLC on May 4, 2009 of the failure
of Lakewest Holdings, LLC to complete certain work required under the Development
Agreement at Baneberry Hollow; and
WHEREAS, City notified Lakewest Holdings, LLC and Granite RE, Inc. on June 17,
2010 that City was considering declaring a contractor default and requested a conference with
Lakewest Holdings, LLC and Granite RE, Inc to be held no later than 15 days after receipt of
such notice to discuss methods of performing the construction contract; and
WHEREAS, City, Lakewest Holdings, LLC and Granite RE, Inc met by telephone
conference on June 29, 2010 as required by the Bond; and
WHEREAS, seventy eight days have passed since the date of the contactor, surety and
owner conference; and
WHEREAS, City notified Lakewest Holdings,LLC and Granite RE, Inc on August 12,
2010 that at the City Council meeting on August 17, 2010 the Council would consider declaring
the Lakewest Holdings, LLC in default under the Development Agreement and terminate Land
Alteration Permit No, 06-17 and further informed Lakewest Holdings, LLC and Granite RE, Inc.
that Lakewest Holdings, LLC would be given an opportunity to address the council with respect
to this matter.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF EDEN PRAIRIE, THAT THE CITY COUNCIL FINDS, DETERMINES, AND
ORDERS AS FOLLOWS:
a. City declares Lakewest Holdings, 1,LC in default of the Development Agreement
dated June 20, 2006.
b. City hereby terminates Lakewest Holdings, LLC Land Alteration Permit #06-17
which was required under City Code Section 11.55.
ADOPTED by the City Council on August 17,2010.
Phi oung, Mayor
(Seal)
A'I FES'r:
K hieen Porta, City Clerk