9.d) Staff Report-Compliance and Reclamation Agreement for Zavoral Mine �� � � �
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" U.�: �'r 1
SCANDIA
Staff Reuort
Date of Meeting: February 19, 2013
To: City Council
From: Kristina Handt, Administrator
Re: Compliance and Reclamation Agreement for Zavoral Mine
Agenda Item#: 9.d)
Included in your packet is Resolution No. 02-19-13-06, an updated draft of the Conditional Use
Permit Compliance and Reclamation Agreement (aka Developer's Agreement). It reflects the
discussions from the February 12th work session.
The language regarding having a third party certify the reclamation is complete that Tom Triplett
spoke about on Feb. 12`h is included in Section 8.2. Mr. Triplett has said he has consulted with
attorneys and this language is an option for the Council to pursue. He is proposing 8.2 read as
follows:
8.2 As to Reclamation Actions. As to Reclamation Actions,this Agreement and the Applicable
Documents shall terminate upon completion of all of the followin�:
8.2.1. All such Reclamation Actions,
8 2 2 Certification by the Washin�ton Conservation District, or another competent public entity
desi a1i�y the Citv that the Reclamation Actions as specified in the Reclamation Plans have
been satisfactorilv completed in all material respects,
8.2.3. The issuance of a Certificate of Completion by the City, and
8.2.4. The expiration of the five-year survival monitoring periods as set forth in the Reclamation
Plans.
The Council should consider whether they are willing to give up their authority to a third party
with regards to determining if the reclamation activities complete. Additional concerns staff have
with the language is that"certification"is not defined. The WCD does not have a typical
certification process and staff knows of no formal program or standard that has been applied in
other cases. Also, certification at the end of the process will not have much value. The success
of natural community restoration is tied to the following:
o The quality of the original plan
o Following a good plan
o Early monitoring of actions to determine if there are problems—i.e. invasion by
non-native species,poor seed germination or seedling survival, etc., and making
corrections early on if there are problems.
o If there are major flaws identified in the plan based on early monitoring,
professionals in this field use"adaptive management" to learn from the early
results and modify the plan—they don't wait until the restoration is 5 or 10 years
down the road.
Attorney Miller has drafted the language in Section 5.1 (a) and (c) in order to respond to the
concerns raised by Council member Swanson regarding the notice provisions.
Section 5.2 was updated to reflect the hybrid bond/LOC proposal.
Options:
1) Approve Resolution No. 02-19-13-06
2) Amend and then approve resolution No. 02-19-13-06.
3) Take no action on the agreement
CITY OF SCANDIA
RESOLUTION NO. 02-19-13-06
RESOLUTION APPROVING CONDITIONAL USE PERMIT COMPLIANE AND
RECLAMATION AGREEMENT
WHEREAS, Tiller Corporation("Applicant")has applied for a Conditional Use Permit
(CUP) and Annual Operating Permit (AOP) to operate the Zavoral Mine and Reclamation
Project ("Project") on a property owned by James and Kathleen Zavoral, husband and wife,
("Owner") located east of the intersection of State Trunk Highway 97 and State Trunk Highway
95 ("Site"); and;
WHEREAS, the City Council of the City of Scandia approved Resolution No. 02-19-13-
04 approving a CUP for the Project; and
WHEREAS, the City Council of the City of Scandia approved Resolution No. 02-19-13-
OS approving an AOP for the Project; and
WHEREAS, one of the conditions required of the Applicant and the Owner in the
Conditional Use Permit was entering into a Conditional Use Permit Compliance and
Reclamation Ageement with the City; and
WHEREAS, City Staff has prepared and presented to the City Council the Conditional
Use Permit Compliance and Reclamation Agreement in the form attached to this Resolution and
has recommended its approval by the City Council.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL
OF THE CITY OF SCANDIA,WA5HINGTON COUNTY, MINNESOTA, that it hereby
approves the Conditional Use Permit Compliance and Reclamation Ageement in the matter of
the Zavoral Mine and Reclamation Project, attached as "Exhibit A"to this Resolution.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Administrator and
the Mayor are authorized to execute the Conditional Use Permit Compliance and Reclamation
Agreement by and on behalf of the City of Scandia, Minnesota..
Adopted by the Scandia City Council this 19th day of February, 2013.
Randall Simonson, Mayor
ATTEST:
Kristina Handt, Administrator/Clerk
tx I�;b;� �R
CONDITIONAL USE PERMIT COMPLIANCE
AND RECLAMATION AGREEMENT
THIS CONDITIONAL USE PERM]T COMPLIANCE AND RECLAMATION
AGREEMENT (the "AgreemenP') is made and entered into this th day of , 2013, by
and between JAMES ZAVORAL and KATHLEEN ZAVORAL,husband and wife(collectively,the
"Owner"); TILLER CORPORATION, a Minnesota corporation (the "Operator")(collectively, the
Owner and the Operator shall be referred to herein as the"Applicant");and the CITY OF SCANDIA,
a M innesota municipal corporation(the"City").
ARTICLE ONE
RECITALS
l. The following Recitals contain capitalized terms which, if not defined in such Recital are
detined in subsequent portions of this Agreement including but not limited to Ariicle Two hereof and
are hereby made a pari of this Agreement:
1.l Owner's Propert� The Owner is the fee title owner of the Owner's Property located
in the City, County of Washington, State of Minnesota and legally described on Exhibit A attached
hereto. The Ownei's Property consists of approximately l]4 acres and is located on State Trunk
Highway 95 east of its intersection with State Trunk Highway 97.
1.2 Zonin . The Owner's Property is and at all times material to this Agreement has
been zoned agricultural(AG)under the City's zoning map and development code(the"Code").
13 ProLct. Operator proposes to use the approximately 64 acre Project Site portion of
the Ownei's Property as identificd on the sketch attached hereto as Exhibit B for a Project consisting
of the Permitted Activities both as hereinafter defined and generally consisting of and limited to
gravel mining operation in the manner and subject to the limitations provided in the Approval
Resolution and the AOP as described in this Agreement.
1.4 CUP Re4uirement. Under the City's Comprehensive Plan in place at the time the
initial application for the Project was submitted by the Applicant to the City and under the Code in
place at the Time of the initial application,the Project proposed by the Applicant was a conditionally
permitted use in the AG zone and required that a CUP be issued by the City. The City's current
comprehensive plan adopted after the Applicant initially applied for the CUP,prohibits the Project
however,the City has elected to proceed with consideration and approval of the Applicant's request
for the CUP.
I.5 AOP Requirement. In addition to the CUP, the City's Code requires the Operator to
obtain from the City and to comply with an AOP initially prior to the commencement of the Project
on the Project Site and annually thereafter.
1.6 Citv Anoroval. On or about February 19, 2013,the City Council of the City adopted
the Approval Resolutions consisting of. (a) Resolution No. 02-19-13-04 approving the CUP,(b)
Resolution No.02-19-13-OS approving the AOP relating to the Project and the conditions imposed
thereon and (c) Resolution No. 02-19-13-06 approving the Agreement; (collectively, the Approval
Resolutions, CUP, AOP and this Agreement may be referred to herein as the "Applicable
Documents"). In general, the Applicable Documents set forth the Conditions, requirements and
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limitations which must be met and which t��ust be complied with by the Applicant to conduct or
continue to conduct the Permitted Activities and for the continued validity of the CUP. The
Applicable Documents further identify: (a) the limitations imposed by the City on the Project and
the Project Site during the conduct of the Permitted Activities and (b) the Monitoring Actions
required by the City to deterrnine the actual operating conditions and project impacts in comparison
to those modeled in the ElS and the Applicant's compliance with such Conditions,requirements and
limitations in the manner set forth in the AOP from time to time and at the ApplicanYs expense.
1.7 Incomoration and ]nterpretation. Each of the Applicable Documents including but
not limited to the AOP as initially approved and as approved annually thereafter are hereby
incorporatc;d into this Agreement as if set forth herein in full. To the extent of a conflict between any
one or more of the Applicable Documents, the terms of the most restrictive of such Applicable
Documents shall be deemed to apply.
1.8 Intent. Without limiting the foregoing, the parties to this Agreement desire to set
forth herein: (a)the consent by the Applicant ro each of the Conditions,requirements and limitations
identified herein; (b) the continued compliance by the Applicant with each of such Conditions,
requirements and ]imitations until the Termination Date provided hcrein; (c)the City's monitoring of
the Applicant's compliance with such Conditions, requirements and limitations; (d) the Applicant's
responsibility for all of the cost incurred in complying with such Conditions, requirements and
limitations and the City's Monitoring Activities with respect thereto; (e) the mechanism for the
payment of the City Costs by the Applicant; (fl the Applicant's reclamation of the Project Site
including the scope,timing and standards thereof;and(g)the Applicant's posting of security ro cover
the described Reclamation Actions.
ARTICLE TWO
DEFINITIONS
2. Where used in this Agreement the following terrns shall have the meanings set forth herein:
2.1 "AOP"means the annual operating permit granted by the City to the Operator from
time to time including but not limited to the initia] annual operating permit approved by the City by
its adoption of the Approval Resolution.
2.2 "Anplicable Documents"shall mean collectively, the Approval Resolution, the CUP,
the AOP and this Agreement.
2.3 "Aoplicant" means collectively the Owner and the Operator and their respective
heirs,personal representatives,successors and assigns.
2.4 "Approval Resolutions" means City Resolution Nos. 02-19-13-04; 02-19-13-OS and
02-19-13-06 all adopted by the City Council of the City on February 19,2013 copies of which is on
file with the City.
2.5 "Citv"means the City of Scandia,Minnesota,a Minnesota municipal corporation.
2.6 "Citv Costs" means all costs incurred by the City in the negotiation and drafting of
and the Owner's and Operatoi's compliance with the CUP, the AOP and this Agreement including
but not limited to the Monitaring Activities (including but not ]imited to the costs of equipment,
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installation, site visits, data collection, data analysis, repo�ting and all other costs associated with
monitoring activities)and the Reclamation Actions and further including those City Costs paid by the
Applicant to the Ciry prior to the date hereof. Without limiting the foregoing, City Costs shall
include the costs charged by an��third party consultant (e.g. attorney, engineer etc.) and the wages,
salaries,benefits and the expenses paid by the City to any of its employees to conduct any portion of
the Monitoring Activities including but not limited to costs charged by the the City's surface water,
wetland,ground water,noise,air quality and traffic consultants.
2.7 "Code"means the City's development code as applied,interpreted and amended from
time to time by the City consistent with this Agreement.
2.8 "Conditions" means those conditions, limitations and requirements specifically
identified in or otherwise referred to in the Applicable Documents.
2.9 "CUP" means the Conditional Use Permit approved by the City by the adoption of
the Approval Resolution and a copy of which is attached hereto as Exhibit C.
2.10 "Escrow" means the non-interest bearing account established by the City to hold the
amount required fi-om time to time by Section 5.1 of this Agreement to secure the Applicant's
payment of the City Costs.
2.11 "Monitorin� Activities" means those activities reasonably deemed necessary by the
City to monitor the compliance by the Applicant with the Conditions,the Applicable Documents and
applicable laws,ordinances,rules and regulations and the reporting of the results of such activities ro
the City. In addition to the requirements of the Code and applicable law, the Monitoring Activities
will be identified in the AOP as issued from time to time by the City.
2.12 "Onerator"means Tiller Corporation, a Minnesota corporation and its successors and
assigns.
2.13 "Owner" means James Zavoral, MD and Kathleen Zavoral, husband and wife and
their heirs, personal representatives, successors and assigns with respect to the ownership of the
Owner's Property.
2.14 "Owner's Propertv"means the approximately 1 14 acres of real property owned in fee
title by the Owner ]ocated in the City, County of Washington, State of Minnesota and legally
described on Exhibit A hereto and upon a portion of which the Permitted Activities and the
Reclamation Actions will be conducted.
2.15 "Permits" means any and all permits required for the conduct of the Project on the
Project Site from time to time including but not limited to:
(a) CUP;
(b) AOP;
(c) Minnesota Department of Transportation Access Permit;
(d) Minnesota Department of Natural Resources Endangered Species Take Permit,if
necessary;
(e) Stormwater Management Permit from Carnelian-Marine on St. Croix Watershed
District;and
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(fl National Pollutant Discharge Elimination System (NPDES) Pennit from the
Minnesota Pollution Control Agency
2.16 "Permitted Activities"means the mining,stock piling and remova] of gravel from the
Project Site by the App]icant in accordance with and as limited by the CUP and the AOP to be
conducted as described in the Applicable Documents including but not limited to the Conditions.
Permitted Activities specifically does not include the mining of any minerals other than gravei or
sand, including "frac" sand, hydraulic fracturing activities or any processing activities of any kind
including but not limited to asphalt or concrete processing.
2.17 "Plans" means those p]ans submitted to the City by or on behalf of the Applicant in
connection with the Applicable Documents in the form approved and accepted by the City from time
to time including,bUt not limited to:
(a) Groundwater Quality Protection Plan;
(b) Site Plan;
(c) Reclamation Plans;
(d) Surface Water Plan;
(e) Stormwater Pollution Prevention Plan;
(fl Dust Control Plan;and
(g) Emergency/Contingency Response Plan.
2.18 "Project"means the Applicant's conduct of Permitted Activities on the Project Site in
accordance with and subject to the Applicable Documents, the Code and applicable laws, rules and
regulations.
2.19 "Project Site"means the approximately 64 acres of the Ownei's Property upon which
the Project will be permitted to be conducted as identified on Exhibit B hereto.
2.20 "Reclamation Actions"means the actions,including the scope and timing thereof,set
out in the Plans, the Applicable Documents including but not limited to the Reclamation Plans in
order to reclaim the portions of the Property described and in the manner including the scope and
timing thereof, identified in the foregoing Plans and Applicable Documents. Redamation Actions
shall include such actions as are necessary,in the reasonable opinion of the City,to meet the required
timing,performance standards,successful reclamation and reporting of such Reclamation Actions.
2.21 "Reclamation Plans" means the plan of reclamation of the Project Site as prepared
and submitted by Operator and approved by the City 60 days following the approval of Resolution
No.02-19-13-04 as duly revised and amended from time to time at the reyuest and with the approval
of the City.
2.22 "Securitv" means collectively the Bond and the LOC reyuired by Section 5.2 of this
Agreement to be delivered to the City to secure the completion of the Reclamation Actions on the
Owner's Property.
ARTICLE THREE
APPLICANT AGREEMENTS
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3. The following identify the agreements of the Applicant with respect to the matters identified
in this Agreement:
3.1 Acknowledgement and Consent. The Applicant acknowledges having received,
reviewed,read and understood each of the Applicable Documents. The Applicant hereby consents to
and agrees with each of the Conditions, requirements and limitations imposed on them by the
Applicable Documents in relation to the conducting of the Permitted Activities on the Owner's
Property including the Project Site. Without limiting the generality of the foregoing, the Applicant
agrees to the limitations on the Project Activities on the Owner's Property to those provided in and
allowed by the Applicable Documents including but not limited to the termination of the Permitted
Activities, the CUP and the AOP far the reasons identified in this Agreement and as otherwise
allowed by the Code and any applicable ordinances,statutes,rules and regulations.
3.2 Standard of Performance. The Applicant agrees to fully and faithfully comply in all
material respects with all of the terms, Conditions, requirements and limitations of the Applicable
Documents. The Applicant shall at all times conduct and shall reyuire any employees, agents,
consultants and third parties to conduct the Permitted Activities and the Reclamation Actions in a
safe and workmanlike manner and in accordance with the Applicable Documents and all applicable
ordinances, laws, rules and regulations. The Applicant shall make all of its employees, agents,
consultants and third parties aware of all such requirements and limitations and shall be responsible
for the failure of any such employees, agents, consultants and third parties ro comply with all such
requirements and limitations, induding but not limited to the ('onditions and the Reclamation
Actions.
3.3 License to Enter. By executing this Agreement,the Applicant hereby grants the City,
its agents, employees, contractors and consultants, the right to access the Owner's Property and the
Operator's facilities on the Owner's Property at any time and without notice for the purpose of
conducting the Monitoring Activities and otherwise to ensure the continued compliance by the
Applicant with the Applicable Documents.
3.4 Permits. Unless otherwise required by the permitting agency, prior to
commencement of any Permitted Activities, the Applicant will secure all permits necessary for the
conduct of the Permitted Activities on the Project Site and the Reclamation Actions on the Owner's
Property including, but not ]imited to the Permits. Prior to commencement of any Permitted
Activities and not less frequently than annually thereafter, the Applicant shall provide copies of all
such permits including the Permits to the City and notify the City within ten (10) days of the
Applicant's (or either one of the Owner's ar the Operator's) receipt thereof, of any notice of any
violation ar claim of violation or other matter which could affect the ApplicanYs(or either one of the
Owner or the Operator)continued compliance with the requirements of each of such permit including
the Permits.
ARTICLE FOUR
REPRESENTATIONS,WARRANTIES AND ACKNOWLEDGEMENTS
BY APPLICANT
4. The Owner individually, the Operator individually and the Applicant (meaning both of the
Owner and Operator) hereby represent and warrant and acknowledge to the City intending that the
City rely thereon,each of the following to be true and accurate in all maCerial respects on the date of
this Agreement and while this Agreement remains in effect thereafter:
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4.1 Bv Owner.
(a) The Owner is the fee title owner of the Ownei's Property free and clear of any
encumbrance which could cause this Agreement to be of no force and effect as to
the holder thereof or otherwise impair ar restrict the City's ability to at any time
enforce the provisions hereof.
(b) The consent of no other person or entity other than the Owner is required to enter
into this Agreement and bind the Owner and Owner's Property to the
requirements hereof.
(c) The CUP granted by the City and the right to conduct Permitted Activities on the
Owner's Property will terminate on the Termination Date and no activities
including but not limited to Permitted Activities may be conducted on the
Owner's Property except in full compliance with the then applicable ordinances
of the City which,the Owner acknowledges presently prohibit the conduct of the
Pertnitted Activities on the Owner's Property.
(d) The Owner hereby waives any claim that the Conditions, limitations and
requirements of this Agreement including the termination of the CUP as provided
herein are void,unconstitutional or unenforceable against Owner.
4.2 Bv Operator.
(a) The Operator: (i)is a Minnesota corporation duly organized under the laws of the
State of Minnesota, (ii) is in good standing and duly authorized to conduct
business in the State, (iii)has duly approved of this Agreement and (iv)has by
proper action authorized the execution and delivery of this Agreement.
(b) Operator has adequate power, authority and financial ability to use the Owner's
Property for the purposes set forth in this Agreement.
(c) The Operator hereby waives any claim that the Conditions, limitations and
requirements of this Agreement including the termination of the CUP as provided
herein are void,unconstitutional or unenforceable againsi Operator.
4.3 �Applicant.
(a) Neither thc execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby,the limitations proposed,nor the fulfillment of
or compliance with the terms and conditions of this Agreement is prevented,
limited by or conflicts with or results in a breach of, the terms, conditions or
provisions or any contractual restriction, evidence of indebtedness, agreement or
instrument of whatever nature to which the Ow�ner or Operator is now a party or
by which either of them is bound, or constitutes a defau]t under any of the
foregoing.
6
(b) The Applicant will cause the Project, Permitted Activities and Reclamation
Actions to be constructed, operated and maintained in accordance with the
Applicable Documents, the Permits and all local, state and federal laws and
regulations, including but not limited to, environmental, zoning, energy,
conservation and public health laws and regulations.
(c) The Applicant will use its best efforts to obtain, or cause to be obtained, the
Permits and all other required permits, licenses and approvals and wi11 meet,in a
timely manner all requirements of such permits including but not limited to the
Permits.
(d) The Applicant will cooperate fully with the City with respect to any litigation
commenced with respect to the Project or any of the Applicable Documents.
(e) The Applicant has the funds sufficient for compliance with the Applicable
Documents including but not limited to the funding of'the Escrow, the payment
of City Costs and the posting of the securiry.
(� The Applicant will cooperate fully with the City in the resolution of any traffic,
parking, noise, dust, air yuality, public safety, or reclamation problems which
may arise in connection with the construction and operation of the Project.
(g) The Applicant will not assign, transfer or convey any interest or right in the
Owner's Property or any Applicable Document without the City's consent which
consent may be conditioned on the City's approval of such proposed Assignee's
ability to perform under such Applicable Documents and on the proposed
assignee's written acceptance of all of the terms and conditions of the Applicable
Documents.
4.4 Indemnification. The Applicant shall indemnify and defend the City, its elected and
appointed officials, agents, employees, successors and assigns (`9ndemnified Parties") against, and
shall hold the [ndemnified Parties harrnless from, any costs, expenses or damages of any kind or
natnre,including court costs and reasonable attorney's fees, which the Indemnified Parties may incm•
because of any breach of any of the agreements, covenants, representations or warranties herein
contained,whether prior to or after the date hereof
ARTICLE FIVE
PAYMENTS OF CITY COSTS;SECURITY FOR RECLAMATION ACTIONS
5. The following provisions identify the obligations of and mechanism for the Applicant to pay
for the City Costs incurred in the negotiating, drafting, approval and monitoring of the Applicable
Documents and the Security to be posted by the Applicant to secure completion of the Reclamation
Actions:
5.1 Escrow for Citv Costs. The Applicant shall establish the Escrow with the City in the
initial amount of$40,000 ("Escrow Amount") for the payment of City Costs as they are actually
incurred from time to time by the City in connection with the Applicable Documents, the Project
operations and monitoring, supervision and inspection of the Applicant's compliance with the
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Applicable Documents and the Project operations. As part of the City's consideration of each AOP,
the Escrow Amount shall be reviewed by the City annually during the term of this Agreement to
reflect the City's best estimate of the City's cash requirements for City Costs anticipated to be
incurred during the upcoming year. City Costs shall be paid and the Escrow shall be used in
accordance with the following:
(a) City Costs shall be documented to and may in the City's discretion be initially
I paid by the City from the Escrow or other City funds with ����'� �'���•--���'�'��� a
staten�ent frorn the City�the"Citv Cost Statcment")bei�g sent to the Applicant
by United States mail for reimbursement to the City by the Applicant pursuant to
this Agreement.
(b) Payment of any such City Costs by the Applicant hereunder shall be deemed to
be acceptance by the Applicant of both the reasonableness of such City Costs and
the City's entitlement to reimbursement thereof. Accordingly, as to any such
sums paid by the Applicant, the Applicant hereby waives any right to challenge
either the amount of or the City's entitlement to the reimbursemen[ of such City
Costs.
(c) When the City pays any City Costs directly from the Escrow or if the City
reimburses itself from the Escrow such that '`��� ���''��"" `""` the Cit�Costs
Staten�ent establishes tl�at the balance has fallen below$5000 then,in that event,
the Applicant agrees within thirty (30) days of receipt of such City Cost
Statement��from the City to deposit into the Escrow the amount necessary
to replenish the Escrow to the then applicable Escrow Amount.
(d) Upon the termination of this Agreement,any funds remaining in the Escrow after
the payment of any outstanding City Costs shall be paid to the Applicant.
(e) If the Applicant refuses or fails to make any payment of City Costs or to replenish
the Escrow as above reyuired, the City may, but shall not be obligated to draw
upon the Security required by 5.2 below the amount of such unpaid City Costs or
unreplenished Escrow.
5.2 Securi .
(a) As security for: (1) the completion of the Reclamation Actions as and when
required by the Applicable Documents; (2) the payment of the costs of
constructing and inspecting the Reclamation Actions incuding,but not limited to
the same cost items identified in the City Costs by Section 2.6 above ; (3) any
unpaid City Costs after exhaustion of the Escrow established in Section 5.1 above
and (4) the Applicant's compliance with each of the Applicable Documents, the
I Applicant shall furnish the City with the Security in the form of� a $550,000
Performance Bond acceptable to the City in its sole and absolute discretion,
both as to form and to surety (the `Bond") and (iil a Letter of Gedit in the
fonn of�:xhibit D_attached hereto or other financial agu rantee�or combination _ wrmaeted:Font:eoid
thereofl acceptable to the Citv in its sole discretion in an amount equal to the
Citv-apnroved estimated costs of comp]etion of those Reclamation Actions
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att�ibutable to the mine phase or phases which have been or are expected to be
commenced in the next o�erating season (thc"LOC"). Such Security shall in all
cases be in a form acceptable to the City,in its sole discretion. 77�e Bond and the
initial LOC, shall be provided to the City on or before the earlier of (1)
eommencement of ant� Project activities��n the Project Site or(2)April 15,2013.
and shal] be a condition to the actual commencement of the Project by the
Applicant. The Applicant shall name the City as obligee or primary beneficiary
of the amount reflected by such instrument.
(b) � �Formatted:Indent Left: 1.25", No builets or 1
numbering �
-. � a• .,t .t,,,r'.. .,��r: .,a ..... ,.f.
The Bond shall be in place and enforceable at all times prior to the Citv's
issuance of a Certificate of Completion. The "��,��fLOC security amount
will be determined bv the Citv in conjunction with issuance of the AOP in each
year and the A�plicant shall furnish the City with a new LOC in the amount so
determined bv the Citv within ten(10)davs of the issuance of the AOP.The nrior
LOC will continue to be effective until the new LOC is provided to and accented
�the Citv.
�zo-c�«ccca�-�ot„�, ����� eifF ef Ehe �reJeeE ��• Ehe ���liean��e
�Flo ..a�.. ,.1, �i�
� _._.__-__—.__..._____.-______.-
• Formatted:List Pa2graph,Indent:Left: 1.25"
(c) Upon completion of each phase of the Reclamation Actions, the Applicant may
provide evidence of the completion of such phase (induding the passage of any wrmacted:rront:eoid
warranty period) and may in writing request that the Security be reduced by the
portion of the original amount thereof represented by such completed portion of
the Reclamation Actions. The City will within thirty(30)days of the receipt of
such request inspect the completed portion of the Reclamation Actions and the
amount proposed by the Applicant for reduction of the Security(the"Reduction
Amount"). Until a Certificate of Completion is issued by the City, approval of
any Reduction Amount and any reduction in the Security does not constitute a
waiver by the Ciry of the right to draw funds under the Security on account of any
defect in or failure of the Reclamation Actions that is detected or which occurs
after the approval of such Reduction Amount.
(d) Subject to the foregoing,after approval of each Reduction Amount in accordance
I with this Article, the amount, which the City is entitled to draw on th��
Bond,will be reduced by an amount equal to one hundred percent(]00%)of the
Reduction Amount approved by the City.
(e) If the Applicant is in default under this Agreement, the Applicant will have no
right to request such approva) or reduction by the City and the City shall have no
liability for refusing to grant such Reduction Amount.
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ARTICLE SIX
EVENTS OF DEFAULT; REMEDIES
6. The following provisions shall govern default by the Applicant(meaning either or both of the
Owner or Operator)and the City's remedies for defaults under this Agreement:
6.1 Event of Default. The following shall be"Events of Uefault" under this Ag-eement
and the term "Event of DefaulY' shall mean, whenever it is used in this Agreement (unless the
context otherwise provides),any one or more of the following events:
6.1.1 Breach of Warrantv or Representation. A breach by Applicant of any
warranty or representation made by the Applicant in any of the Applicable Documents.
6.1.2 Failure to Meet An�,Condition. The failure of the Applicant to meet any of
the Conditions,requirements and limitations of any of the Applicable Documents.
6.1.3 Failure ro Comolv. The failure of the Applicant at any time to comply with
any of the Conditions, requirements or limitations required of the Applicant under any of the
Applicable Documcnts.
6.1.4 Failure to Perform. Failure by the Applicant to observe and substantially
perform any covenant, condition, obligation or agreement on its part to be observed or
performed under any of the Applicable Documents.
6.1.5 Failure to Post. Failure by the Applicant to fund or replenish the Escrow or to
post the Security as,when,in the amount and in the fonn provided herein.
6.1.6 Failure to Pav. Failure by the Applicant to pay when due the payments
required to be paid or secured under any provision of any of the Applicable Documents,
including the payment of any City Costs or other payment reqaired with respect to the
Owner's Property or any portion thereof or otherwise required by this Agreement.
6.1.7 Prohibited Assignment. The Applicant shall make an assignment which is
not in compliance with Section 4.3(g)hereof.
6.1.8 ]nsolvencv. If the Applicant shall admit in writing its inability to pay its
debts generally as they become due, or shall file or be involuntarily named as a debtor in a
petition in bankruptcy, or shall make an assignment fm- the benefit of creditors, or shall
consent to the appointment of a receiver of itself or of the whole or any substantial part of the
Owner's Property.
6.1.9 Court Order. ]f the Operator, on a petition in bankruptcy filed against it,be
adjudicated a bankrupt, or a court of competent jurisdiction shall enter an order or decree
appointing,without the consent of the Operator,a receiver of the Operator or of the whole or
substantially all of its property, or approve a petition filed against the Operator seeking
10
reorganization or rearrangement of the Operator under the federal bankruptcy laws,and such
adjudication,order or decree shall not be vacated or set aside or staycd within sixty(60)days
from the date of entry thereof.
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 or available at law or in
equity but only after the Applicant's failure to cure such Event of Default within thirty(30)days of
written notice of default which notice shal]be effective on the date mailed or hanci delivered to the
Applicant,take one or more of the following actions in the City's sole discretion:
6.2.1 Draw Upon Escrow or Securitv. Draw upon the }scrow or the Security ar
both as provided herein.
6.2.2 Suspend Proiect Activities. Suspend the Applicant's perfonnance of Project
Activities under this Agreement until the City receives assurances from the Applicant,
dcemed reasonably adequate by the City,that the Applicant will cure its default and continue
its performance under this Agreement in accordance with its terms.
6.2.3 Tenninate Applicable Documents. After giving the Applicant (a) written
notice of its intent to do so and (b)an opportunity to present its casc to the City Council,the
City may revoke the Applicable Documents including, but not limited to the CUP and the
AOP. The revocation of the Applicable Documents shall not require the City to release the
6scrow or the Security until the later of Ciry detern�ining that all City Costs have been paid
and all Reclamation Actions have been fully completed either by the Applicant or the City
and such revocation may no longer be challenged by the Applicant or any other paiTy.
6.2.4 Action. Take any action, including legal or administrative action, which the
City determines is necessary or desirable.
6.2.5 Enforce Agreement. Take whatever action at law or in equity appearing
necessary or desirable to the City to collect any payments due under this Agreement, or to
enforce perfoimance or observance of any obligation, agreement or covenant of the
Applicant under this Agreement including but not limited to collecdon or other enforcement
against the Escrow or the Security.
6.2.6 Withhold Certificate or Perrnit. Withhold any certificate or permit required
hereunder including,without limitation the AOP and the Certificate of Completion.
6.3 No Remedv 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 in exercising any
right or power accruing upon any Event of Default shall impair 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 to
exercise any remedy reserved to it, it shall not be necessary for the City to give notice, other than
such notice as may be required in this Article Six.
6.4 Threat to Safetv. In the event that the Ciry reasonably determines that the
continuance of the Project Activities as and in the manner conducted by the Applicant present and
ll
imminent risk to health or safety, the City may immediately and without notice require that the
Project,Permitted Activities and/or Reclamation Actions be suspended unti] the City is satisfied that
such risk no longer exists.
ARTICLE SEVEN
CERTIFICATE OF COMPLETION
7. Upon the ApplicanYs satisfactory performance of all of the requirements of the Applicable
Documents, including but not limited to the Reclamation Actions,the City will,at the request of the
Applicant, approve and execute a Certificate of Completion in the form of Exhibit E hereto which
Certificate of Completion may be recorded by Applicant at its expense and shall serve to terminate
the obligations of the Applicant hereunder.
ARTICLE EIGHT
TERM AND TERMINATION
8. This Agreement including the Applicable Documents may be terminated by the City and
shall terminate automatically as to each of the Permitted Activities and Reclamation Actions as
follows:
8.1 As to Permitted Activities. The right to conduct Permitted Activities except
Reclamation Actions, pursuant to this Agreement and the Applicable Documents will terminate on
the earlier of the following and upon such termination the Applicant shall have no further right to
conduct such activities:
8.1.1 The termination thereof as and in the manner allowed by Section 6.23 hereof;
8.1.2 The mining of all sand and gravel above the elevation of 840 feet above mean
sea level
8.1.3 Completion of the Project and issuance of a Certificate of Completion.
8.1.4 3.3 years beginning 30 days after all other permits are obtained.
8.2 As to Reclamation Actions. As to Reclamation Actions, this Agreement and the
Applicable Documents shall terminate upon the later of all of the fbllow�ing as determined bv the Citv
in its reasonable discretiun�. __ _
8.2.l LApnlicant's completion of all such Reclamation Actions, ' Formatted:Numbered+Level:1+
8 2 2 [Alternative 1]Certification b�the W ashington Conservation Distnct, or Numbering Style:1,z,3,...+Start at 1+
another competent nublic entit�desianated bv the City that the Reclamation Actions at9l�nt:Left+Algned at: OJS"+tndent
as specified in the Reclamation Plans have been satisfactorily completed in all
material respects,
[Altemative 21 Receipt and approval bv the City of a recommendation from the
Washink,ton Conservation District or another comvetent public entitv desi¢nated bv
the Citv that the Reclamation Actions as specified in the Reclamation Plans have
been satisfactonlv completed in all material respects Formatted:No underiine
n.2.3 -�The issuance of a Certificate of Completion by the City,and ' Formatted:Numbered+Level:1+
8.2.4 �The expiration of the 5 year survival monitoring periods set forth in the Numbering Style:1,z,3,...+Start at:1+
Reclamation Plans. ni�e�menr.�erc+ni�yned ar. o.�s�+Indent
at: 1"
Comment[KNl]:1om Tnplett suggested
language�s Altemahve 1
12
ARTICI,E NINE
MISCELLANEOUS
9. The following miscellaneous provision are hereby made a pai�t of this Agreement:
9.1 Restrictions on Use. 1�he Owner,Operator and/or Applicant each agrees for itself,its
assigns and every successor in interest to the Project Site, or any part thereof, that the Owner,
Operator and/or the Applicant and such successors and assigns shall during the term of this
Agreement devote the Project Site to,and in accordance with,the uses specified in this Agreement as
amended from time to time.
9.2 Conflicts of Interest. No member of the governing body or other official of the City
shall have any financial interest,direct or indirect,in this Agreement,the Project Site or any contract,
agreement or other transaction contemplated to occur or be undertaken thereunder or with respect
thereto,nor shall any such member of the governing body or other official participate in any decision
relating to the Agreement which affects his or her personal interests or the interests of any
coi�oration, partnership or association in which he or she is directly or indirectly interested. No
member, off�icial or employee of the City shall be personally liable to the Applicant in the event of
any detault or breach by the Ciry under the terms of this Agreement.
9.3 Titles of Articles and Sections. Any titles of the several parts,articles and Sections of
the Agreement are inscrted for convenience of reference only and shall be disregarded in construing
or interpreting any of its provisions.
9.4 Notices and Demands. Except as otherwise expressly provided in this Agreement,a
notice, demand or other communication under this Agreement by any party to any other shall be
sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid,
return receipt requested,or delivered personally;and
In the case of the Owner is addressed to or delivered personally to:
James Zavoral, MD
Kathleen Zavaral
5239 W. Highwood Drive
Edina MN 55436
Tiller Corporation
Attention Mike Caron Director of Land Use Affairs
7200 Hemlock Lane,Suite 200
P.O. Box 1480
Maple Grove MN 5531 1
With a copy to the attorney for Tiller Corporation:
Gregory E Korstad
Larkin,Hoffinan,Daly&Lindgren LTD
13
1500 Wells Fargo Plaza
7900 Xerxes Avenue South
Bloomington MN 55431
In the case of the City is addressed to or delivered personally to the City at:
City of Scandia
14727 209`h Street
Scandia,MN 55073
Attn: City Clerk/Administratar
With a copy to the City Attorney for the City:
Eckberg,L,ammers,Briggs,Wolff&Vierling,PLLP
1809 Northwestern Avenue
Stillwater,MN 55082
Attn:Nick Vivian
9.5 Counterparts. This Agreement may be executed in any number of counteiparts, each
of which shall constitute one and the same instrument.
9.6 Modification. If the Applicant is requested by the holder of a Mortgage or by a
prospective holder of a prospective Mortgage to amend or supplement this Agreement in any manner
whatsoever, the City will,in good faith,consider the reyuest with a view to granting the same unless
the City, in its reasonable judginent,concludes that such modification is not in the public interest,or
will significantly and undcsirably weaken the tinancial security provided to the interests of the City
by the terms and provisions of this Agreement
9.7 Law Governin�. This Agreement will be governed and construed in accordance with
the laws of the State of Minnesota.
9.8 Reports. The Owner,Operator and/or the Applicant shall provide the City reports in
a timely manner with such information about the Project as the City may reasonably request.
9.9 Citv Approvals. Any approval, execution of documents, or other action to be taken
by the City pursuant to this Agreement, for the purpose of carrying out the terms of this Agreement
or for the purpose of determining sufficient performance by Owner, Operator and/or the Applicant
under this Agreement, may be made, executed ar taken by the Mayor and Clerk of the City without
further approval by the City Council. The Mayor and Clerk of the City may,but shall not be required
to,consult with other City staff with respect to such matters.
9.10 Rule of Construction. The parties agree that this Agreement is not intended,nor shall
it be construed, as a joint venture or other partnership between the City and the Owner, Operator
and/or the Applicant or as empowering the Owner, Operator and/or the Applicant to act as an agent
of the City.
9.1 1 Binding Eifect. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs,successars and assigns.
14
IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective on the
day and year first above written.
OWNER:
James Zavoral
Kathleen Zavoral
STATE OF MINNESOTA )
)ss.
COUNTY OF )
Subscribed and sworn to before me by JAMES ZAVORAL and KA"I'HLEEN ZAVORAL,
husband and wife,this day of
Notary Public
16
OPERATOR:
TILLER CORPORATION
By:
I[s:
STATE OF MINNESOTA )
)ss.
COUNTY OF )
Subscribed and swom to bcfore me by the of
Tiller Corparation, a Minnesota corporation this day of on
behalf of the corporation.
Notaiy Public
17
CITY:
CITY OF SCANDIA
By:
Randall Simonson,Mayor
By:
Kristina Handt,City Administrator
STATE OF MINNESOTA )
)ss.
COUNTY OF WASHINGTON )
Subscribed and sworn to before me by RANDALL SIMONSON and KRISTINA HANDT,
respectively the Mayor and the City Administrator of the City of Scandia, a Minnesota municipal
corporation this day of on behalf of the City.
Notary Public
18
EXHIBIT A
Legal Description of Owner's Propertv
DESCRIPTION OF PROPERTY
(Per Wan�anty Deed Doc.No. 850286)
All that part of the Southwest Quarter of the Southwest Quarter(SW 1/4 of SW 1/4)of Section
18,Township 32 North,Range 19 West, described as follows,to-wit: From a point on the South
line of Section 18,Township 32 North, Range 19 West, distant 171 feet East of the Southwest
corner thereof, run Northeasterly at an angle of 107 degrees 03 minutes with said South section
line(measured from West to North), for a distance of 263.5 feet,thence deflect to the right at an
angle of 72 degrees 57 minutes for a distance of ll 3 feet,more or less to the point of beginning
(which point being on the Easterly right of way line of Trunk Highway 95 as now established
and being a distance of 100 feet from the centerline of Trunk Highway 95 measured at right
angle to said centerline),thence continuing Easterly for a distance of 375.4 feet,thence deflect to
the left at an angle of 89 degrees 00 minutes for a distance of 1048.3 feet,thence deflect to the
left at angle of 90 degrees 32 minutes for a distance of 75.5 feet to a point on the Easterly right of
way line of Trunk I�ighway 95 as now established and being a distance of 100 feet from the
centerline of Trunk Highway 95 centerline measured at right angle to said Trunk Highway 95
centerline,thence running Southwesterly along Easterly right of way line of Trunk Higllway 95
to the point of beginning.
(Per Warranty Deed Doc.No.544408)
PARCEL A.
That part of the Northwest 1/4 of the Southwest 1/4 of Section 18,Township 32 North,
Range 19 West,Washington County, Minnesota, described as follows Commencing at
the West quarter comer of Section 18;thence South 0 degrees 00 minutes assumed
bearing,along the West]ine of Section 18, a distance of 441.6 feet;thence North 89
degrees,58 minutes East,a distance of 860.6 feet to the point of beginning, on the center
line of State Highway No.95:thence continuing North 89 degrees,58 minutes East,a
distance of 573 feet,more or less,to the East line of the Northwest 1/4 of Southwest 1/4,
Section 18;thence Southerly along said East line,a distance of 863 feet, more or less,to
the Southeast corner of the Northwest 1/4 of Southwest 1/4, Section 18;thence Westerly,
along the Soutl� line of the Northwest 1/4 of the Southwest 1/4, Section 1 S,a distance of
874 feet,more or less,to the center]ine of State Highway No. 95;thence Northeasterly
along said highway center line,a distance of 913 feet, more or less,to the point of
beginning.
PARCEL B
The Southwest l/4 of the Southwest 1/4 of Section 18,and the Northwest 1/4 of the
Northwest 1/4 of Section 19,both in Township 32 North,Range 19 West,excepting
therefrom the following:
(a)All those parts thereof that lie West of the Centerline of County State Aid
Highway No. 53 and State Highway No. 95.
(b)That part of the Southwest 1/4 of Che Southwest 1/4 of Section 18,
Township 32 North,Range 19 West and that part of the Northwest 1/4 of the
Northwest 1/4 of Section 19,Township 32 North,Range l9 West,all in
Washington County, Minnesota,described jointly as follows:
Commencing at the Southwest corner of said Section 18;thence East along the
South line of said Southwest 1/4 of the Southwest 1/4 of Section 18,a distance of
171 feet;thence Northeasterly, deflecting to the left 72 degrees, 57 minutes,a
distance of 263.5 feet to a point hereinafter referred to as"Point A";thence East
parallel with the South line of said Southwest 1/4 of the Southwest 1/4 to the
point of beginning on the center line of State Highway No.95 as the same is now
laid out and traveled; thence continue East along same parallel li��e to a point
distant 870.51 feet East of aforementioned"Point A",thence South at a right
angle,a distance of 1460 feet,more or less,to the North line of the South 100 feet
of the Northwest 1/4 of the I�'orthwest 1/4 of Section 19;thence West along said
North line to the center line of County Road No. 53 as the same is now laid out
and traveled; thence Northwesterly along said center line to the intersection with a
line drawn perpendicular to the North line of said Section 19 from a point of said
North line distant 689.6 feet Easterly of the Northwest corner of Section 19;
thence Northerly along said peipendicular line 675 feet, more or less,to the South
line of the North 150 feet of said Section 19;thence West along the South line of
said North 150 feet,a distance of 443 feet, mare or•less,to the center line of State
Highway No. 95;thence Northerly along said center line 403 feet,more or less,to
the point of beginning.
(c)Beginning at a point on the South line of said Section 18,distant 171 feet
East of the Southwest corner thereof,run Northeasterly at an angle 107 degrees,
03 minutes with said South Section line measured from West to North for a
distance of 263.5 feet;thence deflect to the right at an angle of 72 degrees,57
minutes for a distance of 113 feet more or less to the point of beginning, which
point being on the Easterly right-of-way line of Highway 95 as now established
and being a distance of]00 feet from center line of Highway 95 measured at right
angles to said center line; thence continuing Easterly for a distance of 375.4 feet;
thence deflect to the left at an angle of 89 degrees,00 minutes for a distance of
1,048.3 feet;thence deflect to the left at an angle of 90 degrees, 32 minutes for a
distance of 75.5 feet to a point on the Easterly right-of-way line of Highway 95 as
now established, and being a distance of 100 feet from the center line of Highway
95 measured at right angles to said center line of Highway 95;thence run
Southwesterly along the Easterly right-of-way line of Trunk Highway 95 to the
point of beginning.
(d)That part of the Northwest 1/4 of the Northwest 1/4 of Section 19
described as follows: Commencing at the Northwest corner of the Northwest 1/4
of the Northwest 1/4 of Section 19;thence East assumed bearing along the North
line of the Northwest 1/4 of the Northwest 1/4 a distance of 689.6 feet;thence
South,at right angles,a distance of I50 feet to the point of beginning; thence
continuing South a distance of 675 feet,more or less,to the center line of County
State Aid Highway No. 53;thence Northwesterly along said road center line,a
distance of 440 feet,more or less,to the Easterly right-of-way line of State
Highway No. 95;thence Northerly, along the Easterly right-of-way line a distance
of 340 feet,more or less,to the point of intersection with a line drawn parallel
with and distant 150 feet South of the North line of the Northwest 1/4 of the
Northwest 1/4 of Section 19;thence East along said line a distance of 342.2 feet
to the point of beginning.
PARCEL C
That part of the Southeast 1/4 of the Southwest 1/4, Section 18,Township 32 North,
Range 19 West,Washington County, Minnesota, which lies Westerly of the
Minneapolis, St. Croix Railway Company right-of-way and also all that pa�1 of the
Northeast ]/4 of the Southwest 1/4; Section 18,Township 32 North,Range 19 West,
Washington County, Minnesota,described as follows: Commencing at a stone
monument at the Southwest corner of the said I��ortheast 1/4-Southwest l/4;thence
North along the West line of the said Northeast l/4-Southwest 1/4 a distance of 17 rods
to an iron pipe monument;thence North 75 degrees East a distance of 35 rods to an
iron pipe monament; thence South 30 degrees East, a distance of 25 rods to an iron
pipe mo»ument in the South line of the said Northeast 1/4-Southwest 1/4;thence West
along the South line of the said Northeast 1/4-Southwest 1/4 a distance of 44 rods to
the point of beginning.
PARCEL D
That part of the Northeast 1/4 of the Northwest 1/4 of Section 19,Township 32,Range
19 lying West of the right-of-way of the Minneapolis, St. Paul and Sault Ste. Marie
Railway Company, as the same runs over and across said tract.except that portion
thereof platted as Otisville.
All according to the United States Govemment Survey thereof, according to the recorded plat
thereof, and situate in Washington County, Minnesota.
______
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EXHIBIT B
Proiect Site Sketch
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EXHIBIT C
Conditional Use Permit Resolution No.02-19-13-04
EXHIBIT D
Letter of Credit
Samole Letter of Credit#
Date: �
TO: City of Scandia
14727 209`�Street
Scandia,MN 55073
Dear Sirs:
Wc hereby issue in your favor,this Irrevocable Letter of Credit# for the account of Tiller
Corporation, pertaining to Applicant's obligations, performance and undertakings, as described in the
Conditional Use Permit Compliance and Reclamation Agreement dated 2013 (the
"Development Agreement"), between the Applicant and the City of Scandia, Minnesota (the "City"), in
the amount of$ , available to you by your draft at the sight of the undersigned bank
when accompanied by a signed statement by the City Administrator of the City certifying that the
conditions of the above referenced Development Agreement have not been satisfied in accordance with
that Development Agreement as f'ollows:
L The City Administrator cettifies to the Ba�k truthfully that:
(a) Applicant is in default in the payment of City Costs or completion of the Reclamation
Actions as defined in the Development Agreement or is otherwise in default under the
Development Agreement;and
(b) The City has given written notice of said default to each of Applicant and the
undersigned and thirty(30)days or more has expired since the giving of such notice and
such default continues;and
(c) The City is drawing upon such Letter of Credit the amounts necessary to pay such City
Costs or complete such Reclamation Actions or otherwise satisfy the Applicanfs
obligations under the Development Agreement and that it will utilize and funds for the
completion of said Reclamation Actions.
2. The City presents this Letter of Credit;and
3. The City presents a copy of the 30-day written notice specified in(b)above.
This Letter of Credit will continue in ful] force and effect until the termination of the Development
Agreement as provided in Section 8.2 thereof unless the City consents to the earlier termination thereof in
writing which consent may be withheld for any or no reason.
Very truly yours,
(Lender)
By:
Its:
EXHIBIT E
Certificate of Comaletion
CERTIFICATE OF COMPLETION
The undersigned hereby certify that each of TILLER CORPORATION, a Minnesota
corporation ("Operator") and JAMES ZAVORAL and KATHLEEN ZAVORAL, husband and wife
("Owner")(collectively, Operator and Owner are refen�ed to as the "Applicant") has fully and
completely complied with its respective ob]igations under the Permitted Activities, Reclamation
Actions, and other requirements as defined in or required by the Agreement on and with respect to
the real property located in Washington County,Minnesota and legally described on Exhibit A hereto
("Owner's Property") of that certain document entitled "Conditional Use Permit Compliance and
Reclamation Agreement", dated , 2013 (the "Agreement"), between the City of
Scandia and the Applicant with respect to , and is released and
forever discharged from its obligations with respect to such Agreement and the Owner's Property is
further released from the restrictions and requirements of the Agreement.
Dated: CITY OF SCANDIA:
By:
Its:
By:
IIs:
THIS INSiRUME:N7 WAS DRAFTED BY:
Thomas I.Miller,Esq.(#ISS676)
MILLER&STEVENS,PA.
Oak Point l3usiness('enter,Suite 6
26357 Forest Boulevard,Box 807
Wyoming,MN 55092
l elephone:(651)462-0206