North Grandview Estates Changes to Agreement
BITTER LAW OFFICES
485 LOCUST STREET
DUBUOUE, IOWA 52001-6940
Joseph J. Bitter'
Thomas A. Bitter
Office: 563-588-4608
Fax: 563-588-0103
Residence
Joe: 563-582-1768
Tom: 563-582-7545
. Also licensed in Illinois
Client parking in rear
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February 10,2006
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The City of Dubuque, Iowa
City Hall
50 West 13th St
Dubuque,IA 52001
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RE: North Grandview Estates, L.L.c.
This proposal is submitted to you on behalf of North Grandview Estates, L.L.C. We attach a
copy ofan Agreement recorded as Document No. 2005-00006151. This document is provided to
you for your easy reference purposes.
Richard A. Henkel on behalf of North Grandview Estates, L.L.C would like to modify the
Agreement as follows:
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1. The Plat attached hereto shows the 40 lots. We address first lots designated I
through 10, all of which front on North Grandview Avenue. These lots will remain as affordable
lots. However, Mr. Henkel has been in contact with his real estate advisor who tells him that the
depth of these lots has to be reduced. Starting approximately at the middle of Lot 3, through Lot
10, the back line would be moved closer to Grandview Avenue (east). A straight line would be
drawn from the pole in the middle of the back of Lot 3 and that line would extend all the way
through Lot 10, continuing through Lot II. At the point where Lot II joins Lot 12, Lot II
would be shortened by approximately 30 feet This means that Lot II would be approximately
136.89 feet deep along the common boundary line with Lot 10. Likewise, each lot would be
shortened somewhat, and moving from Lot II down to Lot 3, the amount that each lot would be
shortened would be reduced. As indicated, the line along the rear of these lots would be a
straight line. Mr. Henkel has been advised that this additional ground is necessary to make Lots
18 through 26 deeper. The Plat does not show the terrain of the property. However, this land is
anything but flat, and Mr. Henkel has been advised that unless Lots 18 through 26 are made
deeper, they will not be marketable and he won't be able to sell them. These lots need the
additional land that would be carved off the back of the lots to the east and fronting on
Grandview Avenue. Mr. Henkel would be more than happy to look at the property with City
staff. His advisors have told him that this is a very critical need.
2. The Plat will have to be redrawn and resubmitted to the City Council. In general,
Lots 18 through 26 are not wide enough_ These lots will have to be widened, and in the process,
there will be one less lot The lots will average about 74 feet in width rather than the current 65
feet Again, Mr. Henkel was advised by his real estate advisor that these lots were not saleable
because they were not wide enough. Generally, a homeowner would want a house
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approximately 42 feet wide. The houses would be about 26 feet deep. With a 42 foot wide
house, there is not enough room to add a double garage. The width of the lots would have to be
increased. Mr. Henkel was advised that these days, a double garage is absolutely critical and is
necessary to sell the lots. A double garage would be approximately 20 feet wide. Added to a 42
foot wide house, the width of the houses along Helen Ridge Court, from end to end, including
the double garage, would be approximately 62 feet. This will allow the mandatory 6 foot green
space/clearance on either side of the structure to the lot line. In the process, one of the lots
would be eliminated. There would be one less lot, so the lots would probably have to be
renumbered.
3. The lot line between Lot 12 and Lot 26. This lot line will be moved
approximately 12 feet to the north. This is necessary in order to accommodate the wider lots,
even with the loss of one lot, and thus meet the City Code requirements.
4. Currently, Lot 12 houses the old homestead. The home will be razed and a new
house will be erected on Lot 12.
5. Lots IS and 16. There is a 12 foot wide easement along the common boundary ~
line between Lots 15 and 16. The purpose for this easement is to allow for private sanitary sewer
service lateral as shown on the Plat. This easement is for the benefit Lot 12. However, this
easement will not be necessary, because Lot 12 can now be accessed directly from Helen Ridge
Court, and the sewer line will come in through Helen Ridge Court directly, rather than between
Lots IS and 16.
6. Lots IS and 16 are too small to be marketable. They will be made deeper by
approximately IS feet. In other words, the southerly lot line of both Lots IS and 16 will be
moved approximately 15 feet further south. In addition, Lot 15 will be made wider, so that it
will be approximately 74 feet wide. This will require that Lot 16 also be made wider. Lot 16
will be increased so that it will encompass virtually all of the curve of Helen Ridge Court. In
other words, the rear lot line of Lots IS and 16 will be moved back about IS feet, and the back
line will extend all the way over in a straight line to Helen Ridge Court. Lot 16 will then include
most if not all of the curve along Helen Ridge Court. Lot 12 will still be plenty big enough to
accommodate a new home and comply with City requirements.
7. The easement between Lots 25 and 26. Because the lots will all be increased in
width, the easement between Lots 25 and 26 will continue, but its placement will be somewhat
different because the common boundary line between Lots 25 and 26 will be moved somewhat to
the north. This easement is for storm sewer purposes.
8. Lot 27. Lot 27 is a long thin lot at the end of the cul-de-sac at the end of Helen
Ridge Court. The easterly boundary line will have to be moved about 20 feet further east. This
will make the lot wider by about 20 feet. The reason for this is so that Lot 27 is useable for
home construction. Again, Mr. Henkel has been advised by his realtor that without this change,
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Lot 27 will be unsaleable. In addition, the northerly boundary of Lot 27 will be moved south
approximately 30 feet. The sanitary sewer easement will likewise move south and continue to
remain in Lot 27.
9. The topography makes the changes outlined in this letter necessary. You can't tell
this by looking at the Plats but an examination of the property itself makes it clear how the
proposed changes increase the value of the lot dramatically.
10. Lots 28 through 35. These lots will all be widened and will result in the loss of
one lot. There is a 20 foot wide storm sewer easement along the common boundary line between
Lots 28 and 29. It will continue to be along the common boundary line between Lots 28 and 29,
but will be moved as the common boundary line changes by virtue of the new Plat.
II. Lots 34 and 35. The Plat shows a 12 foot wide easement for private sanitary
sewer service lateral between Lots 34 and 35. The purpose for this is to accommodate David
Harris's private home which is located to the west. This easement will remain, but as the lot line
between Lots 34 and 35 changes, the easement will change accordingly. It will continue to be 6
feet in width on either side of the common boundary lot line between Lots 34 and 35. _
12. Because of the changes in the numbers and configurations of the lots, Lots 36, 37,
38, 39, and 40 will not be changed at all. However, it is necessary to remove the affordable
housing designation from all the lots on Helen Ridge Court.
13. Mr. Henkel has met with Kyle Kritz and David Harris and has shown them the
computations regarding the cost of this project. For many reasons, including the terrain, the
delays of Plats caused by various companies and agencies, and because of cost overruns, the cost
of this project is dramatically higher than originally anticipated. In fact, the whole subdivision is
at risk. The City has imposed a ceiling on the amount that can be charged for an affordable lot.
When all of the lots are sold, at the price required by the City, the total proceeds received appears
to be less than the total cost of the project, and while final figures are not in, the cost of the
project could exceed the total net proceeds from the sale of all lots by several hundred thousand
dollars. In order to keep this project afloat, and to avoid the subdivision to falter, the developer
needs to be able to sell the lots for more than the $27,775.00 ceiling required by the City. The
lending institution working with Mr. Henkel has pointed this out to him and indicated that if the
limitation continues as to the price at which the lots can be sold, this project will fail.
14. As shown on the Plat, Lot II has been designated as a detention basin. Mr.
Henkel would like to use a portion of the back of this lot to construct a small playground for
neighborhood children to play. If the ground is prepared properly, the City staff has indicated
the City's interest in supplying the playground equipment. The City would require Mr. Henkel to
install a sidewalk from Helen Ridge Court along the common lot line between Lots 14 and 15.
This sidewalk would then extend to the south between the common lot line between Lots 12 and
13 to the playground. It would not be necessary for a full width concrete sidewalk. Perhaps,
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stepping stones might suffice. The sidewalk would be maintained by the City. The City would
also maintain the playground because it would be located on property deeded to the City, and
used for the detention basin.
15. The developer needs at least preliminary approval from the City of Dubuque so
that he can contact his. engineer, Buesing & Associates, and give them the authorization to go
ahead with the redrawing of the Plat.
16. As presently drawn, Helen Ridge Court is 27 feet wide from curb to curb. The
developer requests that the City approve 27 feet in width for the roadway. The topography does
not permit a wider road. Again, Mr. Henkel is more than willing to view the property with
members of the City staff. If the road had to be wider than 27 feet, we believe that this factor
alone would be enough to make the project economically unfeasible.
Thank you for your consideration.
Very truly yours,
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Enc.
cc: Gus Psihoyos, Assistant City Engineer
David Harris, Housing Services Manager
Robert Green, Water Plant Manager
Michael Van Milligen, Dubuque City Manager
11111111111111111111111111111111111111111111111111111111III111111111111111111111
Dee 10: 005147390006 Type: GEN
Recorded: 04/25/2005 at 04:24:11 PM
Fee Amt: $32.00 paoe 1 of 6
Dubuque County Iowa
Kathv Flynn Thurlow Recorder
File2005-00006151
Prepared by: Barry A. Lindahl, Corporation Counsel, 300 Main Street, Dubuque, IA 52001 (563)
583-4113 AGREEMENT BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
North Grandview Estates, llC
This Agreement is made and entered into by and between the City of Dubuque,
Iowa (City) and North Grandview Estates, llC (Developer},.thisdl/..;;r day of April, 2005.
WHEREAS, Developer is the owner of the following described real property in the
City of Dubuque, Iowa:
lots 1 thru 40 and Lot A of North Grandview Estates in the City of Dubuque,
Iowa (the Subdivision); and
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WHEREAS, Developer is interested in the sale of lots and/or the construction and
sale of homes/units in the Subdivision for owner-occupied affordable housing; and
WHEREAS, City is willing to grant incentives to Developer for the sale of lots and/or
the construction and sale of homes/units for owner-occupied affordable housing upon the
terms and conditions set forth herein.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS
FOLLOWS:
1. Eighty percent (80%) ofthe lots, excluding detention lots and existing homesteads
in the Subdivision described above shall be affordable housing lots as defined
herein and shall comply with the provisions as defined herein.
2. For purposes of this Agreement, an affordable housing lot shall mean a lot that
meets the following standards:
a. A lot for a single family dwelling:
1. The lot upon which a dwelling is constructed may not exceed 6,500 square
feet in area except for lots 3, 4, 5, 6, 7, 8, 9, 10 and 16, due to terrain 'I
hardship.
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2. The street frontage of the lot may not be less than 50 feet and not more than
75 feet.
3. The constructed dwelling may not exceed 1200 square feet of finished
space. For the purpose of this agreement finished space shall be defined as
the square footage of those parts of the structure available for human
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4" The 2005 lot price may not exceed $27,877.00. For the sale of affordable
housing lots in 2006 and subsequent years, the maximum sales price for
each of the lots during each subsequent year shall be the amount obtained
by multiplying $27877,00 by a fraction, the numerator of which is the
Consumer Price Index - Seasonally Adjusted U.S. City Average For All Items
For All Urban Consumers (1967 = 100) published monthly by the Bureau of
Labor Statistics of the United States Department of Labor ("CPI-U"), for
December of the year immediately preceding the year at issue, and the
denominator of which is the CPI-U for December of 2004.
3, City shall provide to Developer the following incentives:
a, The minimum width of public street pavement width shall be 27 feet and the
minimum right-of-way width shall be 42 feet. Parking shall be restricted to one
side of the street only.
b. Water main and sanitary sewer connection fees and/or assessments will be
waived, but !he water main tap fee shall be paid by the Developer.
c. The lot frontage minimum for a single family dwelling shall be 50 feet and the
maximum lot width for a single family dwelling shall be 75 feet.
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d. Subject to the availability of funds and plan approval by City, Developer will
receive a preference when applying for City Enterprise Funds (0 interest, 5-year
loans) for the installation of water main and water services and sanitary sewer
main and laterals on Helen Ridge Court and North Grandview Avenue,
e. City will assume the cost of drain tile and it's installation under the curb if City
Engineering determines it necessary.
4. In order for City to recoup its costs for sewer and water construction, a per lot
payment will be established for each lot be payable by the Developer, its
successors and assigns to the City of Dubuque upon sale of each lot in the
subdivision. Any balance remaining unpaid after 5 years shall be paid by the
Developer as a lump-sum balloon payment.
Prior to the disbursement of any funds by City, Developer shall execute and deliver
to City a promissory note in an amount equal to the estimated funds to be paid by
City for the sanitary sewer and water construction. Such promissory note shall be
secured by a mortgage on the Subdivision which shall provide for the release of lots
upon payment of the above-mentioned per lot payment. Developer may elect to
provide alternate security for such note in a form acceptable to City
5. Developer agrees that no more than twenty percent (20%) of the lots in the
Subdivision shall be sold for more than the maximum sales price for an affordable
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housing lot as defined herein. This paragraph shall not apply to the sa~e of BillY lot
upon which a dwelling unit has been built.
6. Developer shall provide a copy of the purchase agreement and the declaration of
value for the sale by developer of each affordable housing lot in the Subdivision to
City's Building Services Department prior to the time of closing on the sale.
Developer shall include in the agreement for the purchase of each affordable
housing lot in the Subdivision, and in any deed conveying such affordable housing
lot, a provision that if the purchaser or any subsequent purchaser of the lot does not
construct a dwelling unit on the lot, then the purchaser or any subsequent purchaser
shall be bound by the maximum sales price as determined by this Agreement and
that in the event of a sale in excess of the maximum sales price, the seller shall pay
to City, upon City's demand, the difference between the actual sales price and the
maximum sales price as defined herein.
7. Developer agrees that eighty percent (80%) of the dwelling units in the Subdivision
shall not exceed 1200 square feet in interior finished space at the time of transfer of
title to the purchaser. Except for the other twenty percent (20%) of the dwelling
units in the Subdivision, for each dwelling unit constructed on an affordable housing
lot with an interior finished space in excess of 1200 square feet at the time the unit
is transferred to the purchaser, the party constructing said unit shall pay to City a
surcharge of $25.00 per square foot for each square foot in excess of said limit.
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Developer shall include in any agreement for the purchase of a lot or unit in the
Subdivision, and in any deed conveying an affordable housing lot or unit, a provision
that requires the party who constructs a dwelling unit with interior finished space in
excess of 1200 square feet, to pay to City a surcharge of $25.00 per square foot for
each square foot in excess of said limit.
8. After a completed dwelling unit on an affordable housing lot has been transferred to
a purchaser, the purchaser shall not be bound by the 1200 square feet restriction
provided for in paragraphs 2 and 6 above and the purchaser may expand the
exterior structure or interior finished square feet of the unit without limit, except as
may be limited only by the size of the lot and other applicable laws. No penalty shall
be imposed, in accordance with paragraph 6, for any expansion of the exterior
structure or interior finished space occurring after transfer of title to the purchaser.
9. In the event Developer, or any of its purchasers, successors, heirs or assigns,
violates any requirement or condition of this Agreement, the person violating the
Agreement shall repay to City any and all assessments waived under this
Agreement, any connection fees waived under this Agreement and a penalty equal
to fifteen percent (15%) of Developer's cost of street construction in the Subdivision.
In addition, the promissory note referred to in paragraph 3 above shall accrue
interest at the rate of five and one-half percent (511;;%) per annum retroactive to the
date the funds were borrowed.
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10. Developer agrees to file, prior to the sale of amy lot in the Subdivision, restrictive
covenants applicable to the subdivision which include a restriction prohibiting the
rental or lease of any dwelling unit constructed on an affordable housing lot, except
as specifically allowed herein.
11. It is contemplated and assumed by this Agreement that an affordable housing lot or
unit may be transferred by land contract and that an owner/occupant of an
affordable housing unit may be a contract buyer pursuant to such a land contract.
12.A rental agreement with an option to purchase shall be permissible and an
owner/occupant of an affordable housing unit may be a tenantlbuyer pursuant to a
rental agreement with an option to purchase, provided that the term of rental shall
not exceed a term of two (2) years. The lease purchase agreement must be
approved by the City of Dubuque Housing Department.
13. The provisions of this Agreement are binding upon the parties, purchaser,
successors, heirs and assigns of each lot and unit only until such time as the
property is transferred to the first owner/occupant. Thereafter, so as to allow the
homes to grow with the needs and financial abilities of the owner/occupant, the size
restrictions identified herein shall no longer apply.
14. Developer hereby designates as affordable housing lots the lots specified on the ~
attached final plat for the Subdivision.
15. Under current City policy, if North Grandview Avenue is reconstructed, abutting
owners must pay an assessment for a portion of the project cost. If only asphalt
resurfacing is performed it is currently not an assessable project. This policy could
be changed by a vote of the City Council.
16. Developer agrees that the dedication of the storm water detention basins and
related improvements on Lots 11 and 14 will not be accepted by the City until 80%
of the lots in the Subdivision have been fully developed with a habitable residential
structure, including grass and ground cover and the remaining 20% of the lots have
established grass and ground cover. Until such acceptance by City, any property
taxes due for such Lots and improvements thereon shall be the responsibility of
Developer. Any maintenance expenses incurred by City for the detention basins
whether before or after acceptance of the dedication shall be assessed equally
against the developable lots in the Subdivision and collected in the same manner as
property taxes. Developer shall grant an easement to City to perform such
maintenance as City deems necessary.
17. On or before homes have been constructed on 80% of the lots in the Subdivision,
sidewalks shall be installed in the Subdivision along Grandview Avenue and on both
sides of Helen Ridge Court. The cost of sidewalk installation shall be born by the
Developer or the purchaser of a lot as may be negotiated by the Developer.
Sidewalks along West 32nd St. shall be installed by Developer or the lot owner at
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such time as West 3200 St is improved with curb and gutter. Sidewalks shall be
installed on the street frontages of Lots 1 i and 14 and the existing homes on Lots
12 and 13.
18. Developer agrees to install a sanitary sewer manhole over the sanitary sewer at a
point adjacent to the southeast comer of lot 28. Developer agrees that the City at
its cost may extend the sanitary sewer and storm sewer from the manhole at the
southeast corner of Lot 28 to the west property line of the Subdivision and that
Developer will grant an easement to City at no cost for such extension.
19. The cost of improvements to any existing facilities in the Subdivision shall be born
by the Developer.
20. This Agreement shall tenninate twenty (20) years from the date if its execution.
21. Upon execution of this Agreement, City shall promptly record this Agreement with
the Dubuque County Recorder.
CITY OF DUBUQUE, IOWA
anne F. Schneider, CMC
City Clerk
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Attest:
Terrance M. Dug
Mayor
STATE OF IOWA )
) ss:
DUBUQUE COUNTY )
On this#"'A-- day of ~~/f , 2005, before me, the undersigned, a
Notary Public in and for said County and State, personally appeared TERRANCE M.
DUGGAN and JEANNE F. SCHNEIDER, to me personally known, who being by me duly
sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Dubuque,
Iowa, a municipal corporation; that the seal affixed to the foregoing instrument is the
corporate seal of the corporation; that said instrument was signed and sealed on behalf of
the corporation by authority of its qty Council,r ~~ntBincd in lle3oll:ltion No. -
passed by the City Council on the ~ day of~ ,?tHj~, and that TERRANCE M.
DUGGAN and JEANNE F. SCHNEIDER acknowledged the execution of the foregoing
instrument to be their voluntary act and deed and the voluntary act and deed of the
corporation, by it and by them voluntarily executed.
otary Public in and for said State
~. '. SUSAN M. WINTER
-5- ~ . ~~ COMMISSION NO.183274
. . MY COMMISSIOII EXPIRES
lo~ 2/1~/08
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North Grandview Estates, lLC
Attest:
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By: '?u//~:.~1<//
Richard A. Henkel ,
STATE OF IOWA
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ss.
DUBUQUE COUNTY
On this 21st day of April ,2005, before me, the undersigned, a Notary
Public in and for said State, personally appeared Richard A. Henkel to me personally
known, who being by me duly sworn, did say that that person isa representative of said
limited liability company; that no seal has been procured by the said limited liability
company; that said instrument was signed on behalf of said limited liability company by
authority of its managers; and that said Richard A. Henkel acknowledged the execution of
said instrument to be the voluntary act and deed of said limited liability company, by it
voluntarily executed.
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Kristina L. Neyen
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PREPARED BY:
BUESING & ASSOCIATES
ADDRESS: 1212 LOCUST STREE"P.
PHONE:
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DUBUQUE, IOWA
(563) 556-4389
FINAL PLAT OF lOTS 1 THRU 40, INCLUSIVE, AND lOT A OF NORTH GRANDVIEW I
A SUBDIVISION OF LOT 2 OF NOHTH GRANDVIEW PLACE AND LOT 1-2-1 OF MINERAL LOT 358,
SECTION 14, T89N, R2E OF THE 5TH P.M., IN THE CITY OF DUBUQUE, DUBUQUE COUNTY, IOWA
P.D.B.
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PRIVATE SANI ARY
S~"'Ii:R SERVICE: ATERAL
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LOTS
B,761 S.T.
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LOT 19
6,600 S.T.
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LEGEND
fOUND 5/8' REROD ...../PLASTC CAP RLS19651
UNLESS OTHERIJISE NOTED.
fOUND I' PIPE, UNlESS DTHER....ISE NOTED.
PLACED s/S' RERDD W/ORANGE CAP
MARKED 'KOELKER 15497"
NEW LDT LINE THIS PLAT
fINAL PLAT BOUNDARY LINE
_______________________ EASEMENT LINE
EXISTING LOT LINE
RECORDED.. DlHENSION
POINT Of' BEGINNING
RiGHT Of WAY
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I. ALL MEASUREMENTS ARE IN fEET AND DECIMALS THEREOf.
2. PROPRIETOR' NORTH GRANDVIEW ESTATES, Ltc
3. SURVEY REQUESTED BY' DICK HENKEL
4. TDT AL AREA SURVEYED lo.B6 ACRES.
S. THIS PLAT IS SUBJECT TO ALL RIGHT OF' WAYS AND EASEHENTS
OF' RECORD AND NOT Of RECORD.
6. UTILITY EASEMENT CREATED BY THIS PLAT ARE fOR ELECTRIC,
T"" ",,,,um.,... ........, '" ..." ...... ....-n,..' ..,........... ..... ,....... .....",...~..,...,... ..,...........
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CURVE
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C-12
C-IJ
C-14
C-15
C-16
C-17
C-18
CURVE TABLE'
DELTA RADIUS ARC CHORD
61'42'38" 45.00 48.47 46.16
63'39'14' 45.00 50.00 47.46
12.9'2:8'27' "5.00 101.69 81.39
74'50'19' 20.00 26.12 24.31
16'51'58' 1..6.00 42.98 42.82
2:5"43'26' 146.00 65.55 65.00
25'43'26' 146.00 65.55 65.00
26"45'20" 146.00 68.18 67.56
95'04'10" 146.00 242.25 215.40
66'30'59' 104.00 120.74 U4.07
2S~33'11' 104.00 SI.S3 51.29
95'04'10' 10....00 172..56 153.44
2'46'55' 913.00 44.33 44.33
4'03'47' 91J.00 64.75 64.73
4'0"'26" 913.00 64.92 64.90
4'08'06' 913.00 65.S8 65.88
0"51'10' 913.00 lJ.63 13.63
15'5"'3J" 913.00 253.51 252.69