12-16-2015 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL DECEMBER 16, 2015 All homes were to be completed by December 31. 2016. Any lots that did not have homes completed by December 31, 2016 would result in the ownership of that lot reverting to the city. However, the developer could gain an extension for another year by paying $4,706.55 per lot to the city as a reimbursement for lot TIF. The Administrator referred to a letter received on December 4, 2015, from Steve Peters with Masterpiece Homes, Inc. The letter stated that three properties do not have homes started as of yet, but there are deposits on two of the lots, and they are planning to display their new model in the 2016 Builders Association Spring Preview. The Administrator noted that based on the letter, the builder will not be in compliance with the provision that all 15 homes must be started by December 31, 2015. He stated that in looking at the situation in more detail, the city bears little risk if the development agreement were amended to remove the language stating that all 15 homes must be started by December 31, 2015. The agreement already requires all of the homes be completed by December 31, 2016, which would allow for compliance with the January 2, 2017 assessment provisions. He noted that the average selling price of the 11 homes sold to date is over $560,000 versus the $475,000 requirement, and the average estimated market value of seven homes that have been assessed so far is over $550,000 versus the $450,000 requirement. Provision #18 in the Development Agreement: 18. The Developer hereby agrees to the following schedule of home construction: a) before December 31, 2013, the Developer shall have started construction on three (3) homes; b) before December 31, 2014, the Developer shall have started construction on a total of ten (10) homes; and c) before December 31, 2015, the Developer shall have started construction on all 15 homes. All homes shall be completed by no later than December 31, 2016. Staff recommends the revised language read as follow: 18. The Developer hereby agrees to the following schedule of home construction: a) before December 31, 2013, the Developer shall have started construction on three (3) homes; b) before December 31, 2014, the Developer shall have started construction on a total of ten (10) homes; and c) All 15 homes shall be completed by no later than December 31, 2016 The Administrator recommends approval of the amendment to the Development Agreement for Pine Tree Ponds to eliminate the requirement that all homes be under construction by the end of December 2015. He E