06-09-14 Council Packet - Laserfiche WebLink

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WHEREAS, the City is willing to construct the Improvement Project without certain notices or hearings, provided the assurances and covenants hereinafter stated are made by the Owner to ensure that the City will have valid and collectable special assessments as they relate to the Subject Property to finance all of the costs of the Improvement Project and that all necessary right-of-way is provided to the City, at no cost to the City; and WHEREAS, were it not for the assurances and covenants hereinafter provided, the City would not construct the Improvement Project without such notices, hearings and right-of-way and is doing so solely at the behest, and for the benefit, of the Owner. NOW, THEREFORE, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: 1. The Owner hereby petitions the City for construction of the Improvement Project. 2. The Owner represents and warrants that it is the owner of 100 percent of the Subject Property, that is has full legal power and authority to encumber the Subject Property as herein provided, and that as of the date hereof, it has fee simple absolute title in the Subject Property, which is not subject to any liens, interests or encumbrances, except as listed on the attached Exhibit D. 3. The Owner requests that up to $950,000 of the cost of the Improvement Project be assessed against the Subject Property ("Project Cost"), divided equally per lot. The parties agree and understand that the principal amount to be assessed for the Improvement Project will not exceed the Project Cost. 4. The City shall provide the plans and specifications for the Improvement Project. The cost of drafting the plans and specifications ("Design Cost") is included in the Project Cost and will be assessed with the other Project Costs pursuant to the provisions of this Agreement if the Improvement Project is constructed. In order to ensure that the City is reimbursed for the Design Cost incurred by the City in the event the Improvement Project does not proceed, the Owner agrees to and requests that the Design Cost be assessed against the Subject Property. The Design Costs are estimated to be $30,000. The actual amount of the reasonable Design Costs is to be assessed, even if it exceeds the estimate. Payment of the special assessments for the Design Costs pursuant to this paragraph shall be in installments over a period of two years bearing an interest rate set at 2% over the rate at which the City sold bonds at the City's most recent bond sale. 2