HomeMy WebLinkAboutItem 13 - CC Report Wildflower Developers Agreement 8-4-15
MAYOR & COUNCIL
COMMUNICATION
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DATE: 8/4/15 REGULAR ITEM # 13 RESOULTION 2015-063 AGENDA ITEM: Wildflower at Lake Elmo (Phase 1) Developer’s Agreement SUBMITTED BY: Kyle Klatt, Community Development Director
THROUGH: Clark Schroeder, Interim City Administrator REVIEWED BY: Jack Griffin, City Engineer Dave Synder, City Attorney
SUGGESTED ORDER OF BUSINESS:
- Introduction of Item .....................................Community Development Director
- Report/Presentation………………………...Community Development Director
- Questions from Council to Staff ............................................. Mayor Facilitates
- Call for Motion ............................................................... Mayor & City Council
- Discussion ....................................................................... Mayor & City Council
- Action on Motion .................................................................... Mayor Facilitates POLICY RECCOMENDER: Staff is recommending that the City Council approve a developer’s agreement associated with the first phase of the Wildflower at Lake Elmo development. The agreement has been drafted based on the model agreement previously reviewed by the Council.
FISCAL IMPACT: Direct Payments to Developer – TBD: the project development plans include some oversizing of water and sewer lines. The City is reviewing the developer’s estimates for the oversizing costs, and is asking that the amount as currently included in the agreement be subject to review and approval by the City Engineer. Future financial impacts include maintenance of
streets, trails, sanitary sewer mains, watermains and other public infrastructure, maintenance of storm water ponding areas (after three years), monthly lease payments for street lights, and other public financial responsibilities typically associated with a new development. The agreement requires a payment from the developer for AUAR cost reimbursement constituent with the City’s fee schedule.
City Council Meeting [Regular Agenda Item 13]
August 4, 2015
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SUMMARY AND ACTION REQUESTED: The City Council is being asked to authorize execution of a developer’s agreement for the first phase of the Wildflower at Lake Elmo. The attached agreement has been reviewed by the City Staff, and all recommend changes specific to the Wildflower project have been incorporated into the document as drafted. This agreement must be executed before any construction activity, outside of the previously authorized grading work,
may proceed on the site. The recommended motion to take action on the request is as follows:
“Move to adopt Resolution 2015-063 approving the developer’s agreement for Wildflower at Lake Elmo” LEGISLATIVE HISTORY/STAFF REPORT: One of the conditions attached to the resolution approving the Wildflower Final Plat and Plan specifies that the developer enter into a Developer’s Agreement prior to the execution of the plat by City officials. Staff has drafted such an agreement consistent with the City’s developer’s agreement template, and this document is attached for consideration by the City Council. Please note that the document as drafted contains some
modifications to the original template based on some of the unique aspects of the Wildflower development. The key aspects of the agreement include the following components:
• That all improvements to be completed by November 30, 2016.
• That the developer provide a letter of credit in the amount of $4,552,426 related to the cost of the proposed improvements.
• That the developer provide a cash deposit of $426,050 for SAC and WAC charges, engineering administration, one year of street light operating costs and other City fees. These fees include the AUAR fee of $230 per unit which is required for all projects within
the Village Planning Area and intended to reimburse the City’s for its expenses in preparing the Village AUAR.
• The agreement includes no required park fees in lieu of land dedication. The developer is asking that the proposed park land, trail, and preservation areas be accepted for all required park dedications.
• A City payment for utility oversizing of $49,915. The calculations for this amount are still being reviewed by the City Engineer. Staff is recommending that approval of the agreement be conditioned upon the review and approval of the oversizing payment by the City Engineer.
• The agreement includes the updated letter of credit reduction schedule that was approved for recent projects and provides for a better connection between the work that will be occurring in the field and the timing of this work.
City Council Meeting [Regular Agenda Item 13]
August 4, 2015
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The City Engineer has not approved the final construction plans for the project, and no work will
be allowed to commence on the site until these plans are approved by the City (this plan review is close to being completed). BACKGROUND INFORMATION (SWOT): Strengths: The developer’s agreement has been drafted to guarantee that the improvements associated with the Wildflower development plans will installed in accordance with City specifications.
Execution of the developer’s agreement and compliance with all conditions in the
agreement will allow the developer to record the Final Plat.
The proposed first phase improvements include the extensive trail system that will provide a significant amenity to this development and the surrounding areas.
Weaknesses: The City will assume responsibility for future maintenance of the public improvements.
Opportunities: The proposed improvements will provide for infrastructure connections
to adjacent properties, and in particular, will include a stub to extended sewer service north of the project site.
Threats: The City will need to provide construction observation throughout the course of the project (these costs will be covered under an Engineering Administration Escrow).
RECOMMENDATION: Based on the above Staff report, Staff is recommending that the City
Council approve the Developer’s Agreement for Wildflower at Lake Elmo and that the Council direct the Mayor and Staff to execute this document upon a final review of the oversizing payment request by the City Engineer. The suggested motion to adopt the Staff recommendation is as follows:
“Move to adopt Resolution 2015-063 approving the developer’s agreement for Wildflower at
Lake Elmo” ATTACHMENTS:
1. Resolution 2015-063
2. Wildflower at Lake Elmo Developer’s Agreement – Final Draft