HomeMy WebLinkAbout#21b Hunters Crossing 1st -Approve Security Reduction #1 ADENDA ITEM
MAYOR & COUNCIL COMMUNICATION
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DATE: December 15, 2015
REGULAR
ITEM # 21.b.
AGENDA ITEM: Hunters Crossing 1st Addition – Approve Security Reduction #1.
SUBMITTED BY: Jack Griffin, City Engineer
THROUGH: Clark Schroeder, Interim City Administrator
REVIEWED BY: Stephen Wensman, City Planner
Cathy Bendel, Finance Director
SUGGESTED ORDER OF BUSINESS:
- Introduction of Item .........................................................................................City Staff
- Report/Presentation………………………………………… .........................City Staff
- Questions from Council to Staff ............................................. Mayor Facilitates
- Public Input, if Appropriate………………………………….Mayor Facilitates
- Call for Motion ............................................................... Mayor & City Council
- Discussion ....................................................................... Mayor & City Council
- Action on Motion .................................................................... Mayor Facilitates
POLICY RECOMMENDER: Administration/Finance/Planning/Engineering.
FISCAL IMPACT:
It is the City’s goal to retain at all times during the subdivision improvements a security amount
that is adequate to ensure completion of all elements of the improvements as protection to the
City tax payers against the potential of developer default. With this reduction the remaining security amount held by the City will be $894,649 which remains well over and above the
estimate to completion for the remaining subdivision improvements.
SUMMARY AND ACTION REQUESTED:
The City Council is respectfully requested to consider approving a reduction in the security
amount for the Hunters Crossing 1st Addition.
LEGISLATIVE HISTORY/BACKGROUND INFORMATION:
City Council Meeting [Regular Agenda Item X]
December 15, 2015
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The Hunters Crossing 1st Addition developer installed improvements have been substantially
completed including the installation of sanitary sewer, watermain, storm sewer, streets and
sidewalks consisting of over $1.3 million in construction costs. However, in accordance with
Section 37 of the Hunters Crossing 1st Addition Development Contract, the progress for the improvements have not reached the threshold necessary to be eligible for a security reduction at
this time. Due to the end of the construction season the developer will not have an opportunity to
reach the necessary thresholds until next spring.
RECOMMENDATION:
If the City Council adopts a revised security reduction policy to be presented by staff at the
December 15, 2015 council meeting, and further directs staff to apply the revised policy to all
active developments in the City, then staff is recommending that the City Council approve a
reduction in the security amount for the Hunters Crossing 1st Addition. The recommended motion for the action is as follows:
“Move to approve a reduction of the Letter of Credit for the Hunters Crossing 1st Addition
from $1,619,769 down to $894,649.”
ATTACHMENT(S):
1. Engineer’s Letter Recommending Security Reduction #2 for the Hunters Crossing 1st Addition.
2. Developer's Letter Requesting Reduction of Security for the Hunters Crossing 1st Addition.
Twin Cities
7599 Anagram Drive
Eden Prairie, MN 55344 952-229-6000 Tel
www.calatlantichomes.com
December 3, 2015
Ryan Stempski, P.E.
Focus Engineering, Inc.
3800 Laverne Ave. N.
Lake Elmo, MN 55042
RE: Request for Letter of Credit Reduction – Hunters Crossing
Dear Mr. Stempski:
CalAtlantic Homes currently has two LOCs with the City of Lake Elmo. This letter is
intended to be a summary of CalAtlantic’s requests to have both LOCs reduced according
to the Development Contracts. A spreadsheet detailing the reductions is attached.
Hunters Crossing 1st Addition
LOC #IS0252285U for $1,619,768.00
This addition was substantially completed this past summer, final street improvements,
pond filtration, and landscaping remain. Per the DA, section 37 A., CalAtlantic requests
this LOC be reduced down to $869,335.
Hunters Crossing 2nd Addition
LOC #IS0305143U for $1,145,404.00
This addition was significantly completed this past summer, sidewalks, final street
improvements, and landscaping remain. Per the DA, section 37 A., CalAtlantic requests
this LOC be reduced down to $601,976.
Please feel free to contact me with any questions at (952) 229-6034.
Sincerely,
CalAtlantic Group, Inc.
Shawn Wenzel, P.E.
Land Coordinator
Enclosure: LOC Reduction Request Spreadsheet
Cc: Mark Sonstegard, VP Land Development – CalAtlantic Homes
Jack Griffin, City Engineer – Focus Engineering
3800 Laverne Avenue North • Lake Elmo • Minnesota 55042
Phone: (651) 747-3900 • Fax: (651) 747-3901 • www.lakeelmo.org
December 11, 2015
Mr. Shawn Wenzel
CalAtlantic Group, Inc.
7699 Anagram Drive
Eden Prairie, MN 55344
Re: Hunters Crossing 1st Addition
Security Reduction #1
Dear Mr. Wenzel:
We have reviewed your request dated December 3, 2015 for a reduction in the security for the Hunters
Crossing 1st Addition. In accordance with Section 37 of the Hunters Crossing 1st Addition Development
Contract, the progress for the improvements have not reached the threshold necessary to be edible for
a security reduction at this time.
However, should the City Council adopt a revised policy to be presented by staff at the December 15,
2015 council meeting, and direct staff to apply the revised policy to all active developments in the City,
then the security amount of $1,619,769 may be reduced to $894,649.
Should you have any questions or require additional information, please call me 651.300.4264.
Sincerely,
John (Jack) W. Griffin, P.E.
City Engineer
cc: Clark Shroeder, Interim City Administrator
Cathy Bendel, Finance Director
Stephen Wensman, City Planner