HomeMy WebLinkAbout#6 Wildflower -Approve Security Reduction _3 ADENDA ITEM
MAYOR & COUNCIL COMMUNICATION
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DATE: February 16, 2016
CONSENT
ITEM # 6
AGENDA ITEM: Wildflower at Lake Elmo – Approve Security Reduction #3.
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 if removed from the Consent Agenda):
- 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: 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 $2,042,322 which remains sufficient to complete the remaining improvements.
SUMMARY AND ACTION REQUESTED:
The City Council is respectfully requested to consider approving a reduction in the security amount for
the Wildflower at Lake Elmo 1st Addition.
LEGISLATIVE HISTORY/BACKGROUND INFORMATION:
The developer has completed a substantial portion of the required development improvements for the
Wildflower at Lake Elmo 1st Addition including the installation of sanitary sewer, installation of
watermain, a substantial portion of storm sewer and about 35% of the required public street improvements
consisting of over $2.5 million in construction costs. Since the last security reduction the developer has
successfully tested and received engineering approval for the sanitary sewer and watermain improvements
City Council Meeting [Regular Agenda Item 6]
February 16, 2016
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thereby meeting the threshold for an additional 25% security reduction for the costs of those two utilities,
or $268,418.
RECOMMENDATION:
Staff is recommending that the City Council approve, as part of the Consent Agenda, a reduction in the
security amount for the Wildflower at Lake Elmo 1st Addition. If removed from the consent agenda, the
recommended motion for the action is as follows:
“Move to approve a reduction of the Letter of Credit for the Wildflower at Lake Elmo 1st Addition
from $2,310,740 down to $2,042,322.”
ATTACHMENT(S):
1. Engineer’s Letter Recommending Security Reduction #3 for the Wildflower at Lake Elmo 1st
Addition.
3800 Laverne Avenue North • Lake Elmo • Minnesota 55042
Phone: (651) 747-3900 • Fax: (651) 747-3901 • www.lakeelmo.org
February 17, 2016
Mr. Robert Engstrom
Robert Engstrom Companies
4801 West 81st Street, Suite 101
Minneapolis, MN 55437
Re: Wildflower at Lake Elmo 1st Addition
Lake Elmo, Minnesota
Irrevocable Letter of Credit No. 1000
Dear Mr. Engstrom:
We have reviewed and processed your request dated January 28, 2016 for a reduction in the security for
the Wildflower at Lake Elmo 1st Addition in Lake Elmo, MN. At this time the Irrevocable Letter of Credit
No. 1000 may be reduced to $2,042,322. This represents a reduction in the amount of $268,418; or 25%
of the Sanitary Sewer and Watermain Improvements. Please process the security reduction through the
office of the Lake Elmo City Clerk.
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
Julie Johnson, City Clerk
Cathy Bendel, Finance Director
Stephen Wensman, City Planner
J Griffin