HomeMy WebLinkAbout#5 Savona 1st-Approve Security Reduction #1 ADENDA ITEM
MAYOR & COUNCIL COMMUNICATION
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DATE: March 2, 2016
CONSENT
ITEM # 5
AGENDA ITEM: Savona 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 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 $2,144,399 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 Savona 1st Addition.
LEGISLATIVE HISTORY/BACKGROUND INFORMATION:
The developer has completed a substantial portion of the required development improvements for the
Savona 1st Addition including the installation of sanitary sewer, watermain, storm sewer, and street improvements. In accordance with the revised Security Reduction Policy Paragraph G, the developer is
eligible for a reduction in security for Phase 1 in the amount of $969,448.
City Council Meeting [Regular Agenda Item 5]
March 2, 2016
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RECOMMENDATION:
Staff is recommending that the City Council approve, as part of the Consent Agenda, a reduction in the security amount for the Savona 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 Savona 1st Addition from $3,113,846 down to $2,144,399.” ATTACHMENT(S): 1. Engineer’s Letter Recommending Security Reduction #1 for the Savona 1st Addition. 2. Developer’s Letter Requesting Reduction of Security for the Savona 1st Addition.
3800 Laverne Avenue North • Lake Elmo • Minnesota 55042
Phone: (651) 747-3900 • Fax: (651) 747-3901 • www.lakeelmo.org
March 2, 2016
Ms. Carole Toohey
Lennar
16305 36th Avenue N, Suite 600
Plymouth, MN 55446
Re: Savona 1st Addition
Lake Elmo, Minnesota
Irrevocable Letter of Credit No. 69601104
Dear Ms. Toohey:
We have reviewed and processed your request dated February 12, 2016 for a reduction in the security
for the Savona 1st Addition in Lake Elmo, MN. At this time the Irrevocable Letter of Credit No. 69601104
may be reduced to $2,144,399. This represents a reduction in the amount of $969,448; or 50% of the
Sanitary Sewer, Watermain, Street and Storm Sewer 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