HomeMy WebLinkAbout#6 Savona 2nd-Approve Security Reduction #1 ADENDA ITEM
MAYOR & COUNCIL COMMUNICATION
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DATE: March 2, 2016
CONSENT
ITEM # 6
AGENDA ITEM: Savona 2nd 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 $1,444,785 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 2nd Addition.
LEGISLATIVE HISTORY/BACKGROUND INFORMATION:
The developer has completed a substantial portion of the required development improvements
for the Savona 2nd Addition including the installation of sanitary sewer, watermain, storm sewer,
City Council Meeting [Regular Agenda Item 6]
March 2, 2016
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and street improvements. In accordance with the revised Security Reduction Policy Paragraph
G, the developer is eligible for a reduction in security for Phase 2 in the amount of $1,178,709.
RECOMMENDATION:
Staff is recommending that the City Council approve, as part of the Consent Agenda, a reduction
in the security amount for the Savona 2nd 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 2nd Addition from $2,623,494.55 down to $1,444,785.”
ATTACHMENT(S):
1. Engineer’s Letter Recommending Security Reduction #1 for the Savona 2nd Addition.
2. Developer’s Letter Requesting Reduction of Security for the Savona 2nd 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 2nd Addition
Lake Elmo, Minnesota
Irrevocable Letter of Credit No. 69602114
Dear Ms. Toohey:
We have reviewed and processed your request dated February 12, 2016 for a reduction in the security
for the Savona 2nd Addition in Lake Elmo, MN. At this time the Irrevocable Letter of Credit No.
69602114 may be reduced to $1,444,785. This represents a reduction in the amount of $1,178,709; 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