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HomeMy WebLinkAbout#16 - Easton Village 3rd Addn Development Agreement AmendmentSTAFF REPORT DATE: December 19, 2017 REGULAR #16 AGENDA ITEM: Easton Village 3rd Addition Development Agreement Amendment Request TO: Mayor and City Council SUBMITTED BY: Emily Becker, Planning Director REVIEWED BY: Kristina Handt, City Administrator Jack Griffin, City Engineer Sarah Sonsalla, City Attorney BACKGROUND: The City has received a request by Chase Development, Inc. to amend the Development Agreements for Easton Village 3rd Addition to allow building permits prior to installation of sidewalks. Council had previously reviewed the request at its November 7, 2017 meeting and denied the request at Staff’s recommendation but directed Staff to work with the developer on an amenable agreement. ISSUE BEFORE COUNCIL: Should the Development Agreement for Easton Village 3rd Addition be amended to allow the City to release building permits prior to installation of sidewalks? PROPOSAL: The City adopted a new Developer Agreement Template in January of 2016 and has continued to make updates. The latest version of the template states that no building permit shall be issued for any lot until sanitary sewer, water, storm sewer, curbing and one lift of asphalt has been installed and tested for all public streets; sidewalks have been installed; street and traffic control signs are installed; property monuments have been installed and grading as-built plans have been submitted and approved by the City. Therefore, the requirement that sidewalks are installed prior to building permits has been established for a number of developments. The Royal Golf Club at Lake Elmo Development Agreement was amended to allow sidewalks to be installed as a requirement of issuance of certificates of occupancy. This exception was made due the unique nature of the development requiring lift stations and significant utility work that was necessary before the winter season. The City requires sidewalks to be installed prior to issuance of building permits in order to prevent builders from changing established grades required for sidewalks. This policy generally results in better infrastructure. However, preventing the issuance of building permits prior to installation of sidewalks inhibits construction of homes in the winter and can result in sidewalks being damaged during construction. Staff and the Developer have come to an agreement on amendments to the Development Agreement that included the following: • Section 27 (A): Removal of the requirement that sidewalks be installed prior to issuance of building permits and the provision that boulevard grading must be completed within the entire right-of-way (without holding down grading for the future sidewalk or any other improvements). • Section 27 (F): The provision that if building permits are issued prior to the construction of front yard sidewalks or trails, the Developer assumes all responsibility for the coordination, liability and costs to; 1) ensure that the sidewalks and trails are constructed prior to any driveways for any lots with sidewalks or trails; 2) that the sidewalks and trails are constructed continuously from end of street to end of street without exceptions or gaps in the sidewalk or trail; 3) that there is a stop work order on all building construction for impacted lots during the sidewalk and trail construction and curing periods to prohibit traffic prior to City approval; and, 4) that all boulevard grading and restoration re-work is completed immediately following the sidewalk or trail construction. • Section 38 (E): That the one-time, 50% security reduction for categories 4-5 of the security amount may not be released until sidewalks or trails have been installed. If Council does wish to allow this change, the Council should consider amending the Developer Agreement Template so that in the future all developers are treated equally in this regard. FISCAL IMPACT: Requiring sidewalks to be installed prior to the release of building permits could result in better infrastructure, thereby possibly reducing future maintenance and repair costs. However, Staff feels that the proposed conditions to which building permits may be released prior to issuance of building permits will protect such infrastructure. OPTIONS: 1) Approve Resolution No 2017-142 approving Easton Village 3rd Addition Development Agreements amendment 2) Do not approve Resolution No 2017-142 approving Easton Village 3rd Addition Development Agreement amendment 3) Amend and then Approve either Resolutions RECOMMENDATION: Staff recommends that the Council approve the proposed amendments to the Easton Village 3rd Addition Development Agreement. “Motion to adopt Resolution No 2017-142 approving the request to amend Easton Village 3rd Addition Development Agreement to allow building permits to be released prior to installation of sidewalks.” If the Council approves the amendments, Staff should also be directed to include this provision in the Development Agreement template to be used for future Development Agreements. “Move to amend the Development Agreement template with edits regarding building permit release prior to the installation of sidewalks as proposed to the Easton Village 3rd Addition Development Agreement.” ATTACHMENTS: • Resolution 2017-142 approving amendments to Easton Village 3rd Addition Development Agreement • Amended Development Agreement for Easton Village 3rd Additions 1 Resolution 2017 513372v1 SJS LA515-36 CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2017-142 A RESOLUTION APPROVING FIRST AMENDMENT TO DEVELOPMENT AGREEMENT FOR EASTON VILLAGE 3RD ADDITION WHEREAS, the City of Lake Elmo is a municipal corporation organized and existing under the laws of the State of Minnesota; and WHEREAS, Chase Development Inc., 2140 County Rd 42 W, Burnsville, MN 55337 (the “Applicant”) has previously submitted an application to the City of Lake Elmo (the “City”) for a final plat for Easton Village 3rd Addition; and WHEREAS, the Lake Elmo City Council adopted Resolution No. 2017-076 on July 18, 2017 approving the final plat for Easton Village 3rd Addition; and WHEREAS, the Lake Elmo City Council adopted Resolution No. 2017-081 on July 18, 2017, approving the Development Agreement for Easton Village 3rd Addition; and WHEREAS, the Applicant and City have agreed to amend the approved Development Agreement in order to allow building permits to be released prior to installation of sidewalks with the conditions that the Applicant must grade the boulevards up to the curb; that no reduction in security will be released until sidewalks are installed; and that certificates of occupancy will be released until sidewalks and driveways are installed. NOW, THEREFORE, based on the information received, the City Council of the City of Lake Elmo does hereby approve the First Amendment to Development Agreement for Easton Village 3rd Addition and authorizes the Mayor and City Clerk to execute the agreement. Passed and duly adopted this 19th day of December 2017 by the City Council of the City of Lake Elmo, Minnesota. __________________________________ Mike Pearson, Mayor ATTEST: ________________________________ Julie Johnson, City Clerk 513361v1 SJS LA515-36 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT This First Amendment to Development Agreement (Amendment) is made and entered into this _____ day of ___________, 2017, by and between the City of Lake Elmo, a municipal corporation under the laws of Minnesota (the “City”) and Chase Development Inc., a Minnesota corporation (the “Developer”). RECITALS: A. The City and the Developer have entered into a Development Agreement dated August 31, 2017 and recorded with Washington County on September 5, 2017 as Document No. 4126518 (the “Development Agreement”). B. The Development Agreement relates to that subdivision located in Lake Elmo, Minnesota known as Easton Village 3rd Addition and the property is legally described on Exhibit A attached hereto. C. The Development Agreement required that sidewalks be installed prior to issuance of building permits. D. The City and the Developer have agreed to amend the Development Agreement to issue building permits prior to installation of sidewalks. NOW, THEREFORE, in consideration of the above recitals, which are expressly incorporated herein, and for other good and valuable consideration, the receipt and sufficiency which is hereby acknowledged, the City and the Developer agree to amend the Development Agreement as follows: 513361v1 SJS LA515-36 2 1. Section 27 (A) of the Development Agreement shall be changed to read as follows: A. No building permit shall be issued for any lot within the Subdivision, or within a completed phase of the Subdivision in a City preapproved phasing plan, until such time that sanitary sewer, water, storm sewer, curbing and one lift of asphalt has been installed and tested for all public streets; boulevard grading has been completed within the entire right-of-way (without hold down grading for the future sidewalk or any other improvements), street and traffic control signs have been installed; property monuments have been installed and grading as-built plans have been submitted and approved by the City. A “preapproved phasing plan” is defined as a phased construction plan that has been submitted by the Developer and approved by the City in advance of the preconstruction meeting for the Subdivision. Once the construction has started, the City will not consider revisions to the phasing plan for the purpose of issuing building permits. 2. A new paragraph (F) shall be added to Section 27 of the Development Agreement which shall read as follows: F. If building permits are issued prior to the construction of front yard sidewalks or trails, the Developer assumes all responsibility for the coordination, liability, and costs to: 1) ensure that the sidewalks and trails are constructed prior to any driveways for any lots with sidewalks or trails; 2) that the sidewalks and trails are constructed continuously from end of street to end of street without exceptions or gaps in the sidewalk or trail; 3) that there is a stop work order on all building construction for impacted lots during the sidewalk and trail construction and curing periods to prohibit traffic prior to City approval; and 4) that all boulevard grading and restoration re-work is completed immediately following the sidewalk or trail construction. 3. Paragraph (F) of Section 27of the Development Agreement shall be re-lettered as paragraph (G). 4. Section 38 (E) of the Development Agreement shall be changed to read as follows: E. In addition to the above project milestone based Security reductions, the Developer may submit a written request and upon receipt of proof satisfactory to the City Engineer that work is progressing in accordance with the approved Plans and the terms of this Agreement and that all financial obligations to the City have been satisfied, the City Engineer may approve a one-time reduction in the Security for Construction Categories 2-5 in an amount not to exceed fifty (50) percent of the initial 513361v1 SJS LA515-36 3 Security amount. This one-time Security reduction does not apply to Categories 4-5 if boulevard sidewalks or trails have not been installed. 5. All other terms and conditions of the Development Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the City and the Developer have executed this First Amendment to the Development Agreement as of the date first written above. CITY OF LAKE ELMO By:_________________________________ Mike Pearson, Mayor By:_________________________________ Julie Johnson, City Clerk STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON ) The foregoing instrument was acknowledged before me this ______ day of ___________________, 2017, by Mike Pearson and Julie Johnson, the Mayor and the City Clerk, respectively of the City of Lake Elmo, a Minnesota municipal corporation, on behalf of the City. __________________________________ Notary Public 513361v1 SJS LA515-36 4 CHASE DEVELOPMENT INC. By:________________________________ Its: _______________________________ STATE OF _________ ) ) ss. COUNTY OF ________ ) The foregoing instrument was acknowledged before me this _____ day of _________, 2017, by ___________________, the _______________ of Chase Development Inc., a Minnesota corporation, on behalf of the corporation. ___________________________________ Notary Public This document was drafted by: Kennedy & Graven, Chartered (SJS) 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337-9300 513361v1 SJS LA515-36 A-1 EXHIBIT A Legal Description of the Property The property subject to the foregoing First Amendment to Development Agreement is legally described as follows: All property contained within the plat of Easton Village 3rd Addition, Washington County, Minnesota.