HomeMy WebLinkAbout#07 - Hammes Estates Security Reduction STAFF REPORT
DATE: March 17, 2020
CONSENT
AGENDA ITEM: Approve Security Reduction for Hammes Estates 3rd Addition
SUBMITTED BY: Jack Griffin, City Engineer
REVIEWED BY: Kristina Handt, City Administrator
Ken Roberts, Planning Director Chad Isakson, Assistance City Engineer
ISSUE BEFORE COUNCIL: Should the City Council approve a security reduction for the Hammes Estates 3rd Addition as itemized below? PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to reduce the
development security for the Hammes Estates 3rd Addition. This request has been reviewed and the following reduction is being recommended for approval, contingent upon the developer depositing sufficient escrow funds to restore a positive balance of $10,000:
Current Security Amount Proposed Security Amount 1. Hammes Estates 3rd Addition: $ 2,648,551 $ 1,277,288
Work within the development has progressed in accordance with the development agreement and to the extent necessary to support a reduction in the security as detailed in this report. Although the development improvements have been addressed in accordance with the development agreement the developer escrow funds are in the negative and must be restored prior to this reduction being processed. 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 remains sufficient to complete the remaining improvements.
RECOMMENDATION: Staff is recommending that the City Council approve, as part of the Consent
Agenda, the security reduction for Hammes Estates 3rd Addition as detailed in this report and supporting documentation, contingent upon the developer depositing sufficient escrow funds to restore a positive balance of $10,000. If removed from the consent agenda, the recommended motion for the action is as follows:
“Move to approve security reduction for Hammes Estates 3rd Addition as detailed in the attached
Security Reduction Worksheet, contingent upon the developer depositing sufficient escrow funds to restore a positive balance of $10,000.” ATTACHMENTS:
1. Security Reduction Worksheet – Hammes Estates 3rd Addition.
HAMMES 3RD ADDITION Time of Performance: October 31, 2018DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading NA NAIncluded in Phase 1Sanitary Sewer $384,246 $480,307 $360,230Watermain $503,893 $629,866 $472,399Storm Sewer (w/pond structures) $360,855 $451,068 $225,534Streets + Sidewalks $500,959 $626,199 $313,099Bituminous Trails $48,972 $61,215Surface Water Facilities NA NAStreet Lighting $48,000 $60,000Street Signs and Traffic Control Signs $3,100 $3,875Private Utilities (electricity, natural gas, telephone, and cable)Landscaping $212,300 $265,375Tree Preservation and Restoration NA NAWetland Mitigation and Buffers NA NAMonuments $6,900 $8,625Erosion Control $44,616 $55,770Miscellaneous Facilities NA NARecord Drawings $5,000 $6,250TOTALS $2,118,840 $2,648,551RELEASED AMOUNTS:$1,371,263 $0 $0 $0 $0 $0CUMMULATIVE AMOUNTS:$1,371,263SECURITY AMOUNT REMAINING:$1,277,288DATE:3/17/2020REDUCTIONS