HomeMy WebLinkAbout#18 - North Star 3rd Add Security Reduction STAFF REPORT
DATE: January 5, 2021
CONSENT
AGENDA ITEM: Approve Security Reduction for Legacy at Northstar 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 Legacy at Northstar 3rd Addition as itemized below? PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to reduce the
development security for the Legacy at Northstar 3rd Addition. This request has been reviewed and the following reduction is being recommended for approval, contingent on the developer being current with all other payments and obligations in accordance with the Development Agreement, including a positive
escrow balance as required by the City: Current Security Amount Proposed Security Amount
1. Legacy at Northstar 3rd Addition: $ 2,344,241 $ 1,757,278 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. As part of this reduction the sanitary sewer and watermain improvements have been accepted and the 2-year warranty period will be initiated. 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 the Legacy at Northstar 3rd Addition as detailed in this report and supporting documentation, contingent on the developer being current with all other payments and obligations in accordance with the Development Agreement, including a positive escrow balance as required by the City. If removed from the consent agenda, the recommended motion for the action is as
follows: “Move to approve security reduction for Legacy at Northstar 3rd Addition as detailed in the attached Security Reduction Worksheet, contingent on the developer being current with all other payments and
obligations in accordance with the Development Agreement, including a positive escrow balance as required by the City.” ATTACHMENTS: 1. Security Reduction Worksheet – Legacy at Northstar 3rd Addition.
LEGACY AT NORTH STAR 3RD ADDITION Time of Performance: October 31, 2021DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading NA NAIncluded in Grading SecuritySanitary Sewer $311,625 $389,531 $292,148Watermain $314,469 $393,086 $294,815Storm Sewer (w/pond structures) $358,510 $448,138Streets + Sidewalks $677,964 $847,455Bituminous Trails $24,180 $30,225Surface Water Facilities $13,495 $16,869Street Lighting $48,000 $60,000Street Signs and Traffic Control Signs $5,300 $6,625Private Utilities (electricity, natural gas, telephone, and cable)Builder Landscaping $41,925 $52,406Landscaping $60,775 $75,969Tree Preservation and Restoration NA NAWetland Mitigation and Buffers NA NAMonuments $6,400 $8,000Erosion Control $7,750 $9,688Record Drawings $5,000 $6,250TOTALS $1,875,393 $2,344,241RELEASED AMOUNTS:$586,963 $0 $0 $0 $0 $0CUMMULATIVE AMOUNTS:$586,963SECURITY AMOUNT REMAINING:$1,757,278DATE: 1/5/2021REDUCTIONS