HomeMy WebLinkAbout#11 - Union Park 2nd Addition Security Reduction STAFF REPORT
DATE: September 7, 2021
CONSENT
AGENDA ITEM: Approve Security Reduction for Union Park 1st Addition
SUBMITTED BY: Jack Griffin, City Engineer
REVIEWED BY: Kristina Handt, City Administrator
Chad Isakson, Assistance City Engineer
ISSUE BEFORE COUNCIL: Should the City Council approve a security reduction for the Union Park 1st Addition as itemized below?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to reduce the development security for the Union Park 1st 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. Union Park 1st Addition: $ 1,714,514 $ 1,378,983 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. 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 Union Park 1st 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 Union Park 1st 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 – Union Park 1st Addition.
UNION PARK 1ST ADDITION Time of Performance: October 31, 2020DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading $268,425 $335,531 $335,531Sanitary Sewer $365,093 $456,36675%$342,275Watermain $262,783 $328,47975%$246,359Storm Sewer (w/pond structures) $319,348 $399,1850%Streets + Sidewalks $435,304 $544,1300%Bituminous Trails $24,645 $30,806Surface Water Facilities $34,727 $43,409Street Lighting $24,000 $30,000Street Signs and Traffic Control Signs $8,965 $11,206Private Utilities (electricity, natural gas, telephone, and cable)Landscaping $36,620 $45,775Tree Preservation and Restoration NA NAWetland Mitigation and Buffers NA NAMonuments $6,200 $7,750Erosion Control $51,408 $64,260Miscellaneous Facilities NA NARecord Drawings $5,000 $6,250TOTALS $1,842,518 $2,303,148RELEASED AMOUNTS:$588,634 $335,531 $0 $0 $0 $0$491,904CUMMULATIVE AMOUNTS:$588,634 $924,165SECURITY AMOUNT REMAINING:$1,714,514 $1,378,983DATE:4/20/2021 9/7/2021REDUCTIONS