HomeMy WebLinkAbout#15 - Crossroads East DA Amendment STAFF REPORT
DATE: August 16, 2022
REGULAR
TO: Mayor and City Council
FROM: Molly Just, Planning Director
AGENDA ITEM: Crossroads East 1st Addition – Third Amendment to Development Agreement
INTRODUCTION:
At the August 3rd City Council meeting Airlake Development, Inc and Crossroads East, LLC (Developer) proposed an amendment to the Development Agreement for Crossroads East 1st Addition. The
amendment would commit Developer to completing certain public improvements by September 30, 2022. Staff agreed to this extension of time for completion of the public improvements but had proposed limiting tenant building permits during that time. Council approved the amendment and directed staff to revise the agreement to remove the limitations on building permits. The revised agreement, Third Amendment to the Development Agreement for Crossroads East 1st Addition (Third Amendment), is the subject of this report and is attached. The Developer has signed the Third Amendment.
BACKGROUND: On November 3, 2021 the Lake Elmo City Council adopted Resolution 2021-115 approving the Final Plat and PUD Plans for Crossroads East 1st Addition. On December 7, 2021, the Lake Elmo City Council adopted Resolution 2021-134 approving the Development Agreement for Crossroads East 1st Addition. On April 5, 2022, the Lake Elmo City Council adopted Resolution 2022-034 approving the First Amendment to the Development Agreement for Crossroads East 1st Addition. The developer requested this amendment in order to allow it to proceed with vertical construction of the buildings on the platted property prior to completion of the public improvements. On June 22, 2022, the Lake Elmo Building Official posted Stop Work Orders for Crossroads East 1st
Addition for failure to have public site utilities completed by June 21, per the First Amendment to the Development Agreement. Mayor Cadenhead subsequently reversed the Stop Work Orders.
On July 21, 2022, the Developer submitted application for a Second Amendment to the Development Agreement in order to extend the time allowed to complete the public infrastructure improvements.
On August 3, 2022, the Lake Elmo City Council adopted Resolution 2022-076 approving the Second Amendment to the Development Agreement for Crossroads East 1st Addition. This would be an interim
2
agreement while staff revised the agreement to remove the restrictions on tenant improvements. The
Developer has agreed to the Third Amendment. ISSUE BEFORE THE CITY COUNCIL: Should the City Council adopt Resolution 2022 – 078 approving the Third Amendment to the Development Agreement for Crossroads East 1st Addition?
REVIEW/ANALYSIS: Following approval of the First Amendment to the Development Agreement on April 5th there was a lag in
progress on the public improvements and once work proceeded again it proceeded slower than the approved
Developer proposed construction schedule. Given that a primary objective of the City is to ensure that
progress on the public infrastructure run concurrently with the private improvements and that the public
improvements were behind the private improvements the City issued Stop Work Orders on June 22, 2022.
The City’s standard agreement allows for issuance of Stop Work Orders and the First Amendment
specifically calls out the City’s ability to issue Stop Work Orders.
Staff recommends that the City Council adopt the Third Amendment as it is a compromise between the
City and Developer. If the City Council elects to deny the amendment to the agreement then the approved
Second Amendment would be the governing agreement.
OPTIONS: The City Council has the following options:
1) Adopt Resolution 2022-078 approving the Third Amendment to the Development Agreement for Crossroads East 1st Addition;
2) Direct Staff to revise the Third Amendment to bring back to a future City Council meeting; or 3) Direct Staff to prepare a resolution for denial of the Third Amendment to the Development
Agreement for Crossroads East 1st Addition. RECOMMENDATION:
Staff recommends the City Council adopt Resolution 2022-078 approving the Third Amendment to the
Development Agreement for Crossroads East 1st Addition.
“Move to adopt Resolution 2022-078 approving the Third Amendment to the Development Agreement
for Crossroads East 1s Addition.”
ATTACHMENTS:
• Third Amendment to the Development Agreement
• Resolution 2022 - 078
CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA
RESOLUTION NO. 2022-078
A RESOLUTION APPROVING THE THIRD AMENDMENT TO THE DEVELOPMENT AGREEMENT FOR DEVELOPMENT OF THE CROSSROADS EAST FIRST ADDITION.
WHEREAS, the City of Lake Elmo is a municipal corporation organized and existing under
the laws of the State of Minnesota; and
WHEREAS, Airlake Development Inc, and Crossroads East, LLC (together the
“Developer”) previously submitted an application to the City of Lake Elmo (the “City”) for a final plat for Crossroads East First Addition; and WHEREAS, the Lake Elmo City Council adopted Resolution No. 2021-115 on November 3, 2021 approving the final plat for Crossroads East First Addition; and
WHEREAS, the Lake Elmo City Council adopted Resolution No.2021-134 on December 7, 2021, approving the Development Agreement for Crossroads East First Addition; and
WHEREAS, the Lake Elmo City Council adopted Resolution No. 2022-034 on April 5,
2022 approving the First Amendment to Development Agreement (the “First Amendment”); and
WHEREAS, the First Amendment authorized Developer to proceed with vertical construction of the buildings on the Property prior to completion of the public Subdivision Improvements provided that the public Subdivision Improvements were completed on an agreed-upon schedule; and
WHEREAS, The Lake Elmo City Council adopted Resolution 2022-076 on August 3, 2022
approving the Second Amendment to Development Agreement (the “Second Amendment”); and WHEREAS, the Second Amendment authorized Developer an extension of time to
complete Public Improvements providing certain restrictions were placed on tenant improvements; and WHEREAS, Developer and City have agreed to further amend the Development Agreement to remove the restrictions on building permits for tenants; and WHEREAS, the City is willing to remove the restrictions on building permits for tenants provided that the Public Improvements are complete no later than September 30, 2022.
NOW, THEREFORE, based on the information received, the City Council of the City of
Lake Elmo does hereby approve the Third Amendment to Development Agreement for Crossroads East First Addition and authorizes the Mayor and City Clerk to execute the Third Amendment.
Passed and duly adopted this ___ day of August 2022 by the City Council of the City of Lake Elmo, Minnesota.
_________________________________ Charles Cadenhead, Mayor ATTEST:
_______________________________
Julie Johnson, City Clerk