HomeMy WebLinkAbout#11 - Legacy at Northstar Security Reductions STAFF REPORT
DATE: December 20, 2022
CONSENT
AGENDA ITEM: Approve Security Reductions and Release for Legacy at Northstar 1st,
2nd, 3rd, and 4th Additions
SUBMITTED BY: Jack Griffin, City Engineer
REVIEWED BY: Kristina Handt, City Administrator Molly Just, Planning Director Marty Powers, Public Works Director Chad Isakson, Assistance City Engineer
ISSUE BEFORE COUNCIL: Should the City Council approve security reductions for the Legacy at Northstar 1st, 2nd, 3rd, and 4th Additions, including the release of utility warranty security, as itemized below?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed requests to reduce and release the development security for the Legacy at Northstar 1st, 2nd, 3rd, and 4th Additions. 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 1st Addition: $ 995,093 $ 784,678 2. Legacy at Northstar 2nd Addition: $ 663,295 $ 481,408 3. Legacy at Northstar 3rd Addition: $ 1,109,482 $ 785,584 4. Legacy at Northstar 4th Addition: $ 671,618 $ 476,694
Work within each of these developments have progressed in accordance with the development agreements and to the extent necessary to support a reduction in the security as detailed in this report. The 2-year warranty period for Legacy at Northstar 1st and 2nd Addition watermain and sanitary sewer period have expired. A warranty walk-through has been completed by city staff and all warranty punch list items have since been addressed by the developer. Release of the warranty security brings the sanitary sewer and watermain facilities in 1st and 2nd Addition the responsibility of maintenance of the facilities to the city moving forward.
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. The operation and maintenance of the public sanitary sewer and watermain becomes the responsibility of the city going
forward for Legacy at Northstar 1st and 2nd Addition. RECOMMENDATION: Staff is recommending that the City Council approve, as part of the Consent
Agenda, the security reductions and release for the Legacy at Northstar 1st, 2nd, 3rd, and 4th Additions 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 reductions and release for the Legacy at Northstar 1st, 2nd, 3rd, and 4th Additions as detailed in the attached Security Reduction Worksheets, 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 1st Addition. 2. Security Reduction Worksheet – Legacy at Northstar 2nd Addition. 3. Security Reduction Worksheet – Legacy at Northstar 3rd Addition. 4. Security Reduction Worksheet – Legacy at Northstar 4th Addition.
LEGACY AT NORTH STAR 1ST ADDITION Time of Performance: October 31, 2018DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading $247,500 $247,500Sanitary Sewer $366,592 $458,240100%$229,120 $114,560 $114,560Watermain $306,735 $383,419100%$191,709 $95,855 $95,855Storm Sewer (w/pond structures) $458,365 $572,95675%$429,717Streets + Sidewalks $666,635 $833,29475%$624,970Bituminous Trails $75,670 $94,58875%$70,941Surface Water Facilities NA NAStreet Lighting $36,000 $45,00075%$33,750Street Signs and Traffic Control Signs $8,150 $10,18875%$7,641Private Utilities (electricity, natural gas, telephone, and cable)Builder Landscaping $37,440 $46,800Landscaping $36,800 $46,000Tree Preservation and Restoration NA NAWetland Mitigation and Buffers NA NAIncluded in Grading SecurityMonuments $5,900 $7,37575%$5,531Erosion Control NA NAIncluded in Grading SecurityTurn Lane + By-pass Lane $166,290 $207,86375%$155,897Record Drawings $5,000 $6,25075%$4,688TOTALS $2,417,077 $2,959,471RELEASED AMOUNTS:$420,829 $210,415 $1,333,134 $210,415 $0 $0$2,250,787 $2,751,609CUMMULATIVE AMOUNTS:$420,829 $631,244 $1,964,378 $2,174,793SECURITY AMOUNT REMAINING:$2,330,779 $2,120,365 $995,093 $784,678DATE: 1/15/2019 9/17/2019 1/5/2021 12/20/2022REDUCTIONS
LEGACY AT NORTH STAR 2ND ADDITION Time of Performance: October 31, 2019DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading NA NAIncluded in Grading SecuritySanitary Sewer $294,395 $367,994100%$275,995 $91,998Watermain $287,645 $359,556100%$269,667 $89,889Storm Sewer (w/pond structures) $350,133 $437,66675%$218,833 $109,417Streets + Sidewalks $532,432 $665,54075%$332,770 $166,385Bituminous Trails NA NASurface Water Facilities $28,320 $35,400Street Lighting $18,976 $23,720Street Signs and Traffic Control Signs $1,750 $2,188Private Utilities (electricity, natural gas, telephone, and cable)Builder Landscaping $48,640 $60,800Landscaping $32,960 $41,200Tree Preservation and Restoration NA NAWetland Mitigation and Buffers NA NAMonuments $7,000 $8,750Erosion Control $21,838 $27,298Record Drawings $5,000 $6,250TOTALS $1,629,089 $2,036,362RELEASED AMOUNTS:$1,097,266$275,802 $181,888 $0 $0 $0CUMMULATIVE AMOUNTS:$1,097,266$1,373,067 $1,554,955SECURITY AMOUNT REMAINING:$939,097$663,295 $481,408DATE: 1/21/2020 1/4/2022 12/20/2022REDUCTIONS
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 $448,138 $224,069 $112,034Streets + Sidewalks $677,964 $847,455 $423,728 $211,864Bituminous 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 $647,796 $323,898 $0 $0 $0CUMMULATIVE AMOUNTS:$586,963 $1,234,759 $1,558,658SECURITY AMOUNT REMAINING:$1,757,278 $1,109,482 $785,584DATE: 1/5/2021 1/4/2022 12/20/2022REDUCTIONS
LEGACY AT NORTH STAR 4TH ADDITION Time of Performance: October 31, 2022DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading NA NAIncluded in Grading SecuritySanitary Sewer $186,083 $232,604 $174,453Watermain $204,483 $255,604 $191,703Storm Sewer (w/pond structures) $100,765 $125,956 $62,978 $31,489Streets + Sidewalks $522,991 $653,739 $326,869 $163,435Bituminous Trails NA NASurface Water Facilities NA NAStreet Lighting $18,000 $22,500Street Signs and Traffic Control Signs $5,575 $6,969Private Utilities (electricity, natural gas, telephone, and cable)Builder Landscaping $48,400 $60,500Landscaping $37,600 $47,000Tree Preservation and Restoration NA NAWetland Mitigation and Buffers NA NAMonuments $6,200 $7,750Erosion Control $7,000 $8,750Record Drawings $5,000 $6,250TOTALS $1,142,097 $1,427,621RELEASED AMOUNTS:$756,003 $194,924 $0 $0 $0 $0CUMMULATIVE AMOUNTS:$756,003 $950,927SECURITY AMOUNT REMAINING:$671,618 $476,694DATE: 1/4/2022 12/20/2022REDUCTIONS