HomeMy WebLinkAbout#08 - Launch Crossroads Security Reduction STAFF REPORT
DATE: January 2, 2024
CONSENT
AGENDA ITEM: Accept Improvements and Approve Security Reductions for the Launch
Crossroads First Addition
SUBMITTED BY: Jack Griffin, City Engineer
REVIEWED BY: Clark Schroeder, Interim City Administrator
Sophia Jensen, City Planner Marty Powers, Public Works Director
Clarissa Hadler, Finance Director
Chad Isakson, Assistant City Engineer
ISSUE BEFORE COUNCIL: Should the City Council accept the improvements and approve security
reductions for the Launch Crossroads First Addition?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the
improvements and reduce the development security for Launch Crossroads First Addition. This request has
been reviewed and is being recommended for approval in accordance with the approved Development
Agreement. Approval of this reduction is contingent on the developer having a positive escrow balance in
the minimum amount required by the city, and the developer being current with all payments and
obligations required by the Development Agreement. The Development Security amount is recommended
to be reduced as follows:
Current Security Amount Proposed Security Amount
1. Launch Crossroads First Addition $ 3,460,753 $ 1,041,043
The warranty periods for the Subdivision’s public improvements will be initiated as outlined on the attached
Certificate of Completion. Twenty-five percent (25%) of the original security amount will be retained until
the applicable warranty periods have expired and all warranty corrective work has been completed.
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.
RECOMMENDATION: Staff is recommending that the City Council, as part of the Consent Agenda,
accept the improvements and approve the security reductions as detailed in the attached respective
worksheets for Launch Crossroads First Addition, contingent on the developer being current with all
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 accept the improvements and approve the security reductions as detailed in the attached
respective worksheets for Launch Crossroads First Addition, contingent on the developer being current
with all payments and obligations in accordance with the Development Agreement.”
ATTACHMENTS:
1. Certificate of Completion – Launch Crossroads First Addition.
2. Security Reduction Worksheet – Launch Crossroads First Addition.
CERTIFICATE OF COMPLETION
DATE OF ISSUANCE: JANUARY 2, 2024
OWNER: CITY OF LAKE ELMO, MN
DEVELOPER: AIRLAKE DEVELOPMENT INC. AND CROSSROADS EAST, LLC
SUBDIVISION
NAME:
CROSSROADS EAST FIRST ADDITION
PROJECT NO.: 2021.112
This Certification of Completion applies to all work under the Development Agreement
This Certification of Completion applies to the following specified parts of the Development
Agreement
Section 32.A (4th Amendment to the DA): Public Improvements excluding grading and
landscaping
I do hereby certify that the work to which this Certificate applies has been constructed in accordance
with the Development Agreement dated February 15, 2022 and subsequent amendments 1, 2, 3,
and 4. The above-mentioned improvement is hereby declared to be complete and acceptance of this
work is recommended.
DATE OF COMPLETION: January 2, 2024
Chad Isakson Reg. No. 49028
FOCUS Engineering, inc.
Section 30.A Warranty Period Begins January 2, 2024 and ends January 2, 2026
Section 30.B Warranty Period Begins
January 2, 2024
and ends
January 2, 2025
LAUNCH-CROSSROADS Time of Performance: December 31, 2022DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading $468,200 $585,250100%$585,250Sanitary Sewer $489,910 $612,38875%$459,291Watermain $314,777 $393,47175%$295,103Storm Sewer (w/pond structures) $167,791 $209,73975%$157,304Streets + Sidewalks $834,438 $1,043,04875%$782,286Bituminous Trails $31,896 $39,87075%$29,903Surface Water Facilities $57,050 $71,31375%$53,484Street Lighting NA NAStreet and Traffic Signs $8,720 $10,90075%$8,175Private Utilities (electricity, gas, etc.) NA NALandscaping $343,645 $429,556Tree Preservation and Restoration NA NAWetland Mitigation and Buffers NA NAMonuments NA NAErosion Control $46,925 $58,65675%$43,992Record Drawings $5,250 $6,56375%$4,922TOTALS $2,768,602 $3,460,753RELEASED AMOUNTS:$2,419,710 $0 $0 $0 $0 $0CUMULATIVE AMOUNTS:$2,419,710SECURITY AMOUNT REMAINING:$1,041,043DATE:1/2/2024REDUCTIONS