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Home My WebLink About#11 - Legacy at Northstar Security Reductions STAFF REPORT DATE: January 2, 2024 CONSENT AGENDA ITEM: Accept Improvements and Approve Security Reductions and Release for the Legacy at Northstar 1st, 2nd, 3rd, and 4th Additions 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 and release for the Legacy at Northstar 1st, 2nd, 3rd, and 4th Additions? PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to reduce the landscape security for Legacy at Northstar 1st Addition; accept the improvements and reduce the development security for Legacy at Northstar 2nd, 3rd, and 4th Additions; and release the utility warranty security for Legacy at Northstar 4th Addition as the 2-year warranty period for public watermain and sanitary sewer in the 4th Addition expires on January 4, 2024. These requests have been reviewed and are being recommended for approval in accordance with the approved Development Agreements. In regards to the 4th Addition, a warranty walk-through was completed by city staff and all warranty punch list items have been addressed by the developer. It is recommended release of security for these utilities be processed administratively after January 4, 2024. Each approval 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 amounts are recommended to be reduced as follows: Current Security Amount Proposed Security Amount 1. Legacy at Northstar 1st Addition $ 784,678 $ 715,078 2. Legacy at Northstar 2nd Addition $ 481,408 $ 403,704 3. Legacy at Northstar 3rd Addition $ 589,929 $ 486,687 4. Legacy at Northstar 4th Addition $ 476,964 $ 315,478 The Legacy at Northstar 2nd, 3rd, and 4th Addition public improvement warranty periods will be initiated as outlined in the attached Certificates of Completion. The Legacy at Northstar 1st Addition landscaping is in the warranty period and reduction is recommended in accordance with the development agreement. Twenty-five percent (25%) of the original security amounts 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. Release of the public sanitary sewer and watermain warranty security closes out the public utility improvement portion of the development. The operation and maintenance of these facilities become the responsibility of the city going forward. RECOMMENDATION: Staff is recommending that the City Council, as part of the Consent Agenda, accept the improvements and approve the security reductions and release as detailed in the attached respective worksheets for the Legacy at Northstar 1st, 2nd, 3rd, and 4th Additions, 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 and release as detailed in the attached respective worksheets for the Legacy at Northstar 1st, 2nd, 3rd, and 4th Additions, contingent on the developer being current with all payments and obligations in accordance with the Development Agreement.” ATTACHMENTS: 1. Security Reduction Worksheet – Legacy at Northstar 1st Addition. 2. Certificate of Completion – Legacy at Northstar 2nd Addition. 3. Security Reduction Worksheet – Legacy at Northstar 2nd Addition. 4. Certificate of Completion – Legacy at Northstar 3rd Addition. 5. Security Reduction Worksheet – Legacy at Northstar 3rd Addition. 6. Certificate of Completion – Legacy at Northstar 4th Addition. 7. 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 $46,80075%$35,100Landscaping $36,800 $46,00075%$34,500Tree 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 $69,600 $0$2,250,787 $2,751,609CUMMULATIVE AMOUNTS:$420,829 $631,244 $1,964,378 $2,174,793 $2,244,393SECURITY AMOUNT REMAINING:$2,330,779 $2,120,365 $995,093 $784,678 $715,078DATE: 1/15/2019 9/17/2019 1/5/2021 12/20/2022 1/2/2024REDUCTIONS CERTIFICATE OF COMPLETION DATE OF ISSUANCE: JANUARY 2, 2024 OWNER: CITY OF LAKE ELMO, MN DEVELOPER: GWSA LAND DEVELOPMENT, LLC SUBDIVISION NAME: LEGACY AT NORTH STAR 2ND ADDITION PROJECT NO.: 2019.113 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 34.A – Public sewer and watermain Section 34.B – Public improvements including street construction, concrete curb and gutter, sidewalks and trails, materials and equipment. I do hereby certify that the work to which this Certificate applies has been constructed in accordance with the Development Agreement dated July 2, 2019. 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 34.A Warranty Period Begins January 21, 2020 and ends January 21, 2022 Section 34.B Warranty Period Begins January 2, 2024 and ends January 2, 2025 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 $35,40075%$26,550Street Lighting $18,976 $23,72075%$17,790Street Signs and Traffic Control Signs $1,750 $2,18875%$1,641Private 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 $8,75075%$6,563Erosion Control $21,838 $27,29875%$20,473Record Drawings $5,000 $6,25075%$4,688TOTALS $1,629,089 $2,036,362RELEASED AMOUNTS:$1,097,266$275,802 $181,888 $77,704 $0 $0CUMMULATIVE AMOUNTS:$1,097,266$1,373,067 $1,554,955 $1,632,658SECURITY AMOUNT REMAINING:$939,097$663,295 $481,408 $403,704DATE: 1/21/2020 1/4/2022 12/20/2022 1/2/2024REDUCTIONS CERTIFICATE OF COMPLETION DATE OF ISSUANCE: JANUARY 2, 2024 OWNER: CITY OF LAKE ELMO, MN DEVELOPER: GWSA LAND DEVELOPMENT, LLC SUBDIVISION NAME: LEGACY AT NORTH STAR 3RD ADDITION PROJECT NO.: 2020.112 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 35.A – Public sewer and watermain Section 35.B – Public improvements including street construction, concrete curb and gutter, sidewalks and trails, materials and equipment. I do hereby certify that the work to which this Certificate applies has been constructed in accordance with the Development Agreement dated May 22, 2020. 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 35.A Warranty Period Begins January 5, 2021 and ends January 5, 2023 Section 35.B Warranty Period Begins January 2, 2024 and ends January 2, 2025 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 $389,531100%$292,148 $97,383Watermain $314,469 $393,086100%$294,815 $98,272Storm Sewer (w/pond structures) $358,510 $448,13875%$224,069 $112,034Streets + Sidewalks $677,964 $847,45575%$423,728 $211,864Bituminous Trails $24,180 $30,22575%$22,669Surface Water Facilities $13,495 $16,86975%$12,652Street Lighting $48,000 $60,00075%$45,000Street Signs and Traffic Control Signs $5,300 $6,62575%$4,969Private 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 $8,00075%$6,000Erosion Control $7,750 $9,68875%$7,266Record Drawings $5,000 $6,25075%$4,688TOTALS $1,875,393 $2,344,241RELEASED AMOUNTS:$586,963 $647,796 $323,898 $195,654 $103,242 $0CUMMULATIVE AMOUNTS:$586,963 $1,234,759 $1,558,658 $1,754,312 $1,857,554SECURITY AMOUNT REMAINING:$1,757,278 $1,109,482 $785,584 $589,929 $486,687DATE: 1/5/2021 1/4/2022 12/20/2022 2/7/2023 1/2/2024REDUCTIONS CERTIFICATE OF COMPLETION DATE OF ISSUANCE: JANUARY 2, 2024 OWNER: CITY OF LAKE ELMO, MN DEVELOPER: GWSA LAND DEVELOPMENT, LLC SUBDIVISION NAME: LEGACY AT NORTH STAR 4TH ADDITION PROJECT NO.: 2021.111 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 35.A – Public sewer and watermain Section 35.B – Public improvements including street construction, concrete curb and gutter, sidewalks and trails, materials and equipment. I do hereby certify that the work to which this Certificate applies has been constructed in accordance with the Development Agreement dated May 4, 2021. 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 35.A Warranty Period Begins January 4, 2022 and ends January 4, 2025 Section 35.B Warranty Period Begins January 2, 2024 and ends January 2, 2025 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 $232,604100%$174,453 $58,151Watermain $204,483 $255,604100%$191,703 $63,901Storm Sewer (w/pond structures) $100,765 $125,95675%$62,978 $31,489Streets + Sidewalks $522,991 $653,73975%$326,869 $163,435Bituminous Trails NA NASurface Water Facilities NA NAStreet Lighting $18,000 $22,50075%$16,875Street Signs and Traffic Control Signs $5,575 $6,96975%$5,227Private 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 $7,75075%$5,813Erosion Control $7,000 $8,75075%$6,563Record Drawings $5,000 $6,25075%$4,688TOTALS $1,142,097 $1,427,621RELEASED AMOUNTS:$756,003 $194,924 $161,216 $0 $0 $0CUMMULATIVE AMOUNTS:$756,003 $950,927 $1,112,143SECURITY AMOUNT REMAINING:$671,618 $476,694 $315,478DATE: 1/4/2022 12/20/2022 1/2/2024REDUCTIONS