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HomeMy WebLinkAbout#10 - Ebertz Addition Security Reduction STAFF REPORT DATE: August 20, 2024 CONSENT AGENDA ITEM: Accept Improvements and Approve Security Reductions for the Ebertz Addition (Drake Motor Partners, LLC) SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Nicole Miller, City Administrator Jason Stopa, Community Development Director 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 Ebertz Addition (Drake Motor Partners, LLC)? PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the improvements and reduce the development security for Ebertz 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. Ebertz Addition $ 2,543,275 $ 888,378 The warranty periods for the subdivision 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 Ebertz 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 Ebertz Addition, contingent on the developer being current with all payments and obligations in accordance with the Development Agreement.” ATTACHMENTS: 1. Certificate of Completion. 2. Security Reduction Worksheet. CERTIFICATE OF COMPLETION DATE OF ISSUANCE: AUGUST 20, 2024 OWNER: CITY OF LAKE ELMO, MN DEVELOPER: DRAKE MOTOR PARTNERS LE LLC SUBDIVISION NAME: EBERTZ ADDITION PROJECT NO.: 2022.124 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 30.A – Public sewer and watermain Section 30.B – Public improvements including street construction, including the improvements and turn lanes on Hudson Boulevard North, the concrete curb and gutter, trails and sidewalks, 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 June 13, 2023. The above-mentioned improvement is hereby declared to be complete and acceptance of this work is recommended. DATE OF COMPLETION: August 20, 2024 Chad Isakson Reg. No. 49028 FOCUS Engineering, inc. Section 30.A Warranty Period Begins April 29, 2024 and ends April 29, 2026 Section 30.B Warranty Period Begins August 20, 2024 and ends August 20, 2025 EBERTZ NORTH (DRAKE) Time of Performance: October 31, 2024 SITE IMPROVEMENT AGREEMENT AMOUNTS CATEGORY COST 125% REMARKS #1 #2 #3 #4 #5 #6 Grading $0 $0 Sanitary Sewer $56,000 $70,000 75%$52,500 Watermain $212,000 $265,000 75%$198,750 Storm Sewer (w/pond structures) $386,563 $483,204 75%$362,403 Street and Sidewalks $788,000 $985,000 75%$738,750 Bituminous Trails $36,000 $45,000 75%$33,750 Surface Water Facilities (ponds, infiltration basins, other BMPS)$200,240 $250,300 75%$187,725 Street Lighting $10,000 $12,500 75%$9,375 Street Signs and Traffic Control Signs NA NA Private Utilities (electricity, natural gas, telep NA NA Landscaping $121,107 $151,384 0% Tree Preservation and Restoration $148,290 $185,363 0% Wetland Mitigation and Buffers $7,500 $9,375 75%$7,031 Monuments $5,400 $6,750 75%$5,063 Erosion Control and Restoration $53,520 $66,900 75%$50,175 Record Drawings $10,000 $12,500 75%$9,375 TOTALS $2,034,620 $2,543,275 RELEASED AMOUNTS:$1,654,897 CUMMULATIVE AMOUNTS:$1,654,897 SECURITY AMOUNT REMAINING:$888,378 DATE: 8/20/2024 REDUCTIONS