HomeMy WebLinkAbout#15 - Springs at Lake Elmo Security Reduction STAFF REPORT
DATE: November 19, 2024
CONSENT
AGENDA ITEM: Accept Improvements and Approve Security Reductions for Springs at Lake
Elmo
SUBMITTED BY: Jack Griffin, City Engineer
REVIEWED BY: Nicole Miller, City Administrator Marty Powers, Public Works Director
Clarissa Hadler, Finance Director
Sophia Jensen, City Planner
Chad Isakson, Assistant City Engineer
ISSUE BEFORE COUNCIL: Should the City Council accept the improvements and approve security
reductions for Springs at Lake Elmo?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the
improvements and reduce the development security for Springs at Lake Elmo. This request has been
reviewed and is being recommended for approval in accordance with the Development Agreement, and
contingent on the developer being current with all other required payments and obligations, including a
positive escrow balance. Additionally, the warranty period for public sanitary sewer and watermain has
expired and security release for these facilities is recommended with this approval. The Development
Security amount is recommended to be reduced as follows: Current Security Amount Proposed Security Amount
1. Springs at Lake Elmo: $2,661,462 $602,847
The Springs at Lake Elmo public facility warranty periods are identified on the attached Certificate of
Completion. Twenty-five percent (25%) of the original security amounts will be retained until the warranty
periods have expired and all warranty corrective work has been addressed. Operation and maintenance of
public sanitary sewer and watermain facilities are the responsibility of the city going 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.
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 worksheet for
Springs at Lake Elmo, contingent on the developer being current with all other payments and obligations
in accordance with the Development Agreement, including a positive escrow balance as may be 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 a security reduction as detailed in the attached
Security Reduction Worksheet for Springs at Lake Elmo, contingent on the developer being current
with all other subdivision payments and obligations.”
ATTACHMENTS:
1. Certificate of Completion – Springs at Lake Elmo
2. Security Reduction Worksheet – Springs at Lake Elmo
CERTIFICATE OF COMPLETION
DATE OF ISSUANCE: NOVEMBER 19, 2024
OWNER: CITY OF LAKE ELMO, MN
DEVELOPER: CONTINENTAL 483 FUND LLC
SUBDIVISION
NAME:
SPRINGS AT LAKE ELMO
PROJECT NO.: 2017.152
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 – Public sewer and watermain
Section 32.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 February 4, 2020. The above-mentioned improvement is
hereby declared to be complete and acceptance of this work is recommended.
DATE OF COMPLETION: November 19, 2024
Chad Isakson Reg. No. 49028
FOCUS Engineering, inc.
Section 32.A Warranty Period Begins September 28, 2020 and ends September 28, 2022
Section 32.B Warranty Period Begins
November 19, 2024
and ends
November 19, 2025
SPRINGS AT LAKE ELMO Time of Performance: October 31, 2020DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading $949,300 $1,186,625100%$1,186,625Sanitary Sewer $57,086 $71,358100%$71,358Watermain $329,801 $412,251100%$412,251Storm Sewer (w/pond structures) $254,704 $318,38075%$238,785Streets + Sidewalks $645,780 $807,22575%$605,419Bituminous Trails NA NASurface Water Facilities NA NAStreet Lighting $26,000 $32,50075%$24,375Street Signs and Traffic Control Signs $6,645 $8,30675%$6,230Landscaping $160,950 $201,188Tree Preservation and RestorationWetland Mitigation and Buffers $5,000 $6,25075%$4,688Monuments $1,500 $1,87575%$1,406Erosion Control $112,681 $140,85175%$105,638PUD Amenity Improvements $57,000 $71,250Record Drawings $5,000 $6,25075%$4,688TOTALS $2,611,447 $3,264,309RELEASED AMOUNTS:$2,661,462 $0 $0 $0 $0 $0CUMMULATIVE AMOUNTS:$2,661,462SECURITY AMOUNT REMAINING:$602,847DATE:11/19/2024REDUCTIONSIncluded in Landscaping