HomeMy WebLinkAbout#07 - Approve Security Reduction for MEP Lake Elmo LLC STAFF REPORT
DATE: December 17, 2024
CONSENT
AGENDA ITEM: Approve Security Reduction for MEP Lake Elmo LLC (Milestones
Daycare Center)
SUBMITTED BY: Jack Griffin, City Engineer
REVIEWED BY: Nicole Miller, City Administrator
Jason Stopa, Community Development Director
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 approve a security reduction for MEP Lake Elmo
LLC (Milestones Daycare Center)?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to reduce the
development security for the Milestones Daycare Center site improvements. This reduction includes a 50%
reduction in categories 2-5, including sanitary sewer, watermain, storm sewer, and street/trail cut entrances.
Additionally, the landscaping has been accepted and this reduction includes a 75% reduction of that
category. These requests have been reviewed and are being recommended for approval in accordance with
Section 30.D of the approved Site Improvement Agreement. The 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 required payments and obligations. The Site Improvement security amounts are
recommended to be reduced as follows:
Current Security Amount Proposed Security Amount
1. Milestones Daycare $ 453,928 $ 295,620
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,
approve the security reduction as detailed in the attached worksheet for the Milestones Daycare Center site
improvements, contingent on the developer being current with all required payments and obligations,
including a positive escrow balance. If removed from the consent agenda, the recommended motion for the
action is as follows:
“Move to approve the security reduction as detailed in the attached worksheet for the Milestones
Daycare Center site improvements, contingent on the developer being current with all payments and
obligations, including a positive escrow balance.”
ATTACHMENTS:
1. Security Reduction Worksheet – Milestones Daycare Center site improvements.
LIL EXPLORERS (MILESTONES) Time of Performance: October 31, 2024DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading $46,560 $58,200Sanitary Sewer $15,400 $19,25050%$9,625Watermain $23,530 $29,41350%$14,706Storm Sewer (w/pond structures) $111,362 $139,20350%$69,601Street and Trail Cut at Entrances $10,000 $12,50050%$6,250Bituminous Trails NA NASurface Water Facilities $60,700 $75,875Street Lighting NA NAStreet and Traffic Signs NA NAPrivate Utilities NA NALandscaping Improvements $62,000 $77,50075%$58,125Monuments $1,200 $1,500Erosion and Sedimentation Control $27,390 $34,238Developer's Record Drawings $5,000 $6,250TOTALS $363,142 $453,928RELEASED AMOUNTS:$158,308 $0 $0 $0 $0 $0CUMULATIVE AMOUNTS:$158,308SECURITY AMOUNT REMAINING:$295,620DATE:12/17/2024REDUCTIONS