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HomeMy WebLinkAbout#12 - Bridgewater Village DA Amendment STAFF REPORT DATE: 12-17-2024 CONSENT TO: Mayor and City Council FROM: Nathan Fuerst, Consulting Planner, Bolton and Menk AGENDA ITEM: Bridgwater Village – First Amendment to the Development Agreement REVIEWED BY: Jason Stopa, Community Development Director Sophia Jensen, City Planner Jack Griffin, City Engineer Sarah Sonsalla, City Attorney BACKGROUND: The City has received a request by Bridgewater Bancshares, LLC., for a first amendment to the Development Agreement for Bridgewater Village. The development’s final plat was approved as revised in August 2024. The Development Agreement for Bridgewater was approved in September 2024. A notice to proceed with site improvements was issued to the Developer on October 31, 2024. This first amendment to the Development Agreement for Bridgewater Village is to allow issuance of a building permit for the Bridgewater Bank Lot (Lot 2, Block 2) with a temporary gravel access, and prior to completion of all grading for the lot and downstream drainage facilities. ISSUE BEFORE CITY COUNCIL: Should the City approve a first amendment to the Development Agreement for Bridgewater Village in order to allow the issuance of building permits with gravel access and prior to finishing grading improvements? PROPOSAL: Current Development Agreement. The current Development Agreement allows early issuance of one building permit prior to completion and acceptance of public improvements. The bank lot, Lot 2, Block 2, was the lot identified for early permit issuance. The City established four criteria in Section 25.B of the DA which must be completed prior to issuance of a building permit: 1. Adequate safe public access for emergency services and contractors, including a paved bituminous road to the building pad for any buildings which is sufficient to allow construction to proceed, which may include a temporary bituminous road from Stillwater Way depicted and shaded in gray in Exhibit C that is identified as the Emergency and Construction Access Road; 2. A grading as-built plan approved by the City for Lot 2, Block 2 to include the commercial buildings and all downstream drainage facilities; 3. All stormwater drainage facilities that include and are downstream from Lot 2, Block 2 are in place, meet the approved project plans, and are verified by the City; and 4. The Developer has installed adequate parking, and sanitary sewer and municipal water to Lot 2, Block 2. Proposed Development Agreement Revisions. Given the timing of the start of work on site, with winter conditions having set in, the Developer no longer has the ability to construct the public infrastructure in a manner that will be conducive to the long term quality of those improvements. The Developer has requested the City to allow for the construction of the Bridgewater Bank site on Lot 2, Block 2 which could occur during the winter months. The Developer is asking to construct a temporary access road and for other amendments to the Developer’s Agreement which would allow for a bank site to begin work now, but for the City to ensure that infrastructure is ultimately built according to the City’s performance standards. The City’s staff has considered how to modify the DA language in a manner that will be acceptable to the City and propose the following general changes: • Access to the Bank site is allowed via a temporary gravel road. • Grading of the bank site meets the general intent of the development’s grading plan approved by the City but doesn’t need to include stormwater ponds. • The Bank site plan is reviewed and approved by the City prior to permit issuance. • While work is ongoing on the bank site, stormwater is managed appropriately until stormwater facilities are brought online. • All required infrastructure improvements necessary to serve this site, according to the Developer’s Agreement are installed prior to issuance of a certificate of occupancy for the bank. Proposed Development Agreement Language. If the City Council seeks to approve the requested revisions, the following changes to Section 25.B are suggested by staff and found agreeable by the Developer: 1. Adequate safe public access for emergency services and contractors, including a gravel road to the building pad which is sufficient to allow construction to proceed, and is identified and maintained as the Emergency and Construction Access Road; 2. A grading as-built plan approved by the City for Lot 2, Block 2 to include verification of all lot corner elevations, grade breaks along the lot lines (high and low points), and emergency overflow elevations; 3. An approved site plan for Lot 2, Block 2.; 4. A storm water drainage management plan, approved by the VBWD, for containing all site runoff in a manner that prevents sediment discharges from the site at all times during and following construction. The developer agrees that all construction work is subject to an immediate stop work order upon any breach of sediment discharge from the site, until all corrective measures as identified by the City and VBWD are fully addressed and corrected; and 5. The Developer has installed adequate parking to Lot 2, Block 2. A change is also proposed to Section 25C, the conditions under which a certificate of occupancy may be issued. The proposed revised language, below, provides more specific criteria for what must be completed prior to issuance of a Certificate of Occupancy for Lot 2, Block 2: C. The City will not issue a certificate of occupancy for Lot 2 Block 2 (Bridgewater Bank Building) until such time that sanitary sewer, water, storm sewer, curbing and one lift of asphalt has been installed and tested for all public streets; boulevard grading has been completed within the entire right-of-way (without hold down grading for the future sidewalk or any other improvements); street and traffic control signs are installed; property monuments have been installed, grading as-built plans have been submitted and approved by the City, and the Management Plan for the Stormwater Reuse Irrigation System has been submitted and approved by the City. FISCAL IMPACT: The City’s standard form of Development Agreement requires the Developer to assume all responsibility related to all site issues, including erosion control issues, drainage issues, and damaged infrastructure, in the event that building contractors are permitted to work within the subdivision prior to the Developer obtaining final acceptance of the improvements by the City. Areas of concern related to the Developer’s request: • There may be a cost to the City if it is required to engage in enforcement activities related to inadequate access, grading, or drainage. This cost must be recaptured through the escrow or letter of credit held by the City for this development. • Of particular concern are utility improvements in the areas where temporary access is proposed. If approved abutting or crossing over required infrastructure improvements, those improvements are subject to additional inspection and must be replaced if damaged at the Developer’s cost. • Additional time spent reviewing phasing plans for this development will be charged against the development escrow. OPTIONS: 1) Approve the requested amendments. 2) Deny the requested amendments. 3) Change the amendments as proposed. RECOMMENDATION: Staff recommend that the City Council approve the proposed first amendment to the Bridgewater Village Development Agreement. “Motion to approve Resolution 2024-133 approving the first amendment to the development agreement for Bridgewater Village.” ATTACHMENTS: • Resolution 2024-133 Approving the First Amendment to the Development Agreement • Amendment Requests from the Developer • Recorded Bridgewater Village Development Agreement CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2024-133 A RESOLUTION APPROVING THE FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT FOR BRIDGEWATER VILLAGE WHEREAS, the City of Lake Elmo is a municipal corporation organized and existing under the laws of the State of Minnesota; and WHEREAS, Bridgewater Bancshares, LLC., (the “Applicant”) has previously submitted an application to the City of Lake Elmo (the “City”) for a final plat for Bridgewater Village; and WHEREAS, the Lake Elmo City Council adopted Resolution No 2024-090 on August 20th 2024 approving the final plat for Bridgewater Village; and WHEREAS, the Lake Elmo City Council adopted Resolution No 2024-092 on September 17th 2024 approving the Development Agreement for Bridgewater Village; and WHEREAS, the Applicant and the City have agreed to amend the Development Agreement for Bridgewater Village a first time in order to allow a building permit to be issued for Lot 2, Block 2, prior to public improvement acceptance by the City with revisions to allow temporary gravel access, require adequate stormwater management while site work is ongoing, and other modifications found in the staff report to City Council dated December 17, 2024; and NOW, THEREFORE, based on the information received, the City Council of the City of Lake Elmo does hereby approve the First Amendment to Development Agreement for Bridgewater Village, authorize the City Attorney to draft the First Amendment to the Development Agreement to include provisions to allow building permits for Lot 2, Block 2 to be issued according to the amendments proposed in the staff report dated December 17, 2024, and authorize the Mayor and City Clerk to execute the First Amendment to Development Agreement. Passed and duly adopted this ____ day of _________2024 by the City Council of the City of Lake Elmo, Minnesota. __________________________________ Charles Cadenhead, Mayor ATTEST: ________________________________ Julie Johnson, City Clerk November 25, 2024 City of Lake Elmo 3880 Laverne Avenue North Lake Elmo, MN 55042 RE: Bridgewater Village Development Agreement – proposed amendment language Dear Mr. Mayor and members of the Council I am writing to bring to your attention a crucial issue regarding the Bridgewater Village Development Agreement. Due to unforeseen delays in the entitlement process, our contractors are facing challenges in completing the site construction work required for the release of a building permit for Lot 2, Block 2 before the onset of winter. This has necessitated a proposed amendment to Section 25 of the Development Agreement. Specifically, we are requesting an amendment to Section 25.B to allow for the use of a gravel road instead of a bituminous road for construction and emergency access for Lot 2, Block 2, which will be occupied by the Developer, Bridgewater Bank. Additionally, we are proposing an amendment to Exhibit C to depict the location of the gravel access road. We assure you that the developer and contractor will collaborate closely with city staff to ensure that the construction traffic utilizing the access road will not pose any risk to utilities during the winter months. We understand the significance of adhering to the terms of the Development Agreement and are committed to working diligently to address this issue in a timely and professional manner. Your consideration of this proposed amendment is greatly appreciated. Best Regards, Jerry Baack Bridgewater Bank Chairman & CEO Docusign Envelope ID: 1039D541-30BF-4B2D-91D6-3E79D90880FE Exhibit C Docusign Envelope ID: 1039D541-30BF-4B2D-91D6-3E79D90880FE