HomeMy WebLinkAbout#04 - Union Park West Security Reduction
STAFF REPORT
DATE: July 15, 2025
CONSENT
TO: City Council
FROM: Mike Rusenovich, Project Engineer
AGENDA ITEM: Accept Improvements and Approve Security Reduction for Union Park
West
REVIEWED BY: Nicole Miller, City Administrator
Clarissa Hadler, Finance Director
Jason Stopa, Community Development Director
Marty Powers, Public Works Director
Nate Stanley, City Engineer
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services
☐ Responsive, transparent, adaptive governance ☒ Balanced Finances now and future
☒ Managed Growth ☒ Resilient Infrastructure
BACKGROUND: U.S. Homes Corporation entered into a development agreement with the City for Union
Park West on July 9, 2021. Construction of the public improvements is now complete.
ISSUE BEFORE COUNCIL: Should the City Council accept the Union Park West public improvements
and reduce the security amount as outlined in the Union Park West Addition Development Agreement?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the
improvements and reduce the development security for the Union Park West 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. Union Park West Addition $731,717 $318,637
The warranty periods for Union Park West Addition public improvements are identified on the attached
Certificate of Completion. One hundred percent of the sanitary sewer and watermain security was released
on April 1, 2025 following the end of the utility warranty period. 75% of the landscaping security has also
been released, and the two-year landscaping warranty period began on June 20, 2025. Twenty-five percent
(25%) of the original security amount for the remaining public improvement items and landscaping 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.
OPTIONS: Accept the public improvements and reduce the security amount or Do not accept the public
improvements and retain the current security amount.
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
Union Park West 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:
Motion to accept the improvements and approve the security reduction as detailed in the attached
worksheet for Union Park West Addition, contingent on the developer being current with all
payments and obligations in accordance with the Development Agreement.
ATTACHMENTS:
1. Certificate of Completion – Union Park West Addition.
2. Security Reduction Worksheet – Union Park West Addition.
CERTIFICATE OF COMPLETION
DATE OF ISSUANCE: JULY 15, 2025
OWNER: CITY OF LAKE ELMO, MN
DEVELOPER: U.S. HOMES CORPORATION (D/B/A LENNAR)
SUBDIVISION
NAME:
UNION PARK WEST ADDITION
PROJECT NO.: 2021.119
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 sanitary sewer and watermain
Section 32.B – Public improvements including street construction, including 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 9, 2021. The above-mentioned improvement is hereby
declared to be complete and acceptance of this work is recommended.
DATE OF COMPLETION: JULY 15, 2025
Michael Rusenovich Reg. No. 58717
Bolton and Menk, Inc.
Section 32.A Warranty Period Begins March 21, 2023 and ends March 21, 2025
Section 32.B Warranty Period Begins
July 15, 2025
and ends
July 15, 2026
UNION PARK WEST ADDITIONTime of Performance: October 31, 2022DEVELOPMENT AGREEMENT AMOUNTSCATEGORYCONSTRUCTION125%REMARKS#1#2#3#4#5#6Grading$487,082$608,853100%$608,853Sanitary Sewer$313,229$391,536100%$293,652$97,884Watermain$365,453$456,817100%$342,613$114,204Storm Sewer (w/pond structures)$308,968$386,21075%$193,106$96,553Streets + Sidewalks$432,768$540,95975%$270,480$135,240Bituminous Trails$42,867$53,58475%$40,188Surface Water Facilities$53,555$66,94475%$50,208Street Lighting$36,000$45,00075%$33,750Street Signs and Traffic Control Signs$7,950$9,93875%$7,454Private Utilities (electricity, natural gas, telephone, and cable)Landscaping$84,546$105,68375%$79,262Tree Preservation and Restoration$0$0Wetland Mitigation and Buffers$0$0Monuments$9,200$11,50075%$8,625Erosion Control$38,798$48,49875%$36,374Miscellaneous Facilities$0$0Record Drawings$5,000$6,25075%$4,688TOTALS$2,185,416$2,731,770RELEASED AMOUNTS:$636,265$79,262$1,284,527$413,080$0$0CUMMULATIVE AMOUNTS:$636,265$715,527$2,000,053$2,413,133SECURITY AMOUNT REMAINING:$2,095,505$2,016,243$731,717$318,637DATE:3/21/2023 11/6/2024 4/1/2025 7/15/2025REDUCTIONS