HomeMy WebLinkAbout#06 - Dairy Queen Security Reduction
STAFF REPORT
DATE: July 15, 2025
CONSENT
TO: City Council
FROM: Chad Isakson, Project Engineer
AGENDA ITEM: Accept Improvements and Approve Security Reductions for the Dairy
Queen (9923 Hudson Blvd) Project
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: BKJ RE LLC entered into a site improvement agreement with the City for Dairy Queen
(9923 Hudson Boulevard) on November 15, 2023.
ISSUE BEFORE COUNCIL: Should the City Council accept the improvements and approve security
reductions for the Dairy Queen (9923 Hudson Blvd) project?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the
improvements and reduce the security for the Dairy Queen (9923 Hudson Blvd) project. This request has
been reviewed and is being recommended for approval in accordance with the approved Site Improvement
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 Site Improvement Agreement. The security amount is recommended to be
reduced as follows:
Current Security Amount Proposed Security Amount
1. Dairy Queen (9923 Hudson Blvd) $ 152,609 $ 38,152
The warranty periods for the 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.
OPTIONS: Reduce the security amount held for Dairy Queen (9923 Hudson Blvd) in accordance with Site
Improvement Agreement or Do not approve the reduction in 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 respective
worksheets for the Dairy Queen (9923 Hudson Blvd) project, contingent on the developer being current
with all payments and obligations in accordance with the Site Improvement 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 reduction as detailed in the attached
worksheet for the Dairy Queen (9923 Hudson Blvd) project, contingent on the developer being
current with all payments and obligations in accordance with the Site Improvement Agreement.
ATTACHMENTS:
1. Certificate of Completion.
2. Security Reduction Worksheet.
CERTIFICATE OF COMPLETION
DATE OF ISSUANCE: JULY 15, 2025
OWNER: CITY OF LAKE ELMO, MN
DEVELOPER: BKJ RE LLC
SUBDIVISION
NAME:
DAIRY QUEEN (9923 HUDSON BLVD)
PROJECT NO.: 2022.121
This Certification of Completion applies to all work under the Site Improvement Agreement
This Certification of Completion applies to the following specified parts of the Site Improvement
Agreement
Section 27.A – Public sewer and watermain
Section 27.B – Public improvements including repairs to Hudson Boulevard and concrete
curb and gutter.
I do hereby certify that the work to which this Certificate applies has been constructed in accordance
with the Site Improvement Agreement dated November 15, 2023. The above-mentioned
improvement is hereby declared to be complete and acceptance of this work is recommended.
DATE OF COMPLETION: July 15, 2025
Chad Isakson Reg. No. 49028
Bolton and Menk, Inc.
Section 27.A Warranty Period Begins October 7, 2024 and ends October 7, 2026
Section 27.B Warranty Period Begins
July 15, 2025
and ends
July 15, 2026
EBERTZ SOUTH (Dairy Queen)Time of Performance: October 31, 2024SITE IMPROVEMENT AGREEMENT AMOUNTSCATEGORYCOST125%REMARKS#1#2#3#4#5#6Grading$10,000$12,50075%$9,375Sanitary Sewer$19,000$23,75075%$17,813Watermain$23,485$29,35675%$22,017Storm Sewer (w/pond structures)$0$0Sidewalks$13,930$17,41375%$13,059Bituminous TrailsNANASurface Water Facilities$0$0Street LightingNANAStreet Signs and Traffic Control SignsNANAPrivate Utilities (electricity, natural gas, telephone, and cable)NANALandscaping$33,602$42,00375%$31,502Monuments$800$1,00075%$750Erosion Control and Restoration$16,270$20,33875%$15,253Record Drawings$5,000$6,25075%$4,688TOTALS$122,087$152,609RELEASED AMOUNTS:$114,457CUMULATIVE AMOUNTS:$114,457SECURITY AMOUNT REMAINING:$38,152DATE: 7/15/2025REDUCTIONS