#09 - Union Park Security Reduction

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STAFF REPORT DATE: August 6, 2025 CONSENT TO: City Council FROM: Mike Rusenovich, Project Engineer AGENDA ITEM: Approve Release of Warranty Security for Union Park 1st and 2nd 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: Pulte Homes of Minnesota, LLC entered into a development agreement with the City for Union Park 1st Addition on June 25, 2020; and for Union Park 2nd Addition on June 15, 2021. Construction of the public improvements is complete, the warranty periods for public improvements have ended, and all warranty punchlist items have been addressed. ISSUE BEFORE COUNCIL: Should the City Council approve release of the Union Park 1st and 2nd public improvement warranty securities as outlined in the respective Development Agreements? PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to release the public improvement warranty securities for Union Park 1st and Union Park 2nd Addition. This request has been reviewed and is being recommended for approval in accordance with the approved Development Agreements. Approval of each release 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 amounts are recommended to be reduced as follows: Current Security Amount Proposed Security Amount 1. Union Park 1st Addition $284,249 $45,775 2. Union Park 2nd Addition $337,128 $195,743 The remaining security amounts are for landscaping items.