HomeMy WebLinkAbout#09 - Union Park Security Reduction
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.
FISCAL IMPACT: Release of the warranty security closes out the public improvement portion of the
developments. The operation and maintenance of public facilities becomes the responsibility of the City
going forward.
OPTIONS: Release the security amount or Retain the current security amount.
RECOMMENDATION: Staff is recommending that the City Council, as part of the Consent Agenda,
approve the release of public improvement warranty security for Union Park 1st and 2nd Additions as
detailed in the attached respective worksheets, contingent on the developer being current with all payments
and obligations in accordance with the Development Agreements, 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 release the public improvement warranty security for Union Park 1st and 2nd Additions
as detailed in the attached respective worksheets, 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.
ATTACHMENTS:
1. Security Reduction Worksheet – Union Park 1st Addition.
2. Security Reduction Worksheet – Union Park 2nd Addition.
UNION PARK 1ST ADDITIONTime of Performance: October 31, 2020DEVELOPMENT AGREEMENT AMOUNTSCATEGORYCONSTRUCTION125%REMARKS#1#2#3#4#5#6Grading$268,425$335,531100%$335,531Sanitary Sewer$365,093$456,366100%$342,275$114,092Watermain$262,783$328,479100%$246,359$82,120Storm Sewer (w/pond structures)$319,348$399,185100%$299,389$99,796Streets + Sidewalks$435,304$544,130100%$408,098$136,033Bituminous Trails$24,645$30,806100%$23,105$7,702Surface Water Facilities$34,727$43,409100%$32,557$10,852Street Lighting$24,000$30,000100%$22,500$7,500Street Signs and Traffic Control Signs$8,965$11,206100%$8,405$2,802Private Utilities (electricity, natural gas, telephone, and cable)Landscaping$36,620$45,775Tree Preservation and RestorationNANAWetland Mitigation and BuffersNANAMonuments$6,200$7,750100%$5,813$1,938Erosion Control$51,408$64,260100%$48,195$16,065Miscellaneous FacilitiesNANARecord Drawings$5,000$6,250100%$4,688$1,563TOTALS$1,842,518$2,303,148RELEASED AMOUNTS:$588,634$335,531$196,211$852,747$284,249CUMMULATIVE AMOUNTS:$588,634$924,165$1,120,376$1,973,123$2,257,373SECURITY AMOUNT REMAINING:$1,714,514$1,378,983$1,182,771$330,024$45,775DATE:4/20/2021 9/7/2021 6/20/2023 11/21/2023 8/6/2025REDUCTIONS
UNION PARK 2ND ADDITIONTime of Performance: October 31, 2021DEVELOPMENT AGREEMENT AMOUNTSCATEGORYCONSTRUCTION125%REMARKS#1#2#3#4#5#6Grading$124,485$155,606100%$155,606Sanitary Sewer$262,560$328,200100%$246,150$82,050Watermain$210,660$263,325100%$197,494$65,831Storm Sewer (w/pond structures)$239,469$299,336100%$149,668$74,834$74,834Streets + Sidewalks$296,170$370,212100%$185,106$92,553$92,553Bituminous Trails$29,616$37,019100%$27,765$9,255Surface Water FacilitiesNANAStreet Lighting$18,000$22,500100%$16,875$5,625Street Signs and Traffic Control Signs$1,735$2,169100%$1,627$542Private Utilities (electricity, natural gas, telephone, and cable)Landscaping$156,595$195,743Tree Preservation and RestorationNANAWetland Mitigation and BuffersNANAMonuments$5,600$7,000100%$5,250$1,750Erosion Control$10,000$12,500100%$9,375$3,125Miscellaneous FacilitiesNANARecord Drawings$5,000$6,250100%$4,688$1,563TOTALS$1,359,889$1,699,861RELEASED AMOUNTS:$934,024$232,966$337,128$0$0$0CUMMULATIVE AMOUNTS:$934,024$1,166,990$1,504,118SECURITY AMOUNT REMAINING:$765,837$532,871$195,743DATE:3/21/2023 1/4/2024 8/6/2025REDUCTIONS