HomeMy WebLinkAbout#07 - Easton 5th Security Reduction
STAFF REPORT
DATE: March 18, 2025
CONSENT
TO: City Council
FROM: Chad Isakson, Project Engineer
AGENDA ITEM: Accept Improvements and Approve Security Reduction for Easton Village
5th Addition
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: Chase Development, Inc. entered into a development agreement with the City for
Easton 5th Addition on July 24, 2019. Construction of the public improvements are now complete.
ISSUE BEFORE COUNCIL: Should the City Council accept the Easton Village 5th Addition public
improvements and reduce the security amount as outlined in the Easton Village 5th Addition Development
Agreement?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the
improvements and reduce the development security for Easton Village 5th 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. Easton Village 5th Addition $804,566 $385,424
The warranty periods for Easton Village 5th Addition public improvements are identified on the attached
Certificate of Completion. One hundred percent of the sanitary sewer, watermain, and landscaping security
was released on February 6, 2024 following the end of the utility warranty period. Twenty-five percent
(25%) of the original security amount for the remaining public improvement items 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 respective
worksheet for Easton Village 5th 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 Easton Village 5th Addition, contingent on the developer being current with all
payments and obligations in accordance with the Development Agreement.
ATTACHMENTS:
1. Certificate of Completion – Easton Village 5th Addition.
2. Security Reduction Worksheet – Easton Village 5th Addition.
EASTON VILLAGE 5TH ADDITION October 31, 2019
DEVELOPMENT AGREEMENT AMOUNTS
CATEGORY CONSTRUCTION 125%REMARKS #1 #2 #3 #4 #5 #6
Site Grading Agreement $0 $0
Sanitary Sewer $219,845 $274,806 $206,105 $68,702
Watermain $324,705 $405,881 $304,411 $101,470
Storm Sewer $485,728 $607,160 $303,580 $151,790
Streets and Sidewalks $693,676 $867,095 $433,548 $216,774
Trails $0 $0
Surface Water Facilities NA NA
Street Lighting $40,000 $50,000 By Xcel Energy $37,500
Street Signs and Traffic Control Signs $4,150 $5,188 $3,891
Private Utilities (electricity, natural gas, telephone, and cable)NA NA
Landscaping $61,074 $76,343 $57,257 $19,086
Tree Preservation and Restoration NA NA
Wetland Mitigation and Buffers NA NA
Monuments $4,800 $6,000 $4,500
Erosion Control $0 $0
Misc.NA NA
Record Drawings $5,000 $6,250 $4,688
TOTALS $1,838,978 $2,298,724 RELEASED AMOUNTS:$1,304,900 $189,258 $419,142 $0 $0 $0
CUMMULATIVE AMOUNTS:$1,304,900 $1,494,158 $1,913,299
SECURITY AMOUNT REMAINING:$993,824 $804,566 $385,424
DATE:10/6/2020 2/6/2024 3/18/2025
Time of Performance:
REDUCTIONS
CERTIFICATE OF COMPLETION
DATE OF ISSUANCE: MARCH 18, 2025
OWNER: CITY OF LAKE ELMO, MN
DEVELOPER: CHASE DEVELOPMENT, INC.
SUBDIVISION
NAME:
EASTON VILLAGE 5TH ADDITION
PROJECT NO.: 2019.111
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 36.A – Public sanitary sewer and watermain
Section 36.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 24, 2019. The above-mentioned improvement is
hereby declared to be complete and acceptance of this work is recommended.
DATE OF COMPLETION: March 18, 2025
Chad Isakson Reg. No. 49028
Bolton and Menk, Inc.
Section 36.A Warranty Period Begins October 6, 2020 and ends October 6, 2022
Section 36.B Warranty Period Begins
March 18, 2025
and ends
March 18, 2026