HomeMy WebLinkAbout#07 - Northport 3rd Add Security Release
STAFF REPORT
DATE: June 3, 2025
CONSENT
TO: City Council
FROM: Mike Rusenovich, Project Engineer
AGENDA ITEM: Approve Release of Warranty Security for the Northport 3rd 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: Pulte Homes of Minnesota, LLC entered into a development agreement with the City
for the Northport 3rd Addition on April 7, 2020. The sanitary sewer and watermain warranty period ended
on January 4, 2024. The public improvement warranty period ended on January 16, 2025.
ISSUE BEFORE COUNCIL: Should the City Council approve the release of warranty security for public
improvements for the Northport 3rd Addition?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to release the
development security for the Northport 3rd Addition. The one-year warranty period for the public
improvements expired on January 16, 2025. Twenty-five percent (25%) of the original security was retained
through the one-year warranty period. A warranty walk-through has been completed by city staff and all
warranty punch list items have since been addressed by the developer.
With the release of the 1-year warranty security the overall development security is recommended to be
reduced as shown below:
Current Security Amount Proposed Security Amount
1. Northport 3rd Addition $255,882 $13,594
Twenty-five percent (25%) of the landscaping security amount will be retained.
FISCAL IMPACT: Release of the warranty security closes out the public improvement portion of the
development. The operation and maintenance of the public facilities becomes the responsibility of the City
going forward.
RECOMMENDATION: Staff is recommending that the City Council, as part of the Consent Agenda,
approve the release of public improvement warranty security for the Northport 3rd Addition as detailed in
the attached worksheet. The release of security is 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 approve the security release for the Northport 3rd Addition as detailed in the Security
Reduction Worksheet, 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 – Northport 3rd Addition.
NORTHPORT 3RD ADDITION Time of Performance: October 31, 2021
DEVELOPMENT AGREEMENT AMOUNTS
CATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6
Grading NA NA Included in Phase 1
Sanitary Sewer $215,014 $268,768 100%$201,576 $67,192
Watermain $210,346 $262,933 100%$197,199 $65,733
Storm Sewer (w/pond structures) $232,695 $290,869 100%$145,434 $72,717 $72,717
Streets + Sidewalks $458,706 $573,383 100%$286,691 $143,346 $143,346
Bituminous Trails $15,723 $19,654 100%$14,740 $4,913
Surface Water Facilities NA NA Included in Phase 1
Street Lighting $40,000 $50,000 100%$37,500 $12,500
Street Signs and Traffic Control Signs $4,098 $5,123 100%$3,842 $1,281
Private Utilities (electricity, natural gas, telephone, and cable)
Landscaping $43,500 $54,375 75%$40,781
Tree Preservation and Restoration NA NA
Wetland Mitigation and Buffers NA NA
Monuments $4,100 $5,125 100%$3,844 $1,281
Erosion Control $10,000 $12,500 100%$9,375 $3,125
Miscellaneous Facilities NA NA
Record Drawings $10,000 $12,500 100%$9,375 $3,125
TOTALS $1,244,182 $1,555,228 RELEASED AMOUNTS:$830,901 $40,781 $427,664 $242,288 $0 $0
CUMMULATIVE AMOUNTS:$830,901 $871,682 $1,299,346 $1,541,634
SECURITY AMOUNT REMAINING:$724,327 $683,546 $255,882 $13,594
DATE:1/4/2022 12/5/2023 1/16/2024 6/3/2025
REDUCTIONS