05-24-1999 EDA - Laserfiche WebLink

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minimum improvements or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within thirty days after written demand from the Authority to the developer. He asked if the EDA holds the property title until completion. Housing Inspector Dorgan explained the property title is transferred at the time of the sale; the lot will be sold to the developer and the City can only control it though the development agreement. Commissioner Marty read Section 17.4(a), regarding the resale of reacquired property and disposition of proceeds. He asked the EDA keeps the earnest money stated in Section 7.5(b) if the developer defaults, deduct their costs from the escrow, and reimburse the remaining funds to the developer. Housing Inspector Dorgan stated that is correct. Commissioner Marty read Section 20.0, regarding construction of minimum improvements, noting Section 20.1 indicates the developer will construct the minimum requirements, and Section 20.2 indicates the developer shall submit to the Authority construction plans. He asked if the City gets a copy of the construction plans before construction begins and suggested the requirement for providing construction plans should be stated first. Commissioner Marty read Section 20.2(b), second to last sentence, indicating "such rejection shall be made within 10 days after receipt of the notice of such change." He asked if this will call for a special session of the EDA since they don't meet every week. City Administrator Whiting stated the "ten days" refers to business days and there is usually not ten days between meetings unless the month contains five Mondays. City Attorney Long explained if the developer wants to deviate from the plans which have already been approved, staff can reject a requested change which would require EDA consideration. Commissioner Marty reiterated his concerns. Housing Inspector Dorgan stated the agreement is being presented tonight to receive input. He stated staff is still negotiating the agreement and can incorporate changes being requested prior to closing. Commissioner Marty stated he wants the 150% calculation maintained in this agreement since it would answer some of his other concerns. Housing Inspector Dorgan stated the current City policy requires a letter of credit equal to the value of the lot but that policy can be changed to require a larger deposit if that is what the EDA desires. He stated staff can attempt to negotiate with Marquis Builders for a larger deposit but they are aware of the current City policy to require 100%. Commissioner Marty noted the agreement indicates that the remaining balances are returned to 3 U:\CARIS\COUNCIL\MINUTES\MVEDA24.MAY