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Item No: 7A Meeting Date: August 11, 2014 Type of Business: Council Business Administrator Review: ________ City of Mounds View Staff Report To Honorable Mayor and City Council From: Heidi Heller, Planning Associate Item Title/Subject: Discussion to Amend the Developer’s Agreement for Longview Estates, Developed by EICHI, Inc., 5173 Longview Drive; Planning Case MA2014-001 Introduction: On July 28, 2014, the City Council approved a Developer’s Agreement with Marty Harstad, representing Eichi, Inc. for the 10-lot subdivision of Longview Estates. This 7.14 acre parcel is on the west side of Longview Drive between County Road H2 and Woodale Drive. Mr. Harstad is asking that the Council lower the financial guarantee amounts stated in the agreement. Discussion: Mr. Harstad will be doing the land preparation and soil correction for the 10 building sites. As with all developments, the City requires a “Developer’s Agreement” which has specific requirements and financial guarantees for each development that is occurring. Since the land preparation will involve extensive truck traffic and is occurring in a neighborhood with newly constructed city streets, an additional restoration security deposit was added in the developer’s agreement for any street repair needed (Article 2.03c). Staff did not know what the haul route would be prior to drafting the agreement, so the large amount of $75,000 was put in to the agreement to cover street repairs on the entire street area where truck traffic could be. Staff has since had a meeting with the contractor who has designated a specific route for the truck traffic which is the shortest route possible on the new streets. City Staff is agreeable to lowering the restoration security deposit amount to $20,000. Mr. Harstad has also asked that the financial guarantee amount in Article 2.07 be lowered from $20,000. The City requires this financial guarantee in case of default or abandonment of the project and the City then needing to finish the work or secure the site. Since only dirt work will occur, and Mr. Harstad has already provided a $25,000 surety to Rice Creek Watershed District as part of their permit, City Staff is agreeable to lowering the financial guarantee to $5,000. Recommendation: Discuss amending the financial guarantee amounts in the Developer’s Agreement with Mr. Harstad. If the City Council agrees to amend the financial guarantee amounts, a “Motion to Amend” can be made rather than acting on a resolution. Respectfully Submitted By, Heidi Heller Planning Associate Attachments: 1. Developer’s Agreement