Agenda Packets - 1987/02/09 - Laserfiche WebLink

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n MEMO TO: MAYOR AND CITY COUNCIL v FROM: CLERK-ADMINISTRAT DATE: FEBRUARY 10, 1907 SUBJECT: M AND E REALTY PERFORMANCE BOND As you may recall, in early January of this year the City received a request from Tore Wistrom of Kraus Anderson Development Corporation requesting a $37,000 reduction in the performance bond submitted by M and E Realty as part of the Silver Lake Woods Development Agreement requirements. Upon consideration of the request, you determined that a 25% reduction or $22,5Uo was more appropriate considering the current level of development in the commercial sections of the plat. Staff communicated this action to Mr. Wistrom and received both a telephone call and correspondence from his stating his dissatisfaction with this decision. Essentially, Mr. Wistrom bases his dissatisfaction on the fact that the method used by the City Staff in determining the level of security was based upon the following calculations. Cost of Pond Control Structure and Electrical (lookups $20,000 $500.00 per single family lot 17,500 $1,000.00 per duplex lot 10,000 $2,O00.00 per condominium lot 62,000- Approximate Total $90,000 Mr. Wistrom provided the City with a document that was attached to his copy of the Development Agreement, copy of letter and document attached, which lie apparently feels binds the City to not tying the security to the commercial portions of the development. in conversations with Mr. Wistrom, he cannot state, for a fact, the source of this document nor does he assert that it is legally binding due to the fact that it was attached to his copy of the Development Agreement. A review of the City's files reveals that this document was a preliminary draft of the Exhibit 2A attached to the Development Agreement, copy attached, and was not part of the City's Development- Agreement that was signed by M and F. Realty nor does it appear to be a legally binding document. Also, it should be pointed out that when development of the, commercial parcels occur in the Silver Lake Woods plat, separate development securities are provided for that development by the developer at the time the Development Agreement is entered into.