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<br />J- <br /> <br />CITY COUNCIL WORK SESSION <br />Topic Report: Consider Amendment to <br />Town Center Gardens 3rd Addition <br />Agreement <br />By: William K. Goodrich, City Attorney <br /> <br />City of ~ <br />RAMSEY <br /> <br />Background: <br /> <br />Town Center Gardens 3rd Addition (the "Plat") was platted in October 2005 by Bright <br />Keys Development Corporation ("BK"). Since then, due to the residential home market, <br />significant portions of the Plat have not been developed. BK has assigned its irtterest in <br />the unsold property to its lender, 21st.Century Bank ("21s1,,). . <br /> <br />SK, through 21st, developed a Letter of Credit with the City to insure that certain Stage I <br />improvements were properly installed in the Plat. . <br /> <br />The status of the Stage I improvements yet to be installed in the Plat, and the associated <br />estim.ated costs, are as follows: <br /> <br />1. Trails. $70,000 <br />2. Minor Grading - $5,000 <br />3. Landscaping. $150,000 <br />4. Punch list Items (mIse,. utility work and as-built drawings) - $20,000 <br /> <br />The City currently holds the following escrows: <br /> <br />1. $71,898.00 cash escrow for inspection fees. <br />2. $15,000.00 Letter of Credit for grading. <br />3. .$133,000.00 Letter of Credit for Stage I Improvements. <br /> <br />21st is proposing to amend the Development Agreement as follows: <br /> <br />1. Permit use of the inspection escrow ($71,989.00) for completion of the trail <br />work. <br />2. Complete the Plat~s grading requirements to City requirements and then <br />release of its $1 S,OOO.OO Lett@r of Credit. <br />3. Immediate release of its $133,000.00 Letter of Credit for the Stage I <br />Improvements in return for a protective covenant encumbering each <br />individual lot for its prorata share of the landscape improvements, to be <br />collected at time of building permit issuance. <br /> <br />Attached is a copy of 21 sh S proposed Development Agreement Amendment and <br />Restrictive Covenants document. <br /> <br />-1- <br />