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CONSIDER -AMENDMENT TO <br />TOWN CENTER GARDENS <br />3n° ADDITION DEVELOPMENT AGREEMENT <br />Background: <br />Consent 10/14/08 13 <br />Town Center Gardens aro Addition (the "Plat") was platted in October 2005 by Bright Keys <br />Development Corporation ("BK"). Since then, due to the residential home market, significant <br />portions of the Plat have not been developed BK has assigned its interest in the unsold property <br />to its lender, 21't Century Bank ("21"") <br />BK, through 21st, deposited Letters of Credit with the City to insure that certain Stage I <br />improvements were properly installed in the, Plat and BK gave a cash deposit to the City for the <br />City's inspection fees. <br />The status of the Stage I improvements yet to be installed in the Plat, and the associated <br />estimated costs, are as follows: <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 />The City currently holds the following escrows: <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 />21" is proposing to amend the Development Agreement as follows: <br />1. Permit use of the inspection escrow ($71,989.00) for completion of the trail work. <br />2. Complete the Plat's grading requirements to City requirements and then release of its <br />$15,000.00 Letter of Credit. <br />3. Immediate release of its $133,000.00 Letter of Credit for the Stage I Improvements in <br />return for a protective covenant encumbering each individual lot for its prorata share <br />of the landscape improvements, to be collected at time of building permit issuance. <br />Attached is a copy of 21"'s proposed Development Agreement Amendment and Restrictive <br />Covenants document, <br />21st's proposal for release of the $133,000.00 Letter of Credit raises issues that include the <br />following: <br />1. Securing the required improvements that are incomplete. <br />2. Delay in installation of the Plat's landscaping improvement, and thus increased cost <br />over time due to inflation. <br />3. Piecemeal installation of the landscaping within the Plat. <br />4. Precedent for other developers to not post the required escrow at the time the final <br />Plat is released. <br />