Agenda - Council - 10/14/2008 - Laserfiche WebLink

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5. Difficulty in collecting the escrow at time of building permit issuance, especially from a landowner who may have failed to recognize this requirement or an existing landowner having no knowledge of this amendment/requirement. 21" believes its proposal is a practical solution to a difficult problem. Everyone is aware of the current condition of the residential home market and therefore to force 21" to maintain the $133,000.00 Letter of Credit for an indefinite period of time, waiting for the residential home building market to turn around, is unfair. Staff believes than alternative solution may be to require 21s` to replat certain areas of the Plat to Outlots, and thus allow for the release of the existing securities conditioned upon completing the trails, grading, and punch list items. When an application comes before the City at a later date, for the development of the Outlots, new securities would be required based upon the proposed improvements. At the City Council's work session on October 7, 2008, the City Council generally agreed with 21"'s proposal to amend the October 26, 2005 Development Agreement to permit release of the landscape (Stage I Improvements) Letter of Credit conditioned upon the following: 1. That 21" assume BK's remaining obligations pursuant to the Development Agreement. 2. Retain either in the form, of a reduced Letter of Credit or cash escrow $30,625 which is 125% of the City Engineer's estimated cost for installation of landscape materials in the boulevard areas of the Plat. In addition to the above, staff recommends that 21" undertake the responsibility to install the landscape materials this fall in order to prevent cost escalations in the future. 3. That 21s` permit the inspection escrow and grading escrow for completion of the trails/trail fees , minor grading, and punchlist items remaining to be completed and that 219` shall forthwith undertake completion of these items. Funding: All costs associated with the amendment shall be paid from 21" Century Bank's cash escrow. Attachments: Proposed Amended and Restated Development Agreement. Recommendation: City Staff recommends approval of the request subject to the conditions outlined above. Council Action Motion to approve the Town Center Gardens 3rd, Addition Amended and Restated Development Agreement as enclosed and as amended per the conditions stated above, subject to final City Attorney approval as to legal form. In addition, all City Administration and legal costs related to the Amendment shall be paid by 21" Century Bank from its cash escrow. Review By: