Agenda - Council - 05/23/1995 - Laserfiche WebLink

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I I I I I I I I I I By: WINDEMERE WOODS Jessie Hart, Finance Officer CASE # / Background: The only persons im ~acted by this issue are A1 and Alice Koenig, principals of Windemere Woods of Ramsey. A cop~ of this case has been forwarded to them accordingly and they have been apprised of the date, ~ime and location of this meeting. Early in 1995, resid{ nts of Windemere Woods requested Council action regarding the property at 5860 - 141st Lane N W. As a result, we wrote the attached correspondence. To date, the status of the issue is that we h rye retained an escrow in the amount of $1,800 from A1 and Alice Koenig, the developers of Winc]emere Woods, to provide for the completion of driveway paving at this property, which the~ own, in conformance with the development agreement. [ Also attached is a 1/~9/95 memorandum from Tom Pealer, Assistant City Attorney, regarding the issue of retainage oflthe driveway escrow. Mr. Koenig has reqgested release of the escrow which he believes we retained inappropriately. Further, he has requd~sted that interest be paid on the escrow retainage. It has been the policy of the City.of. Ramsey,. sinc~'e the adoption of Ordinance #84-13 in 1984, not to pay interest nor charge an adm~mstranve fee to;tescrow accounts. [ In response to Mr. Iqoenig's request for interest and in that our policy is not to pay interest, I have surveyed surroundin~g and rapidly developing communities as to their policies regarding escrows held by the City. Tl~e following is the result of that informal survey [several communities had not responded as of the ~x~riting of this case, a summary of any additional responses will be provided at the meeting]: City of Anok~ - TheiCity of Anoka, as a policy, does not pay interest on escrow accounts unless it has been sep&ately negotiated in a development agreement. City of Andover - Tl~e City of Andover pays interest on escrow accounts utilizing a passbook rate method on a ~luarterly basis. [ City of Coon Rapids - The City of Coon Rapids, as a policy, does not pay interest on escrow accounts unlJess the escrow is to guarantee special assessments. They do not apply a service charg¢~ on escrow accounts. ,, City of Eagan ~ Th~ City of Eagan has included in each of their development agreements the following sta. tement: "The City shall not be responsible for Paying any interest on the account contgmplated under this Agreement". The policy includes escrows not governed by development agreements. City of Elk River - ~'he City of Elk River, through an ordinance, does not pay interest nor charge an administrative fee on escrow accounts and is currently in the process of changing the £ o ordinance to promde more authority in collecting developers escrow accounts. [ City of Golden Valley - The City of Golden Valley does not have a policy but as a practice does not give interest On escrow accounts.