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Deputy City Administrator Nelson stated the discussion is whether to use the certificate of <br /> occupancy as tool to get the developer to perform on an issue. She explained there is not a tie <br /> between the development agreement and the homeowner and the City cannot enforce the <br /> developer's obligation against the homeowner. <br /> Councilmember McGlone asked about the difference between the developer's escrow compared <br /> to the actual cost to complete. <br /> Public Works Director Olson and City Engineer Himmer described the developments where the <br /> City had to pull the letter of credit to complete the project. The escrow covers things like staff <br /> time, engineering, inspection, plan review, and is a percentage of the total cost. If any escrow is <br /> left, it is returned to the developer. <br /> Councilmember Strommen stated she has a historical perspective from 2007 when the City was <br /> in a different position. She noted the concern was to protect taxpayers and residents, current and <br /> future, against the cost of development, which was a huge issue at that time. Councilmember <br /> Strommen stated she sat through a lot of discussions with residents concerned with having to pay <br /> for development occurring and that is what the escrows protect. She felt the escrows were <br /> reasonable so the City is not left "holding the bag" and to assure developers coming in have the <br /> financial wherewithal to complete what they are proposing. Councilmember Strommen stated <br /> she does not want the lowest denominator but also does not want fees to be unreasonable. She <br /> stated this is a good step to consider whether we are exposing the City or taxpayers should the <br /> developer not perform. <br /> Senior Planner Gladhill noted that escrows are important during the winter season because <br /> erosion control may not be addressed until spring but the City does not want to hold up <br /> homeowners from moving in. <br /> Acting Mayor Wise asked if this conversation can be held with developers in the room to provide <br /> a better, well - rounded look at perceived problems. <br /> City Engineer Himmer stated there could be an occasion during the winter with conditional <br /> certificates of occupancy to allow the homeowner to move in and the developer complete the sod <br /> and driveway in the spring. However, should the builder go under prior to completing that work, <br /> the homeowner would not be able to get the certificate of occupancy until that work is <br /> completed. He noted that under this scenario, the homeowner would have already paid the <br /> developer to do the work. The intent is to protect the homeowner. <br /> Councilmember Elvig stated he has been through charettes with developers and found all will <br /> say development is too expensive yet they still continue to build in Ramsey. Councilmember <br /> Elvig agreed consideration of the WAC /SAC will be the big one. He indicated he is not <br /> interested in cutting the City's cash flow because it is trying to add more services, sealcoating, <br /> parks, mowing, maintenance, and roads. In addition, he does not want it on the residents' backs <br /> to cover costs for development. It should come from fees that are legitimate and can be justified. <br /> City Council Work Session / November 22, 2011 <br /> Page 4 of 10 <br />