Agenda - Council - 01/10/2012 - Laserfiche WebLink

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