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HRA Regular Session 5. 2. Meeting Date: 04/09/2013 By: Tim Gladhill, Community Development Information Title: FOR DISCUSSION ONLY: Receive Update and Consider Plan to Complete Stage I Improvements for COR TWO (Sunwood Retail Area) Located at the Southeast Intersection of Sunwood Drive and Armstrong Boulevard. Background: This case is for informational and discussion purposes only; no action is being requested at this time. The City Council approved the plat entitled COR TWO on August 13, 2012 (revised February 19, 2013). This development is also known as the Sunwood Retail development. The Final Plat approval required several Stage I Improvements. These Stage I Improvements are also referred to as the Common Improvements as it relates specifically to this development. These improvements generally include, but not necessarily limited to the shared access, sanitary sewer, water, and storm water systems. The attached plans provide the details of the required improvements. Before the City can release the Plat for recording, the City requires that a work plan and appropriate security be provided. Essentially, the City needs the assurance that the Stage I Improvements will be completed if it is to be able to issue a Building Permit. The HRA agreed to be responsible to construct the Stage I Improvements as part of the Development Agreement with the City, if the Plat was to be recorded. The Development Agreement alone did not authorize the expense of actually constructing the improvements, as the HRA could choose to construct the improvements itself or require a future buyer to construct the improvements. The HRA could choose not to authorize construction of the improvements; however, the Plat would not be authorized to be finalized and recorded. In addition, the HRA does have an existing real estate contract with McDonald's USA, LLC that would be affected if the Stage I Improvements are not constructed. This case is to discuss scenarios to complete the Stage I Improvements in order to allow the Plat to be recorded. At this time, no action is being requested to advertise for bids or award a contract. Staff needs additional time to properly analyze the current plans and cost estimates, as final plans were submitted to the City for review on April 3, 2013. In order to provide requested feedback from McDonald's, Staff is forwarding this discussion topic at this time, prior to formal action by the HRA at a future date. Based on discussion, Staff would anticipate forwarding an action item on the April23, 2013 HRA Agenda to potentially advertise for bids. Notification: Notification is not required at this stage. Observations/Alternatives: On October 16, 2012, the HRA approved a work order with Landform Professional Services, LLC for 'soft costs' related to the design of these Stage I Improvements in the amount of $34,600. Specifically, the HRA did not approve construction of these improvements, but design only. The City received the final plans for review on April 3, 2013. City Staff has been reviewing preliminary plans, cost estimates, and alternative scenarios over several occasions since the work order was approved. The current cost estimate provided by Landform Professional Services is $327,467.73. It would be the intent to recoup the costs of these improvements through the sale of all three (3) parcels created by the Plat. The purchase price for Lot 2 (McDonald's) is $470,000. Super America has also expressed an interest in construction of a convenience store/gas station this year. The sale of a parcel in COR 2 to Super America, and along Ramsey Boulevard, is currently under negotiation. The HRA has an active Real Estate Contract with McDonald's USA, LLC, attached hereto. In order to meet obligations and timelines of said contract, Staff understands that a resolution to the matter will need to occur as soon as possible. Staff has received an Application for Building Permit from McDonald's USA, LLC. McDonald's