Agenda - Council - 10/22/2013 - Laserfiche WebLink

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were established by the Declarations. According to the recorded Declarations, they were drafted by Oakwood BF First Addition included a divided lane entrance road from County 5 (170th Avenue NW), with the lanes separated by a landscaped median area, and a roundabout at 170th and Garnet Street, with the center of the roundabout also containing landscaping. I believe that the median and roundabout center have irrigation systems in them, but are entirely within city right of way. B. Brookfield Lake This storm water retention pond was intended to be a sales amenity for the lots abutting the Iake, and was also to be available for use by all residents of Brookfield via a small outlot on the north side. The bottom is lined with a synthetic material. At some point in time (estimated to be after the plats were all recorded), it was discovered that the lining did not work properly, and that the pond elevation could not be maintained by normal storm water runoff or groundwater levels. There was some dispute between Oakwood and a contractor, but apparently the damage could not be repaired. Oakwood obtained permission to install a well on the access outlot land to pump groundwater into the lake as needed to maintain an acceptable level. There may be a DNR permit involved, and there may be an annual limit on gallonage used. C. 21st Century Bank Involvement The Bank provided all of the construction financing for the BF plats. After 2007, the loans went into default, and the Bank eventually foreclosed its mortgages, taking title on March 30, 2010. As the foreclosure period came to a close, the Bank, the City and Oakwood negotiated the terms of an agreement designed to allow for an orderly transfer of title to about 78 unsold but completed lots and several large future -development outlots to the Bank. The Bank at this time was obligated to fund some letters of credit, and the agreement that was reached in written form allocated the responsibilities for various items among the parties. It was by that time known to the Bank that the organizational documents and Declarations regarding the HOA were severely lacking in enforceability, establishment of dues and even scope, since there was no mention of the 170th Avenue median maintenance, the roundabout maintenance or the Brookfield Lake well. One of the provisions of the settlement agreement was that the Bank and Oakwood would make good faith efforts to breathe life into the HOA, but with the disclaimer that neither the Bank nor Oakwood would or could guarantee that dues could be collected from residents. This was due to the fact that owners who had already closed and built on their lots had done so with no actual recorded documents requiring them to pay dues. The agreement among Oakwood, the Bank and the City did not cover the issue of the pond level. The City took the position that their sole interest in the pond was as a drainage easement, for storm water runoff. The liner was not a City requirement. The Bank, by foreclosure of the