Agenda - Council - 02/23/2016 - Laserfiche WebLink

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Orr Uission: To work together to resposihty grow our community, and to provide quality, cost-effective, and efficient government ierwlcea. CC Regular Session 7. 2. Meeting Date: 02/23/2016 By: Tim Gladhill, Community Development Information Title: Adopt Resolution #16-02-042 Approving Requests Related to Harvest Estates Housing Development; Case of G S Land LLC Purpose/Background: Purpose: The purpose of this case is to discuss with Council Harvest Estate's request for an extension to their Development Agreement (Phase 1) and an extension to their Purchase Agreement for Lot 25, Block 1, Harvest Estates (Phase 2). Background: • On January 14, 2015, the City executed a purchase agreement with NIK Management, Inc. for approximately twenty (20) acres located at 15153 Nowthen Blvd NW to be developed in two (2) phases. • On March 9, 2015, NIK Management assigned the Purchase Agreement to G S Land, LLC. • On June 16, 2015, the City entered into a Development Agreement with G S Land, LLC for Phase 1 development (32 out of 44 lots) Notification: Notification is not required for the extension. Observations/Alternatives: Regarding the Development Agreement for Phase 1 (with future implications to Phase 2): The Developer agreed to install an interim cul-de-sac where the current public road terminates near the former Police Department building in the event Phase 2 does not commence by June of 2016. The City secured a financial guarantee as a performance guarantee that the Developer would perform on this obligation. The Developer is not anticipating construction of Phase 2 prior to the current deadline and is requesting a one-year extension as outlined in the attached materials. Phase 1 required improvements are substantially complete. Only final lift of asphalt and ancillary punch list items remain. The financial guarantee was reduced to reflect completed requirements, but sufficient amount has been retained to complete final items. Please note the previous case on this agenda related to the demolition of the former municipal center buildings. The demolition of these buildings will likely result in the need to remove the parking lot that is being used as the current interim cul-de-sac, and will need to be replaced upon completion of demolition. This does add a layer of complication in timing of that project and the extension. Nonetheless, Staff feels it is appropriate to grant the extension, and utilize the Developer's financial guarantee for physical improvements or reimbursement of reconstruction of the interim cul-de-sac in the future if necessary. In addition, staff will explore an alternative in the demolition contract to keep a portion of the existing parking lot in-place to serve as the interim cul-de-sac, Alternatives: 1. Grant one-year extension to the Development Agreement performance standards as requested by Developer, provided financial guarantee is retained. Developer would forfeit this financial guarantee if Phase 2 does not