Agenda - Planning Commission - 06/03/2004

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City Attorney Goodrich explain:~d as it is written this is stating if the City a~ees it can extend the performance by thc dcvelop~:r o~' if the developer agrees it can extend the perfonrtance by the City. l--[e explained "of' another' is the key word. He noted Section 7.2 should read "Parkland and Trail Agreement Plan" rather than "Master A~eement''. The City does have the recording data back on thc Master Development Agreement. Councihnembcr Kurak question,.:d it? the Master Development Ageement can be changed without thc other party being pr~?s~nt. City Attorney.Goodrich exp/aim:d this will be in addition to the Master Development A~eement according to paragraph 4.11 of tl,al agreement. Councihnember Elvig inquired ~bo~t Section 5.4. Assistant Public Works I)irector Oison explained it has always been the intention that the City will finalize each of the plans theft go forward, which is why the 4.2 million dollar improvements were reitenm:d. If there is a chat,ge ire the cost of some of these items shown on the concept plans then that money can be roll~5¢t into the improvements of another aspect that was not included in thc original proposal. Mc explained that the City is the ultimate authority approving what goes into their parb;. Motion by Councilmember Cook seconded by Councilmember Elvig, to recommend acceptance of the RTC Parks Proposal by ame~Kiing the Master Development Agreement by entering into an the attached agreement cc, nfingen~ t~pon the changes that the Parks Commission recommended, and with Section 7.2 amended to ::tare "The Developer must record this Parkland and Trail A greelll eD t..." Fmxhcr discu~4sion: City Attot-ne5 ©oodrich stated he wants to be sure the Council is aware of what is being done with thc letter )f axgreement, as it is a change from the Master Development Agreement. Mayor Garnet questi.mcd if the letter of credit will be in phases. Assistant Public Works Director Olson explained t~erc are fbur parks included in. the original proposal. [n total there is a dedication of 2 l_5 acres )f/and that is upland and not encumbered with water. If the developer were to default on the ~\ faster Development Agreement that land has value, and they are using that value as a surety to ~nake sure the improvements are done in those parks. The land will be transf;zrred to the (:ity by title as an Outlet. 4.2 million dollars is the improvement cost, and the impro,/en~ents would be pitas~:d starting with East Town Center Park and South Park. The developer will be able to add ~he value of the land that can be put forward toward the construction. Ccmneilmember Cor~k clarified after the developer completes one park the value of that park and the hnprovemcnts on it are escrow for the next park they work on. Assistant Public Works Director Olson responded t!~al: is correct. They would have the building value on top of the land and would receive more c~ edit for the improvements they put within the parks. The credit would continue to build as tt~e rest of the parks get built out. This credit would only be used fbr the improvements in the p irk:;; not the value of any other part of the work being considered. Mayor Gamec asked v,he~'e the credit is for the development of the first park. Assistant Public Works Director Oson replied the developer will be paying for the improvements. Mayor Gamec que~,tio}~ed how that is known. Assistant Public Works Director Olson explained the City has only ~ pp:.,'oved two developments so far, which are the PACT Charter School and D.R. Herren. ).n escrow for those improvements, which is about $250,000 Council/April 27, 2004 Page 31 of 33 P53