Agenda - Planning Commission - 06/03/2004

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of park escrow, would be set up. In staff's opinion there is enough security with the land value and the City is not really at risk. The park and trail fees would come forward to pay for the improvements .in the park systera. He indicated the developer has. already invested 21.5 acres and that is available for credit against t. he development. Otherwise the City should give Pact Charter and D.R. Horton their money back. There is a value in what the developer is giving the City and as the developer gets approval in the future staff will keep track o}'how much is available as far as credit. That can be applied towards the development that comes forward. Once they reach that level he hopes to have some of the improvements done within the East Town Center Park and South Park, and the value will build. Councilmember Cook indicated in the worst possible scenario West Park could be sold and the other three parks could be constructed from the funds. Councilmember Elvig noted the developer is still under perfomaance obligation in the Master Agreement, and there is a Fetter of credit with additional securities and lands. In addition, the 4.2 million dollars in improvements are all hard costs, and the City is not seeing any soft costs, which are likely more than two million dollars just to develop the parks. Councilmember Kurak questioned what lanvin,rage is included in the development agreement to protect the City from future councils or staff selling off property, if the City were to acquire it from the developer. City Attorney Goodrich explained the land would be coming to the City free of encumbrances. There is no obligation other than that the new council would'be going against the City ordinance to require parkland dedication for development. This is really the same as the North Fork Park development agreement th,at was done over 25 years ago and they are still working off of that. The land is being used as security so in the worst case it could be sold for something other than a park. Councilmember Strommen questioned if selling the parkland would be the only fall back for the City. Assistant Public Works Director Olson explained if something were to happen and the developer were to default on the Master Development Agreement that would preclude the developer from continuing on with their obligations, the City would have the ability to start requiring park and trail fees for each development that comes forward. Councilmember Strommen clarified the City has other mechanisms to see the development of the parks if something should fall through with the developer. Assistant Public Works Director Olson responded that the City has other options. The Council has the ability to ' finance all of those improvements; however, he does not 'know that the City has that amount of money. The improvements could be staged over 15 to 20 years. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Cook, Elvig, Kurak, Pearson, Stronmaen, and Zimmerman. Voting No: None. MAYOR AND COUNCIL INPUT 1) Agreement with Sprint for Water Tower Lease Assistant Public Works Director Olson reported staff is working with Sprint PCS concerning an agreement to locate equipment on the water tower along Dysprosium and County Road 5. It is an entry and testing agreement and is not a long ten-n lease. This is a formality for Sprint to go in and to do some testing in and around the water tower to make sure their equipment is compatible with the area. The agreement would be contingent on review by the City Attorney. Motion by Councilmember Elvig, seconded by Councitmember Pearson, to approve an entry and testing agreement with Sprint PCS contingent on review by the City Attorney. P54 City Council/April 27, 2004 Page 32 of 33