Agenda - Council - 07/12/2016 - Laserfiche WebLink

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The cost share is proposed as follows: 1. D.R. Horton 1. Final Lift on 146th Avenue ($13,417.60) 2. Split Cost on public sidewalks ($19,319.60) 2. City of Ramsey 1. Base Course and Curb/Gutter Repair on 146th Avenue ($7,500) 2. Split Cost on public sidewalks ($30,383.50) Final note: this scenario exists in one (1) other known development from the original Ramsey Town Center (Ramsey Town Center 7th Addition/Symphony at Town Center by K Hovnanian) K Hovnanian is anticipating to sell their remaining asset. It is anticipated that this same settlement offer would be submitted to this Developer as well. Alternatives Alternative 1: Approve Development Agreement. The Agreement is a required tool that clarifies construction obligations of the Developer as a result of the City's approval of the Final Plat. It is a standard step in all new developments. The cost share on required improvements that were obligations of RTC, LLC under the previous Master Development Agreement seems reasonable (due to the fact that is was covered under multiple contracts recorded against the property). Unfortunately, there were more uncompleted obligations from RTC, LLC than the original Letter of Credit could cover. Alternative 2: Approve a Revised Development Agreement. The Agreement has been reviewed by the City Attorney. At this time, Staff does not anticipate a need for revision. Alternative 3: Do not approve the Development Agreement. Without the Agreement, liability is exposed to the City in the event of the default of the Developer. Funding Source: All cost associated with processing the Application are the responsibility of the Developer. The proposed cost share for uncompleted public improvements previously required of RTC, LLC would be paid for through the Public Improvement Revolving (PIR) Fund. Recommendation: Staff recommends approval of the Development Agreement, including the cost share agreement not to exceed $37,883.50, based on review of existing City obligations under the context of previous Development Agreements and sureties. The proposed Development Agreement and previous RTC, LLC associated agreements have been reviewed by the City Attorney as well as counsel from Briggs and Morgan that assisted the City develop the previous Master Development Agreement. Staffs recommendation is contingent upon final review by the City Attorney. Due to the timing of submittal of the proposed revisions, the City Attorney has not had an opportunity to complete a final review, but has been discussed in concept. Note: a significant policy change occurred after publishing of this agenda. The City Council should not feel obligated to make a final decision this evening if it needs more time to digest updated information. Staff did desire to keep this case on the agenda for this evening in the event the City Council is comfortable moving forward based on the information presented at this time. The project has encountered delays as the City worked through the review process, and Staff didn't want to lose the opportunity to avoid further delays if it was not necessary. Project of this scale commencing construction beyond this date begin to encounter reduced project windows due to winter conditions on the final stages of construction. Action: Motion to adopt Resolution #16-07-131 approving the Development Agreement with D.R. Horton, including the cost share agreement not to exceed $37,883.50 and subject to the review by the City Attorney as to legal form.