Agenda - Council - 07/26/2016 - Laserfiche WebLink

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7. COUNCIL BUSINESS 7.01: Consider Adopting Resolution #16-07-131 Approving Development Agreement for Station: Case of D.R. Horton, Inc. Community Development Director Gladhill reviewed the staff report and recommendation to approve 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 Agreement and sureties. He noted that 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, which assisted the City to develop the previous Master Development Agreement. He stated that staff recommendation is contingent upon final review by the City Attorney, noting that due to the timing of submittal of the proposed revisions, the City Attorney has not had an opportunity to complete a final review but advised that it had been discussed in concept. He stated that a significant policy change occurred after the publishing of the agenda and therefore the City Council should not feel obligated to make a decision this evening and more time could be allowed to digest the updated information. Councilmember Kuzma asked the funding source that would be used to cover the shortfall. Community Development Director Gladhill stated that the public improvement revolving fund is the primary source as that fund has a balance that well exceeds this cost. Councilmember Riley stated that this appears to be the clean-up measures from the Ramsey Town Center (RTC LLC) and believed that this would be a good move to assist in cleaning up those items. Community Development Director Gladhill confirmed that the City has gotten into situations similar with other developments where the letter of credit was not sufficient to cover the remaining infrastructure needs. He confirmed that this is a clean-up item from the RTC LLC days. Mayor Strommen asked if D.R. Horton developed the figures and whether they were verified by staff. Community Development Director Gladhill stated that this was prepared from representatives from D.R. Horton and reviewed by City staff. He noted that City staff would again review the figures before moving forward. Motion by Councilmember Kuzma, seconded by Councilmember Riley, to Adopt Resolution 916-07-131 Approving Development Agreement for Station. Motion carried. Voting Yes: Mayor Strommen, Councilmembers Kuzma, Riley, Johns, LeTourneau, Shryock, and Williams. Voting No: None. City Council/July 12, 2016 Page 4 of 7