Agenda - Council Work Session - 03/28/2017

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NOW THEREFORE,the CITY agrees in principle to the following: 1) The City will act as the petitioning party for the Arterial Infrastructure improvements project as required by State Statute, Chapter 429. 2) The City will design Arterial Infrastructure Improvements for Phase IA and Phase 1B of the Bolton&Menk Arterial Infrastructure Analysis and prepare plans and specifications. 3) The City will administer the State and City guided processes for bidding, constructing, and assessing costs for the Arterial Infrastructure Improvements. 4) The City will pay for 100% of trunk water and trunk sanitary sewer costs via the City's trunk water and trunk sewer funds of Phase IA and Phase 1B outlined in the Bolton & Menk Infrastructure Study. 5) The City will pay for the remaining arterial infrastructure costs for Phase IA and Phase 1B outlined in the Bolton&Menk Infrastructure Study,not assessed to private properties. 6) The City will consider the EDA Fund (January 01,2017 balance of$829,000) and the Anoka County HRA/EDA Ramsey Account(January 01,2017 balance of$1,483,000)as the primary funding sources for this project. NOW THEREFORE,CAPSTONE HOMES agrees in principle to the following: 1) Capstone Homes will enter into an assessment agreement to be recorded against real property to pay for 40%of applicable arterial infrastructure improvements for Phase 1B outlined in the Bolton&Menk Infrastructure Study. 2) Capstone Homes will enter into an assessment agreement to be recorded against real property to pay for 16%of applicable arterial infrastructure improvements for Phase IA outlined in the Bolton&Menk Infrastructure Study. 3) Capstone Homes assessment conditions will include a five (5)year term, and an interest rate consistent with the City's assessment policy. In the event lots are sold before the five (5) year term expires, assessments on said lots will be due,in-full, at the time of sale. 4) Capstone Homes will supply a letter of credit meeting City standards,for 110% of their portion of arterial infrastructure improvements. This letter of credit will remain in place until assessments are paid off; and can drawn down in phases. NOW THEREFORE,HAGEMAN HOLDINGS agrees in principle to the following: 1) Hageman Holdings will enter into an assessment agreement to be recorded against Lot 1, Block 1,Alpha Development Plat to pay for 24% of applicable arterial infrastructure improvements for Phase IA outlined in the Bolton&Menk Infrastructure Study. 2) Hageman Holdings assessments will be due at the time of closing on future land sales; and shall accrue interest. Page 2 of 3