Minutes - Council - 01/11/2005 - Laserfiche WebLink

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Motion carried. Voting Yes: Mayor Gamec, Councilmembers Elvig, Cook, Jeffrey, Olson, ?carson, and Strommen. Voting No: None. Case #7: Consider Authorization for Sewer and Water Trunk Charge Hook-Up Rate for Ramsey Town Center :2~a Addition City Administrator Norman stated that Ramsey Town Center (RTC) entered into an option agreement approximately two years ago. with D.R. Horton, a major housing developer, to construct approximately 60 acres of the residential development, amounting to approximately 900 dwelling units, in the Town Center. Recently negotiations have been underway to create an amendment to the option agreement that would reduce the role ofD.R. Horton to a 12-acre parcel in the Town Center, also known as Ramsey Town Center 2nd Addition. Limiting the role of D.R. Horton would allow for more housing development variety and allow more building projects to happen concurrently rather than on a consecutive basis as proposed by D.R. Horton. Staff has been supportive of the negotiations between the RTC and D.R. Horton. City Administrator Norman explained the allocation agreement for the RTC 2nd Addition allows the developer to pay for the sewer and water trunk hook-up charges at the time of the building permits rather than the usual method of paying them at the time of final plat. That being the case, the building permit fees have not been initiated and the sewer and water trunk hook-up charges have not been paid. In order for the option agreement between RTC and D.R. Horton to be completed, D.R. Horton has requested that the 103 residential units in RTC 2nd Addition be able to use 2004 sewer and water trunk hook-up fees. He advised staff believes that allowing 2004 sewer and water trunk hook-up fees is a small price to pay for a better residential development in the Town Center and would recommend Council authorize the rates to complete the option agreement. Staff would further recommend that future allocation agreements do not allow for sewer and water trunk hook-up fees to be deferred at time of final plat. City Attorney Goodrich advised the sewer and water rates were adopted by ordinance, and would need to be amended by ordinance. This relates to 103 lots and the difference between the 2004 rates versus the 2005 rates is $107,000. An ordinance has been.proposed to amend that accordingly. The ordinance could be introduced this evening if that is the direction the Council would like to take. Mayor Gamec stated there was quite a c0ncem in regards to the variety of housing with one developer owning all of the development. D.R. Horton discussed the possibility of lower priced housing and he took it upon himself to say no to that. Also, the Council had looked at having a variety of builders and not just one style of townhomes, which should allow more variety. He did check to see if there are any other developments this would affect, and it does not seem to affect anyone else. There will be statements included to protect the City from having to apply this to other developments. Councilmember Strommen inquired who requested that these fees be paid at the time of building permits, rather than at final plat. City Council/January 11, 2005 Page 13 of 18