Minutes - Council - 08/02/2011 - Special

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CC Special Session Meeting Date: 08/02/2011 By: Chris Anderson, Community Development Title: Consider Amendment to Development Contract for Cross of Hope Addition; Case of Cross of Hope Background: In January of this year, Cross of Hope received final plat approval and site plan approval for a building addition. Subsequent to the approval of the Plat, Site Plan, and Development Contract for Cross of Hope, City ordinances were amended related to financial sureties for required improvements. This amendment provides the opportunity to utilize an alternative to a financial surety only for private, on -site improvements. Any public improvements, such as the turn lane on 179th Lane, are still subject to the traditional financial surety requirement (125% of the City Engineer's estimated cost of improvements). Cross of Hope has requested that the Development Agreement be amended to utilize this now available alternative option. Cross of Hope signed the Development Agreement on July 10, 2011, which included the requirement for the full surety. Thus, Staff assumed that Cross of Hope would be providing the full surety as agreed upon in the contract by and between the City and Cross of Hope. On July 28, 2001, the City received a request to amend the Development Agreement to include the alternative surety language. Observations: Paragraph E of the approved Development Agreement states: Staff has amended this section of the Development Agreement to read as follows: 4. 1. "Stage I Improvement Financial Guarantee. The PERMITTEE shall provide a financial guarantee to the CITY guaranteeing the construction of the Stage I Improvements and their timely completion. The PERMITTEE shall be responsible for a financial guarantee in the amount of Four Hundred Seventy Four Thousand Nine Hundred Twenty Dollars and No Cents ($379,936 x 1.25 = $474,920.00), which amount is 125% of the City Engineer's estimated cost of Stage I Improvements. The financial guarantee shall be deposited with the CITY at the time of execution of this Contract. Upon completion of Stage I Improvements (including the removal of "temporary" erosion control measures as identified in the approved Grading Plan), acceptance by the CITY, supported by appropriate lien waivers, any surplus remaining balance in the CITY' s escrow account shall be promptly refunded to the PERMITTEE." Stage I Improvement Financial Guarantee. The PERMITTEE shall be responsible for a provide a financial guarantee for the Stage I Improvements to ensure timely completion of the Stage I Improvements to the CITY guaranteeing the construction of the Stage I Improvements and their timely completion. PERMITTEE agrees that the Certificate of Occupancy shall not be released until the Stage I Improvements are completed. The PERMITTEE shall be responsible for a financial guarantee for any remaining Stage I Improvements that are not complete at the time a City required Certificate of Occupancy is requested by PERMITTEE equal to the amount of 125% of the City Engineer's estimated cost of the remaining Stage I Improvements. Seventy Four Thousand Nine Hundred Twenty Dollars and No Cents ($379,936 x 1.25 — $171,920.00), which amount is 125 ° / of the City Engineer's estimated cost of Stage I Improvements. The said financial guarantee shall be in the form of a letter of credit or cash escrow held by the CITY. PERMITTEE agrees to provide the CITY with documentation from applicable utility companies that said utility work has been satisfied as to Stage I Improvements and properly paid for said work or provide appropriate lien waivers. The PERMITTEE may apply for reductions in the Letter of Credit or cash escrow as the Stage I Improvements are completed and accepted by the