Agenda - Council - 12/10/2019 - Laserfiche WebLink

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CC Regular Session Meeting Date: 12/10/2019 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development 5. 7. Information Title Adopt Resolution #19-287 Approving Partial Release of Right of Re -Entry Agreement for Completion of Stage I Improvements for Cottages at the COR Purpose/Background: Purpose: Consider Partial Release of Right of Re -Entry Agreement for Completion of Stage I Improvements for Cottages at the COR Background: The City of Ramsey entered into a Right of Re -Entry Agreement with Centra North, LLC , recorded as document number 2215051.007 in the Anoka County Recorder's Office to ensure that the property would develop according to the approved site plan and within the approved project deadline. The City of Ramsey entered into a Right of Re -Entry Agreement with Centra North, LLC , recorded as document number 2233729.001 in the Anoka County Recorder's Office amending that Certificate of Occupancy date from October 1, 2019 to December 31, 2019 for the first five homes. Centra North, LLC is required to present Certificates of Occupancy over a three year documenting the the project has been completed according to terms of the amended agreement and within the deadline. Section 4 of Amended Right of Re -Entry Agreement allows for a partial release of the Right of Re -Entry Agreement if the Stage I Improvements are completed to the satisfaction of the City. If Section 4 is released the City relinquishes the right to take the property back due to non-performance. Centra North, LLC. has requested that the City release itself and the entire Cottages at the COR plat from Section 4 of the Right of Re -Entry Agreement. The ability for the City to impose a $20,000 penalty per lot that does not receive a Certificate of Occupancy would remain in place. Notification: Notification is not required. Observations/Alternatives: The City has inspected the Stage I Improvements and has considered them satisfied per Section 4 of the Amended Right of Re -Entry Agreement. Centra North, LLC has drafted a Release of Right of Entry Agreement that has been reviewed by the City Attorney. The attached release will satisfy the request by Centra North, LLC. and maintain the remaining city remedy to impose a $20,000 penalty for each lot that does not receive a Certificate of Occupancy prior to the required deadline. The Developer has invested a significant investment in the project to the tune of several hundred thousand dollars and is nearing completion of five (5) units. The City typically relinquishes the right of re-entry at this stage, and retains the right to impose future financial penalties if future benchmarks are not met. The right of re-entry is really intended to ensure a project commences, which it has. It would not seem reasonable to take the property back at this stage. Funding Source: This case is being handled as part of normal Staff duties. Recommendation: