Agenda - Planning Commission - 10/06/2005

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and a business jud~,nment would be made on the value. This would ultimately become the Finance Officer's call under the City ordinance, unless the Council removes, that authority. Mayor Gamec stated the decision is the responsibility of this City Council. Councilmember Elvig noted the City wanted this development to blossom, which' is now happening. This is resulting in a problem with cash flow for the developer, which is the reason for an alternative in sureties. Councilmember Strommen noted part of the problem is that the Council has dealt with this issue a couple of times, and it has always been a discussion at the City Council lextel. Part of her hesitation would be changing that Council participation. Assistant Public Works Director Olson explained the following proposal came to the table from the developer today: The developer is offering to pay 100% of all the imProvements.required for the improvements of Ramsey Town Center .Subdivisions 6, 8, 9 and 10. The security requirement would be reduced based on the construction that is completed.. The City ordinance requires the developer to provide 125% of the engineering estimate on the improvements, which amounts to approximately $466,000. The proposal on the table was that the developer provide land that is valued at $3.8 million for the remaining 25% in sureties. The developer is not trying. to skimp and break that land up; they are proposing to provide that land for security, with the City turning it back after the improvements are completed. From his perspective this is not a difficult call to make. Councih.nember Elvig indicated he does not have a problem with staffproceeding on this as long as due diligence is done and the City has first position on the land. If there is anything different than what has been explained it should come back to the Council for authorization. City Attorney Goodrich advised it should be adequate if the developer can provide a title insurance policy that shows no mortgages or liens, and shows a clear title. This has been done in the past. Motion by Councilmember Strommen, seconded by Councilmember Cook, to authorize staff to proceed with RTC, LLC in the determination of financial sureties for improvements of Ramsey Town Center Subdivisions 6, 8, 9 and 10 with 100% of the sureties provided in cash and 25% of the sureties provided in land, contingent on the following conditions: I. RTC, LLC is able to provide clear title to the land with no encumbrance 2. Land value is at least $750,000 in order to secure $500,000 of security Any variation from the above terms will require Council action. Motion carried. Voting Yes: Councilmembers Strommen, Cook, Elvig, Jeffrey, Olson, and Pearson. Voting No: Mayor Gamec. City Council / August 23, 2005 Page 27 of 28 P43