Minutes - Council - 02/14/2006 - Laserfiche WebLink

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Oakwood Land Development will be able to have the opportunity to receive back hook up fees on by approximately 400 acres. Councilmember Elvig inquired if there will be a letter of credit put into place for the $6,000,000.00 from Oakwood Land Development. He requested clarification that Oakwood Land Development will still pay hook up fees on other projects. City Attorney Goodrich responded in the affirmative. He explained Oakwood Land Development will pay hookup fees on approximately 450 lots right away. At that point they will pay about $1,500,000.00 and then pay $4,500,000.00 in addition. Over time, as other lots in the City develop, they will receive hookup fees back towards the $4,500,000.00. In the 15 years of this project, if there are enough hookup fees assessed, Oakwood Land Development could receive back their entire $4,500,000.00, or they could fall short of that, depending on bow development goes in the City. The area where Oakwood has the opportunity to receive back the hookup fees is being expanded in this agreement. Assistant Public Works Director Olson advised the area north of Trott Brook has not been guaranteed to be served with water and sewer, but if a future Council decides to allow for that, the area would be reimbursable towards the cost of this project. City Attorney Goodrich indicated similar language to the following will be added to Section 3.03., line 5 of the agreement: "...of the water hook-up fee paid by the first 2,348 lots and additional area identified as follows:.., that staff has identified as about 400 acres." Councilmember Elvig inquired if there will be any sliding scales associated with the present time cost for hookup and the future anticipated cost for hookup. City Attorney Goodrich replied Oakwood Land Development will receive hookup costs at the time the hookup is made. As that cost increases they will get back the increased amount, but in no event will they get back more than the $6,000,000.00. Motion by Councilmember Cook, seconded by Councilmember Pearson, to enter into the Watermain and Sanitary Sewer Cost Contribution Agreement with Oakwood Land Development Inc. reviewed on February 14, 2006, subject to final approval by City Attorney as to legal form and content. Further discussion: Councilmember Elvig questioned if Oakwood Land Development is in agreement with this agreement. City Attomey Goodrich replied there are details of the agreement to be worked out, but the City Administrator, City Engineer and John Peterson of Oakwood Land Development have worked out the overall concept. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Cook, Pearson, Elvig, Jeffrey, and Olson. Voting No: None. Absent: Councilmember Strommen. City Council / February 14, 2006 Page 10 of 26