HomeMy WebLinkAbout10B - Plat Application Requirements
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
FEBRUARY 2, 2009
108
DANETTE PARR, COMMUNITY DEVELOPMENT AND NATURAL
RESOURCES DIRECTOR & STEVE ALBRECHT, DIRECTOR OF PUBLIC
WORKS
CONSIDER APPROVAL OF A RESOLUTION AMENDING PLAT
APPLICATION REQUIREMENTS
Introduction
The purpose of this agenda item is to consider modifying the submittal
requirements for future plats to include the collection of escrow funds to cover
ongoing development costs.
Historv
When platting applications are submitted, the developer pays an application
fee (preliminary plat-$500.00 + $10/lot and final plat-$150.00 + $5/1ot), which is
intended to cover the cost associated with the necessary public hearings. A
fee to cover staff, City Attorney, consultant, and other administration time is
collected at the time of final plat and the development contract (through an
administrative fee, equaling 4% of development construction costs).
As development has slowed in recent years and some developers have
experienced difficulty in progressing beyond the preliminary plat stage of the
development process, the City has had multiple requests for extensions of the
time the preliminary plat is valid. The City's Subdivision Ordinance and State
Statute require the submission of a final plat within 12 months from the
preliminary plat approval, unless the developer requests it and the City Council
approves an extension. The City has generally accommodated these requests
where the situation warrants, but as a condition of approval has required
reimbursement by the developer for City staff, City Attorney, and consultant
fees incurred up to that point. This was the case for the following
developments, where the following fees were reimbursed to the City by the
developer: Summit Preserve ($31,979.71), and Maple Glen 3rd Addition
($17,300). There have also been cases where the City has been unable to
recoup costs previously expended for City staff, City Attorney, and consultant
time when the developer does not follow through with the project. Three such
cases were Pike Lake Meadows ($19,762.76 unpaid to the City), the Enclave
2nd Addition (approximately $7,600 unpaid to the City), and Golden Pond
($7,789.72 unpaid to the City). In light of this, City staff has discussed creating
an alternative to financially protect the City. The escrow approach will
accommodate the collection of administrative costs earlier in the process,
rather than collecting these fees entirely at the time the final plat and
development contracts are considered by the City Council.
Current Circumstances
Currently, until these administrative costs are paid as part of the final plat and
development contract, the City of Prior Lake essentially is subsidizing these
expenditures from within the City's budget. An escrow would allow for a
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
ISSUES:
FINANCIAL
IMPACT:
ALTERNATIVES:
RECOMMENDED
MOTION:
RevCNed ~y:
\~-
Frank Boyle I Ci
guarantee of the costs associated with the development as it progresses
through the application review and approval process, while not increasing the
overall costs to the developer. Any funds that were allocated from the escrow
amount would be deducted from the total fees required at the time of the
development contract. This practice is common among other communities
(see attached spreadsheet detailing escrow requirements for Burnsville,
Savage, Shakopee, Eden Prairie, Lakeville, and Scott County).
In a time of financial difficulty for many developers, City staff is conscious of
the element in the 2030 Vision and Strategic Plan requiring that new
development must pay for itself. The staff is proposing the City subdivision
ordinance and 2009 fee schedule be amended to require the collection of an
escrow at the time and condition of both to require the collection of an escrow
at the time and condition of both preliminary and final plat approval.
City staff is proposing the following escrow amounts for future developments:
. 3 lots or fewer-$1 ,000
. 4 to 10 lots-$2,500
. 11 or more lots-$5,000
Throughout the review process staff will evaluate the status of the amount
escrowed to determine if additional funds will be needed when an escrow is
depleted to a level that would appear inadequate for that stage of the
preliminary or final plat process. Many cities in the metropolitan area have
adopted this approach.
Requiring an escrow at the time of preliminary and final plat application
submittals will require developers to pay for staff, City Attorney, and consultant
time as services are rendered, versus the procedure currently used which
places the City in a position of subsidizing future development until City
Council considers approval of the final plat and development contract. If an
escrow requirement is put in place, this will safeguard the City from any future
financial risks associated with developments that do not progress to the final
plat and development contract stage of the process.
The City Council has three alternatives:
1. Adopt a resolution amending platting requirements to include the submittal
of an escrow.
2. Deny the request to amend platting requirements.
3. Direct staff to provide the Council with further data and bring the item back
before the Council at a later date.
Staff recommends Alternative #1.
.I A motion and second adopting Resolution #09-XX approving an amendment to
the plat application requirements.
~v-...
I
I
lIIanager
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
RESOLUTION 09-xxx
AMENDING PLAT APPLCIATION REQUIREMENTS TO REQUIRE THE SUBMITTAL OF AN
ESCROW
Motion By:
Second By:
WHEREAS, The City has not previously required an escrow as a platting application
requirement, but instead has collected an administrative fee at the time the
development is submitted to the City Council for final plat approval; and
WHEREAS, Some preliminary plats are not submitted for final plat approval or the City Council
has granted an exception to the deadline for submission for a final plat;
WHEREAS, There have been situations where the City has not been able to recoup costs
already expended for City staff, City Attorney, and consultant time; and
WHEREAS, The 2030 Vision and Strategic Plan recognize the importance of development
paying for itself without being subsidized by the City; and
WHEREAS, It is a common practice among cities and counties to collect an escrow for this
purpose; and
WHEREAS, The need exists to safeguard the City budget by requiring an escrow from
developers at the time of both final and preliminary plat application submittal.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City is hereby authorized to require the following escrow amounts at the time of preliminary
and final plat submittal:
. 3 lots or fewer-$1 ,000
. 4 to 10 lots-$2,500
. 11 or more lots-$5,000
3. City staff is hereby authorized to require additional escrow funds from the developer in cases
where the funds have been drawn down to an insufficient level, as determined by the Finance
Director.
PASSED AND ADOPTED THIS 2nd DAY OF FEBRUARY 2009.
YES
NO
Haugen
Erickson
Hedberg
LeMair
Millar
Haugen
Erickson
Hedberg
LeMair
Millar
Frank Boyles, City Manager
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
ESCROW FOR PRELIMINARYIFINAL PLATS
CITY APPLICATION FEES ESCROW COMMENTS
AMOUNTS
Prior Lake Preliminary Plat $500 + $10/10t 0
Final Plat $150 + $5/10t
Shakopee Preliminary Plat $2,700 $13,000 Finance Dept sends out a monthly balance. It is up
Final $1,410 $12,700 to the Director to decide level for additional funds.
Must have appropriate amount in fund for city to
proceed with work.
Savage Preliminary Plat $750 $5,000 No level amount for additional funds - depends on
Final $350 + $5 per lot Escrow for excess project. Applicant is notified of amounts. City will
stafftime $87/hr not continue until all additional fees are paid.
for City
Planner~ngineer
Eden Prairie Preliminary Plat Development The escrow fund includes services from Planning
Residential: Deposit Agreement dept and City Attorney fees. Any traffic study or
0-10 Units $450 + $5/unit is required for all additional info needed will be deducted. City
11 or more Units $560 + $5/unit land development charges $1001hour after escrow is used up. The
ComJOfficelIndus: applications. City sends an itemized statement - the amount does
0-3 Acres $450 + $25/ Acre not need to be paid until project is finalized. At
3.1 or More Acres $575 + $25/Acre 0-40 Acres $3,700 this time the Engineering Dept does not charge for
41-80 Acres $4,040 their work. Fees are being considered. The City
Final Plat: 81 or more $4,610 also charges a number of flat fees for services i.e.
Residential $571Unit ($320 $150 for publication of project.
Minimum)
Com/Office/Ind $138/Acre ($320
Minimum)
R:\Council\2009 Agenda Reports\02 02 09\Plat Application Attachment for Escrow Report.doc
1
Scott County Preliminary Plat Finance Dept uses "City View" program to send out
10 lots or less $900 $1,000 monthly statements.
11-25 lots $900 $2,500
26 lots or more $900 $5,000
Final $366 $1,000
Burnsville Preliminary Plat $630 $5,000 The applicant shall be required to reimburse the
Final Plat $630 $5,000 City for all out-of-pocket expenses the City incurs
in having consultants and its attorneys review the
Combined Prelim $660 $5,000 application. The City may require a deposit on the
and Final anticipated costs before processing the application.
Fees and charges will be collected and administered
by the department providing the service. Work will
stop until the escrow account it paid. Finance sends
out monthly bills.
Lakeville Preliminary Plat $300 + $5/10t $2,000 Preliminary Plat requires an additional engineering
Final Plat $200 + $5/10t $2,000 $ 150/acre fee - $500 minimum to a $3,200
maxImum.
Final Plat requires additional $150 per acre with a
$500 maximum.
Will not take Final Plat to City Council until all fees
are paid in full.
R:\Council\2009 Agenda Reports\02 02 09\Plat Application Attachment for Escrow Report.doc
2