HomeMy WebLinkAbout7B - Wilds / PL Dev. L.P.STAFF AGENDA REPORT
AGENDA #:
PREPARED BY:
SUBJECT:
DATE:
BACKGROUND:
ISSUES:
7B
LARRY ANDERSON, DIRECTOR OF PUBLIC WORKS
CONSIDER AMENDMENT TO DEVELOPMENT AGREEMENT FOR
PHASE I OF THE WILDS BETWEEN THE CITY OF PRIOR LAKE AND
PRIOR LAKE DEVELOPMENT L.P.
AUGUST 15, 1994
On August 1, 1994, the City Council discussed possible amendments in
concept to the Developers Agreement for Phase I of The Wilds. There
are 5 amendments which staff and the developer have concurred on, and
2 amendments which require further research. Glenn Kessel is
researching the financial guarantee for County Road 83 improvements
and will provide additional information to the Council prior to the meeting
along with the actual amendments to the Developers Agreement.
Please find attached Agenda Number 8 D from the August 1, 1994,
Council meeting, for further details.
The proposed amendments are as follows:
Security for Sterling South
Allow the one million dollar Letter of Credit and four million
forty eight thousand, four hundred ninety five dollar
($4,048,495.00) Performance Bond, originally authorized to
secure the improvements in Phase I, to also secure the
improvements for Sterling South.
The Council at the August 1, 1994, meeting concurred that
the security for Sterling South could be provided by utilizing
the existing Performance Bond and Letter of Credit for The
Wilds. The developer has completed approximately three
million dollars worth of improvements. Staff indicated at the
meeting that the security for Sterling South, with the 125%
guarantee, was estimated to be $687,500.00. In preparing
the Developers Agreement with updated costs, the required
security is $870,374.00. Staff believes that with
approximately three million dollars of improvements
completed the City is still provided with adequate security.
Deadline Date and Cost for Sanitary Sewer "AND WATER"
installation
Council agreed that completion of the sanitary sewer along
County Road 82 could be extended to August 1, 1995. The
developer would initiate work on the line by June 1, 1995, at
the latest or would be in default of the Agreement.
4629 Dakota St. S.E., Prior Lake, Minnesota 553.71.2-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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Not discussed at the meeting was the City's request of the
developer to increase the size of the sanitary sewer line
along County Road 82 by one pipe size. The developer has
agreed to this with no further amendment to the Agreement.
The developer has requested that the completion date for
installing the water booster station be extended from
September 1, 1994 to November 1, 1994. This was not
discussed at the meeting. The water system is now
connected to the City's water system, therefore the
temporary water system will no longer be used for domestic
use. The water booster station will elevate water pressure
for the higher areas of the development. It is anticipated that
about three units in the higher area may be occupied prior to
the completion of the booster station. One of the units will
be a model, and one will be occupied by Dick Burtness.
These units may experience lower water pressure if they are
watering their yards at the same time water is being used
inside. This may cause a temporary inconvenience in the
interim. In the event that a fire occurs, the temporary water
system can be utilized to increase pressure and fire flow
capacity.
Payment for Watermain
The Council agreed that the developer looping the
watermain to Fremont Avenue would relieve the developer
from having to pay the $42,000 for not installing the water
line on the north side of County Road 82.
Security for County Road 83 and Intersection Improvements
The developer suggested that the security be provided in
three forms:
-Confession of Summary Judgment. Glenn Kessel is
reviewing a financial statement of the developer to evaluate
the merits of this as security. Glenn will make a
recommendation on this prior to the meeting. Quarterly
review of the financial statement along with any changes is
recommended.
-Personal Guarantee. This is being considered by Glenn as
part of the review of the security to be posted.
-Stop next Phase if payment is not made. This would not
allow future Phases to develop if the first two securities do
not meet the developer's obligation to pay for his portion of
the road improvements in a timely fashion. A document
would need to be filed with the County to put purchasers of
Outlots on notice of this requirement.
Private Streets in The Wilds
Staff is researching the implementation of this, and private
streets will be addressed in the future separate from this
amendment.
MSA Consulting Engineers
The Council affirmed staff's position that MSA Consulting
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ISSUES:
FISCAL IMPACT:
ALTERNATIVES:
RECOMMENDATION:
ACTION REQUIRED:
Engineers will continue doing the inspection for the City on
The Wilds development due to the complexities of the
project. No amendment to the Developers Agreement is
needed.
No Further Amendments
The Council and developer agreed that no financial aspect
of the Developers Agreement will be amended.
The following is a summary of issues.
Security for Sterling South
- Acceptable to staff and developer
Deadline date and cost for sanitary sewer and water installation
- Acceptable to staff and developer
Payment for watermain
Acceptable to staff and developer
Security for County Road 83 and intersection improvements
Staff and developer working on
Private streets in The Wilds
Will be addressed in future
MSA Consulting Engineers
Council affirmed continued use of
needed
MSA, no amendment
No further Amendments
Acceptable to staff and developer
The Developers Agreement is not being significantly modified to change
City cost.
The alternatives are as follows ·
1. Approve the amendments as outlined and presented by City
Attorney.
Table this item with specific direction.
Do not approve one or all of the amendments to the Developers
Agreement for a specific reason.
Staff's recommendation is to approve Amendments 1, 2, 3 and 7. Amendment
#4 is being addressed by the City Attorney.
Depending upon City Council discussion, a motion may be in order to
approve amending the Developers Agreement between the City of Prior
Lake and ~:h~ Wilds Golf Club and Residential Planned Unit
Dev,~l~pmeqt; tMotion to include authorizing Mayor and City Manager to
sigrf th~ Am~ndm,,ent to the Developers Agreement.
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