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AGENDA #:
PREPARED BY:
SUBJECT:
DATE:
BACKGROUND:
DISCUSSION:
STAFF AGENDA REPORT
7B
FRANK BOYLES, CITY MANAGER
REQUEST FROM SUZANNE KRUSE, ERNIE LARSON AND
JOHNSON-REILAND CONSTRUCTION COMPANY
SEPTEMBER 19, 1994
The City Council approved an administrative land division for 6096 150th
Street SE on August 15. The land division and lot width variances were
subject to numerous conditions. One of the conditions required that the
existing home and all structures on the parcel be removed within 60 days,
i.e. October 15, 1994. This requirement, while essential, has created
problems in the execution of the proposal. This memorandum proposes a
means by which execution of the lot division can be accomplished while
conforming with the Council's conditions of approval.
We have received telephone calls from representatives of
Johnson-Reiland Construction Company indicating that they are unable to
secure financing for the construction of homes on this parcel until lots of
records exist. The Council's approval required that lots of record could
not exist until the buildings are demolished. Johnson-Reiland need the
money from the bank to complete the purchase of the parcel from Ms.
Kruse and to finance demolition of the buildings.
In lieu of requiring that all contingencies be satisfied before lot division,
we have formulated the following alternative solution:
1. Ms Kruse and Johnson-Reiland be required to submit a
letter of credit payable to the City of Prior Lake in the amount
of $25,000.
2. Johnson-Reiland and Ms. Kruse would be responsible for
paying for and executing an agreement drafted by the City
Attorney which would authorize the City to complete any and
all demolition work in the event that it is not completed in
accordance with the conditions contained within the August
15, 1994 City Council Approval.
The letter of credit is intended to cover all costs, including staff costs
associated with this matter. The agreement would provide us with the
legal authority to enter onto the property to complete demolition so that
the property is ready for the development of two houses in accordance
with the Council's approval.
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4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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ISSUES:
ALTERNATIVES:
This alternative solution is not without its disadvantages. It involves
considerably more staff time. This may not create a problem at this time
of year during this particular year, but in the future as development
pressure increases, we may simply not be able to be this flexible. I
expect we could be accused of favoritism by some future developer if
similar circumstances present themselves and we are unable to
accommodate them. On the positive side: The Council's approval of this
request would demonstrate a continued interest in seeing that quality
development occurs in a well reasoned fashion.
Council has the following alternatives:
1. Approve the submission of a letter of credit and preparation
and execution of an agreement between the City and
petitioner.
2. Take no action on the basis that the City should not involve
itself in the financial concerns of others.
RECOMMENDATION: Alternative #1 .
ACTION REQUIRED:
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I have received permission from representatives of Johnson-Reiland
Construction to proceed with the preparation of the agreement including
their willingness to pay up to $500 for the completion of this document.
Council's approval above should include the authorization that the Mayor
and City Manager execute the agreement once completed.
Motion and second to approve the agreement including authorization for
Mayor and City Manager to execute the completed agreement.
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