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MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
APRIL 16, 2007
51
STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS
CONSIDER APPROVAL OF A RESOLUTION APPROVING
AMENDMENT NO.1 TO THE STEMMER RIDGE DEVELOPMENT
CONTRACT
Introduction
The purpose of this agenda item is for the City Council to consider
Amendment No. 1 to the Stemmer Ridge Development Contract.
Historv
On June 6, 2006, the City Council approved the Development Contact for
Stemmer Ridge. In September 2007, the development was substantially
completed with the exception of Phase 2 which includes 18 lots. On
August 1, 2005, the City Council approved assignment of the
Development Contract from the original developer, Arcon Development,
to the current developer, Toll Brothers, Inc.
Current Circumstances
As part of the Stemmer Ridge Development Agreement the Developer
completed certain improvements on the City's behalf for which the City
agreed to reimburse the Developer. The costs related to the forcemain
air relief vault and watermain oversizing were estimated as noted in the
Development Contract. This was in recognition that the City would need
to make final design changes in the field which would result in additional
costs to the Developer. The work has been completed and the
Developer has requested reimbursement for these items along with a
City directed seed specification change for the Howard Lake Park which
is part of this development. The City's specifications have been changed
so that all future parks will incorporate this seed mix at no cost to the
City. The requested reimbursement which has been reviewed and
recommended for approval by staff is as follow:
Trunk Watermain Improvements: $ 18,825.00
Forcemain Air Relieve Valve Manhole: $ 27,000.00
City Park Seeding Specification Change: $ 6.180.00
Total Oversizing Reimbursement:
$52,005.00
In addition to the above reimbursement, the Developer has requested an
extension of the Completion Date for the phase 2 portion of the project
from December 31, 2006, to December 31, 2007. The extension is a
reflection of the fact that the Developer has several lots in inventory and
the building market has slowed substantially.
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ISSUES:
Staff does not have any issues with the reimbursement as the Developer
is owed these funds. Additionally staff recognizes there is an inventory of
unsold lots in the City and recommends granting the extension. The City
still has in place the Letter of Credit from the Developer guaranteeing the
completion of the improvements.
FINANCIAL
IMPACT:
The funding for the reimbursement shall come from the Trunk Reserve
fund in the amount of $45,825 and the Capital Park Fund in the amount
of $6,180. These funds are available for reimbursement to the
Developer.
ALTERNATIVES:
The alternatives are as follows:
1. Approve Amendment No, 1 to the Development Contract for Stemmer
Ridge.
2. Deny this item for a specific reason and provide Staff with direction.
3. Table this item until some date in the future.
RECOMMENDED Alternative 1.
MOTION:
R:\CouncillAgenda Reports\2007\04 16 07\Stemmer Ridge Amendment Agenda.doc
A RESOLUTION APPROVING AMENDMENT NO.1 TO THE STEMMER RIDGE
DEVELOPMENT CONTRACT
Motion By:
Second By:
WHEREAS, On June 6,2005, the Prior Lake City Council approved the Development Contract for
Stemmer Ridge with Arcon Development; and
WHEREAS, On August 1, 2005, the City of Prior Lake approved the assignment of the
Development Contract to Toll Brothers, Inc. from Arcon Development; and
WHEREAS, Toll Brothers has completed the improvements in accordance with the Development
Contract with the exception of final punch list items and phase 2; and
WHEREAS, As part of the project the Developer completed certain oversizing improvements as
requested by the City and is requesting reimbursement for those improvements in the
amount of $52,005.00 in accordance with the Development Contract; and
WHEREAS, The Developer has requested an extension for the completion of the phase 2
improvements of one year to December 31,2007.
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 Mayor and City Manager are authorized to execute on the City's behalf Amendment No. 1 to
the Development Contract for Stemmer Ridge.
3. The City is authorized to reimburse $52,005.00 to Toll Brothers, Inc. for the Stemmer Ridge
Oversizing Improvements.
4. The reimbursement shall be paid from the following accounts: Trunk Water Fund Account # 502-
50075-518: $18,825.00, Trunk Sewer Fund Account # 502-50075-519: $27,000.00 and Capital Park
Fund Account # 225-45139-530: $6,180.00.
PASSED AND ADOPTED THIS 16th DAY OF APRIL 2007.
Hauaen Haugen
Erickson Erickson
Hedbera Hedbera
LeMair LeMair
Millar Millar
YES
NO
Frank Boyles, City Manager
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