HomeMy WebLinkAbout10D - Stemmer Ridge Development Contract
MEETING DATE:
AGENDA #:
PREPARED BY:
DECEMBER 17,2007
10D
STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS
AGENDA ITEM:
CONSIDER APPROVAL OF A RESOLUTION APPROVING AMENDMENT
NO.2 TO THE DEVELOPMENT CONTRACT FOR STEMMER RIDGE
DISCUSSION:
Introduction
The purpose of this agenda item is for the City Council to consider
Amendment NO.2 to the Stemmer Ridge Development Contract.
Historv
On June 6, 2006, the City Council approved the Development Contact for
Stemmer Ridge. On April 16, 2007 the City Council approved an extension
to December 31, 2007 for Phase 2 of Stemmer Ridge.
Current Circumstances
The Developer, Toll Brothers has requested a 2nd extension of the
Completion Date for the Phase 2 portion of the project from December 31,
2007 to December 31, 2008. The extension is a reflection of the fact that
the Developer has several lots in inventory and the building market has
slowed substantially. The Developer has posted a separate letter of credit
for this phase and has already paid all the required development fees for
the phase.
ISSUES: 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 Installation of streets and utilities in areas with vacant lots results in
IMPACT: additional maintenance work for the City (plowing, flushing watermains etc.)
Granting the extension will reduce City maintenance costs.
ALTERNATIVES: The alternatives are as follows:
1. Approve Amendment No. 2 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:
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Phone 952.447.9800 / Fax 952.447.4245
A RESOLUTION APPROVING AMENDMENT NO.2 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 Phase 2; and
WHEREAS, Toll Brothers has provided the City with a separate letter of credit for Phase 2; and
WHEREAS, The Developer has requested an extension for the completion of the Phase 2
improvements of one year to December 31, 2008.
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.2 to
the Development Contract for Stemmer Ridge.
PASSED AND ADOPTED THIS 17TH DAY OF DECEMBER 2007.
YES
NO
Hauaen Hauaen
Erickson Erickson
Hedbera Hedbera
leMair leMair
Millar Millar
Frank Boyles, City Manager
R:\Council\Agenda Reports\2007\12 17 07\Stemmer Ridge Amendment Resolution x.doc
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Phone 952.447.9800 / Fax 952.447.4245