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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: \12 17 07\Slemmer Ridge A~~~~8?fake.com Revi 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 www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245