ITEM: 11.5 DEVELOPMENT BUSINESS - Bryan Schafer, Community Development Director
Title
APPROVING AN AGREEMENT WITH WOODLAND DEVELOPMENT FOR UTILIZATION OF PERFORMANCE BOND PROCEEDS AND OTHER CITY FUNDS FOR THE COMPLETION OF DEVELOPMENT REQUIREMENTS OF GARDENWOOD DEVELOPMENT. (CASE FILE NO. 05-0038/BKS)
Background
On September 6th Mayor Ryan, Councilmember Herbst, City Manager Arneson and Tom Scott, Engineering Project Coordinator successfully negotiated an $800,000 settlement with the bond company for the unfinished improvements in the Gardenwood development.
Since then staff has had the opportunity to meet with Woodland Development, the current owners of the development, to develop a proposal on how to use the $800,000 in bond proceeds. This proposal was reviewed by the City Council at the October 13, 2011 workshop where it was also directed that the City contribute $30,000 in EDA Project funds to assist in the soils exchange component of the project
The agreement, which outlines the use of $800,000 in bond funds and 30,000 in EDA Project funds, as well as which party is responsible for the work, consists of the following:
· $100,000 Reimbursement to the City for legal and engineering costs associated with the successful bond claim and project inspections
· $48,000 for completion of Ghia Street (by City)
· $285,000 for completion of wear course, sidewalks and trails (by City)
· Up to $150,000 applied to the assessments for the Lexington Avenue right hand turn lane (by City). The goal is to reduce the assessments from $666 per lot to $400 per lot.
· $217,000 for completion of organic soils exchange (by Woodland Dev)
· $30,000 in EDA Project funds for completion of organic soil exchange (by Woodland Dev)
· Any excess dollars available, after completion of these work items, will be also be utilized within the project boundaries as determined by the City.
· Woodland Development releases the City of all claims related to previous City approvals and actions regarding the project area.
Schedule of Actions
City Council Workshop (Background Briefing and Discussion 10/13/11
City Council (Approval of Agreement) 11/03/11
Recommendation
By motion, approve the Resolution.
Body
WHEREAS, an agreement has been reached between the City of Blaine and Woodland Development for the utilization of $800,000 of bond proceeds and $30,000 in available EDA funds for the Gardenwood Development; and
WHERAS, the City has determined that there is a public interest in keeping this development moving forward towards completion; and
WHEREAS, the Blaine City Council has discussed the agreement proposal on October 13, 2011 and again on November 3, 2011.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine that the agreement is hereby approved to utilize $800,000 in bond proceeds and $30,000 in EDA funds to complete required development items in the Gardenwood Development.
PASSED by the City Council of the City of Blaine this 3rd day of November 2011.