Adopt Resolution #21-261 Approving Amendment No. 2 to Development Agreement for COR Sapphire Addition; Case of PSD, LLC

Purpose:
The purpose of this case is to approve Amendment No. 2 to the Development Agreement for the COR Sapphire Apartments, which will extend the Center Street improvements construction completion due date to October 29, 2021.

Background:
Since mid-2020, Staff has been working to develop final plans for the public improvements along Center Street, west of the Sapphire apartments building. The approved development plans did not include public improvements along Center Street, and only called for the developer to construct a small retaining wall, a concrete cross gutter between Center Street and their private driveway to facilitate drainage, and to establish turf between the building and Center Street.

The segment of Center Street adjacent to the Sapphire Apartments was constructed as a temporary pavement section without pedestrian facilities in 2015. As such, the City intended to develop plans to construct the final Center Street public improvements after the Center Street Design Framework and Policy Plan was developed and approved, which just occurred this spring. Staff has since been working with Hakanson Anderson and Associates to complete final plans for Center Street Improvements, which are attached to this case.

To ensure all improvements would fit together without significant throw away costs, the developer did not construct the retaining wall or the concrete cross gutter last year, and has instead been waiting to construct their work items in conjunction with the public improvements. To best facilitate this work in a timely manner, Staff proposes to execute an amendment to the Development Agreement to allow the developer to construct all improvements, both public and private, using their contractor with each party paying for their share of the costs per attached Amendment No. 1 to the executed Development Agreement for COR Sapphire Addition, which is also attached to this case.

Landscape elements (trees, shrubs, irrigation) will be added at a later date.
 
Amendment No. 1 requires a construction completion due date of September 3, 2021. Due to receiving unexpectedly high construction bid prices, the developer had to seek additional bids, which prevented construction from being completed by September 3rd.
 
Staff prepared attached Amendment No. 2 to allow the Center Street improvements to be constructed this fall. The developer has reviewed and signed Amendment No. 2, thereby agreeing to the new construction deadline due date of October 29, 2021.    

Notifications are not required for this case. 

Alternatives:
Alternative 1: Adopt Resolution #21-261 approving Amendment No. 2 to the Development Agreement for COR Sapphire Addition.  

Alternative 2: Motion of other.  

Amendment No. 2 extends the construction due date thereby allowing the developer to obtain a more reasonable bid so the Center Street improvements can be constructed at a cost more closely aligned with the estimated costs identified in Amendment No. 1.
 
The City’s estimated not-to-exceed cost share remains at $141,740.15 as outlined in Exhibit B of Amendment No. 1, and all City costs are still proposed to be paid from TIF 14. The Developer is still responsible for their share of project costs estimated at an amount of $12,410.85 as outlined in Amendment No. 1.  

Staff recommends adoption of Resolution #21-261 approving Amendment No. 2 to the Development Agreement for COR Sapphire Addition. These improvements were intended to be constructed this spring but due to various circumstances were not yet constructed. The developer and the City have received numerous complaints this year regarding the overall lack of pedestrian facilities along this segment of Center Street.  

Motion to adopt Resolution #21-261 approving Amendment No. 2 to the Development Agreement for COR Sapphire Addition.