Approve Memorandum of Understanding Between the City of Ramsey and 21st Century Bank Related to Future Landscape Obligations in TOWN CENTER GARDENS 3RD ADDITION; Case of Seasons of Ramsey Limited Partnership and 21st Century Bank

On August 9, 2005 the City approved the final plat for TOWN CENTER GARDENS 3RD ADDITION (the "Plat"). Among other improvements, the approved landscaping plan included a scenic overlook on Outlot E of the Plat.

On March 19, 2009, the City approved an Amended and Restated Development Agreement for the Plat. Included in the Revised Agreement was a work plan to complete Stage I and Stage II Improvements utilizing the existing financial sureties. In addition, the Amended Agreement outlined an agreement for future landscape financial sureties. As it relates specifically to this request, it was agreed that the required financial sureties would be collected with individual building permits, thus allowing the existing Letter of Credit to be released. To memorialize the agreement, a declaration was recorded against the affected properties with the Anoka County Recorder. That declaration impacts the current SEASONS OF RAMSEY plat, as well as Outlot E and two (2) single-family lots of TOWN CENTER GARDENS 3RD ADDITION.

On February 12, 2013 the City approved the final plat for SEASONS OF RAMSEY, which is a re-subdivision of a partially undeveloped portion of TOWN CENTER GARDENS 3RD ADDITION. Included in the required Development Agreement for Seasons is a new financial surety posted for required improvements.

21st Century Bank and The Seasons of Ramsey Limited Partnership have requested that the Declaration be released in favor of the Development Agreement for the SEASONS OF RAMSEY and further documentation of the future landscape improvement on Outlot E (scenic overlook). It appears that the scenic overlook was not a City requirement, but offered as an amenity to the Plat. It is anticipated that Outlot E will be subdivided consistent with the underlying zoning district and that the scenic overlook would be constructed at that time. When Outlot E is subdivided, a Development Agreement with financial sureties shall be required. The scenic overlook is identified as Item #5 on the two (2) landscape plan sheets attached hereto.

With that in mind, Staff suggested a recordable agreement that outlines the current landscape plan and the need to construct at time of development of Outlot E. A draft Memorandum of Understanding is included for review.

Alternative #1
Approve the draft Memorandum of Understanding as presented. This documents the future improvement that is part of the approved plans at a logical time of development. The necessary securities will be collected at that time.

Alternative #2
Deny the draft Memorandum of Understanding as presented. Builders would be required to present their pro-rata share of the scenic overlook prior to issuance of a building permit. This is at heart of the issue with the Owners (current and future). Staff believes that the City would be adequately protected from liability with Alternative #1 above.

Staff recommends Alternative #1, releasing the existing Declaration and replacing with the attached Memorandum of Understanding on Outlot E only.

All costs associated with review of the Application are the responsibility of the Applicant.

Motion to approve the Release of Declaration for TOWN CENTER GARDENS 3RD ADDITION and approve a Memorandum of Understanding to be recorded on Outlot E, TOWN CENTER GARDENS 3RD ADDITION, subject to review by the City Attorney as to legal form.