Adopt Resolution #15-07-177 Approving Multiple Agreements Related to the Previously Approved Purchase Agreement, Site Plan Approval, and Livable Communities Grant for Sunwood Village; Case of CommonBond Communities - Please Note:  this case was moved from Consent Number 4.06 to the Regular Agenda Item Number 7.06
 

The purpose of this case is to consider multiple agreement related to the future Sunwood Village project, a 47-unit apartment building by CommonBond Communities. The site plan has been previously approved by the City Council. The purpose of this case is to approve the necessary legal documents in order to allow the project to commence to construction. The following agreements are offered for the City Council's consideration. The project is anticipated to commence in August or September of this year.
 

1. Amended Reciprocal Driveway and Drainage and Utility Easement (correct legal description on existing easement)
2. Amended Development Agreement
3. Amended Easement Agreement
4. Metropolitan Council Livable Communities Sub-Grant Agreement

Notification is not required to approve these agreements.

Reciprocal Driveway and Drainage and Utility Easement

This case is a "house-cleaning" item.  An error occurred when an original "Reciprocal Driveway and Drainage and Utility Easement" was recorded for The Residence at The COR project (it also encumbered Outlot A, COR ONE, where Sunwood Village will be located).  Specifically, an incorrect legal description of an easement. As part of the development adjacent to The Residence at The COR, Sunwood Village (Common Bond), title work/ research was completed.  As part of that due diligence process, said error in the original easement was found. The amendment attached to this case is purely an administrative correction.  It does not change the intent of the original easement in any way; and it does not negatively affect the City in any way.  The City Attorney has reviewed this amendment.

Amended Development Agreement

CommonBond Communities has requested several revisions to the Development Agreement for the Sunwood Village project. The City Council approved the Plat, Site Plan and Development Agreement for Sunwood Village on May 12, 2015.  The most significant requested revisions are: 
 

1. Replace CommonBond Communities with CB Ramsey Housing Limited Partnership as the Permittee (CB Ramsey Housing Limited Partnership will be the owner of the Subject Property upon successfully closing on the land transaction with the City).
2. Extend the completion date out from May 12, 2016 to December 31, 2016.
3. Include a provision/mechanism to issue the Building Permit for the project prior to recording of the Plat.

Staff has reviewed the requested revisions and finds them to be reasonable.  It is not uncommon for a limited partnership to be formed to act as property owner and identifying that partnership as the Permittee is acceptable.  Per City Code, a developer shall complete all required improvements within twelve (12) months of the date of City Council approval of the Site Plan unless otherwise approved by City Council.  Due to the delay in construction after obtaining the necessary approvals, extending the completion date out to December 31, 2016 appears reasonable.  Finally, the Subject Property is currently owned by the City.  Thus, the Building Permit could be issued (upon receipt of payment of the permit fee) and held in escrow with the title company until the closing on the land transaction.  It is at that time that all Development Fees would be paid by the Permittee and the Plat of Sunwood Village would be recorded.  This provides reasonable protection to the City to ensure that all required Development Fees are paid prior to releasing the Building Permit from escrow to the Permittee.

Easement Agreement (Sidewalk)

A portion of the public sidewalk along both Sunwood Drive and Veterans Drive will slightly encroach on the Subject Property.  An Easement Agreement has been drafted to ensure public use of the sidewalks.  The Easement Agreement would be recorded as part of the closing on the property. The width of both sidewalks was necessary to match the widths of existing sidewalk east of the Subject Property.  As part of the Site Plan review for Sunwood Village, Staff had worked with the Applicant to ensure the new sidewalk would match that of the existing sidewalks with the understanding that an Easement Agreement would be necessary to address the encroachment on the Subject Property.  The Easement Agreement has been reviewed by the City Attorney and has been found to be sufficient.

Metropolitan Council Livable Communities Sub-Grant Agreement

The project was awarded two (2) grants from the Metropolitan Council through its Livable Communities Account (LCA) for a total of $780,000. The structure of LCA funds is an agreement/relationship between the City and the Metropolitan Council. The Metropolitan Council LCA does not distribute funds directly to the Developer. Therefore, CommonBond Communities is requesting a Sub-Grant Agreement that it has used on other LCA projects. The intent of the agreement is to outline the process for distributing funds on a reimbursement basis, as required by LCA. The benefit to the Developer is assurances that funds will be properly disbursed in a timely fashion. The benefit to the City is to ensure that the Developer constructs the project in line with the approved LCA grants and eligible costs are incurred. The agreement has been reviewed by the City Attorney and has been found to be appropriate as to legal form.

NA

Staff recommends that the City Council adopt Resolution #15-07-177 granting approval to the following agreements for Sunwood Village.

1. Amended Reciprocal Driveway and Drainage and Utility Easement (correct legal description on existing easement)
2. Amended Development Agreement
3. Sidewalk Easement Agreement
4. Metropolitan Council Livable Communities Sub-Grant Agreement

Motion to adopt Resolution #15-07-177 granting approval to the following agreements for Sunwood Village, subject to the review by the City Attorney as to legal form.

1. Reciprocal Driveway and Drainage and Utility Easement (correct legal description on existing easement)
2. Amended Development Agreement
3. Sidewalk Easement Agreement
4. Metropolitan Council Livable Communities Sub-Grant Agreement