Adopt Resolution #17-01-033 Approving Financial Surety Agreement for Ramsey Town Center 7th Addition; Case of K Hovnanian

The purpose of this case is to consider a Financial Surety and Inspection Fee Agreement for Ramsey Town Center 7th Addition. K Hovnanian was the developer of a townhome development within The COR. The Developer completed approximately 50% of the project before market conditions led to the decision to postpone future buildings. K Hovnanian has decided to sell their remaining assets within Minnesota, and not develop these remaining portions. The Developer is working on closing out these projects.

No notification is required.

The Developer would like the remainder of financial sureties and inspection fee escrows returned. Building pads have already been platted, thereby giving the legal right to develop. In order to protect the City from liability, Staff has suggested the attached agreement to bridge the gap between release of these financial tools and when a future developer acquires the project. The agreement essentially states that no Building Permit shall be issued until such time the financial surety and inspection fee escrows are replaced at the rate in effect at the time of development. The City Attorney has reviewed the attached draft and is comfortable with the approach.

This case is being handled as part of normal Staff duties.

Staff recommends approval of the attached agreement.

Motion to adopt Resolution #07-01-033 approving the Financial Surety and Inspection Fee Agreement for Ramsey Town Center 7th Addition.