Adopt Resolution #21-221 Approving Amendment to Development Agreement for COR Sapphire Addition; Case of PSD, LLC

Purpose:
The purpose of this case is to approve Amendment  No. 1 to the Development Agreement for the COR Sapphire Apartments, a 118 unit apartment building that consists of 1, 2, and 3 bedroom apartments, as well as community spaces for its residents including a swimming pool.  

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 of the 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. 
 

Notifications are not required for this case.  

Alternatives:
Alternative 1: Adopt Resolution #21-221 approving Amendment No. 1 to the Development Agreement for COR Sapphire Addition. 

Alternative 2: Deny adoption of Resolution #21-221 at this time.  
 

The City’s cost share amount of $141,740.15 is proposed to be paid from TIF 14. The Developer is responsible for their share of project costs in the amount of $12,410.85 as outlined in the attached amendment. These costs are based on the estimated project costs outlined in Exhibit B of the attached amendment, which is a not-to-exceed amount. Since the developer’s contractor will be completing the work it is fully anticipated that project costs will be less than the estimated project costs, meaning both parties cost shares are anticipated to be less than the amounts identified within Amendment No. 1.    

Staff recommends adoption of Resolution #21-221 approving Amendment No. 1 to the Development Agreement for COR Sapphire Addition. These improvements were intended to be constructed first thing this spring but due to various circumstances are not yet under construction. 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 #21-221 approving Amendment No. 1 to the Development Agreement for COR Sapphire Addition.