Adopt Resolution #24-238 Authorizing Staff to Process Partial Reductions of Financial Security for Soderholm & Associates Building Expansion Project at 7150 143rd Avenue NW (Project No. 23-100); Case of Soderholm & Associates

The City of Ramsey and Representative Investments, LLC entered into a Development Agreement associated with the building expansion and site improvements for Soderholm & Associates (the "Applicant"), located at 7150 143rd Avenue NW (the "Subject Property").  The Development Agreement established the terms and requirements the Applicant must satisfy, including the standard provisions related to providing a Financial Surety to ensure site improvements were installed according to the approved plans.   Unfortunately, the standard language allowing partial reductions of the Financial Surety was errantly omitted from the executed Development Agreement.  Much of the exterior work has been completed at this point and the Applicant is seeking a reduction of the Financial Surety to cover only the remaining outstanding exterior site improvements (generally speaking, it is just the second lift of asphalt for the parking lot that remains to be completed, which they prefer not to complete until all interior building improvements are completed).

Site improvements, except for the second lift of asphalt, have been completed by the Applicant and inspected by city Staff.  A partial reduction is supported by Staff.  It is estimated that the remaining site improvements will cost $44,000, and, per the terms of the Development Agreement, the City would still need to retain 125% of the estimated cost of the remaining improvements.  Thus, Staff supports reducing the Financial Security to $55,000.  

Resolution #24-238 would not only grant the requested reduction of the Financial Security, but would also allow Staff to utilize the standard, more efficient process for future reductions.

 

Notification is not required.

Staff recommends adoption Resolution #24-238.

Motion to adopt Resolution #24-238 authorizing a partial reduction of the Financial Surety as well as authorizing City Staff to utilize the standard process for considering future Financial Surety reduction requests.