Consider Amendment to Development Contract for Cross of Hope Addition; Case of Cross of Hope

Paragraph E of the approved Development Agreement states:

"Stage I Improvement Financial Guarantee. The PERMITTEE shall provide a financial guarantee to the CITY guaranteeing the construction of the Stage I Improvements and their timely completion. The PERMITTEE shall be responsible for a financial guarantee in the amount of Four Hundred Seventy Four Thousand Nine Hundred Twenty Dollars and No Cents ($379,936 x 1.25 = $474,920.00), which amount is 125% of the City Engineer’s estimated cost of Stage I Improvements. The financial guarantee shall be deposited with the CITY at the time of execution of this Contract. Upon completion of Stage I Improvements (including the removal of “temporary” erosion control measures as identified in the approved Grading Plan), acceptance by the CITY, supported by appropriate lien waivers, any surplus remaining balance in the CITY’s escrow account shall be promptly refunded to the PERMITTEE."

Staff has amended this section of the Development Agreement to read as follows:


Stage I Improvement Financial Guarantee. The PERMITTEE shall be responsible for a provide a financial guarantee for the Stage I Improvements to ensure timely completion of the Stage I Improvements. to the CITY guaranteeing the construction of the Stage I Improvements and their timely completion. PERMITTEE agrees that the Certificate of Occupancy shall not be released until the Stage I Improvements are completed. The PERMITTEE shall be responsible for a financial guarantee for any remaining Stage I Improvements that are not complete at the time a City required Certificate of Occupancy is requested by PERMITTEE equal to the amount of 125% of the City Engineer’s estimated cost of the remaining Stage I Improvements. in the amount of Four Hundred Seventy Four Thousand Nine Hundred Twenty Dollars and No Cents ($379,936 x 1.25 = $474,920.00), which amount is 125% of the City Engineer’s estimated cost of Stage I Improvements. The said financial guarantee shall be in the form of a letter of credit or cash escrow held by the CITY. PERMITTEE agrees to provide the CITY with documentation from applicable utility companies that said utility work has been satisfied as to Stage I Improvements and properly paid for said work or provide appropriate lien waivers. The PERMITTEE may apply for reductions in the Letter of Credit or cash escrow as the Stage I Improvements are completed and accepted by the CITY. deposited with the CITY at the time of execution of this Contract. Upon completion of Stage I Improvements (including the removal of “temporary” erosion control measures as identified in the approved Grading Plan), and final inspection and acceptance by the CITY, supported by appropriate lien waivers, any surplus remaining balance on the letter of credit or in the CITY’s escrow account shall be promptly refunded to the PERMITTEE.  For the purposes of this Contract, all Stage I Improvements listed are considered private with the exception of (b) street upgrades and repairs.

It's worth noting that since the street improvements will be on CR 27, an Anoka County right-of-way permit will be required.  If sufficient documentation from Anoka County stating that additional security on the part of the City is not required related to the turn lane, the financial surety for the public improvements could potentially be reevaluated or waived with Council authorization.

Staff recommends approving a resolution to amend Paragraph E of the Cross of Hope Development Contract.

All costs associated with the processing of this request are the responsibility of the applicant.

Motion to approv a resolution to amend the Development Contract with Cross of Hope, subject to the approval of the City Attorney.