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HomeMy WebLinkAbout1998-09-16 PACKET 12.B.REf�UES7 OF CI°Tl' CbUhlCIL ACl"BORI CCYl1NCIL AGENDA I�AEETI(dC ITEM # �P,TE 9l16/98 PREPARED BY: Community Development Kim lindquist �RIGl�lATING DEPARTME�'T STA�� AU7"FiOR ..«.»...Q...a..�«�.�«4��AA...>ti�e4m�.�4�trs��ffitr.g s , � . � Workshop discussion on financial guarantees for public improvements and area charges. M . , � � � y � � � � �� � ■ � • •'. � •�� ■ i � � ♦,��..• •. • ♦ , .� Memo from Kim �indquist dated 9l14/98 . � �. �: lE Al REC MMENDATION: � OTHER: 1) F2esponses from other area cities 40 our survey on financiai guarantees for public improvements dated 9/14/98 2) Memo from Gary Berg dated 8/24/92 and Excerpt from minutes of Regular City Councii meeting on 9/2l92 3) Memo from Gary Berg dated Sl11092 and Excerpt from minutes of Regular City Council meeting on 9l16/92 4) Memo fram Jack Clinton da4ed 4l28/93 and Excerpt from minutes of Regular City Council meeting on 5/5/93 ADMIPIISTRATORS COMMENTS / Gity Administrator Date .�m.�s.�.a����Q.�e�a.�Wtrmaa�.���.�.���.���«����� cc�u�ceL �c�rso� - r����: ❑ ap��zcs��� ❑ ���i�� [� c� . � :. � . , ... . R , wr , .,,�.. MEMORANDUM TO: Honorable Mayor and City Council Ryan Schroeder, C+ty Administrator FROM: Kim Lindquist, Community Development Director DATE: Sepfember 14, 1998 RE: Financial Guarantees INTRODUCTION !n August, the City Councii requested staff review existing financiai guarantees as they relate to other communities within the metro area. Ryan Schroeder and myself inet with Mike Rygh and Klaus Becker on August 10, 1998 to discuss their concems regarding the number of de- velopment related items which require a financiai guarantee. They pointed specifically to the 40% surety on special assessment items, which are the public improvements plus area charges. They felt this level of guarantee was too high and that other communities required less. They aiso feit that developers with a good " track record " in the community shouid be given a discount. Staff said they would survey other communities to assess the level of financial sureties other cities require. A survey was sent out in August with a follow-up in early September. Information from eleven cities was received out of the seventeen requested. Cities where new develop- ment occurred were targeted and geographicaily, were second and third ring suburbs of Minneapolis and St. Paul. SURVEY DISCUSSION The information garnered from the surveys does not produce a clear pattem or uniformity among the cities as it relates to financiai sureties for special assessments. In general, it appears that cities with higher land values do not require a financia( guarantee. This could be because the default rate is less or that the tax-forfeited land is readily resold and the specials paid. Upon further investigation, several cities indicated that private installation of public utili- ties was more prevatent and therefore 150°/a of the total construction costs were guaranteed by some type of surety. From the survey, it appears that somewhat rapid growth cities such as Eagan, Coon Rapids and Woodbury require a financial surety for the special assessments. Woodbury is lower at 25% (or one year worth of the special assessments), Eagan is higher at 60%, and Coon Rapids is the same as Cottage Grove, at 40%. None of the cities polled indicated any preferential treatment for developers who have previ- ously accomplished successfui projects in the City. Aithough this idea may appear logical, often other factors such as poor lot design, necessary soil coRections, presence of wetiands or other topographic limitations may prompt the "unsaleability of a lot. Longevity in the City also Financial Guarantee Memo September 14, 1998 Page 2 of 2 does not assure financial stability. From my own experiences, I worked with a developer on four projects, two of which he walked away from. The default projects did not relate chrono- logicaliy to his tenure in the city as a developer. The use of a preferentiai system is also more difficult to administer. The definition of a successfui project is somewhat subjective and there- fore more open to negotiation. HISTORY In September 1992, the City Council reviewed a draft Subdivision Ordinance which required the "subdivider sha11 be required to post financial guarantees to ensure completion of all im- provements required by this ordinance, the preliminary and finai plat resolutions, and the subdivision agreement. The financial guarantees shall be in the form of cash, escrow, or {etter of credit." There was no defined amount for the financial guarantee. The ordinance further re- quired a 15% cash deposit of the estimated totai cost of the pubiic improvements. At the meeting, Bill Prichard, Orrin Thompson requested that the Councii reconsider the 15% cash deposit. instead, he suggested the City assess 100% of the proposed improvements and require a letter of credit guarantee of 125% of the project cost. The Council tabled the draft ordinance. On September 16, 1992, the City Council unanimously adopted the ordinance. The new pro- posai required that 100% of the public improvements be assessed. Further, it required that the developer provide a letter of credit for a minimum of 125% of the estimated cost of such im- provement. "Said letter of credit will be reduced as assessments are paid. If assessments are not paid in the year due, the Letter of Credit will be reduced accordingly.° in April of the following year, the City Attorney wrote an internal staff memo discussing changing the financial guarantee to 40°/a of the special assessments. His memo discusses the 15°� cash deposit, which was deleted as part of the 1992 amendment to the subdivision ordi- nance. It is staffs' recollection that the change from 125% to 40% was due to developer concerns about the high cost of the required financial surety. The finance department staff re- viewed previous delinquencies and found that approximately 40% surety would have covered the lost assessments. The Council unanimously passed the ordinance amendment. Since that time, the staff has required a 40% financial guarantee for the pubfic improvements and area charges, all of which are assessed. If the developer prepays some portion of the assessments, prior to their certification, the 40°/a is calculated on only that portion assessed. Since 1993, there have been no defaults on the speciai assessments until last year. The Groveland Cottages are currently delinquent $88,412 for 1997. it is assumed that the portion allocated in 1997, payable 1998 wili also be delinquent. In total $278,592.36 was assessed with only 26% of the assessments havi�g been paid. The staff has begun the process for cashing in the existing Petter of credit. The amount of the surety for the assessments on this project is $89,213.39. REQUESTED ACTION Staff is requesting direction from the Council. � J ~ Q z Ug Q � Z Q LL � � d o � � P W J r � a � � o O o. W W � N W Z a �� w �_ � .: � � � � � � � N tII l4 �U N a N N � a >. U . � a 7 3 � C � U a � a y L U � Y 3 � � � v c w .. � m � w � � c co a� E � c a� E � > 0 � a E U .O � d ��-�b� � 1��, Z � �� l i �� f� T0: FROM DATE: � ._.. , .. . � i Honorable Mayor & City Council City Administrator ary M. Berg, AICP, Director of Community Development August 24, 1992 SUBJECT: Highlights of Major Issues - Subdivision.Regu�ations INTRODUCTION These amendments represent the culmination of ten (10) staff drafts of these regulations, two Planning Commission drafts, and this third City Council draft fafter developer meeting of June 8, 1992). The foi�owing staff peopie had input over the past 14 months in this preparation: City Attorney, Finance Director, City Engineer, Pub(ic Works Staff, Parks Director, Planning Staff and City Administrator. A great deal of changes are housekeeping items such as definitions making the document gender neutral, grammar or clarification items. A number of changes require items for submission of preliminary and final plats that allow a more compiete review by the advisory commissions, city staff, consultants and City Council members. Based on experience over the past 3-5 years, problems in erosion control, gradi�g compliance, compietion of on-site improvements, probiems in getting park iand dedications, easements, subdivision agreements and a host of items that have rendered the City in a position of unenforceable compromises. These changes should clean up the bulk of these issues. PLANNING CONSIDERATIONS As is our usual staff practice, crossed out items are proposed to be deleted, underiined items are proposed to be added. Straight typing means no change is proposed. To help yo� identify items, it wiil be Page_, Line . The foliowing commentary highlights the major changes. However, staff is prepared to discuss any.item in the document. DEVELOPER CONCERNS Thirteen (13) developer(buiiders were invited to meet with the City Staff o� June 8, 1992. Two (Orrin Thompson Homes and Mike Rygh) accepted our invitation. the following concerns were raised: 1. P. 19, lines 26-30 - request for the City to pay with interest unused deposited amounts previously submitted by developers for plats that are abandoned. Staff recommendation: Accept the developers suggestion with the understanding that administrative charges wil! be subtracted from the account. 2. P. 29, Iines 6-13 - Suggestion for increases in caliper of trees in future right-of-ways to be replaced be increased from 3 inches for any tree, to 6 inches for hardwoods and 12 inches for sottwoods. Where the subdivision is fully wooded and no transferring to open areas is practical, a 5100 fee for each tree removed (6" + and 12" +) be paid by the subdivider into the Park Trust Fund for tree planting elsewhere in the City. Staff response: Agreed. 3. P. 45, lines 1-8 - Comment that prior signature on the subdivider's contract does not allow for an appeai to the City Councii of the subdivision agreement. Staff response: Don't sign the agreement and state your case at the next applicable City Councii meeting. 4. P. 37 lines 19-36, Request a provision be inciuded to allow the developer to "hire" the City Engineer to build improvements thus by passing Minn. Statute 429 and avoid the 21 day bidding process. The idea would be that the contractor would be working for, and totaliy accountable to, the City Engineer. Staff response: On the surface such a relationship appears practical; however, Minn. Statutes 429.041 sub(7! makes projects over 55,000 an advertised public bidding process... "if the estimated costs exceeds 55,000, shali advertise for bids for the improvement in the newspaper and such other papers and for such length of time as it may deem advisable. if the estimated costs excaeds 5100,000, pubiications shall be made no less than three weeks before the lasc day for submission of bids once in the newspaper and at least once in either a newspaper p�blished in a city of the first class or a trade paper." Mayor.& City Council, City Administrator - Memo August 24, 1992 Page 3 5. P. 41, lines 9-14 - Request was to reduce the fifteen (15) percent advance deposit for pubiic improvements. Since the City is asking for all the park land dedication up front, the developers feel that combini�g fifteen percent outlay is a large financiai b�rden. Another idea is to assess 100% and take a Letter of Credit for 125%of the project until the utilities, streets, c�rbs, etc. are accepted by the city. Staff response: This money can be used to offset a�y legal issues, staff time and is mainiy used for engineering desigr�, consuitations, etc.. Some communities have gone as high as � 25%. As a result, 15% is more than fair and covers city minimum expenses. 6. P. 65, line 9-12 - Sodding of front yards and side street yards was not a probiem. Enforcement of the "...when should it be completed" revisits an old issue of when street trees and sod should be instalied and by whom. Staff response: The Subdivision agreement and the Ordinance clearly spell out that the subdivider shali not pass along the responsibility of instailing on and off-site improvements to the builder or home buyer. In addition, the City Administrator will ir:*iate a late Spring(June i 5) and mid Fali (September 1 5) inventory of norncompiiance and direct performance of any required work with the cost to be deducted from the developer's financial guarantees. Page 41, lines 28-36. Because of the probiem with species, size, shape and condition, the City Forester will take over tree planting details with plantings to be accompiished in the iate Fali of each year. P 63, lines 33-35. 7. P. 45, lines 1-8 request that the twice per year bonding date deadlines of Feb 15 and July 31st be modified to reflect "real world" development calendars. Staff response: Adjusted deadlines to Aprii 15th and Juiy 1st. Based on staff responses to this memo, we have adjusted or not adjusted the next draft for City Council review. Mayor & City Council, City Administrator - Memo August 24, 1992 Page 4 SUMMfiRY Page 23-18, lines P. 37-39 outlines the subdivision agreement signed between the subdivider ar,d the City. Note that future residents are not part of this agreement. There is no option for private engineering a�d construction of pubiic streeis and public utilities. Engineering design, bidding and inspection, etc. wi11 be done by the City's consulting engineer. Section 23-19. Financiai guarantees - page 40-47 . This section requires a financial guarantee of 150% of the estimated cost of improvements inciuding labor versus the previous 125% amount. When the City was forced to call in the financiai guarantees in the past, 125% did not cover the amounts necessary to do the work. Section 23-21 . Improvement guarantees - Page 44, line 9-18. This section wi(I not aliow a reduction less than 10% of the originai amount. Oniy the City Council will approve the finai release of financial guarantees. This is the financial encouragement for a developer to complete ail the work. Section 23-23. Subdivider's request for construction of subdivision improveme�ts - Page 45, line 1-8. The City finances public improvements. Bond sales need to be estimated to help the cash flow for contractor payments. These deadiines will be one of the most constraining items in the proposed document and are addressed and adjusted in the developer's comments to twice per year, April 15 and July 1st. Section 23-26. Pubiic sites and open space (Park land dedicationl. The City can use a combination of Iand and cash for subdivision of all types of land. Historically, commercial/i�dustriai subdivisions have not had a dedication requirement. This section reduces the cash dedication from 10% to 4% and is proposed to be collected. The proposal on Page 51, lines 8-10, limits a project with its own recreation facilities to a 50% reduction. Solar energy statement. Page 53, lines 3-8. The City has never enforced this provision and recomme�ds this paragraph be dropped. Article V. Minim�m Design and Engineering Standards. Probably, the guts of changes that affect the physicai appearance of subdivisions are in this section. - Page 54, lines 11-13, clarifies !ot frontage and access. - Page 54, lines 36-37 and page 55, tines 1-5, double frontage lots will be longer with noise attenuation in mind. - Page 55, lines 8-12, previousiy there were no requiremenis for cul-de-sacs widths for lots. By policy, the Planning staff, in reviewing building permits were measuring zoning district frontage requirements at the building setbacks. in doing so, certain probiems did not go away. Driveways in one home were actuafty in the front yard of another. Driveway side yard Mayor & City Councii, City Administrator - Memo August 24, 1992 Page 5 setbacks were being violated. Snow storage is a major problem for both adjacent property owners as weii as for the City crews. 60 feet at the cui-de-sac property line would now be required. Page 55, line 36 and page 56, lines 1-4, require all lots to have 20 feet of useable backyard behind each home. - Page 59, lines 1-24 - Street right-of-way width. Traffic engineers suggest that there are too many variables in traffic standards to leave requirements in oniy one dimension. A range of right-of-way width is suggested with the analysis of specific street width given on a per street basis. - Page 63, lines 33-35, define the minimum size of tree to be pianted. Tree selection and planting wili be done in the Fail by the City Forester. Because of the quantities involved, we may ask the Council at some point, to amend this to twice per year. Page 65, lines 9-12 (sodding), requires lots to be sodded from the curb to the rear ot the unit and are inciuded in the fi�ancial guarantee. Side street sodding is from the curb to the side yard setback is aiso required. - Page 74, Iines 8-12 requires aii aspects of the subdivision agreement have been satisfied and utility and street construction contracts have been awarded before the first building permit is issued. - Page 73, lines 1-3, requires that siopes in excess of 15% cannot be rough graded. However, individual home sites can be constructed with erosion control measures. Additions - Because of the rural policies no; in affect by the Metropolitan Councii and under provisions for unsewered lots in the 1991 Wetlands Conservation Act, page 69 lines 24-33 requires two approved septic tank areas for each unsewered lot. Page 69, lines 24-26 has been changed to require two soil borings and two percolation tests on each unsewered lot. The 1992 Legislature provided legislation to require monuments (property corner pins) to be set within one year of recording of the final piat as well as financiai guarantees for placements. Page 38, line 36 and page 71, lines 33-35 reflect these changes. Erosion control and drainage swale monitoring resulted in extens+ve additions to Sea 23-36 ` Erosion Control during construction, Erosion control practices now are tied to practices recommended in the "MN Construction Site Erosion and Sediment Control Planning Nlayor & City Councii, City Administrator - Memo Q.ugust 24. 7 992 Page 6 Handbook," conditions set by the City Councii and/or the app�icable Watershed Management Organization per page 72, line 9-12. Page 72, lines 24-25 requires timetables for seeding or sod repiacement. Lands with slopes of 15% or greater are not to be rough graded. However, page 73, lines 1-3 ailow for construction of individual homesites on such lots. Page 73, lines 32•36 and page 74, lines 1-17 require such items as certifications of compiiance with the mass grading plan. "HOId down elevations" are now required to achieve a neutral dirt balance for excavations. "Nold down elevation" is defined on page 7, lines 34- 36. it means providing enough area around a structure to allow excavated dirt to be spread without affecting the drainage plan Critical drainage areas are to be identified on the grading plan with the City Engineer authorized to use whatever measures are necessary to reduce or eliminate the adverse affects on storm water runoff. This change aiso formally authorizes the City Engineer to amend a grading pian. _ A major provision requires that a surveyor certify each lot is in compliance with the grading pian prior to the issuance of a certificate of occupancy. Page 39, line 1 makes this requirement a part of the financial guarantee. Winter occupancies are taken into account with certifications to be completed by May 31 st of each year. RECOMMENDATION Staff recommends approval of this ordinance revision. A:\wp51\subdiv.memo � Regular City Council Meeting - 9/2192 � fields, stating that the Cottage Grove Athletic Association (CGAA) schedules field usage. Dennis VanderHorst of 8881 Ivystone Court expressed frustration over the shortage of softball fields. Without more youth facilities, the CGAA will be forced to turn players away next year. Council advised VanderHorst that staff is currently searching for properties to acquire for an athletic complex. The construction of a complex, however, will take time. Nancy Anderson of 7498 Ivystone Avenue South, thanked staf£ for responding to their concerns. Anderson stated that she recently received a request from tee ball teams to, at least for their last game, allow them to play on a regular softball field. Tee ball players have had to play on qrass fields at Highland Park. The field consisted of two posts and a chain link fence for a backstop. Yvonne Beebe of 6610 Hyde Avenue South requested that the City consider allowing the girls to use one of the adult fields at the Lamar Ball Field. Council directed Staff to meet with representatives of the CGAA and-the School District to discuss the assignment of athletic fields equitably, along with the suggestion of assigning one field at the Lamar Ball Fields for youth softball. PUBLIC HEARINGS - rtone BID AWARDS - None UNFII�tIS�-IED AND NEW BUSINESS � Subdivision Ordinance Council discussed the following provisions in the proposed Subdivision Ordinance: 1. requiring minimum 44-foot width residential streets proposed by Public Safety, Health, and Welfare Commission; 2. tree replacement plan (#19, pg. 29); 3. levying of sewer, water, and storm sewer area charges (#14, pg. 25) ; 4. identification of the type of homes to be constructed on each lot (#8, pg. 26j; and 5. not allowing the transfer or signing over of obligations to install and pay for off-site improvements (,�2, pg. 39). Council discussed the prospect of including languaqe in the ordinance requiring a developer to instruct prospective buyers to contact the City � to land use/zoning maps of adjacent properties. Bill Pritcherd of Orrin Thompson Homes requested that the Council consider including a provision in the ordinance that would allow a Regular City Council Meeting - 9/2/92 8 developer to "hire" the City Engineer to build improvements, thus bypassing Minn. Stat. 429, and avoiding the 21-day bidding process. The second proposal presented by Pritcherd involved reducing the 15% advance deposit for public improvements, and suggested possibly assessing 100% of the proposed improvements and require a letter of credit guarantee of 125� of the project. Thirdly, Pritcherd asked for more flexibility on the timing of sod and boulevard tree installation. Council briefly discussed the provisions highlighted by Mr. Pritcherd. Motion to table the Subdivision Agreement for a period of two-to-four weeks, to give staff time to research some of the items discussed, made by Councilmember Raun. Seconded by Councilmember Rageth. Motion Unanimously Carried. Property Taxpavers' Trust Fund Motion to adopt RESOLUTION N0. 92-188, a resolution concerning a constitutional amendment to create a new property taxpayers� trust fund in Minnesota, made by Councilmember Buth. Seconded by Councilmember Raun. Motion Unanimously Carried. Shoreland Fishing/Off-Road Parking in the Grev Cloud Slouah Area Fredrickson presented a proposal that the City acquire and develop lands on Lower Grey Cloud Island to accommodate off-road parkinq and shoreland fishing opportunities in the area. Motion to direct staff to look at leasing or purchasing lands in the Grey Cloud Slough area that may be developed in cooperation with the Minnesota Department of Natural Resources to provide shoreline fishing and off-road parking opportunities for area�fishermen, made by Councilm- ember Raun. Seconded�by Councilmember Wolcott. Motion Unanimously Carried. � � Utilitv Payment Boxes Motion to approve Agreements with American Payment Center to move the utility payment box at City Hall to a curb location in the amount of $430, and to install a utility payment box at Cub Foods in the amount of $24 per month, made by Councilmember Raun. Seconded by Councilmember Rageth. Motion Unanimously Carried. Government Access Programmina Contract - Cable Access Corporation Motion to Approve the Contract between the City of Cottage Grove and the South Washington County Community Cable Access Corporation for govern- ment access programming and support services, and authorize the Mayor and City Administrator to sign the contract on behalf of the City, made by Councilaiember Wolcott. Seconded by Councilmember Buth. Motion Unanimously Carried. ' • � i , i J� �'/ J�J✓- �~ TO: Mayor & City Council, City Administrator FROM: Gary M. Berg, AICP, Director of Community Development DATE: September 11, 1992 SUBJECT: Questions Regarding Proposed Subdivision Ordinance Revisions BACKGROUND On September 2, 1992, the City Council tabled the proposed subdivision regulations waiting for responses on a number of issues. 1. Allowing the developer to pay for improvements. 2. Allowing the developer to assess 100% of improvements with a 125% Letter of Credit. 3. Statement on tree pianting. 4. Pubiic Safety Commission proposal for 44 foot wide local streets in lieu of 32 foot wide Iocai streets. 5. Sodding of drainage swaies. DISCUSSION 1. Ailow the devefo�er to aav for imarovements. For the purpose of maintaining control, staff recommends that this option be ailowed only on rare occasio�s and by special request. Because the ordinance as proposed does not preclude this option, it is recommended that the language remain as written. 2. Ailow the developer to assess 100% of the proposed improvements (utiiities, curb and gutter and street gradinq and surfacina) with a 125% Letter of Credit. Staff has no objection to these proposed changees, but only requests that we use one method oniy. 100% assessments on one project and financial guarantees on others, partiais on a third is only asking for confusion and potential mistakes. Mayor & Councii, City Administrator - Memo September 10, 1992 Page 2 If the Council desires to change to the above method, p. 41 lines 9-14 should be deleted and the following wording added: (a) Pubiic Improvements. One hundred percent (1�0%) of improvements, including but not limited to street lighting, pubiic sanitary sewer, water, storm sewer, curb and gutter, street grading and street bituminous surfacing, shall be assessed against properties in the subdivision. The developer shali provide a Letter of Credit for a minimum of one hundred twenty five percent (125%1 of the estimated cost of such improvements. Said letter of credit will be reduced as assessments are paid. If assessments are not paid in the year due, the Letter of Credit will be reduced accordingly. 3. Boulevard Tree Plantina. P. 63, lines 33-35 notes that the City will take over this duty and piant in the fal( of each year. No individuai developer wili be allowed to piant their own trees. Monies will come from financial guarantees provided by the deveioper. 4. Fortv-four t441 foot wide ioca( streets. A two digit change woufd be needed on P. 59, line 9. Whiie that seems smaii the impacts are enormous. The impacts involve the Planning Commission, Public Works and Public Safety. So far, all you have before you is minutes from Pub�ic Safety. 32 foot local streets are the widely accepted norm for local roads, and staff continues to recommend that standard. 5. Sodding of Drainape Swales. P. 74, lines 3-5 require criticai drainage areas to be identified with prevention measures approved and required by the City Engineer. Sodding may be one of a number of ineasures that are necessary for erosion controi and to prevent the aiteration of drainage patterns. ' RECOMMENDATION Staff recommends approval of the Ordinance with the change identified in item number two. NOTE: Please bring Subdivision Ordinance from the September 2, 1992 meeting. m Regular City Council Meeting - 9/16/92 � 0 -Location of north/south collector street west of existing Harkness Avenue made by Councilmember Buth. Seconded by Councilmember Raqeth. Motion Unanimously Carried. Council took a five minute break. The meeting reconvened. The Council proceeded to discuss the five remaining issues, and consented to the following: �nnamed road (°NONA") around Hamlet Park Eliminate from plan. �k 70th St. extension through the GoebeZ property Eliminate from plan. �k ReaZignment of Military Road Eliminate £rom plan. � '� 95th Street extension roadway classification Concurred with the staff's recommendation to upgrade classification of proposed roadway to a minor arterial, and fine tune proposed future traffic network. '�` Jamaica Avenue extension between 100th St. and 110th St Eliminate from plan. Comprehensive Sewer Policv Plan Motion to table the Comprehensive Sewer Policy Plan (May 1992} made by Councilmember Rageth. Seconded by Councilmember Raun. Motion Unani- mous2y Carried. Subdivision Regulations - Chapter 23 Motion to adopt ORDINANCE NO. 577, an ordinance adopting Chapter 23, Subdivision Regulations, of City Code in its entirety, made by Council- member Raun. Seconded by Councilmember Wolcott. Motion Unanimously Carried. Motion to adopt ORDINANCE NO. 578, an ordinance for the City of Cottage Grove, Minnesota, amending Chapter 28, Zoning Ordinance oP the City Code, adding public and quasi-public uses as conditional use permits in � the B-2 Retail Business District made by Councilmember Buth. Seconded by Councilmember Raun. Motion Unanimously Carried. Phone Svstem Studv - Elert & Associates ���.. r �1._ _ JACK W. CLINTON, P.A. ATTORNEYS AT LAW B750 - 90TH STREET SOUTH SUITE 20'1 COTTAGE GROVE. MINNESOTA SSD16-3301 JACK W. CIiNTON F.JDS'cPH TAYLDR KATHLEEN M. CD7T • • elso Liceneetl In Arizona NEhfO T0: PROM: RE: DATE: DIANE ARCHER, FINANCE DIRECTOR i.�ARY BERG, DIR£CTOR OF COMMUNITY D£VELOPM£NT JOHN MCCUOL, IOR PLANAIER JACK W. CLIN ON �--�OC� ORDINANCE AM NDING SUBDIVISION REGULATIONS AYRIL 28, 199 3ackqround PHONE (6'12) 459-66a4 FAX: (612) 459-4719 LEGAL ASSISTANT CINDY L. JOHNSON Based on Diane's review of the status on payments of assessments, there have been certain subdivisions which are delinquent in their_ assessment payments. We discussed how to address the problem. Of the subdivisions, the one which had the greatest delinquency consisted of approximately 400 of the lots in the development. � Under the City•s current procedure, a 15o cash deposit is paid at the time the development is started. However, based on the timing of the City's bond issue, the City does not need the lSa cash deposit to meet its cash flow needs. We discussed deleting the 15o cash requirement, and substituting a letter of credit so that the City is guaranteed paymer.t on the assessments. ' Discussion In determining the amount of the letter of credit, we discussed two options: 1) require a letter of credit for the full amount of the improvements, 2) provide some lesser fiqure. All of the City's subdivisions have had success in selling Iots. It appears that the subdivisions which have delinquencies are not selling certain lots. Based on the subdivision in the worst condition, 40% af the assessments are delinquent. We, therefore, arrived at using a letter of credit figure of 40� of the estimated cost of the improvements. However, no reduction will be granted in the letter of credit for the first 60� of the lots sold. That will thereby give the City a 100% financial guarantee for the lots that are sold last, and are arguably the "less desirable^ lots in the subciivision. . � April 28, 1593 Page Two Ordinance Revisions JACK W. CLINTON, PA A�TpR�EYk',� AT LAW Pursuant to our meeting of April 15, I have prepared a draft revision to two sections of the Subdivision Regulations. The first change pertains to Sec. 23 - 19 concerning financial guarantees generally; the second amendment is in Sec. 23 - 21 concerning improvement guarantees -- reduction. The changes to the financial guarantees would not longer require the 15% cash deposit. Instead, a letter of credit in the amount of 406 of the estimated amount o£ the public improvements would be posted. The specified purpose is to guarantee payment of the assessments. After the assessments are paid on 600 of the lots, the letter of credit can be reduced as assessments are paid on the remaininc� lots. Tne reductions will occur on June 15 and September 15 of each year upon the request of the developer. Re uested Action � Please review the draft ordinance to see if the language I have prepared accurately carries out the discussions which we had on the 15th. If any of you see any changes to the wording, please let me know. If it is in order, the matter can be submitted to the City Council for their action. JWC:clj Q09-1292 . Enclosure o� � �� � � o�=xArrcE xo. AN ORDIYtANCE FOR TH� CITy pg CO'�'rAGE GROVE, MIPINESO'PA, AtiENDING CEiAPTER 23, SiTBDIVZSION RBGULATIORS The City Council of the City of Cottage Grove, Washington County, Hinnesota, does hereby ordain as follows: SECTION l. AMENDMENT. ° The Code of the City of Cottage Grove, County of Washington, State of Minnesota," shall be amended by amending Chapter 23, Section 23 - 19. to read as follows: "Sec 23 - 19 Financial quarantees general�y The subdivider shall be required to post financial guarantees to ensure completion of all improvements required by this ordinance, the preliminary and final plat resolutions, and the subdivision agreement. The financial guarantees shall be in the form of cash, escrow, or letter of credit. Ia) Public Improvements One hundred percent (100%) of improvements including but not limited to street lighting, public sanitary sewer, water, storm sewer, curb and gutter, street grading and street bituminous surfacing, shall be assessed against properties in the subdivision. �}se de ve�e�er - ske }}- pre�r�ele - e - �et�er-e€-Ereei�t-fer-e-msn#mam-e€ ene-kt�neireel-�raen�p-f 3�e-{-4��$�-ef -�he-est3me�eel-ees�-e€-snek ��ngret�emen�e .---Seie�-�et�er-ef-Eree�3�-wi�}-lye-reelaeee�-es-�l�e essesemefl�s �eer-�ae � -�lse : The.develo�er_shall �rovide�the�citY with�a�Letter of�Credit in an�amount of�fort�,�ercent 540�� of the estimated�cost�of the im�rovements which Letter of Credit shall cjuarantee�� � paXment to.the.cit�:of � � ' " " " - . ... . .. .. . .. ... Ibl Boulevard and Yard Imorovements �i (1) The subdivider shall be required to post financial guarantees in the amount of one hundred fifty (150) percent of the estimated costs to assure completion of the items listed in Section 23-18(b)(1). The financial guarantees shall be subject to approval by the City Attorney before acceptance by the City. The subdivider shall deposit with the City, from a bank or other reputable and financially sound institution subject to the approval of the Finance Director, a letter of credit guaranteeing performance and completion of improvements/work required by the subdivision agreement. -. (2) If there is non with the requirements of this.ordinance at any time, the City Administrator can direct the performance of any work required of the subdivider. ,/ � Specifically, if on-site improvements have not been installed oz structures occupied for forty- five (25) days or longer, the City Administrator shall direct an inventory for non compliance on June 15 and September 15 of each year and may direct the performance of any work heretofore required of the subdivider. The cost of the city's performance of any such work, including labor, equipment and material, shall be paid from the posted financial guarantees." SECTION 2. AMENDMENT "The Code of the City of Cottage Grove, County of Washington, State of Minnesota," shall be amended by amending Chapter 23, Section 23 - 21. to read as follows: "Sec. 23 - 21. Improvement guarantees -- Reduction Sa Public Im rovements After assessments for the �ublic �mprovements�liave�been�paid�in�full�on�sixt � ercent S60%�,of�the.lots�within�the subdivision�for which�the��� � Letter of Credit�is �osted the�Letter�of_Credit�maY.be reciuceci�as assesaments'are.paici�on�ttie'remaining;7ots. 12eduction shsll�be made�two times �er�Year on June�l5�and September.l .. ..... . . .. .. .. . . ...... .. i b Other Im rovements Exce t for the financial uarantees .1.. . . .�. .. .. .�.. osted to uarant a ent of the assessments' roviciec2'gor�in��� P... . g. . .Y.P.Y .�.. .. .. . .. Sec. 23-19� the amount of the�financial�guarantees�may be�reduced upon�completion of a portion of the improvements required by Section 23-18. The financial guarantee shall be reduced to the value of the work not completed. Zn no case shall the financial guarantee be reduced to less than ten (10) percent of the original amount of the financral guarantees for off-site improvements and erosion control. Sc� Release Upon completion of all of the improvements�required by Section 23-18, the City Council shall authorize the release of the remaining portion of the financial guarantee." SECTION 3 EFFECTIV DATE This Ordinance shall be in full force and effect from and after its passage and publication according to law. Passed this day of , 1993. John D. Denzer, Mayor • Att�est: Caron M. Stransky, City Clerk rove Ordinance No. 585; Subdivision Ordinance Amendment to Chapter 23-19(a) and 23-21(a) and (b), Dealing With Financial Guarantees Motion to adopt Ordinance No. 585 for the City of Cottage Grove, Amending Chapter 23, Subdivision Regulations, made by Councilmember Buth. Seconded by Councilmember Raun. Motion Unanimously Carried. S Ayes. 1 � `� �� �� � � ���� � 1���1� �.�,�����. � '��i ti��� s