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HomeMy WebLinkAbout1987-01-26 CC MIN r r r SPECIAL MEETING STILLWATER CITY COUNCIL MINUTES January 26, 1987 5:00 P.M. The Meeting was called to order by Mayor Abrahamson. Present: Councilmembers Bodlovick, Farrell, Kimble, Opheim, and Mayor Abrahamson. Absent: Nooe Also Present: City Coordinator Kriesel City Attorney Magnuson City Clerk Johnson Press: Nooe Others: Paul Keleher, Bob Dieke, Dennis Balyeat, John Arkell, and Kit Carlson. City Coordinator's Report Motion by Councilmember Opheim, seconded by Councilmember Kimble to authorize the attendance of Steve Russell, Comm. Dev. Director, at the Project Manager's seminar at the University of Minnesota at a cost of $225.00. (All in favor) A brief discussion followed regarding the location of the Courage Center in the City of Stillwater within the Arkell Development project. Development Agreement for Phases 2 and 3, Cottages of Stillwater - Mr. Kriesel gave a brief explanation of the background of the agreement stating this is the 6th draft, and introduced Bob Dieke, Holmes and Graven, who continued with the explanation. Mr. Dieke stated the second phase would include 60 units and the third phase would include 56 units. The Developer will be supplying the construction plans before April 1, 1987 for Phase 2, and will supply the financing by April 30. He stated there may be another phase, when they get to Phase 3, which would be the apartment building. Further elaboration included the City buying the land, establishing the escrow account, and public improvements. It was mentioned that the sewer will be private, but will be constructed according to Short-Elliott-Hendrickson, Inc. specifications. The Developer is required to sign a restrictive covenant to be placed on the property and will say that they are bound by the terms of the Planned Unit Development, but the developer is not required to develop within any time frame. Mr. Dieke suggested that perhaps the Council may wish to discuss this item. Kit Carlson explained the empowering district covering this development and the boundaries of the district. Mr. Dieke continued explaining the agreement by saying he will redefine the bonds mentioned in 1 r Stillwater City Council Minutes Special Meeting January 26, 1987 Section 3.11 - the City will never have to spend more than the proceeds of the bonds. r Discussion followed regarding the force main system (lift station), which the City will be required to build, or the Developer will only build 28 units in Phase 3. The time frame for this was further discussed and the need for Woodland Lakes to be further along before this system is built. A July 1, 1988 completion date was discussed. The question was raised whether 28 units will support the project and Ron Langness of Springsted will be contacted on this point. John Arkell stated he hopes to come back in three months saying the Courage Center will build this summer and they can't do it unless they know the improvements will be built. Council suggested the date of December 31, 1987 be used for completion of construction. The commitment date was omitted. Mr. Arkell stated he would also like to start Phase 3 this year, but understands if the sewer improvements can't be started because this all is dependent on Woodland Lakes Mall plans going forward. Mr. Oieke continued going through the agreement with Developer's obligation to construct -- construction plans, etc., Certificate of Completion obligations, Payment Performance Bonds, types of insurance required. Mr. Dieke named some changes that were made in regard to Tax Increment Guarantee - the calendar year 1989 was inserted as the date when the taxes will start coming in. If the tax increment comes up short, the developer is obligated to kick in and pay the difference. The assessment agreement was discussed, financing, prohibitions on the Developer's ability to transfer the property, the City's recourse should the developer default, notices of "No conflict of Interest", etc. Mr. Kriesel initiated discussion of "windfall" profits. It was stated this would come under the restrictive covenants portion. Mr. Magnuson raised the issue of whether this is enforceable. The purchase contract with Mr. Emerson was addressed and the consequences in the event of default. Council concurred it was possible this item could be brought for consideration of approval at the meeting on February 3, 1987. (' 2 n n, n Stillwater City Council Minutes Special Meeting January 26, 1987 ADJOURNMENT Council adjourned the meeting at 6:17 P.M. to Executive Session. ATTEST: ~ IJa/k ~~ MAYOR ~ 3