01-27-2003 Council Packet - Laserfiche WebLink

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Mayor Peterson Page 4 Re: StoneBay January 22. 2003 In short, if this project is to move fonward, we must close on January 31, 2003, as is scheduled. Our lender has expressed serious doubts about our ability to get funding of the project without City approval. Therefore, we requested that staff place this item on the January 27** City Council agenda. Our request is for conditional approval of the preliminary plat, rezoning and PUD general plan, subject to the conditions outlined in the draft resolutions. The resolutions were written by staff to ensure that ANY change in the plan would require the developer to come back before the Planning Commission and City Council for a PUD amendment. Approve! of the resolutions drafted by staff would ensure that the developer addresses all of the issues noted by staff. Plann^ Unit Developments and other larger developments are generally approved by cities subject to a number of conditions. It is very unusual for a city to approve language in draft resolutions. This unusual action by the City Council on December 9, 2002, has raised red flags vrithin the finance community and is threatening our ability to get funding, close on the property this month and constaict the project. We have made every effort to work with the City to address your needs and desires. We will continue to work with the City to construct this project, but we need your help. If we are unable to get approval of the preliminary plat, rezoning and PUD general plan, subject to the conditions in the resolution, it is quite possible that we will be unable to secure funding for this project. It would be a terrible waste of over one year of work by the developer and nearly one year of work with the City If this project could not be built. The opportunity to provide quality, life-cycle housing In Orono as part of unified development may be lost. Our project provides the City with a guarantee of an integrated, high-quality development that fias been refined through nearly a year of work with the City. Frankly, the proposal you receive from another developer may not meet your goals or vision for the community. We believe that the approval of the resolutions (subject to the conditions drafted by stafO will ensure that the proposed devetopment is constructed according the plans reviewed by the City and the any changes to these approved plans would be reviewed by the City through the PUD amendment process. Furthermore, the Developer ’s Agreement, which must be approved with the final plat, can also be used as a tool to address any outstanding issues. The developer will be required to provide a financial guarantee to ensure compliance with the developer's agreement. With these guarantees, the developer assumes all risk, in that any changes to the current plan would require additional City review. The developer accepts these risks and we request approval of the resolutions approving the PUD general plan, preliminary plat and rezoning. If the City Council approves our request on Monday night, we can close on the properly on January 31*'. It Is our intention to make any minor refinements to the plan after MCWD approval on Febmary 27**, re-submit for phase I Final Plat approval March and begin construction in April. id