10-11-2004 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, October 11, 2004 7:00 o'clock p.m. • (Stonebay Development, Continued) Gappa stated there was a deficit in the Park Commission Fund but that any surplus has been applied to the purchase of the property next to the Navarre Park. Gappa indicated the next stage of Stonebay is similar to the first phase, with approximately the same amount of park fees being owed. Murphy inquired whether the developer has agreed to pay the $28,000 in fees owed to Bonestroo. Gappa stated multiple conversations have been had with the developer, with the developer being informed that the City inspector will be on the site if the developer is not properly overseeing the project. Gappa noted there is a long punch list of items that still need to be corrected. Gappa stated the developer is probably not aware of the $28,000 bill at this time. Murphy inquired what the current status of the project is. Gaffron stated he has spoken with the developer recently over some proposed changes to the buildings and that he expects the developer to be able to perform on those changes. Gaffron stated the developer would be appearing before the Planning Commission in December concerning the lofts being proposed but that he is not totally aware of their financial situation. Gaffron indicated he is not sure whether the City will be reimbursed in a timely fashion. Gaffron stated a certain amount would be withheld from their letter of credit if the City is not reimbursed. Murphy inquired whether the developer would owe the City money by the end of the year if this trend iscontinues and the letter of credit is used up. r� U Gappa stated the City is also covered by an escrow. White noted the trail in this area, once it reaches Willow, could be extended to the next neighborhood. Sansevere inquired whether Landform is adequately performing their role in this development, noting that there are a number of staff hours that are also being incurred on this project. Gappa stated the City would not have had to spend as many hours on this project if the work had been properly performed the first time. Barrett stated he is unsure whether the developer agreements allow the City to offset one claim against another and that he is uncertain whether the developer has a contractual duty under the developer agreements to pay the City for the hours. Sansevere moved, White seconded, to approve a Park Dedication fee reimbursement of $34,125 to Dahlstrom Development to be funded from the Park Fund and approval of a budget adjustment for the 2004 Park Fund budget to reflect this expenditure. VOTE: Ayes 4, Nays 0 Murphy moved, McMillan seconded, to approve a temporary loan from the General Fund to the Park Fund to cover the $34,125 expenditure with repayment of this loan to be as soon as possible from future Park Dedication Fees. VOTE: Ayes 4, Nays 0 PAGE 15