05-23-2016 Council Packet - Laserfiche WebLink

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Prairie View Lane May 18, 2016 Page 2 There is currently a Letter of Credit in place to guarantee construction of this road and the other Mooney Lake Preserve improvements. Realistically, neither the developer nor the City should be expected to hold this security, or some other form of security such as an escrow, for an indeterminate amount of time until road completion is triggered by a proposed home on Lot 2. That could be years or decades away. The future scenario that initially concerned staff is fairly straightforward. Consider the situation in which no home has been built on Lot 1, but a purchaser of Lot 2 wants to build a home and is required to complete the entire road. Without the road being completed, the City would not issue a building permit for Lot 2. The initial proposal by Carpenter had the owners of both Lots 1 and 2 responsible for completion of the road. In that scenario, the owner of Lot 1 might balk at paying for half of a road he doesn’t necessarily want or need. The solution to this proposed by Carpenter is to place the future obligation to complete the road entirely on Lot 2, leaving the owner of Lot 1 free of the obligation. If Lot 1 gets built on first with simply a driveway extension, the owner of Lot 1 must be on notice that when Lot 2 is developed, his driveway will become a road at the expense of the owner of Lot 2. Under this scenario, the City remains obligated to deny a permit for a home on Lot 2 unless or until the road is completed. The road completion should occur prior to issuance of the building permit, to the extent that the base and first lift of bituminous are in place, allowing the wear course to be added later. Staff would recommend that no Certificate of Occupancy be issued for a home on Lot 2 until 1) the final wear course is in place, or 2) the owner of Lot 2 has established security with the City (LOC or escrow) to ensure the final wear course is completed. COUNCIL ACTION REQUESTED Review the proposed concept, and if Council finds it acceptable, direct that the developer and proposer provide draft revisions to the Mooney Lake Preserve Development Contract and Covenants for staff review. Once staff finds those revisions acceptable, this will be brought back to Council for final action on the revisions.