HomeMy WebLinkAbout2.b. GlenRose Development IssuesROSEMOUNTEXECUTIVE SUMMARY
CITY COUNCIL
City Council Workshop Meeting: April 14, 2010
AGENDA ITEM: GlenRose Development Issues
AGENDA ECTION:
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PREPARED BY: Dwight Johnson, City Administrator
AGENDA NO.
ATTACHMENTS: map, letter, exhibit "b ", letter of credit list
APPROVED BY: f7
RECOMMENDED ACTION: Information item
BACKGROUND
The GlenRose development is a condo development located just east of Highway 3 adjacent to Erickson
Park. Dean Johnson Homes is the developer of the property. For the last 2 -3 years, the developer has
been unable to financially meet the agreed upon obligations for developing the subdivision, including final
paving of the streets, and issues relating to the storm sewer pipe, retaining walls, erosion control, wetlands,
and other items. Two buildings were constructed with six units in each building. Only 8 of the 12 units
have been completed. An additional 64 units are planned. The other four units are partially constructed
to the drywall stage, but have no cabinets and no plumbing or electrical fixtures, and no finished floors.
The City halted building permits due to unsatisfactory progress on the required subdivision improvements.
A demand was made on the letter of credit for the subdivision held by Alpine Capital. This demand was
refused due to Alpine Capital claiming insufficient assets to honor the letter of credit. Recently, Kurt
Manley, a builder /developer in the South Metro area, has requested building permits to complete the four
partially complete units in the existing buildings. Staff has been in discussions with him regarding the
conditions under which he might proceed as well as longer range strategies for how the development
might move forward in the future.
DISCUSSION
The situation is complicated by the existence of a variety of creditors and interested parties. At this time,
there is no party, including Mr. Manley, who appears ready and able to take over the full responsibility for
the entire development which is now the legal responsibility of Dean Johnson Homes. Staff is reviewing
what circumstances might be acceptable to allow at least some build out to continue under the current
circumstances. Staff's biggest current concern with the unfinished physical development work on site is
that portions of the investment already made in the infrastructure, such as the streets, will rapidly
deteriorate if no action is taken to finish them to proper specifications. This will make a bad situation
worse if the development continues to sit idle for the next few years. Further discussions with Mr. Manley
are anticipated before the workshop meeting, and staff plans to review and update these issues with the
Council at the workshop meeting.
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4ROSEMOUNT
PUBLIC WORKS DEPARTMENT
November 10, 2009
Kurds Manley
Fair Market Homes
764 Southcross Drive West
Burnsville, MN 55306
Re: GlenRose of Rosemount
City Project #397
Dear Mr. Manley:
As follow up to our October 26, 2009 meeting regarding the GlenRose of Rosemount development,
this letter's purpose is to define Public Infrastructure and Developer Improvement items as
specified in the Subdivision Agreement between the City of Rosemount and GlenRose Investments,
LLC for the GlenRose of Rosemount plat, dated December 5, 2005, and the necessary completion
of these items as they pertain to the future issuance of building permits and Certificates of
Occupancy within the development. The following listed items do not supersede the original
requirements as set forth in the GlenRose Subdivision Agreement, and all items must be completed
under each section.
Items to be addressed prior to any future issuance of Certificates of Occupancy for the
existing units within the development,
o Payment of outstanding cash balance on development fund account, total of
- - — - - - 80 5000. - $20,337 58 -torelease retainage and final- contract with RKI, Inc. Current
development fund account shortage of $55,218.25. Approximately $5,000 additional
to cover future administrative, engineering, wetland monitoring, and legal expenses.
Additional funds will need to be forwarded to the City upon request per the terms of
the Subdivision Agreement as future costs are incurred.
o Final lift of roadway paving for 140`h Circle and associated work, currently quoted at
$28,000. Includes spot curb and sidewalk replacement for damaged areas,
adjustment of utility structures within the roadway prior to paving, and roadway
striping.
o Miscellaneous grading /erosion control /clean qp. Repair slope erosion at northeast
corner of site, silt fence removal, and remove abandoned utility pole from site.
o Replacement Letters of Credit from a bank or other type of approved securities to
cover the cost of all outstanding developer funded responsibilities per the
Subdivision Agreement.
SPIRIT OF PRIDE AND PROGRESS
2875 145th Street West • Rosemount, MN 55068 - 4997.651- 423 -4411 • TDDMY 651- 423 -6219 • Fax 651 - 322 -2694
www. d. rosem o un t. m n. us
Items to be funded or addressed prior to any future issuance of Building Permits for new
structures within the development:
o Compliance with wetland replacement order and ongoing wetland monitoring
inspection requests. Currently, a Wetland Replacement Order has been issued for
the site by the Minnesota Board of Water and Soil Resources (BWSR) and
Department of Natural Resources — this is no longer being handled by the City of
Rosemount and failure to comply may result in deed restrictions against the property
that do not allow further construction activity.
o Submittal of an as -built grading record plan for the entire site, prepared and certified
by a Professional Engineer or Registered Land Surveyor, to be reviewed and
approved by the City.
o Inspection and repair if necessary of storm sewer adjacent to pond retaining wall
affected by retaining wall construction.
o Replacement of sidewalk along pond retaining wall affected by retaining wall
construction.
o Inspection and repair, if necessM, of retaining walls. Separation and cracking within
the walls is apparent on the hammerhead turnaround wall in the southeast corner of
the site. Submittal of an inspection report prepared by a structural engineer will need
to address this separation and identify any necessary repairs.
o Installation of streetlights.
o Completion of landscaping, per City- approved landscape plan.
If you have any questions or concerns regarding this letter, please feel free to contact me at 651 -322-
2724.
Sincerely,
Morgan awl , PE
Assistant ity E gmeer
cc: Dwight Johnson, City Administrator
Andrew J. Brotzler, Director of Public Works /City Engineer
Kim Lindquist, Community Development Director
Charlie LeFevere, City Attorney
Jeff May, Finance Director
Dean Johnson, GlenRose Investments, LLC
John Hanson, G1enRose Investments, LLC
2 G: \ENGPR0J \397 \Man1ey Letter 11- 9- 09.doc
EXHIBIT B (Page 1 of 2)
Letter of Credit for Develoner Improvements
No.
Item
Cost
110%
Calculation
1
Grading and Erosion Control
$ 37,660
$ 41,426
$3500 /acre * 10.76 acres
2
Pond Restoration and Erosion Control Removal
$ 25,000
$ 27,500
Minimum $25,000
3
Survey Monumentation
$ 6,500
$ 7,150
$500 /lot * 13 lots
4
Retaining Wall
$ 50,000
$ 55,000
Estimate
5
Landscaping
$ 53,500
$ 58,850
Per Rick Pearson
6
Street Lights
$ 36,000
$ 39,600
9 lights * $4000 /li ght
7
Buffer Monumentation
$ 500
$ 550
10 signs * $50/sign
8
Park Equipment/Improvements
$ -
$ -
9
Wetland Restoration/Mitigation
$ 1,400
$ 1,540
.07acres * $20,000 /acre
10
Wetland Monitoring
$ 10,000
$ 11,000
City Engineer Estimation
Total
$ 220,560
$ 242,616
Letter of Credit for Public Infrastructure
No.
Item
Cost
110%
Calculation
1
Estimated Construction Cost
$ 888,170
$ 976,987
Based on actual construction cost
2
Less Initial Cash Deposit
3
$ 150,000)
$ 44,409
5% of Construction Cost
4
Street Light Energy Cost
$ 1,080
9 lights * 24 months * $5 /month
5
Total
$ 1,812
$ 826,987
ON Fees
No.
Item
Cost
Calculation
1
Engineering Fees
$ 150,989
17% of the Construction Cost
2
Attorney Fees
$ 2,500
Estimate
3
5% City Fees
$ 44,409
5% of Construction Cost
4
Street Light Energy Cost
$ 1,080
9 lights * 24 months * $5 /month
5
1 Seal Coating
$ 1,812
1 $0.60 /SY * 3020 SY
Total
$ 200,790
Development Fees
No.
Item
Cost
Calculation
1
Park Dedication
$ 228,000
76 units * .04 * $75,000
2
GIS Fees
$ 4,180
$55 /unit * 76 units
3
Storm Sewer Trunk Charge
$ 57,203
$60157 gross developable acre * 9.51 acres
5
Sanitary Sewer Trunk Area Charge
$ 11,244
$1045 /acre * 10.76 acres
6
1 Watermain Trunk Area Charge
1 $ 45,300
$4210 /acre * 10.76 acres
Total
$ 345,927
GAENGPROJ\397 \Subdivision Calcs
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