Mayor Beyer called the Special Meeting of the Rockford City Council to order at 6:10 p.m. The meeting was held in the Council Chambers of City Hall 6031 Main Street, Rockford, MN.

The purpose of the special meeting is to review a proposed amendment to the Parkwood Development Agreement.

ROLL CALL

Roll call was taken, the following members were present: Beyer, Altringer, Graner, Nichols, and Seymour. Also in attendance was: Attorney Couri, Engineer Statz and Administrator Carswell.

Review Proposed Amendment to the Parkwood Agreement

Attorney Couri explained that staff had recently met with property owners of the Parkwood development. The developer’s US Homes and Wagner’s have decided to split the western portion of the development.

A map was submitted showing how the split affects the master preliminary plat of the Parkwood Development.

The Wagner’s will maintain ownership of 81 single family lots south of Linnea Parkway and US Homes will maintain ownership of the remaining undeveloped lots which consists of 16 town home lots and 4 single family lots.

The Wagner’s and US Homes have agreed to divide the costs for the construction of the western access. The existing agreement states that when the final plat for the second phase is submitted that a letter of credit shall be submitted to the city which will cover the costs of constructing the western access. The two parties are requesting that the city obtain a different method of financial security from the Wagner’s and US Homes will submit a letter of credit for their share of the western access.

The city council discussed the proposed amended agreement naming both parties as developers. The preliminary plat shall be adhered to and remain in effect until January 31, 2015.

The city may upon issuance of 160 building permits or anytime after November 15, 2015 commence construction of the western access and

assess 100% of the current costs. One council member thought that the deadline was too far out. There was also a question about a requirement that Linnea Parkway be constructed prior to this deadline so that western access will connect to the development. Attorney Couri stated that there is a deadline for the construction of Linnea Parkway in the agreement.

In the event Wagner’s applies for final plat prior to the city moving forward with construction of the western access they shall provide the city with a letter of credit in the amount of 40.65484% of the total estimated cost of the western access with an expiration date of no earlier than November 15, 2015.

The in the event the city constructs the western access prior to the Wagner’s application for final plat, the Wagner’s agree to waive any objection to the assessment levied against the property for their share of the access.

The city council discussed the assessments and expressed concerns over the Wagner’s ability to pay the assessments, although the city will eventually get paid and that value of the land can bear these assessments. The council suggested US Homes submit a letter of credit for the entire costs of the western access and they can collect from the Wagner’s. One council member suggested that the city bond for the entire project and build the access now and US Homes could pay the bond payments for the first five years and the city would defer the Wagner’s assessments.

There was further discussion about the Wagner assessment and the city must put a dollar amount in the agreement. The estimate for the western access from 2006 was $1,460,000. There was a discussion that the construction costs figures be updated or that the agreement use 125% of the current costs stating that the city will refund the developer dollars remaining after the construction is completed.

Council member Graner asked about the validity of the letter of credit from US Homes if they went bankrupt. Attorney Couri stated that the letter of credit would still be valid; however, if the bank went bankrupt then the cities letter of credit may not be worth its full value. Although, in that case the city would assess those outstanding development costs to the property as a method of payment and the next property owner would be responsible to pay the city.

US Homes agree to submit a letter of credit to the city immediately after the city signs the agreement. The letter of credit shall cover US Homes costs of the western access and shall not expire sooner than November 15, 2015.

The city shall draw on the letter of credit for the construction of the western access.

Upon execution of this agreement, Wagner’s shall execute the petition for annexation immediately. The council discussed this and stated that they want to give the Wagner’s two weeks to sign the petitions for annexation or the agreement is null and void.

There was discussion about the easement for the western access and since the final plans have not yet been drafted, the engineer is wary of describing an exact easement. The city council suggested that the easement be made larger to accommodate the western access and any changes that may be made prior to construction.

The council reviewed the other sections of the agreement.

The city council concluded that they can agree to changes discussed. Attorney Couri will draft the revised amendment to the Parkwood Development and send it to the Wagner and US Homes attorney’s for review. The city council stated that there will be a two week deadline for US Homes and Wagner’s to accept this agreement, realizing that the signatures and letters of credit will not yet be ready or the amended agreement is null and void.

Motion to adjourn was made by Council member Altringer, seconded by Council member Seymour.

MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.

Mayor Beyer adjourned the meeting at 8:02 p.m.

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Michael Beyer, Mayor

ATTEST:

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Nancy Carswell, Administrator