HomeMy WebLinkAbout[07c] Proposed Development, Arcon e
CITY OF ST. JOSEPH Council Agenda Item 7(c)
MEETING DATE: August 5, 2010
•
AGENDA ITEM: Proposed Development, Arcon
SUBMITTED BY: Administration
BOARD /COMMISSION /COMMITTEE RECOMMENDATION:
PREVIOUS COUNCIL ACTION: The Planning Commission and City Council have previously considered
and approved a preliminary plat entitled Rivers Bend and on July 11, 2005 the City executed a
Development Agreement between the City of St. Joseph and Arcon Development. The Development
Agreement memorialized the development of property known as the Heim /Bechtold farm. The
development included a mix of housing types and in 2006 and 2007 the agreement /terms were
amended, partly due to the severing of a parcel of land for Kennedy School. The plat was modified
when the District purchased the property and the environmental documents were updated.
In 2007 the City completed an improvement project which extended utilities to the Rivers Bend area so
that utilities would be available for the School. Arcon incurred assessments in the amount of $ 1.5
Million in infrastructure costs including utilities and trail and lighting.
BACKGROUND INFORMATION: Staff has been approached by a developer representative who is
considering a small portion development of the Arcon Property. The proposed development would be a
small portion on the east side of CR 121. The exhibit included with this packet identifies the proposed
area for development.
In the past, a single plat development included phasing, usually including between 20 and 40 Tots. With
today's economic conditions and the real estate climate, plats are smaller to help reduce the individual
lot costs, making the development more viable. In reviewing the proposed development, the utilities
would be available and the development would be consistent with the preliminary plat previously
approved by the City. The City has entered into three different agreements with Arcon, one for the
overall development, one with including the school and improvements and an MOU.
While the project will have to go through the Planning Commission and hearings to include rezoning and
platting, the Council will have to consider an amendment to the Development Agreement and the
developer representative is requesting consideration of delay in the Water /Sewer Access Fee. I have
discussed the different agreements we have with the City Attorney and due to all the work that went
into the agreements it would be best to amend the documents.
At this time staff is looking for direction from the Council on the following matters:
• The current agreement has Park Improvements scheduled for September 30, 2010. This
agreement was based on development starting in 2008 or 2009. The staff at this time is not
recommending the City require Park Improvements at this time. The area for the Park is
dedicated and not in question. We do not have to provide maintenance of the Park or area until
we have ownership. The City does not have funding at this time for Park Development. The
7(c):1
property owner is requesting that the time for Park improvements be related to when a
specified amount of housing is constructed.
• WAC /SAC delay of payment. The developer representative is requesting the City delay full
payment of the WAC /SAC fees to help the project cash flow. This is not uncommon in this
economy. The fee could be payable with one third at the time of building permit and the
balance when the Certificate of Occupancy is issued or within 12 months whichever comes first.
The unpaid balance along with a certification fee would be attached to the property if not paid
or the developer's agreement could require the developer to be responsible if not paid.
The proposed development will include 6 to 8 detached patio homes on larger lots. The quality,
character and affordability of the first phase of the Arcon development is important as this phase can
help spur the success of the development. Staff will work with the developer representative to
complete the Planning process, but the decision on the Parkland and delay of WAC /SAC is crucial to the
development moving forward. Therefore the Council needs to provide direction. By considering these
items the City is not foregoing any of the development process or granting approvals. Staff will also
continue to review the requirements and processes and if the other opportunities arise to help the
development, they will be presented to the City Council.
The property owner has provided information that the existing environmental document (AUAR)
completed for Arcon was updated in 2006 and does not need to updated before the end of 2010.
Therefore, as long the development follows the conditions of the AUAR additional review is not needed.
Arcon has a sizeable investment in this property as they have assessments that totaled approximately
1.5 M. The improvements were needed to extend utilities to the School. As part of that agreement they
also were required to extend the sidewalk and lighting, which has been completed. Arcon is current on
their assessment and taxes.
ATTACHMENTS: Request for Council Action 7(c):1 -2
Extract of Development Agreement 7(c):3 -4
Arcon Letter regarding Park 7(c):5
Location Map 7(c):6
REQUESTED COUNCIL ACTION: Provide direction to staff regarding the delay of WAC /SAC and delay of
Park Improvements.
NOTE: This item has been moved up on the agenda so that a representative may be present at the
meeting.
7(c):2
1. Phases. The Property shall be developed in the sequence shown on the phasing plan attached
hereto as Exhibit B, and the lot density and size will be in accordance with that shown on the
preliminary plat attached hereto as Exhibit C. Arcon must obtain prior approval from the City
for substantial deviations from the phasing plan. City approval shall not be unreasonably
withheld. The Developer shall be required to enter into a developer agreement with the City
prior to developing each phase of the PUD. For seven (7) years from the date of this
Agreement, no amendments to the City's Comprehensive Plan or official land use controls
shall affect the use, development density, lot size, lot layout, or dedications of the
development which is a part of this Agreement unless required by State for Federal law or
agreed to in writing by the City and the Developer. This provision does not apply to SAC and
WAC, Trunk Charges, Stormwater Development Fees or other improvement fees. The City
may extend the exemption period for an additional five (5) years and such extension shall not
be unreasonably denied. Thereafter, notwithstanding anything in this Agreement to the
contrary, to the full extent permitted by State and Federal law, the City may require
compliance with any amendments to the City's Comprehensive Plan, official controls and
platting or dedication requirements enacted after the date of this Agreement.
2. Platting. Arcon must include all of the Development Property in the final plat of the first
phase of the development, with future phases of the development platted as Outlots. The
final plat must be recorded prior to the City or Arcon initiating the installation of site grading
and Municipal Improvements on the Development Property.
3. Turn Lanes. Turn lanes from County Road 121 serving the Development shall be constructed
when deemed necessary by the City and/or Stearns County Highway Department. Arcon shall
provide a letter of credit in an amount acceptable to the City to secure construction of the turn
lanes upon execution of the developer agreement for each particular phase in which a turn lane
shall be constructed.
4. Public Land Dedication. Arcon shall dedicate 44 acres of land (exclusive of wetlands) within
the Development to the City. The dedicated land is identified on the final plat as Outlot D
( "Neighborhood Park ") and Outlot L ( "Sauk River Park "). The park property shall be deeded
to the City by Warranty Deed at the time the Park Board determines to develop the Outlots as
parks. Deeding of the property shall not relieve Arcon of its obligation to develop the parks in
accordance with this agreement. The City shall grant to Arcon a license to enter the park
property for the purpose of constructing utilities and grading in accordance with the plans
approved by the City. Arcon shall agree to indemnify and defend the City against any and all
claims for personal injury or property damage arising from Arcon's activities in the park
property. Arcon shall grade the park property in accordance with the final grading plans
approved by the City. Arcon will complete access to and provide final site grading and
seeding, as required by City Ordinances now in effect, for the Neighborhood Park during
Phase 3A construction or by September 30, 2010, whichever occurs first. The Park Board will
provide Arcon with a plan for this park prior to commencing improvements on Phase 3A. In
the Sauk River Park, Arcon agrees to construct a temporary gravel parking lot adjacent to
Odell Street in conjunction with the construction of Odell Street. Grading for the canoe
7(c):3
access road and temporary parking lot shall be completed no later than July 31, 2008. Upon
completion of grading of the canoe access road and temporary parking lot, Arcon shall grant
the City a public easement for ingress and egress and use of the temporary parking lot.
Grading for the remainder of the Sauk River Park, with the exception of the stormwater pond,
shall be completed July 31, 2009, or such later date that the City deems appropriate and
necessary for development of the park. Arcon agrees to extend a 6 -inch sewer and 6 -inch
water stub 140 feet beyond the right of way line of Rivers Bend Parkway in the vicinity of
Sullivan Street, the exact location of which shall be determined by the City, at such time as
permanent streets are installed to that phase. Arcon shall be reimbursed for the cost of this
extension through trunk fee credits. Arcon agrees to provide a paved entrance road with a
minimum width of twenty four feet with curb and gutter and a paved parking lot (with
perimeter curb and gutter) at a location and size to be determined by the City. The City shall
be responsible for all other construction within the Sauk River Park. No additional dedication
will be required for the portion of the development which will be high density located on
Outlot G and other property lying south of the St. Joseph Town Hall.
5. Grading and Stormwater Plans. Arcon and the City agree that temporary stormwater control
measures will be in place during the phased development. At no time shall runoff exceed pre
development rates. Any changes to the preliminary grading plan, the housing types proposed
on the preliminary plat, or the Stormwater Management Plan shall be reviewed and approved
by the City Engineer, who may impose such alternative or additional conditions as deemed
necessary. All permanent stormwater ponds shall have a paved access of 10 feet in width,
which access shall be dedicated to the City.
6. Jade Road/12 Avenue. Jade Road will be constructed in three phases or less as a public
improvement project, funded by special assessments against the Development on a lineal foot
basis. This improvement shall include sanitary sewer, watermain, storm sewer, and trails in
accordance with the development plans approved by the City Engineer. The assessed costs
will include all construction costs, engineering, consultants, legal, insurance, administrative
costs, fiscal costs (including capitalized interest), all costs incurred for the acquisition of
wetland replacements; cost incurred or time expended by City staff for conducting
environmental/wetland permitting; cost incurred or time expended by City staff for conducting
environmental studies and assessments, if required, and all costs involved with the acquisition
of easements for the project and other contingent costs. The assessments shall be levied over
a period of time and at a rate of interest to be determined by the City after financing
arrangements have been completed. The stormwater drainage from the proposed Jade Road
shall be incorporated into the Development's stormwater management system. The City, as
part of the public project, shall install the stormwater pipe that lies within the Jade Road right
of way, but any other stormwater pipe or pond required is the responsibility of Arcon. Arcon
hereby waives its rights to a Public Improvement Hearing and the Assessment Hearing
normally held in accordance with Minnesota Statutes Chapter 429 and said waiver shall be
binding upon the Independent School District 742 following the transfer of Outlot N and upon
any other successors or assigns to Arcon's interest to the Property. Arcon may withdraw its
petition for the improvements upon review of the proposed final assessment roll and prior to
the letting of contracts on the improvement. The City will use its best efforts to collect the cost
7(c):4
.ARGON
DEVELOPMENT, INC.
744 SOUTHCROSS DRIVE WEST • SUITE I03 • BURNSVILLE, MINNESOTA 55306 • PHONE 952/898 -2266 • FAX 952/898 -2289
E -mail: arcon @arcondevelopment.com • www.arcondevelopment.com
July 30, 2010
Judy Weyrens, Administrator
City of St. Joseph
25 College Ave. N., P.O. Box 668
St. Joseph, MN 56374 -0668
RE: Rivers Bend
Dear Ms. Weyrens,
In response to your question on the existing AUAR for Rivers Bend, I have been in
contact with Westwood Professional Services and they have provided me with the
following information (it is my understanding that William Houston called and gave you
this same information):
• The AUAR for Rivers Bend was updated January 12, 2006 when the school
site was added to the plans for the development and it is good through January
12, 2011. Arcon Development, Inc. will request Westwood Professional
Services to extend the AUAR this fall.
In regards to parkland dedication, we would request the City of St. Joseph grant an
extension for parkland improvements to coincide with development of specific phases in
Rivers Bend as the market improves. We look forward to meeting with the city and park
committee in the future to discuss this issue.
Sincerely,
eic",
Larry D. Frank
Project Manager
WE DO MORE THAN DEVELOP LAND.... WE CREATE NEIGHBORHOODS
DEVELOPERS - PLANNERS - CONTRACTORS 7(c):5
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