Loading...
HomeMy WebLinkAboutMinutesMeridian City Council July 16, 1996 Page 65 - Stiles: This is related to that issue, we have been trying for several months to get Mr. Daily to come in and get a conditional use permit. It is not a permitted use where he is at, he keeps saying it is going to be next month, next month and now atl of a sudden he wants us to bend over backwards and come up with some agreement with Boise City and I don't think we owe the guy anything at all. Corrie: This is the agreement he says if he gets it from us then the reciprocity is there. I think that is a legal matter that we need to get straightened out first. Fitzgerald: Like I said I just brought this to the Council's attention. Corrie: Just so you know if he calls you and I need to talk a little more tomorrow about that. Mr. Morrow? Morrow: Two or three issues, one is that Will handed us an issue under department reports for the release of the non-development agreement for Bedford Place Subdivision No. 2. The necessary letters of credit and such were filed is that correct? Berg: Yes, I received those late yesterday, but like everything else I want to make sure it is all okay with Wayne Crookston. They have not returned the release or the formal release as to the other department report item I had with Haven Cove No. 5 we have an actual release of anon-development agreement. Morrow: So we could approve that like we have done the, other ones subject to the attorney review. Berg: I would recommend that yes. Morrow: So I would move that we approve the release of the non-development agreement for Bedford Place Subdivision pha~~e 2 subject to the City Attorney's approval. Bentley: Second Corrie: Motion made by Mr. Morrow, second by Mr. Bentley, any further discussion? All those in favor? Opposed? MOTION CARRIED: Corrie: Do you want to do the other one too Walt on Haven Cove? Morrow: Yes sir, what phase of Haven Cove is that? Meridian City Council March 5, 1996 Page 40 - Morrow: Mr. Mayor I would move that we offer endorsement of the lot split as per the configuration and that lot split occur with the County and then application be made by the parties for the normal subdivision annexation and zoning process with the City of Meridian. Bentley: Second Corrie: Motion made by Mr. Morrow, second by Mr. Bentley, you heard the motion any further discussion? Hearing none I will call for the vote, atl those in favor say aye? Opposed? MOTION CARRIED: All Yea Sweet: Mr. Mayor, members of the Council and Staff thank you very much. ITEM #10: RELEASE OF NON-DEVELOPMENT AGREEMENT ON BEDFORD PLACE: Corrie: You have that release of the non-development agreement in front of you Council, what is your pleasure? Any discussion? Mon-ow: I would like, this would be the first release that we have done in my time on the Council. I would like to have Counselor take us through this process or at least take me through this process. Corrie: Counselor would you take us all through this process? Crookston: I have not looked at this application this evening, Smith: Mr. Mayor and Council members, maybe I could help. Since the letter wrote the letter to me and I have had some discussions with him on the, I guess it is the third or fourth page of the packet you have, title ,ion-development agreement at the top of the page, fifth paragraph from the top of the page. Starts in capital letters developer, I think we read through that paragraph pretty well spells out what the developer is required to do as part of this non-development agreement. °The developer ,hereby agrees that no improvements will be installed in said subdivision lots as required by the City without the prior written permission of the City." That is what he is requesting. "If developer desires to install any of the said improvements for said lots then said developer shall submit a written request to the City which shall contain a detailed .description of the limited improvements which are desired and estimated time and cost of such improvements. The City reserves the right to require an irrevocable letter of credit or cash deposit or surety agreements in the amount sufficient to secure the full and adequate performance of the developer. Upon such stated improvements and detailed construction plans such surety Meridian City Council March 5, 1996 Page 41 " deposits will figured at the prevailing construction cost as determined by the City. He has submitted along with his letter a copy of on the third page a copy of the improvements that he would make on those lots that were part of the non-development agreement. It would be my recommendation as City Engineer that he does submit a letter of credit for the installation of those improvements. Corrie: Or a cash deposit. Smith: Anything that is liquid to the point other than a surety bond. I think that is (inaudible) what he is requesting. I will refer to Wayne to add anything to that. Crookston: I don't have this packet. Rountree: Gary, I guess for my own understanding this is an agreement with the developer (inaudible) Smith: Yes Rountree: And (inaudible) than the City wants some assurance that it is going to get done. Smith: Yes, initially the developer submitted a plat for a certain number of lots which would include the improvement thereof. That plat was approved by the City Council, that plat was recorded at the Ada County Recorders Office. Then he came back with a request for a non-development agreement because he decided he didn't want to develop all of that plat. At that time the Council said alright, we will agree to anon-development agreement for a certain portion of this plat. So, in effect they drew a line through the plat and figuratively built a fence along those tot lines and said everything north of this line we are going to develop and improve streets, sewer, water, street lights, etc. and sell these lots. South of this fence is part of this non-development agreement. When we decide we want to develop these lots we will abide by the cmnditions of this non-development agreeme~it. That is what he is submitting in this packet. They now want to build those improvements so they can self those lots. The following, the second paragraph below that one that we read says that he agrees not to sell the above referenced lots in the subdivision during the term of the agreement or until a new irrevocable letter of credit or cash deposit surety has been issued and delivered to the City or until the required improvements of such subdivision are completed in accordance with the current City standards and specifications. Morrow: Gary, question, on his paragraph three, he is suggesting that we leave the non- development agreement in place while we instruct these improvements and release it near the end of the construction. We will bond any items not completed at that time. So my question here is that he is basically asking for either or. He is asking for a total release of Meridian City Council March 5, 1996 Page 42 the non-development agreement 6r if the Council is more comfortable leaving the non- development agreement in place until those improvements are done. I guess my question to you would be is under the one we are asking for a bond or letter of credit and under the other is he suggesting that there is no bond or letter of credit done upfront. He is stating he will bond any items not completed at the time and I am assuming that means that at some point he wants to bring the non-development agreement off before he has completed his construction of improvements. Smith: Yes, that is what he is asking. Morrow: The issue is that he cannot sell lots until this non-development agreement is totally terminated, nor can he sell lots until the final plat is signed off with the improvements in and being inspected, is that correct? Smith: He can sell lots right now because the final plat has been recorded. He can legally sell a lot. They can't get a building permit for the lot until they have at the very minimum a gravel road access in front of the lot. So that the emergency vehicles can access the lot. Morrow: So on this phase of the final plat has been recorded by the inspections have not been made. Smith: Well the final plat has been recorded, there have been no inspections on the second phase because there is nothing there built. Morrow: I understand that. Smith: But the first phase everything was inspected, the hard surface is down, lots are sold, the buildings are up and people are living out there. Morrow: What I am after here is the City's safest way co ensure that all of the development, all of the work is actually done is to bond for the completion of that work and not stay in the development or non~ievelopment agreement for a certain period of time and then bond for the completion. I guess I am asking you opinion here. It appears to me that is the safest way to do this. Smith: Yes, in my opinion that is the safest way to do this. Crookston: He really couldn't, technically he cannot sell lots because the non- development agreement says that he will not sell lots. Smith: That is correct, he is still bound by the conditions of the non-development Meridian City Council March 5, 1996 Page 43 - agreement even if he is allowed to go into the undeveloped portion and make the improvements he cannot sell a lot until Council rescinds the non-development agreement. So I guess technically what he is asking. for is allowable, could allow him to on the one hand to make his improvements but with the understanding the non-development agreement still exists and he can't sell any lots until all of the improvements are in or he comes back to the Council and says I have got $125,000 of the $155,000 improvements and t would like you to terminate the non-development agreement and here is a letter of credit for $25,000 to ensure that I am going to finish what we have started. Obviously his request is to relieve him of the financial responsibility to provide that larger cash or letter of credit. That is the only reason he is asking that question. Like Wayne said part of the non-development agreement says he can't sell any lots, unless his development agreement is rescinded by the Council. That means we put a tag on the file folder in the building department and no building permits are issued. I suspect that tag is already there. Morrow: So what it boils down to is we have got two avenues to go here. The one is the first two paragraphs which is termination of the development agreement or non- development agreement, permission to proceed with development or the undeveloped lots in that case we request the surety agreement or the Letter of credit in the amount of $151,911 or we leave the non-development agreement in place and at some point in the future he comes before us and requests it to be terminated and then bonds for the balance of work that has to be completed. Smith: Correct, in that paragraph that we read I might state that the City reserves the right to require the irrevocable letter of credit, it doesn't say it has to require. So you could allow him to, he has asked to make the improvements you could allow him to make the improvements without an irrevocable letter of credit without releasing the non-development agreement, it would be, in my opinion it would not be in violation of the non-development agreement terms. We just have a propensity to ensure that the improvements are done, I think that is why that language was installed in that paragraph. Without rescinding the non-development agreement. he can't sell any lots. And the City Council should not rescind the non-development agreement unless, until his improvements are complete and accepted or he furnishes a letter of credit to cover the cost of those improvements. Corrie: Gary, I was going to ask on this (inaudible) I don't see anything about the streets, (inaudible) is that hidden in there somewhere? Smith: The Highway District has anon-development agreement for the streets so he would have to go through (inaudible) Crookston: Gary, my question is in the fourth paragraph there it says the end of the second line, uat the same time you are adding services for the seven lots which have been given Meridian City Council March 5, 1996 Page 44 preliminary approval by the Council we will follow up with the final plat and recording process of these seven lots so that they can be offered for sale after the plat has been recorded. Can he do improvements for .lots that have not been final plated? I assume can't. Smith: Well, it is a technicality Wayne because technically they are not supposed to do any improvements until the final plat has been approved. But he is building a street and he is making improvements to lots on the north side of the street for sewer and water services. He has a plat in the process for approval that subdividing the existing common area lot on the south side of the street. It just seemed appropriate to me that while he is building this sewer and water line he stubbed to the south to these proposed lots. I gave him the approval to go ahead with the understanding that he was on his own. I put that in the form of a letter that it was his risk to make those improvements. That there was no guarantee that the Council was going to approve of those lots as he has proposed. He understands that. Crookston: Are any of these lots on, I don't know what has happened out there, but are any of these lots in the area that where he is going to pipe the Finch Lateral and has that been done yet? Smith: Yes they are in the area he is going to pipe the Finch Lateral and I don't know whether it has been piped or not. The Finch Lateral will run along the front of these lots. Crookston: I would think that the City needs to be concerned that piping be completed around or where any of those lots are. Any of the land that is now the ex-Finch lateral I think the City needs to be assured that is done and taken care of. The other thing that was, this is the area where he was supposed to have a basketball court? Smith: Well that basketball court is to the east side, it is the easterly piece of this common area this area that he is platting with the 7 lots is the the west side of the subdivision. There is a north south road that kind of bisects the property. These seven lots are on the west side of that road. Crookston: As I recall there was a question as to how much of the basketball court he had put in and I don't recall if that was ever decided. Whether it was going to be a full court or half court or just a basket there. Smith: I know you brought that question up several times and I don't know that there was ever an answer. I don't know exactly where this piece of subdivision is for these seven lots. I can't recall at what stage of the process. Meridian City Council March 5, 1996 Page 45 Morrow: It seems to me like given that, those kinds of questions, the best solution here for us as a City is one of two, not act on this or the second one is we leave the non- development agreement in place and, allow them to go ahead and put in their improvements and at such a point in time-that they are done with the improvements and everything is satisfactory then we release the non-development agreement. Or if it is the Council's desire and they appear here early and they want to bond for final completion of things than we make that decision at that point in time. But I think what both you and Wayne are telling me is that there are some other gray areas here that are affected. It seems to me that given that you want to leave the non-development agreement in place. That has the incentive of finishing prior to the selling of lots. Because you can't because of the non-development agreement you can't sell a lot white the non-development agreement is in place. Smith: That is correct. I think the issue with the resubdivision of the common area lots is a separate. The seven service lines that he wants to install are being done as a matter of convenience. The piping of the Finch Lateral that is part of the both subdivisions really. The number 1 subdivision and the re-subdivision. The location of the ditch is different, but he will have to accomplish that piping as part of the improvements for the number 2 subdivision or the re-subdivision. If you leave the non-development agreement in place and allow him to proceed with his improvements on the number 1 subdivision I agree with you he doesn't sell any lots unless he comes forward at some point in the future and says I want to bond for what I have left to do. Morrow: Mr. Mayor, I think I am prepared to move that we leave the non-development agreement in place and allow Brighton Corporation to proceed with their construction of improvements and at the time those improvements are completed they can come before the Council and request on the removal of the non-development agreement. Tolsma: Second Corrie: Motion made by Mr. Morrow, second by Mr. Tolsma, you have heard the motion, discussion. I guess Walt at that time we can n3quire the cash security. Morrow: Well point of discussion, if he comes in and those things are complete there is no requirement for a bond. If he comes in and he is 90% complete and wants to proceed to sell than we require a bond for 110% or 10596 of the balance of the improvements that need to be done, per the agreement. Corrie: Okay, all those in favor of the Motion say aye? Opposed? MOTION CARRIED: All Yea