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ARDEN HILLS SPECIAL CITY COUNCIL—DECEMBER 20, 2010 3 o Require the Developer to clear and seed the property and provide the City with either an open space covenant or a restrictive easement (to be determined by the City); or o Notify the Developer that the City will proceed to closing and accept responsibility for any remaining environmental mitigation beyond the - $50,000 obligation of the Developer. Section 4.5 Construction of Utility Improvements and County Road Improvements: Because the City of Roseville may want to assess their portion of the improvements to County Road D, it will need to be a publicly bid project. The Developer and/or its contractor may choose to bid on the project on the same basis as other bidders. The Developer may also choose to pay 100% of project costs (including Roseville's portion) and construct the road improvements itself. The Developer is required to complete the project no later than December 31, 2016. Section 7.1 Developer Financing: The conduit debt issuance fee will be calculated as 1% of the first $5 million in bonds, 0.5% of the next $15 million ($5-$20 million), and 0.25% of any bond amount above $20 million. If Presbyterian Homes issues $3 S million in bonds, this will result in a total fee of $170,000. The fee will be calculated on an aggregate basis. For example, if consecutive bonds of $15, $12, and $11 million are issued, the fees will be $100,000, $42,500, and $27,500 for a total fee of$170,000. In all other respects, conduit debt fees will be consistent with the City's existing Private Activity Bond Policies. Community Development Director Hutmacher explained there are three motions that require Council action this evening. Councilmember Holden questioned the escrow requirement. Community Development Director Hutmacher explained that the escrow covers administrative and legal costs until this document is approved. Councilmember Holden asked who the owner of the triangle property will be in the event that environmental mitigation exceeds the $50,000 obligation of the Developer. Community Development Director Hutmacher responded that the Developer will be the owner but restrictive covenants prevent development. Councilmember Grant referred to Section 7 and asked if the timing of the calculations affect the dollar amount. Community Development Director Hutmacher responded the timing would not affect the dollar amount. She then explained that the Developer wants their contractor to be able to bid on the County Road D improvement project like any other bidder. The Developer is concerned about the timing of the County Road D project and it may be more cost effective for them to do the entire project at their expense. Staff sees no problem for a legal standpoint with this proposal. The estimated project cost is $150,000.