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<br />Memorandum <br /> <br />Date: May 14, 2014 <br />To: Matthew Bachler, Planner City of Arden Hills <br />From: Pamela Belz, Senior Housing Partners on behalf of Presbyterian Homes of Arden Hills <br />RE: Escrow Revision Request for the First Amendment To Master Planned Unit Development <br />Agreement And Phase II Development Contract for Presbyterian Homes of Arden Hills, <br />Inc. <br /> <br />The First Amendment to the PUD Agreement accurately reflects the additional requirements added by <br />the City Council however, we still have the concern over the amount of cash escrow amounts. We are <br />requesting these amounts be reduced as outlined below. <br /> <br />Item D6 states that the Developer shall submit a cash escrow in the amount of 25% of site <br />improvements including grading, utilities and paving for use by the city for review, approval and <br />inspections. Completion of this work is already guaranteed under the letter of credit that will be posted. <br />This amount for city expenses is excessive and would add an unnecessary financial burden. Phases 1A <br />and 1B did not require a cash escrow in the PUD Agreement. An escrow of approximately $20,000 was <br />posted for phases 1A and 1B for grading and erosion control of which only a portion was used. <br />Therefore, we propose an escrow of $18,000 as this phase is significantly smaller and will still cover <br />related city expenses. <br />Item D8 requires a cash escrow in the amount of 25% of these costs for city expenses. This escrow was <br />not required under the original PUD. A separate letter of credit secures the completion of the work and <br />guarantees warranty. We acknowledge the staff time involved for the inspection of the planting areas <br />and the as built landscaping plan. Therefore we request an escrow of $ 15,000 for the size and scope of <br />this project. <br />We understand the request for escrows but request establishing a reasonable correlation to the actual <br />expenses expected to be incurred. We seek to build the Brownstones as a beautiful addition to the <br />Johanna Shores campus while being mindful of expenses and good stewards of our resources. <br /> <br />Thank you for your consideration.