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ARDEN HILLS CITY COUNCIL WORK SESSION – MAY 18, 2015 7 <br /> <br />Mayor Grant asked if there was a reason staff chose 25%. <br /> <br />Community Development Director Hutmacher explained that prior to Lexington Station, <br />escrows and securities were negotiated on a project-by-project basis. This led to each project <br />being different. For this reason, staff worked with the City Attorney to come up with a single <br />standard. She stated that for large projects, there was good reason to allow for some level of <br />flexibility. <br /> <br />Councilmember McClung questioned what this level of flexibility should be for a project of this <br />magnitude in order to cover any unanticipated costs. <br /> <br />Community Development Director Hutmacher commented that staff may need to further <br />discuss the expense of Item 6D in order to provide the Council with an accurate number. <br /> <br />Associate Planner Bachler reported that a landscaping inspector would be hired to assist with <br />Item 8D. It was staff’s opinion that the proposed escrow would cover the expense for these <br />inspections. <br /> <br />Councilmember Holden expressed frustration with Presbyterian Homes’ performance in the past. <br />She did not believe it was that big of a concern for Presbyterian Homes to tie up money in a letter <br />of credit to ensure that all work was completed as promised to the City. <br /> <br />Councilmember Holmes asked how the letter of credit and escrow meshed together. <br /> <br />City Attorney Jamnik explained that the letter of credit was an umbrella policy. He stated that <br />the escrow was intended to reimburse the City on an ongoing basis for inspections and consultant <br />work that needed to be paid on a monthly basis. This was for smaller and periodic amounts. <br /> <br />Mayor Grant supported staff’s recommendation for Item 8D. He suggested that staff reconsider <br />the escrow amount for Item 6D. <br /> <br />Councilmember Holden wanted to see the escrow amount remain at $200,000. <br /> <br />Councilmember Woodburn believed that Presbyterian Homes would make good on the project <br />and would not require high escrow amounts. <br /> <br />Councilmember Holmes thought that the 25% escrow amount was too high. She encouraged the <br />Council to be reasonable. <br /> <br />Councilmember McClung agreed with the Mayor and supported staff’s recommendation for <br />Item 8D and encouraged staff to review the proposed escrow amount for Item 6D. He wanted to <br />be ensured that the City would cover all of its expenses. <br /> <br />2. COUNCIL COMMENTS AND STAFF UPDATES <br /> <br />Mayor Grant commented the County would be holding a work session on Tuesday, May 26th. <br />He stated that he would be attending the meeting and hoped to discuss the concept of “good jobs”