05-18-15-WS - Laserfiche WebLink

Home Browse Search

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