2024-08-28 CC Packet - Laserfiche WebLink

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August 22, 2024 Honorable Mayor and City Council 1880 Main Street Centerville, MN 55038 Honorable Mayor and City Council: Background – Bay View Villas 2019 In September of 2019, the City and Bay View Villas, LLC entered into a Development and Subdivision Agreement. Rich DeFoe is the sole manager of the development company, Bay View Villas, LLC. Along with that agreement, the developer established a escrow account with the city and obtained a letter of credit from a bank, in favor of the city, as security for the completion of all elements of the development. The agreement set a completion date for the public improvements of December 31, 2019, with the exception of the final lift of blacktop, which was to be completed by November 1, 2020. The majority of the improvements, such as: sewer, water, storm sewer, curb and the first lift of pavement were completed by the stated completion date, in 2019. However, also required by the approved development plan were improvements shown on the project’s landscaping plan. Among other things, this plan included rip rap along the shoreline, trees, shrubs and a 12-foot wide strip of native plants along the top of the rip rap. The city’s consulting engineer issued punch list inspection notices on 11/6/19 and 11/15/19. These inspection notices noted various items typical of such a list and many of those items were subsequently taken care of by the contractor. Also noted on these punch lists were the uncompleted landscaping work. 2020 A letter of Credit Reduction request was approved by the City Council in January of 2020, which clearly noted the incomplete landscaping work. The letter of credit (LOC) was reduced to $317,680.50. Over $125,000 of that was for the incomplete landscape/shoreline work. Punch lists noting the incomplete work were submitted on 7/24/20 and 9/17/20 by the city’s consulting engineer.