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Mayor Paul Emeott June 16, 2006 Page 2 Additionally, the City Council's right to review each building permit within the final plat should be interpreted to mean that the building pen -nit will be reviewed under the zoning regulations in place at the time the development agreement was adopted. Any other reading of this provision would mean that a developer would not be able to rely on existing standards when making significant investments into the planning, design and construction of a subdivision, rendering any development agreement ineffectual over time. An applicant must be able to depend on the terms of the contract and conditions put in place by the City Council at the time the project is approved. The mission of the Builders Association includes working to ensure that local regulatory schemes advance legitimate "public" interests and do not unnecessarily restrict the business opportunities of residential builders. We believe that any implied retroactivity in the amendments to the proposed Ordinance changes would constitute an affirmative act by the City Council to change the terms that an applicant relied on when executing a development agreement and proceeding with investments under its terms. Specifically, McNulty negotiated its Development Agreement with the City over an extended period of time. Additionally, McNulty agreed to waive its ability to appeal special assessments on the Hillary Farm development in return for a commitment by the City that Hillary Farm would not be subject to the new Ordinance amendments. It is our understanding that the City Council is now asserting that after the two year statutory protection has ended, Hillary Farm will be subject to the new requirements. Under these facts, the City should not apply the new Ordinance amendments to the Hillary Farm Development or other similarly situated developments governed by active development agreements. Thank you for considering these comments on behalf of the Builders Association of the Twin Cities. S1 el i'e r J. Coyle, for Larkin Hoffinan Daly & Lindgren Ltd. Direct Dial (952) 896-3214 Direct Fax: (952) 896-3265 Email: ocovlcAlarkinhoffman,com Cc: Remi Stone 1080294.1