HomeMy WebLinkAboutA001 - Memo dated February 10 from Somerset requesting adjustment from City �SOMERSET
A M E S 1 A E S T. 1 9 9 7
February 10, 1999
The Honorable Ted Tedesco, Mayor Fr
and Members if the City Council for the City of Ames
RE: Somerset
Dear Mayor Tedesco and Council Members:
As you know by this time we are struggling with Somerset. However, we now have it in a
presentable condition and hope sales will be good this spring,
We would like to identify some of the problems we have encountered and ask for your
cooperation.
1. Stange Rd. is now complete about 1 year after it was scheduled to be completed. This
resulted in a substantial loss to us by causing delays in construction and sales. We
feel it resulted in a loss of about one years' interest on our investment of
approximately 5 Million Dollars. At the same time as the delay was costing us
interest, the City was benefiting (not purposely) on delaying the investment of
approximately $800,000 for 1 year. This delay was caused by numerous things, such
as 13t' Street given higher priority, not having plans prepared and the weather. Cost
to Developer= 5 million @ 7% for 12 months= $350,000. Savings for City 50%
$800,000 for I year @ 7% = $56,000.
2. In designing the sanitary sewer system we were using some elevations obtained from
City as built records in regards to the depth of the sewer on 24`h and Stange where we
were to connect on. After sewer plans had been completed and contract awarded, it
was found that the elevation at that connection was approximately 1' 6" shallower
than what the records showed. This resulted in a delay, and engineering costs to
redesign the sewer and even to reroute some of the sewer to another outlet. Estimate
of additional cost to Developers for the engineering error is $1,500.
As you can see from above figures we are out about$350,000 plus $1,500 = $351,500 and the
City is ahead by about$56,000. In all fairness don't you think some kind of adjustment is due to
the Developers?
Please respond to this request no later than March 10, 1999.
Sincerely,
The Somerset Developers
5omERSET DEVELOPERS
Friedrich/Iowa Realty 232-6175 9 Furman Realty 232-8884 • Hunziker & Associates, Realtors 233-4450