HomeMy WebLinkAbout~Master - Alternative form of security for South Fork, 3rd Addition RESOLUTION NO. 10-514
RESOLUTION APPROVING ALTERNATIVE FORM OF SECURITY
FROM DEVELOPERS OF SOUTH FORK SUBDIVISION,3RD ADDITION,
FOR INTERSECTION IMPROVEMENTS AT LINCOLN WAY/FRANKLIN AVENUE
FOR THE CITY OF AMES
WHEREAS,the 2001 Developer's Agreement for South Fork Subdivision,3'Addition,requires the developer
to pay 50%of the costs of construction and installation of left turn lane improvements at the intersection of Lincoln Way
and Franklin Avenue; and,
WHEREAS,the improvements will not be constructed and installed until such time as either the developer further
subdivides South Fork,or the traffic level of service degrades below the Institute of Traffic Engineer's"service level C,"
whichever occurs first; and,
WHEREAS,the developer is required to guarantee the obligation by providing security in an amount equal to
50%of the estimated costs of construction as specified by the City; and,
WHEREAS,in 2003,the developer was required to provide security for its share ofthe intersection improvements
in the amount of$350,000,the developer's obligation for half of the cost, and it is currently secured by an irrevocable
letter of credit; and,
WHEREAS,the letter of credit will expire November 11,and the bank has indicated an unwillingness to issue
a new one; and,
WHEREAS,the City's current estimated construction costs for the intersection improvements are$926,000,so
the developer's responsibility under the terms of the Developer's Agreement should be increased to$463,000; and,
WHEREAS,the developer has asked for relief from the security requirement,and has offered to provide the City
with security interest in two lots, Outlot R in South Fork Subdivision, V Addition, and Outlot U in South Fork
Subdivision,2nd Addition; and,
WHEREAS,based on the abstracts,appraisal reports,and the City Assessor's information,it could be concluded
that there is unencumbered value in the two lots of approximately$455,100; and,
WHEREAS,when the City and the developer entered into the 2001 agreement providing for the sharing of costs
of improvements at Lincoln Way and Franklin Avenue,both parties anticipated construction would begin within a few
years,however,recent a traffic study concludes that,unless additional subdivision occurs in the area,the intersection
improvements may not be needed until the year 2035; and,
WHEREAS, the developer has indicated an inability to continue to provide a letter of credit to secure the
obligation.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa,that an alternative form
of security from developers of the South Fork Subdivision, 3rd Addition, for intersection improvements at Lincoln
Way/Franklin Avenue is hereby approved.
ADOPTED THIS 26th day of October,2010.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Larson
Seconded by: Orazem
Voting aye: Davis,Goodman,Mahayni,Larson,Orazem,Wacha
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 26'day of October,2010.