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Home My WebLink AboutA002 - Council Action Form dated April 24, 2001 ITEM # q - DATE 04/24/01 COUNCIL ACTION FORM SUBJECT: RESOLUTION APPROVING THE FINAL PLAT FOR COUNTRY MEADOWS SECOND ADDITION. BACKGROUND: The applicant, Onyx Development L.L.C., is requesting that the Final Plat for Country Meadows Second Addition be approved. The property in question is located south of Onyx Street in the Southdale area of the City of Ames. The proposed Final Plat involves the creation of eight (8) platted lots. The entire area of Country Meadows Second Addition is 2.66 acres. The average net density is 3.63 lots per net acre. The property in question is zoned Residential Low density (RL). All of the platted lots front on a street, either Onyx Street or the proposed new street to be named Sapphire Circle. Sapphire Circle is proposed as a cul-de-sac, which has been determined to be acceptable as a result of the approval of the Preliminary Plat. The land configuration is such that no other street design option exists with respect to the property in question. The proposed lots range in size from 9,115 square feet to as much as 16,349 square feet. All lots meet the requirements of the Zoning Ordinance. The developer is required to install all of the necessary infrastructure including street improvements, curb, gutter, and sidewalk improvements, storm sewer, water main, and sanitary sewer infrastructure. The developer has signed a Public Improvements Agreement as assurance that the improvements will be installed. This agreement is secured by a Letter of Credit as a means to insure the installation of the required improvements. The Letter of Credit is issued from the Clarke County State Bank (a copy of the Letter of Credit is attached). Based on review of the plat documents, it has been determined that this Letter of Credit does not comply with the requirement of providing the City with an improvement guarantee as provided for in Section 23.409 of the Municipal Code. It has been the practice of the City that all Letters of Credit be issued from a financial institution located in the city of Ames. The City Attorney is advising that the Letter of Credit from the Clarke County Bank not be accepted since there is a potential for complications to the City in the event the security needs to be utilized to complete the required improvements. I The City Council is being asked to determine whether the Letter of Credit from the Clarke County Bank represents sufficient security to the City to enable this Final Plat to be approved (a copy of letter from applicant is attached). The staff has reviewed this Final Plat and has determined that the plat complies with all of the requirements of the Subdivision Regulations of the City of Ames, except for the provision relative to the Letter of Credit. Staff is recommending that the Final Plat of Country Meadows Second Addition be approved if the City Council determines that the Letter of Credit from the Clarke County Bank is determined to be sufficient (a copy of the Final Plat is attached to this action form). ALTERNATIVES: 1. The City Council can approve the Final Plat for Country Meadows Second Addition. 2. The City Council can approve the Final Plat for Country Meadows Second Addition with modifications. 3. The City Council can deny approval of the Final Plat for Country Meadows Second Addition. MANAGER'S RECOMMENDED ACTION: The Final Plat for Country Meadows Second..Addition complies with all aspects of the regulations of the City except that the City Attorney is advising that the Letter of Credit from the Clarke County Bank does not represent sufficient security as required in Section 23.409. If the City Council determines that the Letter of Credit from the Clarke County bank is sufficient security, it is the recommendation of the City Manager that the City Council adopt Alternative #1. If the City Council determines that the Letter of Credit from the Clarke County Bank is not sufficient security as required in Section 23.409, it is the recommendation of the City Manager that the City Council adopt Alternative #2. This will approve the Final Plat for Country Meadows Second addition with the modification that the Letter of Credit from a financial institution located within the city.of Ames be provided to the City within 30 days. COUNCIL ACTION: Attachment 2 - �� -� �� •. �-- _ - � .....u v v�.•a a v a..a u u.., •. yJ V V L• V V L APR-09-2001 16:02 T MORTGAGE-AMES 5152321581 P,OZ/0Z Irrevocable Letter of Credit# hAP Dated: o City of Ames 515 Clark Ames, Iowa 50010 Attn: City Clerk We hereby authorize the City of Ames, Iowa,to draw on Clarke County State Bank, Osceola,Iowa 50213, for the amount of 88,000 or eighty eight thousand,up to the aggregate amount of USD 88,000 available by your draft(s) at sight accompanied by the following documents: A written statement certifying that the terms of the Agreement for Public Improvements for the Country Meadows Second Addition Subdivision have not been fulfilled. Each draft must state that it is "Drawn under Clarke County State Bank,Letter of Credit No. IA�(,o .Dated April 9, 2001.This credit and all documents specified must accompany the draft(s). We hereby agree with you that draft(s)under and in compliance with the terns of this Letter of Credit will be duly honored on delivery of documents as specified if presented at this office in Ames,Iowa,no later than 04/09/04. Annual renewals of this Irrevocable Letter of Cr d t will bed issued automatically with final expiration of 04/09/04. Except as otherwise stated herein,this Irrevocable letter of Credit is subject to the Uniform Customs and practices for Documentary Credits per International Chamber of Commerce Publication No. 290(1974 revision)and subject to the provision of the Commercial Code of the State of Iowa. Sincerely, Clarke County State Bank Osceola,Iowa 50213 By /ttt:�� ny D. Shultz TOTAL P.02 Premier Contractors, Inc. �� 2 `. [!i'. Lu U 1 3219 Valley View Road,Ames,1A 50014 is --` UPI CLE73 CITY CF�N;rS,10I Y'A To whom it may Concern: My name is Matt Eller. I own Premier Contractors and Onyx Development, L.C. We are currently in the Final.Plat approval process for a development named Country Meadows Second Addition. As you probably know it is required to have a letter of credit from a bank or a performance bond while applying for the Final Plat approval. The City attorney has denied my letter of credit from Clarke County State Bank. This bank is located in Osceola Iowa and seems to be a problem for the City attorney. The reason that he denied the letter is because"if there are problems with the road construction,I do not want to drive to Osceola to turn in the bills for the uncompleted road. I need a letter from a local bank here in Ames. If you cannot do that then I need a performance bond." I discussed with him that a letter of credit is a guarantee from a bank.I did not read anywhere in the application process that the bank had to be in Ames. He said that that is his requirement and the only way to waive this requirement is to have the city council or manager over rule him. My argument is that I go to the Clarke County State Bank for the convenience of working with people I know and work well with. I also like that I can talk with real people and people that make decisions. If in fact I have to get a performance bond you would be dealing with an insurance company that most likely is located a lot farther than Osceola Iowa and it would be even harder to get money from them. I am in process of building this road right now. I have everything in to the city to have this on the agenda for the next meeting so I can have the Final Plat approved. This will allow me to start building as soon as the road is completed. Being that I have holding costs with the development I would like to start building right away to off set these costs. This is the only thing holding me up and I feel that I have provided everything that the city has asked me to provide. There is nothing that says I have to have a letter of credit from an Ames bank.I do not feel that requiring a letter of credit from a local bank is a fair requirement due to the logistics of why it is not being accepted. To be penalized for banking at a bank that is not located in Ames is absolutely wrong. Even to say that the banks that are outside of Ames need to work something out with the banks in Ames is unfair. This means that if the banks in Ames so decide that they will not work with outside banks, for them to be used as correspondent offices,then anybody that banks outside of Ames cannot submit letters of credit from banks outside of the area. From the City's stand point I would think that it would be a lot easier to work with a small Iowa bank than a large insurance firm that writes performance bonds. I would like to request a special meeting to have this discussed and the requirement for a new letter of credit aived. Sincer.y, f .. ...__.._.. _ Matt E er i fill sO ►- ---- ------ �4 •' g ,R iu I al a d I �$ ob. Sl9E_iE9ect 1rY1_ I -.a % �:i♦ 8 I —I s boa.oe b rt S pp - j �-a — _ie NUOi tr uru.nr easdFn:m ----- - so•a,a•.e•.s• .I . .. .�'zra•r==a.oe• j :~ Qrap. as t II B' at � U� f; g IIIII � 9 � iE ST)ME30 4 ASSOG IATES =FINALPLAT LA TDOWS SECOND ADDITIONLAND SURVEYING ING. S, STORY COUNTY IOWAT-1-71 t=..• tertM 1ea o/ter Ste51O5.1Rth STREET 51117E 102 AMES.IQy'{A �� 'A'. OOt1NTRV MEADOWS FIRST ADDITION FTb�515 293 36bq FAX 515 2 33 44pg ppp2 ATE: 03/22/01 PAGE: f of f CAF APPROVAL SS BK SL JK JP To be sent to: Brad Stumbo Stumbo &Associates P.O. Box 1664 Ames, Iowa 50010