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HomeMy WebLinkAboutA039 - Resolution No. 14-662 adopted December 16, 2014 RESOLUTION NO. 14-662 RESOLUTION APPROVING RELEASE OF LETTER OF CREDIT FOR OUTLOT U, SOUTH FORK SUBDIVISION MEMORANDUM OF UNDERSTANDING (LINCOLN WAY/FRANKLIN AVENUE INTERSECTION) FOR THE CITY OF AMES,IOWA WHEREAS,the 2001 Memorandum of Agreement(or"Developer's Agreement")for South Fork Subdivision requires the developer to pay 50% of the costs of construction only for the installation of left turn lane improvements at the intersection of Lincoln Way and Franklin Avenue and for a traffic signal with left turn lane improvements at Lincoln Way and Dotson Drive; and, WHEREAS,the City agreed to pay for the remaining 50% of these costs, as well as for any engineering design and right-of-way costs needed to complete these projects; and, WHEREAS,the agreement stipulates that these improvements will not be constructed until such time as the intersection has fallen below a Level of Service"C"or a final plat is sought for a part of the site east of Dotson Drive and not abutting Dotson Drive, whichever occurs first; and, WHEREAS,the developer, Pinnacle Properties,has recently approached the City with the desire to develop the eastern portions of South Fork Subdivision, and, therefore, has triggered the requirement that the Franklin and Lincoln way intersection improvements be constructed; and, WHEREAS,the developer is required to provide security in an amount equal to 50%of the estimated costs of construction only,based upon an engineer's estimate of probable cost,and the most recent construction cost estimate from December 2014 is $900,000; and, WHEREAS, City staff submitted an application for an Iowa Department of Transportation (IDOT)Traffic Safety Improvement Program(TSIP)grant in the amount of$500,000,and has been notified by the IDOT that the City was awarded the full amount; and, WHEREAS, therefore, after applying the value of the grant, $400,000 remains to be split equally between the developer and the City ($200,000 each); and, WHEREAS,on December 11,2012,City Council replaced the financial security on what was Outlot U and Outlot R,from a mortgage on the properties,to a letter of credit(LOC)in the amount of$175,100and$280,000, respectively; and, WHEREAS, the total security for the Franklin intersection improvements currently equals $460,100, and based on the most recent estimate and receipt of the IDOT safety grant,the LOC for Outlot U should be released to reflect the revised estimated developer's share of$200,000. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the Letter of Credit in the amount of$175,100 for Outlot U, South Fork Subdivision, for the Lincoln Way/Franklin Avenue Intersection improvements is hereby released in full. �S ADOPTED THIS 16`h day of December, 2014. "t I �W C-A' ) --L§-� A. '�/- C---"4Aa Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Betcher Seconded by: Goodman Voting aye: Betcher, Gartin, Goodman,Nelson, Orazem Voting nay: None Absent: Corrieri Resolution declared adopted and signed by-the Mayor this 161h day of December, 2014.