HomeMy WebLinkAboutA015 - Council Action Form dated December 18, 2012 r
ITEM # 21a
DATE 12/18/2012
COUNCIL ACTION FORM
SUBJECT: SUPPLEMENTAL FUNDING AGREEMENT — SOUTH FORK SUBDIVISION
(INTERSECTION IMPROVEMENTS: LINCOLN WAY & DOTSON DRIVE)
BACKGROUND:
On August 14, 2001, City Council approved a Development Agreement for the South Fork
Subdivision with Terra Firma, LP for the installation of various public improvements associated with
the development. One of those improvements identified was the construction of turn lanes and a
traffic signal at the intersection of Lincoln Way and Dotson Drive. The developer is responsible for
50% of the actual construction costs; the City would pay the other 50% plus any
engineering/inspection fees. It was also determined in an updated traffic study dated June 2010 that
the Level of Service (LOS) had dropped below the threshold outlined in the Development Agreement,
which has triggered the need for the improvement.
A portion of South Fork has been sold to Pinnacle Properties Ames, LLC, care of Keith Arneson,
thereby transferring the public improvement costs to Mr. Arneson. Therefore, Staff has drafted a
Supplemental Agreement that solidifies and updates the provisions in the existing agreement.
On February 28, 2012, City Council approved a Traffic Safety Improvement Program (TSIP) Grant
from the Iowa DOT for $500,000. This Supplemental Agreement will take that grant into account by
applying it against the estimated cost for the improvement of $750,000; leaving $250,000 to be paid
from 50% local/private funds and 50% by Mr. Arneson. That equals $125,000 for which Mr. Arneson
would need to provide financial security prior to the award of the project.
ALTERNATIVES:
1. Approve the Supplemental Funding agreement for the South Fork Subdivision with Pinnacle
Properties Ames, LLC.
2. Direct staff to pursue other funding options.
MANAGER'S RECOMMENDED ACTION:
In the last year, Staff has been working with Mr. Arneson to make possible the in-fill development of
the South Fork area, which notably represents additional single-family housing within the Ames
School District. This agreement will help facilitate that in-fill, while at the same time helping to move
forward needed public improvements for this neighborhood and transportation network.
Therefore, it is the recommendation of the City Manager that the City Council accept Alternative No.
1, thereby approving the Supplemental Funding agreement for the South Fork Subdivision with
Pinnacle Properties Ames, LLC.
DO NOT WRITE ABOVE THIS LINE;RESERVED FOR RECORDER
Prepared by: Judy K.Parks,City of Ames Legal Department,515 Clark Ave.,Ames,IA 50010;515-239-5146
Return to: Ames City Clerk 515 Clark Ave. P.O.Box 811 Ames IA 50010
A SUPPLEMENTAL AGREEMENT
PERTAINING TO THE ROAD IMPROVEMENT COSTS FOR THE
INTERSECTION IMPROVEMENTS AT LINCOLNWAY AND DOTSON DRIVE
SOUTH FORK SUBDIVISION,AMES,IOWA
THIS AGREEMENT, made and entered into this I P day of December, 2012,
by and between the CITY OF AMES, IOWA (hereinafter called "City"), and Pinnacle
Properties Ames, L.L.C., its successors and assigns (hereinafter called"Developer").
WITNESSETH THAT:
WHEREAS, the parties hereto previously entered into an agreement dated
August 14, 2001, and filed for record that provided for cost sharing between City and
Developer for road improvements contemplated to be necessary for the intersection
improvements at Lincoln Way and Dotson Drive, and
WHEREAS, pursuant to that previous agreement the Developer and its
successors and assigns are responsible for 50% of the costs the City associated with the
construction of a left turn storage lane and traffic control signals at the said intersection to
be done at such future time as traffic volumes warranted the improvement; and
WHEREAS Developer is the successor to Terra Firma, L. P., the Developer who
executed the original agreement; and
WHEREAS, the City has determined that it is now necessary and warranted by
traffic volumes to complete construction of the intersection improvements in the
estimated cost of$750,000, of which $500,000 will be paid through grant funds; and
WHEREAS, the Developer and the City now desire to specify the manner of
payment by the Developer to the City for the construction costs so that the project may
proceed in a timely fashion;
NOW THEREFORE,the parties hereto have agreed and do agree as follows:
A. The Parties agree that provision V. IMPROVEMENTS, subsection B(4) of
the original agreement entered into on August 14, 2001, is hereby superseded
by the provisions of this supplemental agreement.
B. That in lieu of the former provision V(B)(4), the parties agree that the
Developer shall provide to the City by December , 2012, an irrevocable
letter of credit or payment bond, in a form acceptable to the City, in an
amount of not less than one hundred twenty five thousand dollars
($125,000.000). In the event the Ames City Council awards a contract for the
construction of these intersections improvements on or after December ,
2012, in an amount greater than $750,000.00,the Developer immediately shall
provide a supplemental or replacement letter of credit or payment bond to
secure the Developer's 50% proportional share of the contract for the
improvements plus amounts estimated by the City for Engineering and
Construction inspection fees as provided in the Municipal Code, Appendix F.
C. The City shall make payments to its contractor in accordance with the terms
of the construction contract and shall draw down on the letter of credit or
payment bond for the Developer's share of payments for work performed on
the project. The City shall provide copies of all invoices and payments for the
construction to the Developer at the time that payment is made to the
construction contractor for construction work or to the City for Engineering
and Construction inspection fees.
D. If, during the progress of construction change orders are approved that
increase the total costs of the project, the Developer shall immediately provide
to the City a supplemental or replacement letter of credit, payment bond, or
cash to secure the Developer's entire proportional share of the total amount of
the contract plus estimated Engineering and Construction inspection fees.
E. Upon final completion, payment, and project closeout, the City shall provide a
final project accounting, including Engineering and Construction inspection
fees, and shall release to the Developer any remaining letter of credit or
payment bond. If, upon completion, payment, and project closeout the
remaining letter of credit or bond is insufficient to cover outstanding amounts
owed by the Developer to the City under the terms of this agreement, said
amounts shall constitute a debt and the Developer immediately shall make full
payment in cash for such debt.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed effective as of the date first above written.
CITY OF AMES, IOWA STATE OF IOWA,COUNTY OF STORY,ss:
On this day of , 2012,
before me, a Notary Public in and for the State of
Iowa, personally appeared Ann H. Campbell and
By Diane R. Voss, to me personally known, and, who,
Alin 14. Campbell,Mayor being by me duly sworn, did say that they are the
Mayor and City Clerk, respectively, of the City of
Ames, Iowa; that the seal affixed to the foregoing
Attest B instrument is the corporate seal of the corporation;
Y and that the instrument was signed and sealed on
iane R.Voss, City Clerk behalf of the corporation by authority of its City
Council, as contained in Resolution No.
adopted by the City Council on the day of
, 2012, and that Ann H. Campbell
and Diane R. Voss acknowledged the execution of
the instrument to be their voluntary act and deed and
the voluntary act and deed of the corporation,by it
voluntarily executed.
Notary Public in and for the State of Iowa
PINNACLE PROPERTIES AMES, L.L.C. STATE OF IOWA,COUNTY OF STORY,ss:
This instrument was acknowledged before me on
, 2012, by Keith D. Arneson,
By Manager of Pinnacle Properties Ames,L.L.C.
Keith D.Arneson,Manager
Notary Public in and for the State of Iowa