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Home My WebLink About2017-01-24 CC Meeting Packet Enclosure l Oak Park Heights Request for Council Action Meeting Date January 24th,2017 Time Required: 5 Minutes Agenda Item Title: Palmer Station/Creative Homes—Third Extension Request Agenda Placement Old Business /7/ Originating Department/Request ' :' Eric Johnson,City Administrator Requester's Signature Action Requested Discussion Possible Action. Background/Justification(Please indicate if any previous action has been taken or if other public bodies have advised): PLEASE SEE: 1. The attached memo dated 1-19-2017 2. Documents from the December 13th 2016 City Council Meeting Page 17 of 66 City of Oak Park Heights 14168 Oak Park Blvd. N•Box 2007.Oak Park Heights,MN 55082•Phone(651)439-4439•Fax(651)439-0574 1.19.2017 MEMO TO: Mayor and City Council Membe,i4 FROM: Eric Johnson,City Administr 2 RE: Palmer Station—Third Extension/Request As the request of the City Council, on Thursday,ianuary 12th, 2017 the Planning Commission did review and discuss the third extension request by Creative Homes for the Palmer 13 -unit single family development. While there was a lively discussion about the history of the project and reduced demand for new homes in the area being the rationale for the extension;much of the conversation did fall as to if there should a neighborhood meeting OR public hearing process and/or if there should be letters sent to the area advising that the extension has again been requested and to voice any concerns that someone may have. Some caution was discussed about a formalized public hearing as it can be confused with a new application process under MN STAT 15.99 and/or an inability of the City to satisfy all parties in an informal process. Ultimately the Planning Commission did coalesce around supporting "one final extension'for additional 12-months+1-or so essentially that the project was under construction in 2018 but with the general clarification that the homes were as shown(or equal)in scope and quality to those shown in the approval designs.Which is required of course. So, at this stage the decision before the Council is ... what is the thought on allowing a further extension? Please recall staffs earlier recommendation was that it be denied—see the Dec 13th,2016 Council Action sheet as attached.However,the Planning Commission did seem comfortable with one further extension as noted above. If an extension should be granted Staff would recommend the following parameters: 1. A Developer's Agreement as drafted by the City Attorney be updated for current pricing and connection charges, at Developer's cost, and be fully executed by Developer not later than October 31st, 2017. (This timeline allows for the development of plans and specifications for bidding in Spring 2018 and its immediate construction thereafter.) 2. That all required securities as well as the related design engineering costs for the public improvements are paid to the City at the time of the execution of the Developer's Agreement. 3. It remains the Developer's responsibility to ensure the timely completion of these conditions,the City will not provide reminders. 4. If the above are not completed promptly that the extension approval shall lapse on November 1st,2017 and no further extensions shall be considered If an extension is NOT granted(or no action taken): 1. Direct Staff to send the standard communication that informs the Developer that the approval timelines have lapsed.(Please note the City is not obligated by law to send this communication, but will provide a concise message and documentation.) Page 18 of 66 Oak Park Heights Request for Council Action Meeting Date December 13th,2016 �G , , 2-D111 tros Time Required: 5 Minutes Agenda Item Title: Palmer Station/Creative Homes—Third Extension Request Agenda Placement New Business Originating DepartmentlRequestor Eric Johnson,City Administrator Requester's Signature Action Requested Discussion,Possible Action. Background/Justification(Please indicate if any previous action has been taken or if other public bodies have advised): In July 2014,the City Council approved the Palmer Station Subdivision Plan and Development—allowing for 13 single family homes via Resolution 14-07-37.These permissions are generally valid for a period of one year. In June 2015,the Developers(Creative Home Construction Investments LLC)of this site requested an extension of the one year timeline and which was granted under City Council Resolution 15-06-30 which gave certain timelines for the execution of the Developer's Agreement and the supply of all securities:and platting to be completed by June 2016. These conditions were not met. In January 2016,the City received a second extension request from Creative Home Construction Investments LLC representative Mick Lynskey to extend the approvals through June 2017.Their various rationale at that time included a "softening of the market". The City Council agreed to an extension but with the limitation that the Developer's Agreement and required securities be posted by 12131/16 with construction to commence by that June 2017 timeline. To date the Developer's Agreement has not been initiated by the Developer nor is there a reasonable expectation that any work would commence in 2017 as plan designs should already be underway. The City has now received a third extension request—dated December 6th,2016 whereby the Developers are seeking timelines through September 2018.That letter is enclosed,again citing unknown market conditions,etc. Recommendation: Please recall the site Itself has a planned use of"Low Density Residential"as outlined in the City's 10—year comprehensive plan and to date Staff is not aware of planned deviation or thought to reconsider this land-use. (Subject to possible revisions in 2018 Comprehensive Plan Process that as required by the MET COUNCL process)That said,continual extensions may cause some neighborhood confusion about the viability of the project and/or if a plan has changed.Moreover,while Staff understands that the Developer has invested in the land purchase this is distinct from completing a land development platting action or engaging in a Developer's Agreement. Page 19 of 66 Accordingly, staff would not see the practical harm in denying this third extension and requiring the resubmission when the Developers absolutely know when they would be ready to commit, perform the development and are ready to proceed•as two extensions have already been provided;thus we believe denial would be an appropriate action at this time and which would require a resubmission when they believe the site is ripe for development subject to the rules and ordinances of the City at that time. creative HOMES December 6,2016 Mr.Eric Johnson City Administrator•City of Oak Park Heights 14168 Oak Park Blvd.N. Oak Park Heights,MN 55082 RE;Palmer Station Dear Eric, This letter Is to request an extension from the City of Oak Park Heights for the Final Plat for Palmer Station.Creative Homes is looking to insure the success of this development for everyone and we continue to monitor the market demand/conditions to determine the best timing to develop the property.The current land Inventory levels in adjacent municipalities have risen in lake Elmo,Stillwater, and Baytown over the past year causing the sales to slow in all these communities.By developing the additional 13 lots in Palmer Station in 2017,Creative Homes will most likely end up sitting on the developed lots until market Inventory levels decrease or market demand increases in this area.We are looking forward to a successful development for the City and Creative Homes and will need to continue to monitor the market over the next year. Creative Homes is requesting the extension until March 31,2018 with development to be ' ' September 1,2018.Please feel free to call me to discuss and let me know when we can b Council agenda for this extension, Sincerely, 0/77/1 -- pnn,K 61,0146e2 :c'n10 k`ctI F' < }; 31 'i'. ! ,;ort t_ci 5125 "r,51-26A(fii hf.i cc,a Page 20 of 66