06.02 & 06.03 - Ordinance Amendment Park Dedication & Planning Commission Report

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Planning Commission Report to the Council,June 2007 Page 4 what other improvements on the property would be considered "required". Among the conceivable possibilities would be: ➢ Clustered Sewer Systems ➢ Community Water Systems ➢ Internal Private Roads ➢ Required Stormwater Improvements ➢ Required Erosion Control Systems ➢ Required Recreational Features In the past we have required bonding for clustered sewer and water systems that are private. The logic behind that is,without those improvements,the properties would not be viable. This would be where there is no option for an individual system, such as Wilderness Point(where we required a bond)and the RV Resort(where we did not require one). The bond ensures that the systems will be constructed and is the only leverage the City has once the final plat is signed. We cannot recall an instance in the City of Pequot Lakes where we have required bonding for internal roads,although we know of other communities where this is done. The same would go for the stormwater and erosion control improvements. We only know of one local community, Breezy Point, that has bonded for recreational features of a development, but that was a circumstance where the specific feature was added to mitigate other impacts. Once the City signs the final plat,the only things that would bind a developer to a certain level of performance are the development agreement and the financial security. With a development agreement, we can always pursue the developer for breach of contract, but there is not much that can be done if that developer becomes financially insolvent. With a financial security, the financial shape of the developer becomes less important because the City can,if need be,use the security to complete the improvements. The obvious downside of requiring the financial security is that it increases the overall cost of the development and adds to the complexity of the review process.While,in and of themselves, these are not reasons to forgo a bond,they should be a consideration when determining whether or not to require a security and,if so,how much.There is no need to add costs to a project if we are otherwise assured performance. RECOMMENDATION: THE PLANNING COMMISSION IS RECOMMENDING THAT THE CITY COUNCIL ADOPT THE FOLLOWING POLICY REGARDING REQUIRED IMPROVEMENTS WITHIN DEVELOPMENTS: CITY OF PEQUOT LAKES POLICY FOR BONDING REQUIREMENT FOR REQUIRED IMPROVEMENTS WITHIN DEVELOPMENTS The following policy has been approved by the City of Pequot Lakes for what is considered a "required improvement"within developments: 1. A Development Bond will be required for all public improvements. 2. A Development Bond will be required for all private improvements needed to protect the health,safety or welfare interests of adjacent property owners or the general public,such as,but not limited to,the following: A. Clustered Sewer Systems; 14084 Baxter Drive, Suite 7 1 Baxter, Minnesota 56425 1 218.828.3064 1 www.communitygrowth.com