HomeMy WebLinkAbout4.0 Memo 03.15.2010(i �- v MEMORANDUM To: Board of County Commissioners From: Fred A. Jarman, AICP '� ppfut41 �'' Director, Building Plahriing Departmen -' Date: March 15, 2010 RE: lure of Financial Guarantee for Valley View Commons Subdivision in Battlement Mesa PUD BACKGROUND As approved by the Board of County Commissioners, the Valley View Commons Subdivision in Battlement Mesa received its Preliminary Plan approval in May 2008 and received a Grading Permit in September 2008. In May 2009 Valley View Commons received a one-year extension of their Preliminary Plan approval giving them until May 19, 2010 to submit a complete Final Plat application. This extension required them to provide a new Letter of Credit (LOC) to replace their LOC which was expiring in September 2009. Valley View Commons has provided a new LOC but this new LOC is only valid until March 27, 2010. (See Memorandum form County project Engineer: Exhibit B). On Monday, September 14, 2009, the BOCC decided (via Resolution 2009-68) the following: 1) The Applicant shall adhere to the following: a. The Applicant shall submit an application for Final Plat for the "Valley View Commons" subdivision which shall be deemed Technically Complete prior to May 19th, 2010. Staff Response: The Application for a Final Plat was submitted on Wednesday, March 10th, 2010. b. The Applicant shall complete the required site stabilization activities listed in Resolution 2009-51 by September 30, 2009. Staff Response: The site stabilization activities have occurred and signed off by Mountain Cross Engineering as a professional engineer. c. The Applicant shall maintain with the County a valid Letter of Credit that serves as a reclamation security throughout the extension period. Staff Response: The Letter of Credit remains viable until March 27th. This action would place another "bridge" security in place in the form of a cash deposit with the County until a security is put in place with a Final Plat approval. d. On or before March 10, 2010, the Applicant shall submit a new or extended Letter of Credit to replace the current Letter of Credit or have a technically complete Final Plat application filed with the County. Staff Response: As mentioned below, the Applicant requests to replace the current LOC with another "cash" security to be in place until the Final Plat can be approved. While the Applicant tendered the Final Plat on 3/10/10, it has not been deemed technically complete. 2) Failure to meet Conditions a, b, c, or d (above) will result the expiration of the Preliminary Plan approval. 3) Should the Applicant not request a public hearing by February 3, 2010, and should the Applicant not satisfy Condition 3(d), the Board of County Commissioners authorizes the Chair to execute all documents necessary for the County to draw upon the existing Letter of Credit. Staff Response: The Applicant properly requested the public hearing by February 3rd, thus setting up the discussion for the BOCC on 3/15/10. II. APPLICANT REQUEST The Applicant (Darter, LLC) is requesting the BOCC release the LOC amount o $106,000 stating that most of the work required to "hibernate" the site has been completed. This request is contained in a letter from the Applicant's engineering firm, Mountain Cross Engineering (attached as Exhibit D). Instead, they wish to post a cash bond in the amount(of $13,800 td cover revegetation of the current site as a "bridge" security to be in placethe Final Plat Subdivision Improvements Agreement (SIA) is approved which would have its own security covering revegetation. III. STAFF COMMENTS Staff has conducted a site visit and held discussions with the Applicant on the issues. Under normal circumstances, the County holds security for revegetation as part of a Final Plat approval where that security is held for two growing seasons to ensure the revegetation actually occurs on the disturbed areas around the new development. Once the County has inspected that the revegetation has successfully occurred, then the County returns the security to the Applicant. In this case, the County allowed the Applicant to disturb / grade the site with a grading permit prior to submittal of a Final Plat so long as the County had an adequate security in place (thus the $106,000). Attached you will find a letter from the County Vegetation Management Director (Exhibit C) that recommends the BOCC release the Letter of Credit (LOC for $106,000) based on the hibernation / site stabilization activities that been accomplish for the 6.9 acres, but recommends that the proposed cash bond be recalculated a $17,250 r revegetation until a Final Plat has been approved and a replacement security is in place for that work as part of an approved SIA. IV. STAFF RECOMMENDATION Staff understands the severe economic challenges within the current lending climate and recommends that this scenario (providing a cash security in the amount of $17,250) will preserve the site as a "bridge" security until development occurs. Of course, the other alternative is that the BOCC could call the LOC and have the County complete the site reclamation required on the property. 4 /1 f/4L?i ; - -9 / 1171 I ,Jk/ '- - 11111 IIYr�MINIMA �r1 Vd!1ICI' ILICIC1rKMill 11111 Recept i ontt : 775420 09/2212009 11:26 11 AM Jean Alberico 1 of 3 Rec Fee:$0.00 Doc Fee:0.00 GARFIELD COUNTY CO STATE OF COLORADO County of Garfield ) )ss EXHIBIT At a regular meeting of the Board of County Commissioners for Garfield County, Colorado, held in the Commissioners' Meeting Room, Garfield County Plaza Building, in Glenwood Springs on Monday, the 14th day of September 2009, there were present: John Martin Mike Samson Tresi Houpt Deborah Quinn Jean Alberico Ed Green , Commissioner Chairman , Commissioner , Commissioner , Assistant County Attorney , Clerk of the Board , County Manager (absent) when the following proceedings, among others were had and done, to -wit: RESOLUTION NO.2009-68 A RESOLUTION CONCERNED WITH AN AMENDMENT TO THE APPROVAL OF AN EXTENSION FOR THE "VALLEY VIEW COMMONS" PRELIMINARY PLAN LOCATED WITHIN THE BATTLEMENT MESA PUD ON A PARCEL OWNED BY DARTER, LLC, GARFIELD COUNTY PARCEL NO. 240718102002 Recitals A. Garfield County is a legal and political subdivision of the State of Colorado for which the Board of County Commissioners (Board) is authorized to act. B. The Preliminary Plan for the "Valley View Commons" subdivision was approved by the Board on May 19th, 2008 under Resolution No. 2008-72 for real property described in the document recorded at Reception No. 702986 of the real estate records of Garfield County, Colorado. C. The Applicant obtained a Grading Permit from the Garfield County Building Department on September 4th, 2008. As a part of this Grading Permit, the Applicant supplied Garfield County with a Letter of Credit in the amount of $106,000 to revegetate and rehabilitate the site to its original condition. Subsequently, the Applicant graded the subject property in accordance with the approved Preliminary Plan for "Valley View 1111 Ani,, 91101:�11161t itivN )11..111 III Reception#: 775420 09/22/2009 11:26:11 RM Jean Alberico 2 of 3 Rec Fee:S0.00 Doc Fee:0.00 GARFIELD COUNTY CO Commons". D. On May 11th, 2009, the Board of County Commissioners approved a conditional one year extension of the Preliminary Plan. E. On July 13th, 2009, by Resolution 2009-51 (Reception No. 771779), the Board of County Commissioners amended the conditions of the one year extension of the Preliminary Plan. F. On August 17, 2009, by Resolution 2009-62 Reception No. 774676 Board of County Commissioners amended the conditions of the one year extension by allowing the Applicant until September 14, 2009 to provide (1) a new Letter of Credit and (2) a schedule for implementing site stabilization measures. G. At a meeting on September 14th, 2009, the Board of County Commissioners learned that the Applicant had provided a new Letter of Credit and a schedule for site stabilization required by Resolution 2009-62. The Board also learned that the March 27, 2010 expiration date of the new Letter of Credit occurs prior to the May 19, 2010 expiration of the Preliminary Plan approval. H. In connection with the possible draw on the Letter of Credit, the Applicant agrees to waive any notice and hearing requirements under Garfield County Unified Land Use Resolution of 2008, Section 13-106 unless the Applicant requests a public hearing by February 3, 2010. Resolution NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Garfield County, Colorado, that: 1. The forgoing Recitals are incorporated by this reference as part of this Resolution. 2. The public meeting before the Board of County Commissioners was extensive and complete; all pertinent facts, matters and issues were submitted; and all interested parties were heard at that hearing. 3. The previously granted extension by Resolution 2009-62 is amended by this Resolution by adding the following conditions: a. The Applicant shall submit an application for Final Plat for the "Valley View Commons" subdivision which shall be deemed Technically Complete prior to May 19th, 2010. b. The Applicant shall complete the required site stabilization activities listed in Resolution 2009-51 by September 30, 2009. c. The Applicant shall maintain with the County a valid Letter of Credit that serves as a reclamation security throughout the extension period. 1111 pzili irm, I iIIrmeeIr+iG'Iew 11111 Reception#: 775420 09122/2009 11:26:11 RM Jean Rlberico 3 of 3 Rec Fee:$0.00 Doc Fee:0.00 GARFIELD COUNTY CO d. On or before March 10, 2010, the Applicant shall submit a new or extended Letter of Credit to replace the current Letter of Credit or have a technically complete Final Plat application filed with the County. 4. Failure to meet Conditions a, b, c, or d (above) will result the expiration of the Preliminary Plan approval. 5. Should the Applicant not request a public hearing by February 3, 2010, and should the Applicant not satisfy Condition 3(d), the Board of County Commissioners authorizes the Chair to execute all documents necessary for the County to draw upon the existing Letter of Credit. Dated this c2(�- day ofS,i,�{. , A.D. 2009. ATTEST: GARFIELD COUNTY B COUNTY, COLORADO S, GARFIELD lerk of the Board Date.. Upon motion duly made and seconded thet-rq g Reso following vote: John Martin Mike Samson Tresi Houpt STATE OF COLORADO County of Garfield )ss I, , County Clerk and ex -officio Clerk of the Board of County Commissioners in and for the County and State aforesaid do hereby certify that the annexed and foregoing Resolution is truly copied from the Records of the Proceeding of the Board of County Commissioners for said Garfield County, now in my office. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said County, at Glenwood Springs, this day of , A.D. 2009 County Clerk and ex -officio Clerk of the Board of County Commissioners Garfield County To: Board of County Commissioners EXHIBIT From: John Niewoehner Project Engineer Date: September 16, 2009 RE: Resolution Revising Conditions for the Extension of the Valley View Commons Preliminary Plan Approval The Valley View Commons Subdivision in Battlement Mesa received its Preliminary Plan approval in May 2008 and received a Grading Permit in September 2008. In May 2009 Valley View Commons received an one-year extension of their Preliminary Plan approval giving them until May 19, 2010 to submit a complete Final Plat application. This extension required them to provide a new Letter of Credit (LOC) to replace their LOC which was expiring in September 2009. Valley View Commons has provided a new LOC but this new LOC is only valid until March 27, 2010. The attached Resolution documents the County's decision that Valley View Commons Preliminary Plan approval will expire on March 10, 2009 if the expiration date of the LOC is not extended. (The March 10th deadline gives the County time to draw on the LOC before the LOC expires.) The attached Resolution also documents that the County can draw on the LOC without a public hearing if the Applicant does not request a public hearing by February 3, 2010. (February 3rd is the deadline for pubic notice of the March 15, 2010 BOCC meeting.) b D EXHIBIT MEMORANDUM To: Fred Jarman From: Steve Anthony Re: Valley View Commons Bridge Revegetation Security Date: March 10, 2010 On February 24, 2010, I visited Valley View Commons with Chris Hale of Mountain Cross Engineering. It is my understanding that decisions will be made soon regarding the hibernation and there will be considerations regarding the release of securities. I don't have a comment on the security held for the earthmoving work. I do recommend that Garfield County seek continued security for 6.9 acres of disturbed ground for seeding and mulching. Some seeding has been done to about one half an acre. Tackifier has been applied to about 6.5 acres. Our objective in seeking revegetation securities for any project is to provide for the establishment of desirable vegetation. Requests for security releases are evaluated after the vegetation has become established, not after initial seeding. It is my recommendation that Garfield County seek a bridge security of $17,250 ($2,500 per acre x 6.9 acres). This security will serve as a bridge between the hibernation phase and will be held until there is a technically complete Final Plat. At that time it is anticipated that a revegetation security will be substantially reduced. The Final Plat security will subtract area that is dedicated to roads, sidewalks, and building envelopes. The security shall be held by Garfield County until vegetation has been successfully reestablished according to the Reclamation Standards in the Garfield County Weed Management Plan. It is the responsibility of the applicant to contact the County, upon successful revegetation establishment, to request an inspection for security release consideration. The Reclamation Standards are cited in Section 4.06, 4.07 and 4.08 of the Garfield County Weed Management Plan (Resolution #2002-94). March 9, 2010 Board of Commissioners of Garfield County, Colorado C/O Mr. Fred Jarman Garfield County Planning Department 108 8th Street, Suite 401 Glenwood Springs, CO 81601 RE: Hibernation Plan for Valley View Commons Dear Fred: MOUNT/A EN6INEE EXHIBIT 111 • CIVIL AND ENVIRONMENTAL CONSULTING AND DESIGN MAR 0?010 The purpose of this correspondence is to describe what we hope to accomplish at the upcoming BoCC meeting of March 15, 2010. As you know Darter, LLC received preliminary plan approval (via Resolution 2008-72) for a four (4) lot subdivision known as the Valley View Commons in May of 2008. After that approval Darter applied for and received a Grading Permit for the project, and commenced work on the site in anticipation of submitting a final plat and proceeding with development. The grading permit is secured in the amount of $106,000 by an irrevocable letter of credit from American National Bank. Unfortunately, while this project was underway the economic times drastically changed, resulting in financing difficulties nationwide. Darter was approaching the expiration of its preliminary plan approvals and sought an extension of the same from the BoCC. The BoCC granted the extension with the condition that the project be "hibernated" and that the security for the grading permit remain in place (see BoCC Resolutions 2009-51 and 2009-68). Since then all the items required by the "hibernation" resolutions have been performed. The hearing on the 15th is to determine whether the BoCC will call the security for the grading permit in light of the status of the development. It is our request that the BoCC does not call the letter of credit. Instead it is our request that the BoCC release the original security of $106,000 and allow the Owner, Darter, LLC, to post a cash bond in the amount required to ensure the revegetation of the current site and to permit the preliminary plan approval to be valid until May 19, 2010. We are requesting that the cash bond be the amount of the area of site disturbance of 6.9 acres valued at $2,000 per acre or a total of $13,800, and that this amount be held until the time that security for the Final Plat is in place. The Final Plat application is in process and will be submitted for review of technical completeness in the next few days. 826 1/2 Grand Avenue • Glenwood Springs, CO 81601 PH: 970.945.5544 • FAX: 970.945.5558 • www.mountaincross-eng.com Valley View Commons Page 2 of 2 March 9, 2010 Thank you for your consideration. We will be in attendance on the 15th to discuss this matter further. Feel free to call with any questions or comments. Sincerely, Mount}n Cross En e: ing, I Chris Hale, P.E. C: Terry Lawrence, Darter, LLC David Smith, Garfield & Hecht MOUNTAIN CROSS ENGINEERING, INC. Civil and Environmental Consulting and Design 826 'z Grand Avenue, Glenwood Springs, CO 81601 P: 970.945.5544 F: 970.945.5558 www.mountaincross-eng.com