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#3B Request for 5 year payment plan for Willow Glade development DEPARTMENT OF PUBLIC WORKS MEMORANDUM May 15, 2009 TO: City Council FROM: Mike Payne, Engineering Manager SUBJECT: Consideration and Action on a 5-year Payment Plan for Jack Willow Investments, LLC Summary Council Policy #63 allows developers to place assessments on a 5-year payment plan when approved by the City Council. The Council Policy allows for the cost of infrastructure improvements up to 30 lots to be placed on the 5-year payment plan for residential projects. Jack Willow Investments, LLC has been working with City staff on an extension of Castlemoor Drive for a six lot subdivision plat (Willow Glade) and planning for a future four lot commercial project (Willow Glen) located at STH 26 and McCormick Drive. Jack Willow Investments, LLC has agreed to pay the annual carrying costs for extending sanitary sewer to the project sites for a 10-year period or until the property is subdivided, whichever occurs first. A map of the sanitary sewer extension is attached. Jack Willow Investments, LLC has current outstanding assessments totaling $55,020.96. If the Council authorizes use of the 5-year payment plan for Willow Glade, the total outstanding assessments is estimated to be $204,681.25. Jack Willow Investments, LLC has previous development experience in Janesville with ndrd Heider Estates 2 and 3 Additions. Recommendation Following review by City Council, the Engineering Division recommends extending credit to Jack Willow Investments, LLC in the amount not to exceed $110,000 for the Willow Glade project. City Manager recommendation City Manager recommends approval. Suggested Motion I move to authorize use of the 5-year payment plan for Jack Willow Investments, LLC in the amount not to exceed $110,000 for the Willow Glade project. Request Jack Willow Investements, LLC is requesting use of the 5-year payment plan for a proposed six lot subdivision plat (Willow Glade), to be constructed in 2009. j:\agenda review\approved agenda items\2009\5-26-2009\willow glade 5yr payment plan memo.doc Background The City and Jack Willow Investments, LLC have negotiated a Memorandum of Understanding outlining the requirements and process to construct the public infrastructure for a six lot subdivision project and sanitary sewer extension in 2009. The City Council traditionally considers use of the 5-year payment plan at the time of Contract Award. However, the developer requested the Council review this request at the time of plat approval. Jack Willow Investments, LLC signed the necessary Waiver for land division assessments which are scheduled th for approval as consent agenda items at the May 26 Council Meeting. Below is a summary of assessments: ndrd Heider Estates 2 & 3 Additions (Outstanding) $55,020.96 Willow Glade Land Division (scheduled for approval 5/26/09) $39,660.29 Estimated Improvements-Willow Glade (consideration on 5/26/09) $110,000.00 Total $204,681.25 Upon approval of the 5-year payment plan, the Engineering Division will proceed with design and bidding of the project. The Council will be updated on actual project costs and the amount to be placed on the 5-year payment plan at the time of Contract Award. Attachment cc: Eric Levitt Jacob J. Winzenz j:\agenda review\approved agenda items\2009\5-26-2009\willow glade 5yr payment plan memo.doc