HomeMy Public PortalAboutResolution 2020-32, Approving The Plat For Phase 2 Woods EstatesRESOLUTION 2020-32
A RESOLUTION APPROVING THE PLAT FOR
PHASE 2 OF THE WOODS ESTATES OF RIVERDALE SUBDIVISION
WHEREAS, The City of Riverdale, Iowa ("City") is a Municipal Corporation, organized and
operating under the laws of the State of Iowa, and;
WHEREAS, the City's Planning & Zoning Commission has recommended the conditional
approval of the plat for Phase 2 of the Woods Estates of Riverdale Subdivision, and;
WHEREAS, the City of Bettendorf's Engineer, Brent Morlock, has presented a letter
certifying the construction drawings and drainage calculations submitted by the
Developer and his engineer, and;
WHEREAS, the Developer's financial institution, BankORION, has confirmed their intention
of issuing an Irrevocable Letter of Credit in the amount of $1,120,000 to serve as a
financial guarantee the public improvements will be completed, and;
WHEREAS, the Developer has agreed to not proceed with any construction activity until
that final letter of credit has been delivered and accepted by the City.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RIVERDALE,
IOWA.
Section I. The City Council of Riverdale hereby approves the plat for the second
phase of the Woods Estates of Riverdale Subdivision with the following condition;
Section 2. The Mayor is not authorized to sign the plat document officially accepting
the plat until executed copies of the revised Irrevocable Letter of Credit (EXHIBIT A) and
the Hold Harmless Agreement (EXHIBIT B) have been received and reviewed (as
required by the municipal code of the City of Riverdale, Chapter 27 (EXHIBIT C)); and
Section 3. The Developer is hereby instructed to withhold all construction activity on
the site until the plat is signed and officially accepted by the City of Riverdale.
Passed and approved this 12th day of May 2020.
ATTEST
n, Mayor Mary F nces Blevins, Clerk
City of Riverdale, Iowa 110 Manor Drive, Riverdale, Iowa 52722 • (563) 355-2511 • www.riverdaleiowa.com
Memorandum
Date: April 24, 2020
To: Members of the City Council c: Seth Woods
Planning & Zoning Commission Greg Jager
Paul Macek
From: Mayor Mike Bawden
Re: Recommendation on Phase 2 Plat Approval from Corporate Counsel
As requested by the City Council, I've followed up with Greg Jager and Paul Macek
about the best course of action to take by the Council regarding the approval of the plat
for Phase 2 of the Woods Estates subdivision. I explained that all parties had a shared
desire to make sure Seth is able to start when he feels the economy is in a good position
and that construction will not begin on the project until the City has received an
executed letter of credit.
As it turns out, Riverdale's Zoning Code (Chapter 27) requires both a "performance
bond" — which is what the Letter of Credit (LOC) is — and a "hold harmless agreement"
(ref. Ch.27.o7) for the developer to record the plat, anyway, so receipt of the LOC was a
condition of approval whether the City Council included it in the resolution or not.
Attached to this memo, you'll find a copy of the current draft of the LOC (with required
changes indicated), marked as "EXHIBIT A" as well as a draft of a Hold Harmless
Agreement for Phase 2, marked at "EXHIBIT B." A copy of the relevant sections of the
Zoning Code is also attached, marked as "EXHIBIT C."
Given the fact that both of these need to be received by the City before the plat can be
signed, the City Attorney's recommendation for moving forward is as follows:
1. The City Council should approve the final plat within sixty days of receiving it
(that means, approval should occur at any meeting prior to May 22);
2. Seth then has 90 days (until August 20) to record the plat;
3. But in order to do so, he has to provide the executed LOC and Hold Harmless
Agreements before he gets a signature from the City;
City of Riverdale, Iowa 110 Manor Drive, Riverdale, Iowa 52722 • (563) 355-2511 • www.riverdaleiowa.00m
Recommendations on Phase 2 Plat Approval from City Counsel
April 24, 2020
4. If Seth isn't comfortable recording the plat and moving forward by August 20,
he can let us know (in writing) by May 15 so we can include a public hearing as
part of the regularly -scheduled P&Z Meeting on June 3;
5. We'll need to publish notice of the public hearing to appear no later than May
26;
6. At the public hearing, Seth can update the P&Z Commission on his planned
start date, after which they can vote to recommend an extension of the recording
deadline to the City Council;
7. City Council can act on P&Z's recommendation and extend the recording
deadline as requested by the developer and P&Z Commission.
This process keeps us in -bounds with the City's own Zoning Ordinance and meets the
mutually agreed upon goals set by the P&Z Commission, Developer and City Council.
I am recommending the City Council approve the plat for Phase 2 of Woods Estates at
our next Council Meeting and follow the course of action laid out, above.
City of Riverdale, Iowa 110 Manor Drive, Riverdale, Iowa 52722 • (563) 355-2511 • www.riverdaleiowa,com
FORM OF IRREVOCABLE LETTER OF CREDIT NUMBER
Date pfissuance: TBD
City of Riverdale`
110 Manor Drive
Riverdale, Iowa 52722
Dear City Clerk/ Treasurer Blevins
CExHISIi I)
5301 - 44th Avenue Drive
Moline, Illinois 61265
Telephone (309)764-8811
FAX (309) 764-1863
www.bankorion;com
We hereby establ•ish in favor of the City of Riverdale (hereinafter "City"), uponapplication of and for the
account of Woods Construction; inc,,4016 Thomas Point Road, Davenport, Iowa 52807, Attention: Seth
Woods, President (hereinafter "Woods") this irrevocable letter of credit (hereinafter "Letter of Credit")
in the amount of $1,120,000.00 (which is the "Maximum Available Credit"), subject to reduction as
hereinafter set forth:
Secovtd�,, 13, zo Z�
This 'letter -of credit is i sued with respect to: guaranteeing the ompletion of public improvements
Within and related to subdivision of land in the City of Riverd Ie, Scott County, Iowa, known as "Woods
Estates of Riverdale Addition's isivn"Mt", dated' and stamped by Dan J.
Kuehl, Iowa Professional Land Surveyor, License No. 19959 (hereinafter"F' Addition Plat"). Specifically
the improvements subject to this fetter. of Credit are for the completion o the public improvements to
Phase: 2. The public improvements are those improvements which will be edicated to and become the
property of the City upon their acceptance by the, City Council including e road and infrastructure
associated with Phase 2: Sep.
This Letter of Credit issubmitted in: lieu of a performance or surety bond, which is so stipulated in Article
IV, "Bonding and Assessment Waivers"; Section 40 of the Subdivision Ordinance of the City, as a
requirement for approval of the recording of a subdivision plat, and shall be submitted and maintained.
in an amount equal to 125% of the cost of the public improvements required for completion of Phase 2.
With the intention of reducing the Maximum Available Credit as the public improvements are
completed by Woods, all advances will be reported to city along with an accounting of remaining work
to be completed, and with the approval of the City Engineer, and the'approval of the City Council by
Member FDIC
Resolution, we may reduce the Maxfimurn`Available.Credit by that amount, in,the manner set forth
herein. The Letter of Credit Will be maintained at 125% of the remaining work to be completed.
In the event Woods does not complete thepublicimprovements so as to allow building permits or
'occupencypermits to be issued to houses to be constructed or constructed in Phase 2, or he fails to
complete.grading; erosion control, or the public improvements as required, upon recommendation by.
the City Engineer, :the City Council shall cause Woods. to be sent notice of the deficiency by mail at his
address of notification.. If Woods does'not respond to remedy the deficiency within the time established
by the Council in :its notice, th:e City Council may request'a•draw upon the Maximum Available Credit.
•The Maximum Available Credit or a portion:thereof shall be paid upon presentation of the following
d.ocurnents:.
•
1. A signed.certifidate, dated hot:More than ten days prior to its presentation to us, signed by the
Mayor and attested by the. City.Cieris:
2.' The description of.the'deffciency or deficienciesof the grading, erosion control or the Public
Improvements which have not been completed or are not to specification, according to the
Constructiori:Plans. •
3 The estimated cost to complete"or. correct the Public Improvements as set forth in the
Construction Plans.
No draft will be paid if the amount thereof is in excess of the Maximum Available Credit
hereunder as,of the date such draft is to be paid.
• Multiple drawings of funds maybe presented under this Letter of Credit,.which, in the aggregate, shall
not exceed the 'Maximum Available Credit then in effect anad each such drawinghonored by us.
.hereunder shall reduce the Maximum Available Credit by the a mount of such drawing. The draft(s)
drawn .under this Letter of Credit -must be drawn and presented to our offices at 5301 44th Avenue Drive
Moline,=1L 61265 Attention:'Kevin Schoo.nmaker (or such•other officer, department or address
designated in writing.by us to you at• your address above or other address•as you shall advise us in
.. writing) by.hand delivery or by delivery by courier between 8:30 a.m. and 4:00 p.m.. (Bank business
hours, Central`Time).
. -We hereby agree that all drafts drawn.upder and in compliance with the terms of this Letter of Credit'
• Will be duly .honored.by us upon delivery of any of the certificate(s) specified above and if presented at
our aforesaid officie. If dernand for,,payment is made before 11:00 a.m, on any business day, payment of
the amountdemanded shall be made in. immediately•available funds not Eater than 1:00 p.m. on the
next succeeding Business Day.
Payment under this fetter of Credit shall be made of immediately available funds -by certified bank
check, wire transfer or as agreed bythe •City of Riverdale City Clerk / Treasurer.
Cn'fy the'City of Riverdale;.by its City Clerk /Treasurerortheir designee•may make drawings under this
Letter of Credit. Upon:payment es provided above of the amount specified hereunder, the Maximum
Available Credit of the Letterof Credit shall be reduced -by the amount of th:e payment.
If demand for payment_does'not conform to the terms and conditions of this: Letter of Credit; we will
promptly notify you -thereof and'of;the reasonsthereof; such notice to be promptly:confirmed in writing
to'you;.and we shall hold all documents:'at your drsposal or return the sameto you, if directed by you,
ThisLetter of Credit is effective immediately and shall not expire(i) until.the completion of the public
improvements arid the dedicationof the public rights -of -way related to Phase 2 of Woods Estates of •
• Riverdale. and their acceptance by Resolution of the City Council of the City of Riverdale; or, (ii) when
you. have'drawn and we have paid to yo.0 the Maximum Available Credit to the City of Riverdale; or'(iii),
whet). all public, improvements to Phase 2 are complete as specified, the•City's.Engineer agrees and upon
their recommendation; the'City Co'uncil.has approved and accepted all public improvements by Council
Resolution, and all requirerrients of theCity's:Subdivisiion Ordinance have been fulfilled, and the Mayor
so ettests, or, (iiii) after 12 months df thedate of issuance but will be automatically extended for
additional consecutive one yearterms if you have not received by certified mail notifi.cation of our
•`intention not to renew 30 days:prior to the originai expirydate and each subsequent expiry date, At
such,time. as (I), CO or(iii) above'have been fulfilled, any funds remaining of the Maximum Available
Credit shall be released by. the City Council. and. this Letter of Credit'shall expire.
This Letter of Credit is governed ;by the Uniform Customer and'Practice for Documentary Credits, 2007
Revision, International Chamber of Commerce Publicatiion No, .60.0 (UCP), of any later version or.
a'meridrnen#.
Sincerely,
Kevin'T. Sch•oonmaker
Vice President:
&Xft1EiT 8j
HOLD HARMLESS AGREEMENT
The undersigned, WOODS CONSTRUCITON AND DEVELOPMENT, INC., an Iowa
corporation, owner and developer of the real estate known and described herein as WOODS
ESTATES OF RIVERDALE SECOND ADDITION, to the City of Riverdale, Scott County,
Iowa hereby agrees to hold the City of Riverdale, Iowa, including but not limited to its elected
officials, officers, agents, and employees, harmless from any damages, claims or suits, known or
unknown, by whoever made or brought, including, but not limited to all costs, expenses and
attorney fees relating in any way to the construction or development of Woods Estates of
Riverdale Second Addition to the City of Riverdale.
Witness our hands and seals this
of , 2020.
WOODS CONSTRUCTION AND DEVELOPMENT, INC.
Seth Woods, President
STATE OF IOWA )
SS:
SCOTT COUNTY )
On this day of , 2020, before me, the undersigned, a Notary Public in and for
State of Iowa, personally appeared Seth Woods, to me personally known, who being by me duly
sworn did say that he is the President of said corporation, executing the within and foregoing
instrument and said instrument was signed on behalf of said corporation by authority of its Board
of Directors and that he, as such officer, acknowledged the execution of said instrument to be the
voluntary act and deed of said corporation, by it and by him voluntarily executed.
Notary Public, In and For Said County and State
(.p(rtIk31T1c
Chairman and six (6) copies, one for each Commission member.
Reduced copies of the plat along with necessary materials shall
be transmitted to the City Engineer, County Auditor, County
Recorder, and County Assessor for review and comments.
27.02. Review by City Officials. Within fifteen (15) working days of
receipt of materials from the Chairman, the several county officials
or departments shall complete theft reviews of the plat materials
and shall submit their written comments to the City Council of
Riverdale, Iowa.
27.03. Public Hearing. Before consideration of a Final Plat by the
Planning and Zoning Commission or the City Council of Riverdale,
Iowa a public hearing in compliance with the Code of Iowa will be
held with notice given by publication in a newspaper in general
circulation in the City and by the written notification to all property
owners within one thousand (1,000) feet of the subject property.
27.04 Recommendation by Planning and Zoning Commission. The
Planning and Zoning Commission shall review the Final Plat and
application materials and the technical review comments,
including information on the status of implementation of the
erosion and sediment control plan at its next meeting and within
forty-five (45) days shall recommend to the City Council of
Riverdale, Iowa that the Final Plat be approved or disapproved.
If the Planning and Zoning Commission recommends disapproval,
a statement setting forth reasons for disapproval shall be
submitted to the City Council of Riverdale, Iowa and to the
subdivider.
27.05 Approval or Rejection by the City Council of Riverdale, Iowa.
The City Council shall approve or disapprove the Final Plat within
sixty (60) days after receipt of the Final Plat from the Chairman of
the Planning and Zoning Commission. If the Planning and Zoning
Commission did not recommend approval of the Final Plat, the
City Council may approve said plat and accept the public area and
easements thereon only by a not less than four -fifths (4/5)
favorable vote of the entire membership of the City Council of
Riverdale, Iowa.
27.06 Status of Approval. Approval by the City Council authorizes the
filing of the Final Plat with the County Auditor and Recorder, in
accordance with the provisions of existing statutes and following
procedures as required by said Auditor and Recorder, and
acknowledges the acceptance of all roads, streets, alleys,
easements, parks or other areas reserved for or dedicated to the
public along with the required surety bonds or checks
guaranteeing that the improvements required herein shall be
installed.
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27.07 Materials to be Submitted Before Recording Plat. Prior to
recording, the developer shall submit a copy of the following:
Signed certificates as required by Chapter 354 of the Iowa Code
of the land surveyor, attorney, Treasurer, and property owners
and protective covenants and performance bond, if applicable for
review and approval by the City Engineer and City Attorney.
A hold harmless agreement protects the City from any damages,
claims, or suits, including all costs, expenses and attorney's fees
relating thereto, resulting from the construction and development
by the owner and/or subdivider. Said agreement shall be subject
to approval of the City Attorney and recorded with the Final Plat.
27.08 Duration of Approval. Approval of the Final Plat may become
null and void if the plat is not recorded within ninety (90) days of
the City Council's (Riverdale, Iowa) approval. After the ninety (90)
days, the Chairman shall place on the agenda of the Planning and
zoning Commission the Final Plat to consider whether it should be
nullified or granted an extension. The subdivider shall be notified
of the hearing and provided time to explain why the Final Plat was
not recorded within the ninety (90) days. After a hearing, the
Commission shall recommend to the City Council to either nullify
or extend the recording time for the Final Plat. The City Council
shall review the recommendation and act to either nullify or grant
an extension.
Mike Bawden
From: Mike Bawden
Sent: Wednesday, May 13, 2020 9:24 AM
To: Seth Woods (Buildwithwoodsl l @yahoo.com)
Cc: Wendy Syverud; BILL BRIESCH
Subject: Approval of Phase 2 Plat for Woods Estates of Riverdale
Attachments: Phase 2 Plat Approval Resolution (2020-32).pdf
Seth,
I wanted to let you know that the City Council approved the plat for Phase 2 of the Woods Estates
project meaning you can record it with the county once you've provided the City with a valid,
irrevocable letter of credit in the amount of $1,120,000 and a signed hold harmless agreement. I've
attached a PDF of the signed resolution which includes a copy of a memo detailing what was required
and the timing for moving ahead per the City's Zoning Code.
When this resolution was passed last night, I notified the Council that you will, in all likelihood, apply
to the Nanning & Zoning Commission for an extension on the deadline to record the plat, most likely
to the end of September. If that's the case, let me know what your thinking as far as an extension (to
some date during this calendar year) and I'll help you write your request to the P&Z Commission for
consideration at their June 3rd meeting. I've copied the co-chairs of the Commission on this email so
they know to expect something.
Finally, I want to make it clear that we're all operating under the understanding that "not a shovel of
dirt will be turned until the plat has been filed" — which is what you said to the Council at the public
hearing for the plat. So, with the exception of the delivery of material to the job site, we don't expect
you begin any work on Phase 2 until the required material has been received and the plat has been
recorded.
Thanks,
Mike Bawden
Mike Bawden
Mayor, City of Riverdale, Iowa
563-355-2511 1563-949-2056 I mayor(a.riverdaleia.orq
http://www.riverdaleiowa.com
1' - ,.ard Ia 5272_
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