HomeMy Public PortalAboutAB 04-106 attch July 22, 2004
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MILLEMANN, PITTENGER, McMAHAN & PEMBERTON, LLP
ATTORNEYS AT LAW
706 NORTH FIRST
POST OFFICE BOX 1066
MCCALL, IDAHO 83638
STEVEN J. MILLEMANN (sjm@citlink.net) TELEPHONE: (208) 634-7641
GREGORY C. PITTENGER (gcpit@citlink.net) FACSIMILE: (208) 634-4516
BRIAN L. McMAHAN (blm@citlink.net) EMAIL: m2p2@citlink.net
AMY N. PEMBERTON (anp@citlink.net)
M E M O R A N D U M
TO: Lindley Kirkpatrick
FROM: Amy Pemberton
DATE: July 7, 2004
RE: Revised Proposed Resolutions for Outstanding Issues related to Silvertip LLC Purchase
of Parcels K,L & M Spring Mtn Ranch
Lindley,
Pursuant to our conference today with Dean Schultz, following is an outline of proposed
resolutions to issues related to Silvertip LLC’s purchase of Parcels K L M in Spring Mountain
Ranch. I would propose that the City of McCall enter into a binding Memorandum of
Understanding with regard those issues. An outline of the issues is as follows:
1. Extension of Spring Mountain Blvd. to Lick Creek. The City shall have the
obligation to complete the road, including paving, on or before September 30, 2005.
The City shall warrant that Silvertip will not be obligated to contribute to this
construction, and shall indemnify for the same.
2. Spring Mountain Ranch PUD. The City shall warrant that Silvertip will not be
obligated to pay for any latecomer costs related to road and utility improvements in
the PUD which are located outside Parcels K, L or M, and shall indemnify for the
same. This would include a confirmation that there are no latecomer fees for
connecting to the water system, sewer system (except as provided at #3 below), or the
road system.
3. Sewer Lift Station. Prior to entering into the MOU, the City and Silvertip shall
negotiate a maximum contribution percentage for the cost to construct the lift station.
Currently that percentage is estimated at 16.8%. Additionally, prior to entering into
the MOU, the City and Silvertip shall negotiate a maximum contribution amount for
Silvertip’s share of the construction of the sewer lift station (“Maximum
Contribution”). The Maximum Contribution shall not be affected by a higher than
anticipated final cost of construction, or the City’s reimbursement from the intended
third parties. The Maximum Contribution is currently estimated at $108,294.
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Additionally, Silvertip’s Maximum Contribution, and its actual contribution to the
construction of the lift station, shall be reduced by the amount at paragraph 4 below.
Silvertip shall be guaranteed a number of connections to the sewer system with this
lift station equal to the approved density of Parcels K, L & M (i.e. this lift station
shall be constructed to specifications such that service to the number of dwelling
units approved for Parcels K, L & M are guaranteed, notwithstanding any other units
that it will service). The City shall warrant that there will be no cost to Silvertip for
abandoning the current temporary lift station.
It is very important to Silvertip that the lift station is completed in the spring of 2005.
To achieve this goal, the City shall budget and complete construction of the lift
station on or before July 1, 2005, whether or not the additional contributions are
received from third parties. [Note: Lindley, the options we discussed earlier will not
work for the following reasons: (1) the temporary lift station is at an elevation such
that it cannot gravity feed from Lots K, L & M; and, (2) the parties have decided that
funding the City’s portion of the construction is not feasible.]
4. Lift Station Cost Reduction. There shall be a reduction in Silvertip’s contribution
toward the construction of the lift station in an amount equal to that portion of
Silvertip’s purchase price in excess of the following costs to the City: LID payoff +
title insurance + the city’s share of closing costs. The current estimated reduction,
without consideration of closing costs, is as follows: $1,251,000 (purchase price) –
$1,221,342 (LID payoff) - $3,282 (title insurance) – closing costs (no current
estimate) = $26,376.
5. Density. The density approved for the 3 parcels shall be increased from 66 lots to 95
lots. Assuming this property is located within Zone A, the increased density still
meets the requirements of 3-22-100((C)(4)(a). The calculation is as follows:
31.39 acres x 43,560 (sq. ft. per acre) = 1,367,348 total square feet
1,367,348 reduced by 20% = 1,093,879 sq. ft. net development area (as defined
at 3-22-100((C)(4)(a))
1,093,879 net development area / 95 lots = 11,515 average square feet per lot.
Minimum lot area in Zone A is 10,000 sq. feet.
This density issue will presumably be taken care of in the P&Z meeting on July 13,
and should be confirmed in the Memorandum of Understanding.
Please let me know what you think about this. It would appear that it would be worth while to
run this by the City Council tomorrow, to see how they feel about moving some budget items for
sewer construction to allow for this project to move forward next year. Please let me know what
you think..
Thank you. Amy