City of Oak Creek

Common Council Report

 

Meeting Date: January 3, 2007

 

Item No.:        

 

Recommendation:  That the Common Council consider Resolution No. 10722-010307, which would approve a development agreement with Walter J. Yakich Revocable Trust (Developer) for the installation of public improvements of water main, sanitary sewer, storm sewer, street lighting, street trees, public road and storm water management facilities at 9940 S. Ridgeview Drive (Tax Key No. 926-9997-002)   (6th Aldermanic District).

 

Background:  Seville Flexpack Corporation is proposing to install a 63,000 square foot building at 9940 S. Ridgeview Drive.  The development will include one building and related parking and grounds area.  For this to occur, the Developer must construct City and Milwaukee Metropolitan Sewerage District (MMSD) approved storm water management facilities.  They must also construct a public sanitary sewer, storm sewer, water main, public road, street lighting, and street trees. This agreement will provide the City with the authority to direct and control the design and construction of the required storm water management facilities and the public improvements to ensure they meet City codes and specifications.

 

The Plan Commission conditionally approved the site plan and CSM on November 14, 2006.   Assistant Fire Chief George Krudop requested at the meeting that the Developer provide an emergency access road from S. 20th Street.  Michael Byrne, Briohn Building, was at the meeting on Mr. Yakich’s behalf.  The matter of the road being constructed and public improvements being in place prior to occupancy were explained to Mr. Byrne at the meeting.

 

Typically, all public improvements are required to be in place prior to the issuance of a building permit.  Mr. Yakich has equipment being constructed in Italy to be delivered in April for this new building.  Therefore, Mr. Yakich is requesting that the building permits are allowed to be obtained prior to the public improvements.  The City is requesting that a letter of credit be obtained from Mr. Yakich for collateral on the construction of the utilities and road.

 

Mr. Yakich declined to sign the development agreement and hand delivered a letter dated December 24, 2006 pertaining to the review of the agreement.   He lists 11 items that must be changed from the City’s standard developer’s agreement for his approval or Seville Flexpack will not expand in the City of Oak Creek.

 

1.                  If a tax increment financing district is ever created for the installation of public improvements, Walter Yakich will be eligible for reimbursement.

 

This document is drafted as if a TIF does not exist.  If the Council creates a TIF district and if the Council includes Seville Flexpack, a modified development agreement would be approved.  Mr Yakich cannot wait until the TIF decision is made in that he intends to house purchased equipment in April 2006.  Any projects that start the construction phase prior to a TIF being formed are an ineligible cost to the TIF.

           

2.                  The temporary cul-de-sac at the new south terminus of S. Ridgeview Drive extended will not be built on land owned by Mr. Yakich.

 

            Staff is requiring that a temporary cul-de-sac needs to be constructed at the end of the extended dead-end road.  Whether it is located on Mr. Yakich’s land or that of his neighbor is irrelevant.  Wherever the cul-de-sac is located, an easement needs to be signed prior to the issuance of the developer’s agreement.

 

3.         Deferred special assessment for water main in the amount of $9,573.75 will not be paid until Reinhardt Foods removes a retention pond from the public utility easement.

 

            As per Resolution No. 8373-031792 (Project No. 92001) section 6.D.1 and 6.D.3, the assessment shall become due and payable the date of the granting of a building permit to build a principal building upon any portion of the premises against which a special assessment is outstanding, and the date of the approval by the Common Council of a certified survey map of any portion of the premises against which a special assessment is outstanding.

 

4.         Final occupancy permit for the proposed building cannot be dependent upon the date that the public improvements are completed.

 

            The standard practice is the Developer is required to have all public improvements in place before the issuance of a building permit.  In this case, the staff is working with the developer and is proposing to issue the permit to construct but not occupy prior to the completion of the abutting infrastructure.

 

5.         Mr. Yakich will not provide a secondary means of emergency access.

 

            A review of the actions of the Plan Commission indicated that the second access was not a requirement of the project.  It has been dropped from the development agreement.

 

6.         Mr. Yakich will not reimburse the City for work they perform.

 

            All developers pay for all review and inspection costs related to their development.

 

7.         Mr. Yakich will provide a bank letter of credit for $150,000 from a bank in Texas.

 

            As a general practice, the City no longer requires securing of improvement costs.  However, because of the issuing of a building permit prior to the completion of public infrastructure, staff recommends 150% of the estimated construction costs of the public improvements be secured.  In this case, that would be $385,000.

 

8.         Mr. Yakich will not provide a $250,000 cash security deposit.

 

            This section was removed from the agreement.  It was the option of the developer to choose a cash security deposit or a letter of credit.

 

9.         Final occupancy permit for the proposed building cannot be dependent upon the date that the public improvements are completed.

 

            See discussion for Point #4.

 

10.       The City must agree that they will issue a conditional occupancy permit for the sole purpose of installing the new equipment when it arrives from Italy.

 

            The City will agree to issue a conditional occupancy for the sole and exclusive purpose of installing new equipment previously ordered by the Developer prior to the public improvements being completed as long as the building is safe and secure.

 

11.       The City of Oak Creek will not levy any special assessments against any property owned by Mr. Yakich.

 

            If the Developer agrees to secure the development ($385,000), there is no potential for special assessments against property owned by Mr. Yakich.

 

            If the Council wishes to offer additional concessions to any or all of these items, then the agreement could be conditionally approved and the staff will make the corrections to the agreement.  If the Council and Mr. Yakich cannot come to an agreement on the above-stated issues, then Mr. Yakich has stated he will build in another state.

 

Seville Flexpack will be required to obtain MMSD approval on the storm water management plan, Council approval of the Storm Water Maintenance Agreement, approved developer’s agreement, approved building plans, approved building permits, and a preconstruction meeting prior to beginning any construction on site.

 

Fiscal Impact:  None. Developer pays for all design and installation costs. 

 

Prepared by:

 

 

Brian L. Johnston, P.E.

Civil Engineer

 

Respectfully submitted,

 

 

Patrick A. DeGrave

City Administrator

 

Approved by:

 

 

Douglas W. Seymour

Director of Community Development

 

 

Fiscal review by:

 

 

Beverly A. Buretta, CMC

City Clerk

 

 

RESOLUTION NO. 10722-010307

 

BY:  ________________________________

 

RESOLUTION APPROVING THE

DEVELOPMENT AGREEMENT WITH

WALTER J. YAKICH REVOCABLE TRUST

 

(6TH ALDERMANIC DISTRICT)

 

            BE IT RESOLVED that Chapter 14 of the Municipal Code requires that a development agreement be entered into first prior to the required public improvements being installed.

 

            BE IT FURTHER RESOLVED that the Development Agreement attached hereto and incorporated herein by reference, by and between Walter J. Yakich Revocable Trust, as party of the first part, and the CITY OF OAK CREEK, as party of the second party, be and the same is hereby approved.

 

            Introduced at a regular meeting of the Common Council of the City of Oak Creek held this 3rd day of January, 2007.

 

 

                                                                                    _____________________________

                                                                                    President, Common Council

 

            Approved this 3rd day of January, 2007.

 

 

                                                                                    _____________________________

                                                                                    Mayor

 

ATTEST:

 

 

_________________________________                  VOTE: Ayes:  ______ Noes: ______

City Clerk