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Home My WebLink About178-08 RESOLUTIONRESOLUTION NO.178-08 A RESOLUTION APPROVING A 50/50 COST -SHARE AGREEMENT WITH SOUTHPASS DEVELOPMENT COMPANY, LLC FOR THE UPGRADE OF THE WSIP PROJECT EL -3 TO SERVE THE SOUTHPASS DEVELOPMENT AND THE PROPOSED CITY OF FAYETTEVILLE COMMUNITY PARK. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS• Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves a 50/50 cost -share with SouthPass Development Company, LLC for the upgrade of the WSIP Project EL -3 to serve the SouthPass Development and the proposed City of Fayetteville Community Park. Soc. 0 _V` •c^ e FAYETTEVILLE;, PASSED and APPROVED this 16th day of September, 2008. APPROVED: By: ATTEST: By: Cets. � 5 l% SONDRA E. SMITH, City Clerk/Treasurer 11E111111 ''' CONTRACTUAL AGREEMENT This Agreement, made and entered into this Se pt ook (o at, by and between the City of Fayetteville, Arkansas and Southpass Development Company, tLC, Witnesseth: WHEREAS, Southpass Development Company, LLC is constructing an approximately 800 acre mixed use development on the west side of I-540 adjacent to Cato Springs Road; and WHEREAS, The City of Fayetteville is upgrading EL -3 as a part of the Wastewater System Improvement Project that would serve the Southpass Development and future Community Park that is proposed to be built within this development. WHEREAS, the original design of the EL -3 upgrade did not include this portion of the sewer basin into the design calculations since the area was outside of the City limits. WHEREAS, the Agreement to Acquire and Develop the Community Park for Fayetteville that was approved by the City Council on September 7, 2004 as Resolution No. 138- 04 states, "The City of Fayetteville and Southpass shall cost share (50/50) all costs of extending sewer to the Community Park site and neither shall charge for the acquisition of necessary water or sewer easements across their property to serve their land within this 800 acre area." NOW, THEREFORE, the City of Fayetteville and Southpass Development Company, LLC agree as follows: 1. Upon the City Council and/or the Mayor approving the Sewer Agreement, the City of Fayetteville agrees to: Upgrade the EL -3 sewer line being installed as a part of the Wastewater System Improvement Project by 6" in pipe diameter. B. Pay 50% of the cost to upgrade EL -3 up to a maximum of $89,115 to be paid from the Wastewater System Improvement Project funds. Upon approval of the Southpass Planned Zoning District by the City Council, Southpass Development Company, LLC agrees to: A. Pay for 50% of the cost to upgrade EL -3 up to a maximum -not -to -exceed cost in the amount of $89,115.00 that is being installed as a part of the Wastewater System Improvement Project. Final payment shall be due upon completion of the EL -3 project. SouthPass' obligation to pay is contingent upon SouthPass receiving approval from the Fayetteville City Council for it's proposed PZD and upon SouthPass receiving approval for financing of the Southpass development. • • • C. Convey by warranty deed to the City at no cost the Ten (10) acre City of Fayetteville water tank site contained within the Southpass property at the time of Planned Zoning Development approval by the City Council in accordance with the Agreement to Acquire and Develop the Community Park for Fayetteville that was approved as Resolution No. 138-04 on September 7, 2004 and made a part of this agreement. A 50' wide street right-of-way shall be placed on this Ten (10) acre site at a location acceptable to both parties. 3. It is further understood that the contract for construction is between the City of Fayetteville and their Contractor and that Southpass Development Company, LLC has no contractual obligation with either the Contractor or the Engineer. IN AGREEMENT WITH ALL THE TERMS AND CONDITIONS ABOVE, WE SIGN BELOW: CITY OF FYETTEVI. LE By: DAN COODY, Mayor Southp. s pev-. •pment Company, LLC By: 11 Ron Petrie Submitted By City of Fayetteville Staff Review Form City Council Agenda Items or Contracts 16 -Sep -08 City Council Meeting Date Engineering Division Action Required: g65 /75 &wM 666 ppj.tlop!Mall- LD-r‘ y Operations Department A resolution approving an agreement with Southpass Development Company, LLC for the upgrade of the Wastewater System Improvement Project EL -3 to serve the Southpass Development and the future City of Fayetteville Community Park. $0.00 Cost of this request 5400.5600.5808.00 02067 Project Number Budgeted Item x 477,290.00 Category/Project Budget 836.68 Funds Used to Date 476,453.32 Remaining Balance Budget Adjustment Attached Water and Sewer Cost Sharing Program Category / Project Name Water and Sewer Improvements Program / Project Category Name Sales Tax - Capital Improvements Fund Name 1 �0 Departmen Dire • City Attorne 93. Date Pooi.Q l c 3-og Finance and Internal Service Director A Mayor Date ate Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in City Clerk's Office Received in Mayor's Office omments: City Council Meeting of September 16, 2008 CITY COUNCIL AGENDA MEMO To: Mayor and City Council Thru: Gary Dumas, Director of Operations From: Ron Petrie, City Engineer Date: August 29, 2008 Subject: A resolution approving an agreement with Southpass Development Company, LLC for the upgrade of the Wastewater System. Improvement Project EL -3 to serve the Southpass Development and the future City of Fayetteville Community Park. RECOMMENDATION In accordance with Resolution 138-04, staff recommends that the City approve this agreement with Southpass Development Company, LLC, the developer, to upgrade EL -3 to serve the proposed Southpass Development as well as the future 200 acre City of Fayetteville Community Park. BACKGROUND Southpass Development Company, LLC is currently in the process of gaining approval to construct an approximately 800 acre mixed use development located at the west of Cato Springs Road and south of 1-540 that will contain 200 acres being donated to the City for use as a Community Park. DISCUSSION It was agreed upon in Resolution 138-04 that the City of Fayetteville and SouthPass shall cost share (50/50) all costs of extending sewer to the Community Park site. The sewer basin that contains the proposed Southpass development was not included in the Wastewater.Systein Improvement Project because the property was not in the City Limits at the time of the preliminary study. The City has recently opened bids to replace the large sewer main (EL -3) downstream of the site. It has been detennined that the proposed pipe size should be increased 6" in diameter to accommodate the additional flow in the basin. The EL -3 project was bid with both pipe sizes and the actual difference in costs to upgrade this portion of the line is $163,230.00 according to the low bid. The Southpass Development Company has agreed to pay 50% of this construction cost plus 1 City Council Meeting of September 16, 2008 50% of the engineering costs ($7,500.00) in order for the City to proceed with this upgrade. The following is a summary of the Engineering and Construction costs for this sewer upgrade. Developer's Share $ 89,115 City's Share $ 89,115 Total $178,230 BUDGET IMPACT It is proposed that the additional funding necessary to upgrade this sewer line be paid from the Wastewater System Improvement Project. The EL -3 construction bid was opened on August 26, 2008 with a low bid that was approximately $1.8 million below the engineer's estimate. The developer will reimburse the City upon completion of the project when all items of the agreement have been met by both the City and the developer. The City Council agenda item for the construction contract for EL -3 will contain these additional costs. • 2 RESOLUTION NO. A RESOLUTION APPROVING A 50/50 COST -SHARE AGREEMENT WITH SOUTHPASS DEVELOPMENT COMPANY, LLC FOR THE UPGRADE OF THE WSIP PROJECT EL -3 TO SERVE THE SOUTHPASS DEVELOPMENT AND THE PROPOSED CITY OF FAYETTEVILLE COMMUNITY PARK.. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves a 50/50 cost -share with Southpass Development Company, LLC for the upgrade of the WSIP Project EL -3 to serve the Southpass Development and the proposed City of Fayetteville Community Park. PASSED and APPROVED this 16th day of September, 2008. APPROVED: ATTEST: By: By: DAN COODY, Mayor SONDRA E. SMITH, City Clerk/Treasurer AGREEMENT TO ACQUIRE AND DEVELOP THE COMMUNITY PARK FOR FAYETTEVILLE rhis contract and agreement is entered into by the City of Fayetteville and SouthPass Development Company, LLC (hereinafter "SouthPass"); Whereas, the City of Fayetteville desires to obtain a 200 acre Community Park for its citizens and tourists; and Whereas, the Parks and Recreation Advisory Board has carefully studied available sites and determined that the Cummings' property is the most desirable site for the Community Park; and Whereas, The City of Fayetteville does not have the current resources to both purchase the necessary acreage and develop such acreage into a functioning, attractive Community Park and so publicly requested proposals from developers for a public/private partnership to facilitate the acquisition and development of the Community Park; and Whereas, SouthPass Development Company, LLC submitted a workable, attractive proposal which was selected by the City's selection committee as the recommended proposal. NOW, THEREFORE, pursuant to the terms and conditions of the City's Request for Proposals and SouthPass Development Company, LLC's recommended Proposal, the City and SouthPass agree as follows: 1. Upon approval of this contract by the Fayetteville City Council and SouthPass Development Company, LLC and the accomplishment of all contingencies listed below, SouthPass shall tender to the trustee/owners of the Eight Hundred Acre (more or less) Cummings property an unconditional offer to purchase all said property for the sum of Six Million Nine Hundred Thousand Dollars ($6,900,000.00). The obligation of SouthPass Development Company, LLC shall not become binding or enforceable until all the below contingencies have been fully accomplished: (A) A Master Plan for the development of the approximately 800 acre site has been prepared and approved by SouthPass Development Company LLC and the City of Fayetteville; (B) The City Council has annexed or committed itself to annex the entire 800 acre site; • (C) The zoning of the portion of the 800 acre site to be owned by SouthPass has been accomplished or the City Council has committed itself to rezone that portion in conformance with the approved Master Plan; (D) The Greenland School District and Fayetteville School District have agreed that this entire site shall be within the Fayetteville School District; (E) The Arkansas Department of Environmental Quality has agreed with the present owners of the Cummings landfill and assured the City of Fayetteville that the costs of the necessary corrective actions for the landfill shall not be borne by, recovered from, assessed to, or collected from the City of Fayetteville or SouthPass Development Company, LLC. 2. If this Offer is accepted by the Trustee and the Court, and all others necessary to accept the offer and legally deed the entire tract of 800 acres, more or less, SouthPass Development company, LLC shall pay the agreed price to the trustee/owners and the land shall be conveyed by warranty deed free from all encumbrances to the following parties: (A) SouthPass Development Company, LLC shall be deeded the entire Eight I-Iundred (800) acre tract, more or less, except the 33 acre Iandfill; (B) The City of Fayetteville shall be deeded (free and clear of any obligation to pay, repay, or otherwise fund the necessary corrective act -ions for the landfill: partial or full recapping of the landfill and restoration of the stream corridor) the Thirty -Three (33) acre abandoned and closed landfill located within the 800 acre property; (C). South Pass Development Company LLC shall convey by warranty deed to the City of Fayetteville a Two Hundred (200) acre parcel for the Community Park which location shall be determined by the City; (D) SouthPass Development Company LLC shall convey by warranty deed the Ten (10) acre City of. Fayetteville water tank site to the City of Fayetteville. 3. '1'o facilitate the preparation of the Master Plan, the City shall immediately pay for the perimeter survey of the property and the 200 acre Community Park site. 't,anawkc: trl %ik4.l Ptah. 4. SouthPass shall fund up to $10,000.00 and retain a mutually acceptable community master planning consultant for recommendations for a Master Plan for this entire 800 acre area (including the 200 acre Community Park area). • • 5. The City of Fayetteville shall assist in facilitating the planning, zoning and other development approval processes which are in accordance with the mutually acceptable master plan. 6. The City of Fayetteville shall recommend to the Fayetteville School Board and Greenland School Board that this property should be within the Fayetteville School District. 7. The City of Fayetteville and SouthPass shall cost share (50/50) all costs of extending sewer to the Community Park site and neither shall charge for the acquisition of necessary water or sewer easements across their property to serve their land within this 800 acre area 8. If all the contingencies listed in paragraph 1 have been accomplished and all the actions listed in paragraph 2 have been achieved, SouthPass Development Company LLC shall contribute One Million Dollars ($1,000,000.00) when the City is ready to award the first construction contract utilizing the 2004 and 2005 budgeted CIP allocation as shown in Exhibits A and B*. Signed this 31 day of 2004. Signed this 1M day of September, 2004. SOUTHPASS DEVELOPMENT By: CO, PANY LLC FAYETTEVILLE, ARKANSAS J 1eI. CITY OF NOCK ng Member By: Attest: DAN COODY c` Mayor l`l�ERKITRfq'', :kC .ii °;411.1&-"t , FAYETiEV1LLE;Sondra Smith, City CIS it %ydo. .;9QG-r0N0OJ S -.,;;;• -AN- llllllll *Attached as Exhibit A are copies of the current Capital Improvement Program adopted last December by the City Council showing 2004-2008 Parks Development Fund allocations for Community Park Development (total about $2.4 million) and Sales Tax CIP funds allocated to Community Park Development (total about $ I.2 million). Attached as Exhibit B is the amount of funds that have been allocated by the City Council that will be available on January I, 2005 for development of the Community Park (about $L6 million). (9.19.08) Clarice Pearman - Res. 178-08 Page 1 From: Clarice Pearman To: Petrie, Ron Date: 9.19.08 4:40 PM Subject: Res. 178-08 Attachments: 178-08 SouthPass Development Co LLC.pdf CC: Audit Ron: Attached is a copy of the signed resolution passed by City Council, September 16, 2008 regarding the cost share agreement with SouthPass Development. Please let me know if there is anything else needed for this item. Have a good weekend. Thanks. Clarice