CC MEETING: July 26, 2016
DATE: July 19, 2016
TO: Leonard Martin, City Manager
FROM: Cesar J. Molina, Jr., P.E., Director of Engineering
Title
Discuss Escrow Disbursement For Parks At Raiford.
Body
BACKGROUND:
In December 2013, the city and Arcadia entered into a development agreement. Upon sale of the property to Arcadia, an escrow account was established in the amount of $1 million for restoration of the tributary at the east end of the project along with landscaping treatment and a bridge connection to Cemetery Hill Road. The city and Arcadia collaborated on the best approach to address these issues. Due to increased construction costs and anticipated permitting challenges with the Corps, the city and Arcadia agreed that the best course of action would be to split the tributary restoration and bridge construction into two separate projects. Staff recommended that the city manage the tributary restoration and that Arcadia manage the park/amenities and bridge. On December 15, 2014 the Re-Development Sub-Committee confirmed this course of action. Bill Gietema, representing Arcadia Realty, was in attendance.
On January 20, 2015 staff briefed Council on the split project proposal. Arcadia estimated a cost of $770,000 to construct the bridge and related park improvements. Staff estimated that the cost of the tributary work would be $900,000. Staff recommended that the balance of the escrow -$230,000 - be redirected to the tributary work being done by the city. Council agreed to this proposal. On April 30, 2015, I sent a follow up email to Bill Gietema summarizing the council decision.
As the project has progressed Arcadia is now seeking reimbursement from the escrow for the full $1 million. Bill Gietema claims he would never have supported the split project arrangement if he had known that the $230,000 would be taken from the escrow account. However, if the project is not split, then Arcadia is responsible for the on the north south tributary. Arcadia ...
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