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5.d) Staff Report-Harker Development Agreement� J SCANDIA Staff RepoVt Date of Meeting: July 21, 2015 To: City Council From: Kristina Handt, City Administrator Re: Harker Development Agreement Background: In January staff asked Council if they would entertain the idea of a development agreement to address a side yard setback issue with a property on Keystone Ave that was under the same ownership as a parcel to the east. However the eastern parcel was in Forest Lake. If the two parcels under the same ownership had both been in the same municipality, the lots could have been combined and the setback would not be an issue. However, since the two parcels are in different municipalities it is not possible to combine them. Issue: Should the Council approve the development agreement? Proposal Details: A copy of the development agreement is included in your packet. The terms have been reviewed by the City Attorney. A site plan and survey are also included in your packet as attachments to the agreement. The owner would like to build a new house with attached garage that would come within 6 inches of the east side property line. The development code would require a 20 foot setback on a parcel of this size. A variance would be unlikely to be approved given the large lot size and alternative locations, however this situation is unique in that the two parcels under same ownership are in different municipalities making it impossible to combine them into one. The development agreement, once recorded would prohibit with parcel from being sold or conveyed separately, this effectively ties the two together eliminating the need for a side setback. The property owners would have to get City Council approval if they wanted to change this agreement, i.e. future subdivision to restrict a smaller portion of the lots. Fiscal Impact: The agreement requires the property owner to reimburse the City for all out of pocket expenses related to this matter. Currently that is about $1500. There will be a few additional expenses such as the recording fee and final legal bill. Options: 1) Approve the Development Agreement 2) Amend and then Approve the Development Agreement 3) Do not approve the Development Agreement Recommendation: Option 1.