Council approves Phase 1 development agreement with SSM Health; letter of credit, utility and reimbursement terms noted

The Verona Common Council approved a Phase 1 development agreement with SSM Health that requires the developer to construct and install at its expense on-site and off-site public improvements to serve phase 1 of the project and to provide security for performance.

City staff summarized key terms: the developer will construct public sanitary sewer, storm sewer, water main, public streets, sidewalks, stormwater management facilities, and other utilities; construction was projected to commence on or about June 1, 2025, with substantial completion on or about May 1, 2026, though final dates will be determined by the developer's construction contract. The agreement also allows the developer to seek reimbursement for certain improvements from benefited parcels consistent with the city's ability under applicable law to recapture costs. The developer is responsible for municipal fees including Madison Metropolitan Sewer District charges, water impact and sanitary sewer connection fees, land-dedication and land-reservation fees.

The agreement requires an irrevocable letter of credit to secure performance under the subdivision ordinance, the city attorney said: if a developer starts public improvements but fails to finish them, the city can draw on the letter of credit to complete the work and prevent partially constructed utilities from remaining in the ground.

Staff also noted an exception from the city's usual undergrounding requirement: existing above‑ground electric facilities on Valley Road adjacent to the development would be permitted to remain above ground because roadway realignment in the near future may necessitate rework; council members discussed whether a time limit or cost‑sharing condition should apply if the road is not moved but no amendment was added.

Motion and outcome: Alder Tucker Long moved to approve the agreement subject to final review and approval by the city administrator and city attorney; Alder Swanson seconded. The council approved the motion by voice vote.

Why it matters: The agreement sets the developer's responsibilities and financial security for public infrastructure in a significant project area; the above‑ground utility carve‑out and the reimbursement provisions will affect future construction costs and operations for both the city and the developer.

Next steps: Staff will finalize the agreement language with the city attorney and city administrator and proceed with contract preparations and any required follow-up actions tied to the subdivision and utility installation process.

Speakers (selected): - City planning/engineering staff (presented agreement terms) - City attorney (explained the letter of credit rationale) - Alder Tucker Long (mover) - Alder Swanson (seconder)

Authorities referenced: - Subdivision ordinance (city requirement cited for performance security via letter of credit)

Actions: - Motion: Approve SSM Health Phase 1 development agreement (subject to final…