Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Development Policy topic
No spam. Unsubscribe anytime.
Council considers joint-powers agreement with Comfort Lake–Forest Lake Watershed District to avoid duplicate developer securities
Summary
Staff proposed negotiating a joint-powers agreement that would allow the city to hold construction securities on behalf of the Comfort Lake–Forest Lake Watershed District so developers would not need duplicate letters of credit; council requested stronger legal safeguards and further negotiation before formal approval.
City staff briefed the council on a recurring problem: developers inside the Comfort Lake–Forest Lake Watershed District are sometimes required to post separate financial securities to the watershed district in addition to the city’s own letters of credit for public improvements. The duplication raises development costs, staff said, and was highlighted by the Amberly Woods project where roughly $500,000 of stormwater/erosion items could trigger a separate watershed letter of credit in addition to the city's security.
Abby said the watershed district is open to negotiating joint powers agreements (JPAs) in which the city would hold the securities to cover both city and watershed requirements, with contractual mechanisms to transfer any remaining watershed-specific obligations to the watershed district if necessary. Staff emphasized the need for legal protections so the city would not be left holding security in perpetuity for watershed-only items.
Council members asked about parity with other watershed districts (Rice Creek was noted), examples of past disagreements and the process for releasing financial securities once city acceptance occurs. Staff and council also discussed the administrative workload and the benefit to development financing if duplicate bonding could be avoided.
Council members generally supported continued negotiation but asked staff to secure clearer transfer and release language with the watershed and to return with a proposed JPA and legal review that protects the city's interests before formal action.
