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HomeMy WebLinkAbout2003 09 08 Regular I Centex Homes Settlement Offer September 8, 2003 Regular Agenda Item I Centex homes Settlement Offer COMMISSION AGENDA ITEM I Consent Informational Public Hearing Regular X September 8.2003 Regular Meeting f2--- Mgr. / Dept. Authorization REQUEST: The City Manager requesting the Commission to deny the August 11, 2003 settlement offer from Centex attached hereto related to the improper cutting of trees on the Centex Heritage Park project site and to provide staff with direction it deems appropriate. PURPOSE: This Agenda Item is needed to determine if the Commission desires to pursue curative measures over and beyond those offered by Centex for the improper cutting of trees on the Heritage Park project site. CONSIDERATIONS: On March 11, 2002 the City entered into a development agreement with Centex for Centex to develop Heritage Park. The agreement provides for the preservation of 527 trees on site. On May 12, 2003 the Commission authorized the City Manager and City Attorney to negotiate a settlement agreement related to what the City believes was the cutting of 344 trees on the site in violation of the development agreement. Centex claims that the improper cutting of the 344 trees resulted from a flawed set of landscape plans which both the City and the developer relied upon. That resulted in the cutting of 344 mature trees that should have been preserved according to the plans. Also, the City noted several incidents of improper tree preservation techniques that violated the development agreement between the City and Centex. September 8, 2003 Regular Agenda Item I Centex homes Settlement Offer The City desired two actions on the part of Centex to properly compensate the Public for the loss of trees, and to cure the default in the agreement. 1) A revised landscape plan providing for the replacement of the 344 trees. 2) A $100,000 donation to a worthy project in the City. The $100,000 donation to a worthy project in the City is based upon two points as follows: 1. The Public suffered a loss of 344 "mature" trees that took many years to grow to maturity. 2. The replacement of these mature trees with an equal number of small replacement trees that will require many years of growth to reach the level of maturity of the trees that were cut does not constitute adequate compensation to the Public for the loss that was inflicted upon the Public by Centex's flawed plans. Therefore, in staffs opinion the replacement of the trees alone does not constitute a proper level of compensation to the Public for the loss of mature trees, nor therefore an appropriate cure of Centex' s default in the development agreement. Consequently, during negotiations, the City demanded a revised landscape plan replacing the 344 trees, and the additional $100,000 contribution to a worthy City project in order to make the Public whole and to cure the default. Centex asserted that the worthy project would have to benefit Cente,x properties in the City. The City offered that this could be accomplished by Centex making a $100,000 donation to landscape enhancements on the medians on State Road 434 that would extend from Tuskawilla Road to State Road 419. This would result in landscape improvements in front of both Heritage Park and Parkstone, both Centex projects. The City developed a preliminary median improvement plan that would cost an estimated $100,000 to implement. Centex has countered that offer with a proposal to provide the City with approximately $35,000 in landscape material that could be used on the medians. This proposal is unacceptable for two reasons, as follows: I) The City would have to come out of pocket with $40,000 to $50,000 to have the the materials installed. 2) This proposal would result in the Public paying Centex to pay for the damage Centex did to the Public by cutting the trees. FUNDING: September 8, 2003 Regular Agenda Item I Centex homes Settlement Offer Based upon City staffs proposal, Centex would have to spend $185,000 from their funds to repair the damages done to the Public and to cure the default in the development agreement between the City and Centex as follows: Centex Revised landscape plan replacing trees on site $100,000 Median Improvement Plan $ 85,000 100.000 $185,000 City Total -0- -0- $185,000 $ 85,000 100.000 $185,000 In the alternative, Centex desires to pay $120,000 from their funds and $45,000 from City funds to resolve the damage done to the Public and to cure the default in the development agreement as follow: Centex Revised landscape plan replacing trees on site Media Improvement Plan $85,000 35.000 $120,000 City Total -0- 45.000 $45,000 $85,000 80.000 $165,000 As stated above staff does not believe this is an acceptable proposal. ALTERNATIVES: The Commission has at lest three alternatives as follows: (1) Reject Centex's offer; declare a breach of contract, terminate the development agreement, and terminate the issuance of additional permits. (2) Reject Centex's offer; institute Code Enforcement actions against Centex. (3) Reject Centex's offer; initiate a suit for damages on behalf of the Public. RECOMMENDATIONS: Staff recommends that the Commission take actions it deems to be most appropriate. ATTACHMENT: August 11,2003 Centex Letter. COMMISSION ACTION: August 11, 2003 RECEIVED AUG 1.9 2003 Mr. Ron McLemore City Manager City of Winter Springs 1126 E. S.R. 434 Winter Springs, Florida 32708 CITY OF WINTER SPRINGS City Manager Re: Heritage Park Dear Mr. McLemore: I have received the landscaping plan with additional material proposed by the City for our Heritage Park community. I have also received the proposed listing of planting material for installation within the median rights-of-way along SR434. After consideration of both proposed plans, Centex Homes will agree to the following terms in an effort to resolve the "tree removal" issue at Heritage Park: . We will supply and install onsite the planting materials required to complete the revised landscape plan, as supplied by the City of Winter Springs staff. This constitutes an $85,000 value as estimated by Mike Mingea. . We will make a charitable contribution to the City of Winter Springs consisting ofthe planting materials listed on the attached spreadsheet. While this spreadsheet is. inclusive of most of the materials requested by the City, a few items have been omitted due to limited availability and/or cost. This donation is limited to a contribution of materials - the installation of this planting material is not included. Weare eager to begin installation of onsite landscaping at Heritage Park. The onsite landscaping can be completed within 30 days of receipt of the approved landscape plans and the related necessary permits. The material donation can be delivered at the convenience of the City. This offer is a gesture of good faith on the part of Centex and is made in an effort to improve the working relationship between Centex and City staff. This additional landscaping, in additional to other monetary contrib . s a other co 'ons previously madeby Centex to the City, totals app, ximately $250,000 in co . I would hope that you view this as a generous settlement fer and will re . to the City Commission as such. As you suggested at our meeting on July 16, 2003, I request a meeting between my management team and the appropriate City staff. The purpose of this meeting is to "-.../'- discuss the City's expectations of Centex at Heritage Park in advance of our construction commencement. With a clear understanding of each parties expectations, I trust that the City will be able to process our permits and inspections at Heritage Park in a timely fashion. I look forward to hearing from you. . Sincerely, Patrick J. Knight Division President Cc: Mr. Scott Clark HERITAGE PARK SETTLEMENT PROPOSAL Quantit 21 740 834 1570 1146