RESOLUTION NO. 05-30
A RESOLUTION AFFIRMING THE REIMBURSEMENT AGREEMENT MADE WITH THE CORPORATION KNOWN AS KENDAL AT GRANVILLE, OHIO
WHEREAS, the Village of Granville and the corporation known as Kendal at Granville (hereinafter “Kendal”) entered into a Sanitary Sewer Agreement on September 8, 2003; and,
WHEREAS, under the Sanitary Sewer Agreement, Kendal agreed to construct a gravity feed sewer line from the Village’s existing sewer line to Kendal’s planned facility on State Route 16; and,
WHEREAS, under the Sanitary Sewer Agreement, the Village of Granville agreed to reimburse Kendal up to $225,000 of its sewer line construction costs, from sewer surcharge fees charged to future users (hereinafter “the Reimbursable Cost”), if Kendal’s costs equaled or exceeded $625,000; and,
WHEREAS, under the Sanitary Sewer Agreement, Kendal assumed the risk of any sewer line construction costs exceeding $625,000; and,
WHEREAS, under Section A, paragraph 3, of the Sanitary Sewer Agreement, Kendal must submit to the Village an itemized statement for the sewer line construction costs upon completion of the sewer line; and,
WHEREAS, Kendal has completed the construction of the sewer line, but has not yet submitted an itemized statement of costs to the Village of Granville; and
WHEREAS, following completion of the sewer line, Kendal reported various cost overruns and requested government subsidies to reimburse Kendal’s cost overruns; and,
WHEREAS, on April 13, 2005, the Granville Trustees granted Kendal a government subsidy in the amount of $ __________ in the form of a forgiveness of taxes under Tax Increment Financing (hereinafter “TIF”); and
WHEREAS, before the Granville Trustees granted the government subsidy to Kendal, the Village of Granville’s Mayor and Vice Mayor provided the Trustees with the attached letter addressing Kendal’s sewer line construction costs; and
WHEREAS, the Granville Trustees have requested the Village to consider a government subsidy to Kendal in the form of an increase in the $225,000 in Reimbursable Cost; and
WHEREAS, Kendal has failed to provide sufficient evidence to justify an increase in the Reimbursable Cost;
NOW, THEREFORE, be it resolved by a vote of the Council of Granville, Ohio, that:
Section I: The Village of Granville acknowledges that it has offered Kendal $225,000 in Reimbursable Costs under Kendal’s Sanitary Sewer Agreement, which more than compensates Kendal for any actual or perceived cost overruns. As such, Kendal is entitled to no additional Reimbursable Costs.
Section II: The attached letter from the Mayor and Vice Mayor, which was provided to the Township Trustees before they voted for the Kendal TIF, adequately expresses the Village’s analysis of Kendal’s sewer line construction costs.
Section III: In particular, Kendal’s sewer line construction costs are within the price range that Kendal anticipated when it signed its Sanitary Sewer Agreement with the Village.
Section IV: Although Kendal has mentioned publicly that the change order for dewatering the trenches was something unanticipated, documents in the Village’s possession indicate otherwise. Before Kendal entered into the Sanitary Sewer Agreement with the Village and before Kendal began construction, Kendal knew that it might need to dewater the trenches and Kendal expected to issue a change order to do so.
Section V: Additionally, the attached memorandum from the Village manager, dated March 25, 2005, adequately addresses Kendal’s claim that it constructed a sewer line larger than it needed and explains that the 12” line was necessary for Kendal’s own benefit.
Section VI: The Village Manager is directed to request without delay all necessary information to determine whether Kendal is entitled to the $225,000 in Reimbursable Cost provided under Kendal’s Sanitary Sewer Agreement.
Section VII: This resolution shall take effect and be in force immediately upon passage.