By Kevin Boneske
Staff Writer
HOWARD – A development agreement for the Lancaster Creek Estates, where 35 residential lots and three outlots are planned on vacant property, was approved Monday, Jan. 27, by the village board.
The planned subdivision will provide a loop to complete a road connection between Folkestone Drive and Stockbury Street on the west end of the Glen Kent subdivision.
Village Administrator Paul Evert said the agreement with Andrew Otradovec of Lancaster Creek Estates LLC is similar to what has been used the past 6-7 years in Howard.
The village will recover its costs plus interest upon the sale of lots or over a guaranteed amount of time.
“This is a relatively small subdivision,” Evert said. “He’s going to have it open to any variety of builders and purchasers, so I think it will go faster. We do have it set up as a payback, for sure, at the end of four years…”
Evert said the development agreement calls for a maximum repayment term of four years with an interest rate of 3.5 percent beginning at the time the special assessments are levied, with the cost of the improvements being levied on each individual lot in the development.
The planned improvements called for in the agreement include public roadway, water, sanitary sewer, storm sewer, curb and gutter, sidewalks, gas, power, cable television, street lighting, trees, stormwater detention and other incidental or necessary improvements.
The full cost of the improvements would be calculated upon completion of the project.
The agreement calls for the assessments initially to be levied based on the construction estimate upon the parcels being transferred prior to the project’s completion.
At a future meeting, the board will be asked to approve special assessments on the property being developed.
Because utilities are immediately adjacent to the property, no neighboring special assessments will be involved.
Last month, the board approved amending the 2020 village budget to add this project to the capital improvements.
The budgeted amount with the amendment was for $1,775,000 with capital projects/enterprise funds.
The development’s preliminary plat, as recommended by the village’s Plan Commission, received board approval Monday, Jan. 27.