01-05-1998 CC MIN - Laserfiche WebLink

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Elk River City Council Meeting January 5, 1998 Page 6 improvements for the development of both the Earl Hohlen and the Waddy Schulze property. He stated that developers for both of these properties have indicated that they would like to move forward on the projects this year. Paul Steinman indicated that the city has received a preliminary tax increment financing application from Associated Builders regarding the Earl Hohlen project. City Engineer Terry Maurer reviewed the proposed project areas A and C and the public improvement and engineering items associated with the projects. He explained that project area A is the minimum project area which includes only the Waddy Schulze and Earl Hohlen property. Project area C includes the largest project area all down to 171,t Avenue. Discussion was held regarding the estimated project cost for both areas. The City Administrator indicated that the estimated project cost for area A is $6.6 million dollars. He explained that after the assessments to the developers, a shodfall of $1.9 million would be realized. Deferred assessments could reduce this shodfall by over ,$1 million. The City Administrator indicated that the total cost for Area C is anticipated to be $12 million dollars that the anticipated shortfall for this area is about ,$5 million dollars for the street, storm drainage, and trunk utilities. Discussion was held regarding the source of funds that could be used to cover some of the shortfalls. It was suggested that MSA funds and surface water management money could be used. There was a concern that the use of these funds for this large project would cause a shortage of money for other street and storm drainage projects. Mayor Duitsman indicated that he did not feel the City Engineer should complete any more work on the East Highway 10 project until the city receives valid petitions. Mayor Duitsman further indicated that he feels that the design work should be done by the City Engineer so the city can accurately determine the cost for the project. Discussion was held by the Council regarding the need to update the Patchin and Associates 1996 appraisal. It was the consensus that the appraisal should be updated. COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE PROPOSAL FROM PATCHIN AND ASSCIATES TO UPGRADE THE APPRAISAL COMPLETED BY THEM IN 1996. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. MAYOR DUITSMAN MOVED TO AUTHORIZE THE CITY ENGINEER TO DO THE DESIGN WORK FOR AREA C WITH AN EMPHASIS ON AREA A AND THAT THE DESIGN WORK BEGIN WHEN A VALID PETITION IS RECEIVED BY THE CITY. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 8. Other Business There was no other business. 9. Staff Updates The City Administrator updated the Council on the ALC project and the plat that will be processed this winter. He estimated that the city will be obtaining over four acres of land for recreation fields for a net cost of approximately $50,000. The Council indicated that this seemed to be a fair price.