01-26-1998 CC MIN - Laserfiche WebLink

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Elk River City Council CIP Worksession January 26, 1998 Page 4 project of $2.2 million. In addition to this expense and shortage, is the acquisition of right-of-way for the street construction. Developers will donate the right-of-way as part of their projects, but the city may be required to acquire up to 25 additional acres and up fo three homes for the street. Cost for this acreage and these houses may be in the $900,000 range and has to be taken into consideration when looking at the finances of the project. Additional street work includes Main Street/Highway 169 improvements, all of which will be financed by the developer of the trailer court area, and a local signal at the County Road 12/13 location which should be a county and developer expense, but may require some city contribution. The last known street component is the signal af Highway 10 and 171,t Avenue, of which the city and state will equally share the estimated $210,000 expense. Accordingly, the city shortage for the street project is estimated af $3.2 million. However, it could conceivably be higher depending on the value of the houses that need to be acquired as right-of-way property for the street project. Funding options for the street shortage include Tlr funds from the trailer park redevelopment project, but, as noted above, these figures are not yet available. Additionally, the priority for use of the Tlr funds that are available are for the utilities first, storm drainage second, and street third. Another source for the street shodage is an ISTEA grant. The city and county have requested assistance in the amount of $1.4 million for this project. Another possibility to help with the shodage is a request to Congressman Oberstar to have this project included in a federal transportation funding bill. The city will not know the status of the ISTEA grant application until March, the Congressman Oberstar request until September, and the availability of Tlr funds until late spdng or early summer. Under the worse case scenario, the city may need to take all of the shortage and fund it with municipal state aid (MSA) monies that are allocated to the city. As with other components of the project, it is anticipated that the total street improvement would not be constructed initially. Part of the street improvement may be constructed only to a two lane standard and the northern connection may not be constructed until later. Accordingly, the shodage for the street project, under a 1998- 99 construction timeframe, may be in the $2.2 to $2.5 million range. If all of this shortage for the street improvement has to come from MSA funds, then the city will be allocating most of its available funds toward this improvement. The City Administrator stated that almost all of the 1998 and 1999 MSA funds have been allocated toward projects that are under construction or which have been authorized, or which are scheduled to be authorized in the near future. The city receives approximately $$50,000 in MSA funds each year. Use of the 1998 and 1999 MSA funds include: repayment of the 1992 bond issue; finalizing the 171 st Street improvement project; Business Center Drive extension through the Government Center; the 197th signal: the 171st signal: the Opticon system; and some limited land acquisition in the 171,t - 173rd street area.