6.0. SR 05-11-1998 - Laserfiche WebLink

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f) Residential Development in W. Schultz development 600 lots @ $1,400 each This cost will be offset by: i) Developer 600 lots @ $300/Iot ii) Builder/Owner 600 lots @ $600/Iot Total investment Assessment Reimbursement Out of Pocket Costs Already Spent (Substation) Final Cash Outlay to be Spent <$180,000> < $360,000> $840,000 $2,676,500 $ 540,000 $2,136,500 $ 500,000 $1,636,500 These figures do not include the service lines to industrial/commercial customers of which historically the utility and customer share equally in these costs. The area south of the heavy yellow line on the drawing is in AEC service territory. Possible alternatives to finance the Eastern Area electric expansion: 1) Increase rates 2) Increase connection fees 3) Borrow money 4) City contribute to construction costs 5) Spread over longer period of time (phase construction) The total estimated financial impact on ERMU due to eastern area expansion is as follows: Future Well & Water Tower $1,700,000 Finance Shortfall of Trunk Water System $ 700,000 Trunk Electric System $1,672,500 TOTAL $4,072,500 There is no question that the Eastern Area expansion will happen, the only question is timing. Utility staff also supports City staff recommendations of letting the developers drive the schedule for Eastern Area expansion. As another related issue, the City of Otsego is very seriously studying installing sewer and water on Parrish Avenue or County Road 42. In recent conversation with their engineers, the plan is to start construction this summer. This will drastically effect the development rate in this area. The prime commercial/industrial area is between County Road 42 and Highway 101 which is in our service territory. The same financial issues will be faced in this area as in the Eastern Elk River Area.