7.0. SR 09-14-1998 - Laserfiche WebLink

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Memo/East Elk River Project September 14, 1998 Page 3 On the 14th it is appropriate to review the trunk sewer and water, street, and storm sewer components of the project. By this, I mean we need to review the cost estimates and revenue sources to finance the improvements. The vast majority of the trunk sewer and water will be financed through assessments. The major part of the street project will be financed with federal and state funds. The developers, either directly or indirectly through TIF, will have obligations for parts of the project. A majority of the storm sewer project will be financed over time with the city surface water management fund, although some assessments to benefited property owners are expected. It should be noted that both the small and larger projects are closer to cash flowing due to revised estimates and state/federal funds being available for the street. The East Elk River project is incredibly complex in trying to put all of its financial components in order. The narrative in this paragraph is just a listing of a very few of the issues involved in this overall project. The street project can be divided into sections north and south of County Road 12, with state funding allowed only to the north, and federal funds only to the south. Making the project more complex, federal funds can be used for land acquisition on the south side of 12, but state funds cannot be used for land acquisition on the north side of 12. Accordingly, city MSA funds may be needed to acquire land north of County Road 12 for the project. The residential developer will be required to finance some of the road north of 12, while the developer on the south side of 12 will be also required to finance some of the street and storm drainage public improvements, but their financial commitment may be taking place by way of tax increment financing. When we get involved in tax increment financing, we also get involved with a local match requirement and the source of this is uncertain. Regarding the public improvements, the Council is reminded that it has authorized Evergreen Land Services to negotiate right-of-way acquisition between 175th and 171st. In this regard, Evergreen has completed negotiations with three property owners and is ready to present its recommendations to the Council. Staff supports the recommendations but there is a concern over when the city should formally accept the proposals and sign purchase agreements based on the ultimate funding source for this land acquisition. At this time it is uncertain whether this land acquisition should be with federal funds or if we should use city municipal state aid street funds. Information on the Evergreen recommendations will be presented to the Council on September 14th. Evergreen also continues to work with the Browns on negotiating a price for their property. At this time, Evergreen has not yet been authorized to work the Kirkeide family who owns \\elkriver\sys\shrdoc\council\easter2.doc