Laserfiche WebLink
<br />rCI ~'\) <br />( ); <br />!l}{ <br /> <br /> <br />Item #7 <br /> <br />River <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor & City Council <br /> <br />FROM: <br /> <br />Pat Klaers, City Administrator <br /> <br />DATE: <br /> <br />January 25, 1999 <br /> <br />SUBJECT: East Elk River Development <br /> <br />As most everyone is aware, the east Elk River improvement project has a long <br />and involved history. For the past six years, the project has been a priority of <br />the City Council and a public informational meeting on the proposal was held <br />over 2~ years ago in July 1996, at Salk Junior High. The project really <br />started to gain momentum about a year ago when the city received petitions <br />for the extension of utilities from the developers of the Waddy Schulz farm and <br />the developers of the Earl Hohlen property. <br /> <br />. <br /> <br />Last January a number of City Council worksessions were held on the east Elk <br />River project. One of the focuses of those worksessions was a debate over <br />whether a large or small public improvement project should be undertaken. <br />At that time, staff strongly supported only doing the small project based on the <br />deficit, the overall financial size of the projects, and especially the potential <br />cash flow problems due to deferred assessments. By doing the small project <br />there was less risk. <br /> <br />. <br /> <br />Following those worksessions, the city received $2.8 million in federal funding <br />for the street component of the project. This funding significantly changed the <br />picture of the east Elk River project. The sewer, water, street, and storm <br />drainage public improvement project still does not cash flow, but with the <br />federal funds for the street, it is in a better overall financial condition. With <br />these federal dollars for the street, the city would not be depleting its <br />municipal state aid construction fund for the foreseeable future, although <br />some MSA money is still needed. Also, with the federal street money there <br />would be less tax increment financing monies needed for the street. However, <br />with the federal dollars for the street, also came a requirement for the city to <br />complete the project within six years. Since the trunk sewer and water has to <br />be under the street, the large versus small project debate has now changed to <br />become a debate over phasing in the project with the entire project being <br />required within six years and the small project being phase I to be done now. <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420. Fax: (612) 441-7425 <br />