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. . . Elk River City Council Minutes February 1, 1993 Page 8 Pat Klaers, City Administrator, updated the Council on the status of the need for utilities in the area of Highway 169 and 193rd Avenue. He stated that municipal utilities must be provided before the Highway 169 and 193rd Avenue intersection area can develop in an urban manner. He indicated that the City's Growth Management Plan identified this area for urban growth. He further indicated that the 1982 Water Comprehensive Plan and a 1992 area-wide Feasibility Report studied this area for urban development and both reports identified the need for a water tower and well in this area. Pat Klaers suggested that the Council consider discussing this issue with the Utilities Commission. He indicated that time is important as it takes approximately a year to a year and a half to construct a water tower. Mayor Duitsman indicated he was in favor of contacting the Elk River utilities Commission and that a joint meeting be held between the Commission and the City Council on February 15. He indicated that if this date is not acceptable to the Commission, the Council would consider meeting on February 22. The City Council concurred with the . need to have a meeting with the Utilities Commission to discuss the water system needs in the urban area. 7.5. Update on Commercial Development Project Pat Klaers, City Administrator, reviewed the status of the commercial development project proposed for the Highway l69/193rd Avenue area. He stated that the developers had submitted most of the material necessary to proceed with a public hearing before the Planning Commission. The City Administrator reviewed the material submitted by the developers. Peter Beck, City Attorney, reviewed the City's letter of credit policy for public improvements and stated that the City policy has been created mostly to protect the City in residential development projects. He stated that a large commercial project may need different requirements for a letter of credit than a residential project. He indicated that staff is considering requesting 100% security during the construction of the project until occupancy and then, following occupancy, requesting a letter of credit in the amount of three years of assessments per lot be escrowed. Peter Beck further indicated that he is researching other cities regarding this matter. Mayor Duitsman indicated that he felt that the City type of letter of credit for the public improvements needs protection in case the property owner assessments. should require some and that the City does not pay the Terry Maurer distributed a traffic study for the area and Council that the purpose of the traffic study was deficiencies in roads that are external to the site. A specific feasibility study will recommend alternatives to issues. advised the to identify future site solve traffic 7.6. Public Hearing to Consider Modifying the EDA Enabling Resolution