07-05-1983 CC MIN - Laserfiche WebLink

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City Council Minutes July ~, 1983 Page Four at the same time. Discussion was carried on regarding the MSA Road through the PUD, and Dodge Avenue in the l3arrington Place Planned Unit Development. Mr. Terry Maurer of Consulting Engineers Diversified, indicated that at the time of the construction of the improvements of the Barrington Place PUD, Dodge Avenue was not an MSA Street and was later designated as an MSA road. Discussion was also carried on regarding the water situation and the requirements of the developers to provide water for the PUD. Councilmember Schuldt questioned the fact that if the road was not built through the PUD, would it effect the funding for the Storm Sewer Project. The City Administrator indicated that the City would lose MSA contributions for the Storm.Sewer Project should the road not be constructed through the PUD. Councilmember Schuldt indicated that he felt the citizens should not be penalized by additional cost because of delays in the construction award. Mr. Bruce Malkerson, attorney representing Mr. Gary Santwire, requested permission to address the Council regarding the Gates Avenue Project and ultimately the PUD. Mr. Malkerson requested that the City Council treat every developer fairly and not give .an advantage to any one developer. Mr. iMalkerson indicated that there were some areas of the previous discussions in 'which he questioned the fairness of the City Administrator's recommendation. Mr. Malkerson indicated that he did not feel the 8% interest rate to be charged for the deferred assess- ments was a fair rate. Mr. Malkerson indicated that!if the City were to sell bonds to finance the project, they would have to pay 9 to 9~ percent, and further in- dicatedthathe felt the interest rate charged should reflect the rate of return on an investment by the City. Mr. Dave Sellergren, Attorney for the City of Elk River, indicated that the City was limited by State Statute to the 8% rate. Mr. Malkerson further indicated that it was his recommendation that the City Council insist that everyone involved in the parcel Of property sign the waiver of objection to assessments for the project improvem~nts. Mr. Malkerson also expressed his objection to the changes proposed in the PUD without a public hearing. Mr. Malkerson further indicated that he reQo~endedthe City Council hold a public hearing regarding any changes, or there could possibly be litigation. Mr. Malkerson indicated that his client Mr. Gary Santwire, developed his PUD within the l'lanned Unit Development Plat as accepted'l. and that he wanted other developers t.o do the same. , The City Administrator indicated that the Barthel PU:q process is much more sophisticated and more detailed than the Barrington ~lace PUD. Mr. Gary Santwire indicated that in the developing of the Barrington Place PUD, he never asked for a higher density beyond the accepted plan, and furthdr expressed his concern for the request for higher density in the Barthel PUD. Mr. Santwire further indicated that the City of Elk River would not lose $247,000 in MSA funds, but only that portion that would apply to the PUD should ,the improvements not be constructed in the PUD. Mr. Santwire furtherquestidnedthepossibility of the City using the existing easement in the PUD for storm sewer lines. Mr. Terry Maurer of Consulting Engineers Diversified ,indicated that to use the existing easement in the PUD would cause some problerris with hooking up to the storm sewer in the School Street.