07-25-1983 CC MIN - Laserfiche WebLink

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Council Minutes July 25, 1983 Page Eight received for the Gates Avenue Improvement Project. Discussion was carried on regarding the assessment of the project, and whether the costs would be in by October 15 for assessment this year. The City Admin- istrator indicated that the City would have to do their best in obtaining all costs for the project for assessment this year. Mr. Bob Pulscher indicated that approximately $80,000 would have to be added in capitalized interest should the project not be assessed in 1983. Discussion was also carried on regarding the procedure to obtain Moody's rating for the City of Elk River. Mr. Bob Pulscher indicated that the City must apply for the rating, if not, Moody's will drop the rating which would ultimately hurt the bond holders. Mr. Pulscher further indicated that he did not feel the City of Elk River's bond rating could improve at this time because of the uncertainty of development, and the large portion of undeveloped land in the City of Elk River. Discussion was carried on regarding the City's Bond rating. COUNCILMEMBER DUITSMAN MOVED TO AUTHORIZE THE ISSUANCE OF $850,000 GENERAL OBLIGATION IMPROVEMENT BONDS FOR SALE AUGUST 22,1983. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. Councilmember Gunkel questioned the possibility of reconsidering the road improve- ments through the PUD. Councilmember Gunkel also questioned the assessment de- ferral. The City Administrator indicated that it was his impression that the developer's position was that all elements of the Improvement Project would be completed through the PUD including the road, and that the developers anticipate the deferrment on the assessments. Mayor Hinkle indicated that he did not have any problem with the deferrment of the assessments, but wanted a time limit on the deferrment. Councilmember Gunkel indicated that certain observations have caused serious question regarding the best interest of the City of Elk River. Councilmember Gunkel indicated that the City has done several things to accommodate the expected new facilities, specifically; 1) A sanitary sewer 2) Designed a comprehensive storm sewer system. 3) Made specific changes and improvements to School Street which included the first portion of the storm sewer. 4) Plans are in hand to widen lower Gates, widen and upgrade Main Street from west of 169 to Highway 10, install stop lights on Main and 169 and Main and Highway 10, improve water storage service. 5) Went for bids to complete the storm sewer, Gates Avenue, and to install water pipes with the understanding a Developer's Agreement would be soon forthcoming. 6) Award said bids with some contingencies on the segments in the PUD area.