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<br />Mayor and City Council <br />East Elk River Urban Service Area <br />May 9, 2005 <br />Page 2 of 3 <br /> <br />north of County Road 12. This area should be assessed in 2006 for the County Road 40 <br />improvement at a rural residential rate. The area will be allowed to be developed in an urban manner <br />once utilities are available. When development happens, then right of way can be obtained thru the <br />platting process and then the deferred assessment for the street (based on an urban density) can start <br />to be collected. In this southern area, staff believes that the street can be reconstructed in the <br />existing right of way but additional right of way on the east side of this road is in the best interest of <br />the city for snow removal clearance, pedestrian movement, and possible future expansion. If some <br />of the properties east of County Road 40 in this southern section do not redevelop in an urban <br />manner, then the city will deal with right of way issues as needed at a future time and the deferred <br />assessments will never be collected. It is likely that a number of these smaller southern property <br />owners will work together to develop a larger parcel collectively. A starting point for these <br />properties may be a Rid zoning designation (14,000 sq. ft lots). <br /> <br />For the northern area, we are looking at a win-win-win concept between the developer, School <br />District, and the city. All three groups win to a large degree but no one group gets everything they <br />desire. The developer gets more residential lots and subsequently a larger profit from the property <br />but will not get as many lots as they desire. The School District will get a 40-acre Middle School site <br />but it will not be 100% high and dry property and there will be some expenses that the school will <br />need to absorb once the school project moves forward. The city will get right of way, some money <br />for the street improvement and trunk assessments, and some recreation opportunities with the <br />school project; but it loses some sewer capacity that could go elsewhere (like down Highway 10), <br />and the city also adds to some of the east Elk River traffic concerns. <br /> <br />Staff has indicated to the developer that it supports the change in the Urban Service Area and the <br />concept for their development provided that: <br /> <br />. <br /> <br />The developer provides the school a 40-acre site that the school finds acceptable. <br />The developer provides the city with the necessary right of way for the improvement of <br />County Road 40. <br />The developer provides the city its fair share of the improvement of County Road 40 based <br />on $1,000 per single-family residential lot when a plat is approved. <br />The developer pay the city trunk sewer and water assessments for the entire parcel (including <br />the school site) when a plat is approved. <br />No townhomes can be part of the development project <br />The development project is phased in whereby grading of the site is the only thing that can <br />happen in 2007 and no building permits are issued until 2008. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />Staff has met with the developer a number of times and we believe that they are in agreement in <br />principle with the terms and conditions outlined above. The total amount of lots platted and the <br />minimum (or average?) lot size will be key issues for both the city and the developer. In the end, if <br />the developer does not obtain as many lots through the platting process as they feel they need in <br />order to make the project work, then they can always back away and leave the property as 2 % acre <br />lots. If this happens, then the school site disappears and the city will address the road right of way <br />and assessments as a separate issue. <br />