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City Council Minutes March 17, 2025 --------- Page 7 of 9 The meeting adjourned at 6:40 p.m. The worksession convened at 6:43 p.m. 10. WORK SESSION 10.1 Specht Farm Development Proposal: Captsone Homes Highway Funding Discussion Mr. Femrite discussed cost-sharing for the highway access improvement. He stated MnDOT is not in a position to design or administer a project at this time, and there is currently no state funding available. He stated they have reached out to Representative Novotny to inquire about legislative assistance. The City Council, staff, and the developer discussed the timeline and funding. Council members expressed the following concerns: ▪ Because the developer is purchasing property in phases, what if they walk away from finishing any further phases. How do we know this highway will be completed beyond phase one of the developer's project? Mr. Femrite stated that when granting a temporary access permit, MnDOT will require assurances to be in place before there is a phase two. The developer also stated it is typical to purchase in phases for large tracts of land similar to this project, and they would initially be installing $1.5 million in water and sewer improvements with this first phase, which motivates them to be committed to the project. ▪ The city's portion of paying for the interchange versus the developer's portion. ▪ The highway is a safety issue that MnDOT agrees with, so why can't MnDOT pay? Mr. Femrite stated that MnDOT budgets are set for many years but can change based on federal funding or special appropriated dollars from the legislature. Mr. Femrite stated that the best way to get the state involved with this project is to work through the legislature, and they will continue to work towards this. He further stated to keep this project moving forward, they need to hire a consultant, and the city should have an agreement with Capstone, so everyone understands the process and costs. Park Dedication Parks and Recreation Commission Chair Dave Anderson reviewed the action of the commission's meeting as outlined in the staff report. Since the commission meeting, the developer has asked for changes. Mr. Carlton outlined the developer's request to establish the cash dedication rate, the city to partner with the developer to have recreational amenities installed (so instead of paying some cash to the city, the developer could install the equipment), and the desire to have a homeowners association- owned approximately 3.5 acre private park with a dock on the river. After much discussion between the City Council, staff, and the developer, the following was concurred on by the City Council: ▪ The developer will provide the low area to the city as park dedication, and 50% credit will be given, except for the private park location. ▪ There will be one acre of useable upland located in the orange area shown on the map. ▪ The developer will install the trail portions highlighted in yellow on the map.