10.0. SR 04-15-1996 - Laserfiche WebLink

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Another significant CIP concern is the potential east Elk River public improvement project (County Road 12 residential area and east Highway 10 commercial/industrial area). It appears that in order for any type of project to move forward, the city will have to front end some of the project costs until the project is completed in ten or fifteen years. In this manner, the city may have to use its taxing power to pay off some bonds if all of the development and funding issues do not fall into place in a timely manner. If the city has to spend $500,000 to $1.5 million or more to make the project work financially, then the city needs to identify funds for these expenditures. This should take place in the very near future if a project is to move forward. Another CIP concern is the priorities for street projects. In this regard, I need the Council to advise the staff as to whether or not Dodge Avenue/5th Street is a higher priority than 171st Avenue or the School Street/County Road 1 intersection signal or Highway 10/County Road I intersection or the 3rd Street/Gates Avenue intersection or the... (you get the idea). We have some MSA monies available and some capital projects funds available, but I need to know where the money should be spent first so that we can program these projects in an orderly and financially responsible fashion. Additionally, there are special projects that need to be reviewed such as funding: the EDA downtown park improvements and Phase I of the river pathway projectl the development of Cass land recreation fields; identifying the source of the $50,000 contribution to the ice arena; and the need for the city to purchase industrial property for development. Finally, there is a concern about 1997 legislative action that may restrict the use of decertified TIF districts. In this regard, it may be imperative for the city to allocate its TIF No. I and 3 and No. 2 funds. Staff is recommending the TIF No. 2 fund be used for the 1995 Main/Evans SWM project. Another item that has been discussed by the EDA and the City Council is determining what funding source should be used to provide the local contribution for TIF projects. It is recommended that the city use the revenue generated from the industrial lot transaction with the School District. The Industrial Park land purchase can be paid off from the other transactions that have already been completed and most of this $45,000 from the school purchase can be available toward TIF penalties. s:XcouncilXcipmm.doc