5.16. SR 08-05-1996 - Laserfiche WebLink

Home Browse Search

Capital Improvement Finances Page 3 approved. It is expected that a TIF project will be approved next year and that by July, 1997, the city will recapture $225,000 of its $450,000 expenditure when the property is sold to a developer. The plan to recapture the remaining $225,000 will be finalized at the time the plan is adopted. This very important King and Main project further reduces the flexibility of the liquor enterprise fund to do its necessary projects unless the liquor operation wants to go into debt. As noted above, at the end of the year the city liquor fund should have about $900,000 available. Subtracted from this total should be the ice arena contribution and the King and Main "loan". Ultimately, on the positive side of this ledger, will be revenue from the selling of the old Northbound liquor store. The Westbound land purchase is expected to be approximately $300,000 for 1¼ - 1½ acres. The construction costs for a new Northbound store, which includes 8,000 square feet on one level and a 4,000 square foot basement, is slightly under $1 million. The furniture, £L~ture, and equipment and inventory for the store is another $.25 million. Westbound land and a new Northbound store will be about $1.5 million and this is more than we currently have available. The development of the recreation fields on the Cass property is a more challenging project than some of the projects noted above. While the city has expenditures of $200,000 in the next two years, it is really a net of $120,000 that the city must locate in the long term. Sources of funds for this project include park dedication monies, park equipment reserve monies, other reserves and a city tax levy. All of the existing park dedication monies and park equipment reserve monies would come close to the city's net requirement, but would not cover the initial total expense of $200,000. Additionally, if all of these funds went for this project, there would be very little flexibility for the park and recreation commission in the future for new projects. The funding of this recreation field land came from NSP contributions. The goal of the city was to recapture this contribution through the selling of home sites on Jarvis and 165th. The balance of the funds for this purchase came from the Wastewater Treatment Plant (WWTP) as the WWTP was going to use 25-30 acres for sludge disposal. The city was then going to convert this WWTP property into recreation fields in 15 or 20 years. However, if the city is going to consider allowing the Minnesota Sports Federation (MSF) long term use of this land, then the city is going to need to repay the WWTP its $107,000 land acquisition expense. Furthermore, with some of this property possibly going to MSF, it makes the city and the park and recreation commission reevaluate the selling of land for home sites. This of course is