11. SR 07-31-1995 - Laserfiche WebLink

Home Browse Search

• this western area project, we did not know the exact phasing plan, only that it would be done in phases. The entire western area project is less than one- half of the area of district one of the eastern project. Even with the relatively small scale of the western area project as compared to the east Elk River project, city staff was concerned over the city's ability to "hold" the project start up and oversizing costs. We are still uncertain as to how the western area project will come out, but at this point we have not had to authorize any city levies to meet our bond obligations. For the east Elk River project, finances will be the key issue. The city will have to evaluate the actual construction cost for various phases versus the assessment rate and decide how much the city will be requested to "hold". Due to pipe oversizing, lift stations in Phase I, etc., for the east Elk River project, it is likely that the city will not be able to recapture the held expenses in time to make our bond payments and that use of city reserves, excess TIF funds, or a city wide levy will be necessary. In addition to the actual oversizing and infrastructure "held" costs, the city also has to consider the two year tillable Green Acre interest free policy and how many property owners will request Senior Citizen or Green Acre deferrals. Our bond consultant, Dave McGillivray from Springsted, will be present at • this meeting to update the City Council on some of the financial ramifications of the east Elk River project. Dave met with Terry Maurer, Lori Johnson and me last Monday to get an understanding of the size and scope of the project. There is no material from Dave in this packet, and Dave will present his information to the Council on Monday evening. Some additional items to think about include the following: -- The city may have to assess landowners who do not want or need trunk sewer and water. This is because the pipes will have to go through their property to get to other areas. Additionally, the city may not be able to assess other properties for the public improvement project because the sewer and water pipes don't get to their property. For example, we may not be able to prove benefit or levy assessments against the Cargill property until phase two or three of the east Elk River project. -- It is virtually certain that the city will have to acquire easements for this project. Out west, the project was developer driven and the city did not have to purchase any easements. The purchasing of easements can be a long, cumbersome, and expensive process. The staff is recommending that we use a • firm that specializes in this process to acquire the necessary easements when we are ready to move forward.