8. EDSR 01-9-2012 - Laserfiche WebLink

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City of Elk. River REQUEST FOR ACTION TO ITEM NUMBER Economic Develo ment Authori g AGENDA SECTION MEETING DATE PREPARED BY anua 9, 2012 ustin Femrite, Ci En ~ eer ITEM DESCRIPTION REVIEWED By Authorization to use development funds to cover costs associated with the 171St Area Phase 1 Improvements REVIEWED BY ACTION REQUESTED Authorization to use $700,000 from the Economic Development Authority development fund towards the 171St Area -Phase 1 Improvements as detailed in the attached Preliminary Engineering Report. BACKGROUND/DISCUSSION Over the last year staff has been working on an Alternative Urban Areawide Review (AUAR) and Preliminary Engineering report for the 171St Area development In the fall of 2010, the City Council approved a phasing plan that provided the framework to systematically start development of the City owned property. south of 171St Avenue, formerly the Cargill property. The attached report details the improvements required to begin with Phase 1 of the development and the associated costs for implementation. This report was reviewed by the City Council at their December 12, 2011, meeting. Direction from the City Council was to move forward with the project as detailed in the report. At the January 9, 2012, EDA meeting, I will review the preliminary engineering information and associated funding request with you. FINANCIAL IMPACT The total estimated cost for the improvements proposed for 2012 is $1,312,000. This estimate includes construction costs, a 10% contingency, wetland permitting, easement acquisition, and 25% for engineering, legal, and administrative costs. The EDA is asked to commit $700,000 from its development fund to cover a portion of the project costs. This amount represents the full contribution of the EDA based on no grant funding being received. Staff will continue to pursue all available funding opportunities to offset some of the costs for this project. If a grant is obtained, the funding would be used to offset the EDA contribution for the project. The current balance of the EDA's development fund is $1,575, 059. Of this, $109,920 is the minimum balance to cash flow the EDA between tax settlements, therefore the remaining $1,465,139 is available for development projects. Utilizing the $700,000 from the EDA development fund for Phase I C:\Users\dhuebner\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.0utlook\2TFRCC~~V\EDA RFA 1-9-12.doc