Minutes - Council - 07/14/2009 - Laserfiche WebLink

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Councilmember Dehen asked if acquisition of the Oasis was part of the cost estimate for Armstrong upgrade. Public Works Director Olson stated that it was part of that cost estimate. Councilmember Dehen stated that he is an advocate of getting Armstrong Boulevard fixed, but agrees that the $1.14 million price is over-inflated. Public Works Director Olson gave a brief review of the amended JPA and the construction obligations. Mayor Ramsey stated that when the JPA was done in 2005, he thinks the intent was to move forward with the right of way, not a full purchase, along Armstrong near the Oasis, which is why the cost was only estimated at $500,000. Councilmember Elvig noted that the Public Works Committee looked at having this area redone and the cost estimates came in around $5 million, so they suggested postponing this project so our dollars can be used as part of a larger project. He stated that the County supported that and the City also went to the legislature for design/build funds, which were received. He stated that he is disturbed about the Oasis Market coming in at $1.14 million, which he didn't expect at all. He stated that he thinks good points were made about the process, but the RTC, as it is right now, has returned $1 million per year in revenue, so there is some return coming to the City. He stated that he doesn't like the price tag, but is in favor of this because he wants to see the project go forward and has hopes that the City can re-sell the property in the future. Public Works Director Olson reviewed the reasons why the Oasis property became a full acquisition rather than just right-of-way acquisition. Motion by Mayor Ramsey, seconded by Councilmember :Elvig, to Adopt Resolution #09-07-147 Approving the Terms of$I,140,000 Internal Loan in Connection with TIF District No.4. Further Discussion: Councilmember Elvig stated that he feels the City is somewhat caught in the situation that the Met Council is in with RALF funds. Councilmember Look stated that his issue is one of timing because the City will not be building out Armstrong anytime soon and yet it will spend this money to acquire the land. He stated that he thinks it is irresponsible to be taking properties years ahead of when it is necessary. Councilmember Dehen asked what would happen if the City doesn't approve this reso~ution. City Attorney Goodrich stated that the County may sue the City. Mayor Ramsey noted that the Purchase Agreement has been drafted and the property owner has already signed it and spent money completing the environmental projects that the County requested be completed. Councilmember Dehen stated that he only wants to approve this if there is some way that the Armstrong project can move forward right away. Public Works Director Olson stated that it can be completed, but would have to be done with City money. He noted that at the public meetings, in October, it was discussed that this project should not move forward with interim improvements, but to wait and pursue the overpass option. Councilmember Elvig stated that he agrees and doesn't want to go backwards and do interim improvements rather than an overpass. He reviewed the direction that the Council gave to staff City Council / July 14,2009 Page 12 of 19