Agenda - Council - 09/09/2003 - Laserfiche WebLink

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Assistant Public Works Director Olsop explained that Sunwood Drive would be the-higii~§t priority so a good majority o£the MSA ~nds would be used on the road. Councilmember Zin~nen~an inquired as to what percentage of the taxes collected from the development along Sunwood Drive will the City receive. T~ Specialist Sullivan replied around 30 percent of the tax rate Mayor Gamec noted that with the existing MSA funds and the Met Council pant for Sunwood Drive they basically have the street construction covered, so the remaining issues are sewer water and storm drainage. City Attorney Goodrich summarized that at this point they are only talldng about Phase I street improvements, which would include Sunwood Drive at a cost of approximately $5.2 million. Two million dollars would be for the street and the balance of 2.6 million would be for sanitary sewer, water main and storm sewer. The $2 million would be funding from the Met Council ~'ant, and 80 percent genera] obligation bonds. The utilities associated with Sunwood Drive will cost approximately $2.6 million. The City has proposed that the City will issue General Obligation Revenue Bonds pursuant to Mim~esota Statutes, Chapter 444, to finance the storm se)a, er, sanitary, sewer and water improvements. The City will re-pay the bonds from revenues the City's storm sewer, sanitary sewer and water systems generate (hook-up fees and rates and charges). If projected waer, sewer and storm sewer revenues are not anticipated to be sufficient to pay debt service on the bonds, the City will specially assess a portion of the cost of the sanitary sewer, water and aonn sewer improvements against benefited properties, The City will determine if special assessments would be necessary before the development a~eement is executed. Again it was noted that- this was the City's proposal; no a=o-reement has been reached with the developer. Councilmember Kurak stated that with the special assessments and use fees the developer would be paying for these improvements. City Administrator Norman noted that some of the costs will be born by the secondary developers. Councilmember Strorm~nen a=m'eed that they have found a way for the City to cover the costs incurred by completing public improvements within the Town Center site, but it was not the same thing as the developer doing the work and paying for it up front. Councilmember Cook inquired if the construction of Sunwood Drive through the existing residential area was handled in a similar way. Assistant Public Works Director Olson replied that he believed that that was correct. City Attorney Goodrich stated that he wanted to make it clear that staff will be attempting to project the revenues the City will collect from hook-up fees and charges, but if staff does not feel -40- CiB, Council Work Session/August t2, 2003 Page 4 of 11