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Assistant Public Works Director Olson explained that Sunwood Drive would be the highest <br />priority so a good majority of the MSA funds would be used on the road. <br /> <br />Councilmember Zimmerman inquired as to what percentage of the taxes collected from the <br />development along Sunwood Drive will the City receive. <br /> <br />TIF Specialist Sullivan replied around 30 percent of the tax rate <br /> <br />Mayor Gamec noted that with the existing MSA funds and the Met Council grant for Sunwood <br />Drive they basically have the street construction covered, so the remaining issues are sewer water <br />and storm drainage. <br /> <br />City Attorney Goodrich summarized that at this point they are only talking about Phase I street <br />improvements, which would include Sunwood Drive at a cost of approximately $5.2 million. <br />Two million dollars would be for the street and the balance of 2.6 million would be for sanitary <br />sewer, water main and storm sewer. The $2 million would be funding from the Met Council <br />grant, and 80 percent general obligation bonds. The utilities associated with Sunwood Drive will <br />cost approximately $2.6 million. The City has proposed that the City will issue General <br />Obligation Revenue Bonds pursuant to Minnesota Statutes, Chapter 444, to finance the storm <br />sewer, sanitary sewer and water improvements. The City will re-pay the bonds from revenues <br />the City's storm sewer, sanitary sewer and water systems generate (hook-up fees and rates and <br />charges). If projected water, sewer and storm sewer revenues are not anticipated to be sufficient <br />to pay debt service on the bonds, the City will specially assess a portion of the cost of the sanitary <br />sewer, water and storm sewer improvements against benefited properties. The City will <br />determine if special assessments would be necessary before the development agreement is <br />executed. Again it was noted that this was the City's proposal; no agreement has been reached <br />with the developer. <br /> <br />Councilmember Kurak stated that with the special assessments and use fees the developer would <br />be paying for these improvements. <br /> <br />City Administrator Norman noted that some of the costs will be born by the secondary <br />developers. <br /> <br />Councilmember Strommen agreed that they have found a way for the City to cover the costs <br />incurred by completing public improvements within the Town Center site, but it was not the <br />same thing as the developer doing the work and paying for it up front. <br /> <br />Councilmember Cook inquired if the construction of Sunwood Drive through the existing <br />residential area was handled in a similar way. <br /> <br />Assistant Public Works Director Olson replied that he believed that that was correct. <br /> <br />City Attorney Goodrich stated that he wanted to make it clear that staff will be attempting to <br />project the revenues the City will collect from hook-up fees and charges, but if staff does not feel <br /> <br />City Council Work Session/August 12, 2003 <br /> Page 4 of 11 <br /> <br /> <br />