Minutes - Council Work Session - 01/17/2012

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2) Consider Accepting MnDOT Municipal Cooperative Agreement Funding for the Extension of Riverdale Drive City Engineer Himmer reviewed the staff report. Councilmember Wise asked about the location of the utilities under the interchange. City Engineer Himmer stated there would be minimal impacts to the infrastructure. Councilmember Elvig indicated some property owners donate easements while others charge for the easement. He noted projects get to be unaffordable if the City has to pay for easements and the improvement. If easements are given and sewer and water installed, he suggested the Council consider deferring some costs until the property is built out and connected. Councilmember Elvig pointed out it would make the property more salable if the improvements are already installed. He asked how long the grant lasts. City Engineer Himmer advised the City has to inform Mn/DOT if it will accept the grant by January 24, 2012, and if the grant is accepted the project has to be let by June 2013. Councilmember Elvig stated concern with considering franchise fees to fund road construction and then considering this project. In addition, it will open more competitive property to The COR, in which the City is heavily invested and trying to sell to raise cash flow. Councilmember Elvig indicated there may also be an argument that if this sells there will be more interest in The COR. Councilmember McGlone noted someone had mentioned earlier that this improvement relates to Armstrong interchange improvements and would add equity into the bridge project by reducing the overall costs. If that is the case, the City will have a better chance of getting it done. Councilmember McGlone stated he likes the idea of deferred payback from property owners. He did not feel this would create competitive properties to The COR until the bridge is constructed, especially since this project would actually reduce access at this point. Councilmember Strommen asked about the timing, noting the next $500,000 grant is to be submitted next month. City Engineer Himmer indicated he does not yet have that information. Councilmember Strommen supported accepting this first Mn/DOT grant and to consider constructing, at a minimum, the roadway. If the City receives another grant, the Council could consider making it a bigger project by adding utilities. Public Works Director Olson explained that if the sewer and water comes down Riverdale, the assessments would be deferred because they would pay lateral and trunk fees. When development occurs in that area, the City would not charge lateral benefit if they gave the right - of -way but would charge trunk fees. City Council Work Session / January 17, 2012 Page 6 of 10