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HRA Special Session Meeting Date: 06/05/2012 By: Darren Lazan, Housing & Redevelopment Authority Title: Consider option for the preparation of land for development - Sunwood Retail 5. 2. Background: As part of the effort directed and approved by the City Council, the construction associated with the realignment of Sunwood Drive is scheduled to begin this summer and be completed in the late fall of this year. That construction will disturb all four sides of what has been called the 'Sunwood Retail Area', an approximate five acre parcel created in the SE quadrant of the new Sunwood/Armstrong intersection. This area, both the developable area and the roadway area itself are currently between one (1) and eight (8) feet below finished design grades and will require considerable fill to be constructed. Outlined in an agreement between the City and the HRA, the fill for the roadway will be taken from the proposed Lake Ramsey area of the project, transported to the project site, and placed as part of that contract. The HRA currently owns the property and receives no consideration for that material. If the roadway project were to proceed as planned, the developable retail are would be roughly four (4) feet below the adjacent roadways and have no reasonable means of draining effectively. It would also mean that the eventual construction on this site would necessitate considerable construction activity over the new roadway to bring this area up to grade as necessary to develop. The development team has prepared an estimate of the potential construction costs associated with bringing the retail area up to grade concurrent with the roadway construction, as well as the construction of the drive necessary to re -connect the Coborns anchored site to the new roadway. This total estimate is currently about $250,000 which includes approximately $200,000 in hard construction costs, as well as approximately $50,000 in design, miscellaneous costs, and contingency. These costs were INCLUDED in the original feasibility study as a cost of the project, and current estimates for this effort remain within that original feasibility estimate. Notification: Recommendation: The development team recommends the HRA approve advancing the proposed improvements as part of, and concurrent with the construction of Sunwood, and direct staff to include this scope of work as an ADD alternate to the current documents out for bid. The development team further recommends the HRA get final numbers from the successful bid, and consider the costs associated with this work as an offset to providing material for the Sunwood roadway project. Alternatively, the HRA should consider compensation in the amount of $250,000 to provide the material necessary to complete the roadway project, and use those funds to pay for the proposed scope on HRA land. Funding Source: TBD - TIF, Future Land Sales, Proceeds of the sale of material Council Action: