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Option 3b would also involve completing the full 17 lot development project, but instead all excess topsoil would be wasted in the rear yard areas of the North Commons residential lot sites. This could be accomplished by over - excavating the rear yard areas and placing the clean fill on the building pad areas to raise the pads to final grade, then burying all excess topsoil within the rear yard areas. While this option would be slightly cheaper than option 3a to complete in the short term, it would ultimately be more expensive than option 3a in the long -term since topsoil is a valuable commodity and would need to be purchased and hauled to Lake Ramsey for establishing turf on the side slopes of Lake Ramsey in the future. In addition, when topsoil is placed in large lifts it often results in differential settling and drainage issues for the property owners. Cost: Total with Land and All Sunk Costs ($1,061,513) Marginal Costs (i.e., no sunk costs) less Projected Revenue ($66,633) Upon review of all all the options, it appears that there is not a significant difference in stopping the project and moving forward with one of the full development proposals. The ultimate benefit to the City in taxes would be about $12,538 dollars per year, that will begin to generate two years from the start of each house construction. Another benefit to the City would be the completion of the final layer of asphalt for the roads in that subdivision. Other options would be for the City to wait until lot prices increase, but the uncertainty of revenue under that option, plus the cost of delay make that option unattractive. Also, the "walk- away" option does not include any amount for the sale of the raw land. This amount may cover any costs of stopping the development, but would have the risk of whether the City could sell the land. Recommendation: Upon review of all all the options, it appears that there is not a significant difference in stopping the project and moving forward with one of the full development proposals. The primary risk in moving forward is the inability to predict lots sales and the potential of additional unanticipated costs. The benefit would be creation of additional rooftops and a future tax base. At least two builders have expressed interest in purchasing lots, so that it likely that many of the lots could be sold relatively soon. Funding Source: Costs for this project are being funded by the Landfill trust Fund and will be reimbursed in part by land sale proceeds. Action: Direct staff to move forward with development and secure lot sales. n commons options Attachments Form Review Inbox Reviewed By Date Kurt Ulrich Kurt Ulrich 05/23/2013 06:19 PM Form Started By: Jo Thieling Started On: 05/23/2013 12:45 PM Final Approval Date: 05/23/2013