Agenda - Council - 04/13/1993 - Laserfiche WebLink

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FINANCING The Improvement Project cost of $144,655 identified in Table I is proposed to be distributed as assessments over the benefitted property. In this case it is anticipated that the I7 residential lots identified as parcels 1 through 17 in Figure A will constitute the initial phase to be final platted in this development. The parcels in Figure A labeled as C1, C2 and C3 are future commercial lots which will be platted in a subsequent phase, but will have immediate benefit as a result of these improvements. The remaining lots shown on Figure A represent future development phases but will receive no improvement as a result of the project. It is proposed that the project benefit be distributed between the residential and commercial based upon area, which will result in the residential area being responsible for 62 percent and the commercial area 38 percent of the project cost. This will result in an assessment of $89,673 over the 17 residential lots for a per lot unit assessment of $5,275. Similarly, the total assessment on the commercial area would be $54,961. These assessment will be payable over a five year period with interest at a rate of two percent above the prime lending rate. As mentioned previously in this report, the above costs do include any sewer and water trunk charges. It is the understanding that these charges were collected on this property at the time River's Bend was platted. An audit of any overpayment of assessments or amount due should be addressed in the development agreement. It should also be noted that portions of the total project cost have not been covered by the assessment anticipated. It is estimated that $6,688 of the project cost is attributable to oversizing of the watermain and sanitary sewer and will be financed from the City's sewer and water trunk fund. In addition $17,051 will be contributed to the street construction to cover oversizing of the Xkimo Street N.W. to meet MSA standards. It is anticipated that this amount will be recovered from the State when the extension of Xkimo Street N.W. north of the limit of this project is undertaken as an MSA project. SCHEDULE For this project to proceed the following schedule could be anticipated: Accept feasibility study and set public hearing April 13, 1993 Hold public hearing and authorize plans and specifications May 11, 1993 Authorize bidding May 25, 1993 Receive bids and award June 22, 1993 Be~n construction LateJune 1993 Complete construction Hold assessment hearing Late July 1993 August 1993 First payments due May 1994 3