Agenda - Council - 01/04/2005 - Special

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CASE # Consider Joint Powers Agreement with Anoka County for Regional Roadway Improvements associated with Ramsey Town Center By: Brian E. Olson, Assistant DPW / Principal City Engineer . Background: On September 17, 2003, the City Council approved the Master Development Agreement for the Ramsey Town Center. The Master Development Agreement had .language that provided a method to pay for the regional roadway improvements by establishing a special taxing district. By State law, a special taxing district is only allowed to be imposed on commercial property-_ The original cost estimate prepared by Hakanson Anderson in August of 2003 was approximately $14,000,000. If this were to be spread over only the commercial property, it would amount to almost $3 per square foot, a cost that the .Master Developer has indicated would not be absorbable in the current market. On February 24, 2004, the Finance Committee and later the City Council saw the first joint powers agreement that was drafted-with Anoka County. Staff has been working with the Anoka County Highway Department on developing the attached Joint Powers Agreement (JPA). The JPA identifies the costs associated with the improvements and identifies the responsible parties. Typically, in a transportation project that results from a development, the Developer and the City are entirely responsible for the improvements to ' the County road system. In the case of the Ramsey Town Center, Anoka County has committed to a maximum contribution of $4,581,500. The total construction cost at this time is estimated at $13,050,372:08. As you are all aware, the City has also been in negotiations with the Master Developer to change the method of collection of the outstanding balance to that of an assessment. City Council authorized the preparation of a feasibility study to take a closer look at the costs and anticipated schedule of the regional roadway improvements. It is anticipated that this will be prepared and brought to the City Council in late January or early February to complement the First Amendment to the Master Development Agreement. Recommended Action: Staff feels that Anoka County has indicated with this Joint Powers Agreement that they are willing to participate to the maximum extent that they are able and recommends a motion to authorizing the signing of the Joint Powers Agreement with Anoka County. Reviewed by: City Administrator Director of Public Works /Fire Chief Finance Officer CC: 01/04/05