Agenda - Public Works Committee - 04/16/2002

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P.W. CASE # B & B CARPET - RAMSEY PROFESSIONAL BUILDING ACCESS ISSUE By: Steven Jankowski, City Engineer Introduction: On April 9, 2002 the following case was presented to the Finance Committee and subsequently to the City Council. The case was tabled that evening so that it could be discussed in more detail. Background: On November 13, 2001, staff received Council approval to construct Sewer and Water Improvements to benefit the Ramsey Professional Building and to acquire a 42-foot frontage road easement across the front of the Ramsey Professional Building on Highway 10. In addition to these items, a right of access for Ramsey Professional building was negotiated. The costs involved were $30,000 for the frontage road easement and right of access and an additional $46,113 for the Sewer and Water Improvements. In addition to the improvements to the Ramsey Professional Building, it was determined that the access to Highway 10 had to be moved to accommodate both the Ramsey Professional Building and B & B Carpet. The cost associated with moving the access to a mutually acceptable site is $51,708. Of that amount, Ramsey Professional's share amounts to $28,914 and B&B Carpet will be $22,794. A mutually accepted agreement, which was directed by Council for staff to negotiate with both parties last year, was reached. The agreement included acquiring a 42-foot frontage road easement across the front of the property of B & B Carpet and a 30-foot utility easement across the back of the property and acquisition of the right-of-access. The following is a breakdown of the costs to be incurred by the City: $30,000 to Ramsey Professional Building. Of this amount, $28,914 will be spent towards moving the access. $46,113 to construct the Sewer and Water Improvements. $22,794 to B & B Carpet to assist them in moving the access to Highway 10 and Right-of Way and access. Total Costs of all three projects will be $98,907. Funding for the sewer and water improvements in the amount of $46,113 will be funded from the Sewer and Water Utility Funds. The remainder of the project costs ($52,794) will be funded from the General Fund. On a related matter to B & B Carpet, it was determined that it would be in the best interest of the project to extend the duration of the TIF District for B & B Carpet. Extending the duration of this Redevelopment TIF District is statutorily allowed. Because of the recent legislative changes, the pay-as-you-go TIF Financing offered to B & B Carpet falls extremely short of