Agenda - Council - 03/24/2020 - Laserfiche WebLink

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As a sidebar, the City still desires to plan for a river crossing, the alignment simply has changed to coincide with Armstrong Boulevard. When considering all the variables above, Staff used the following filters to arrive at our recommendation. • Even split of costs on the Pearson Frontage (excluding Anoka County frontage) • Cap public contributions (City, County, State) to 60% of total project costs (Pearson + Anoka County Frontages), based on past practice in similar projects Total Assessment Amount and Preliminary Assessment Amount Attached to this case is a detailed breakdown of the proposed Project Proforma. Timelines Capstone Homes has expressed a desire for subdivision approval for Riverstone South by the end of October, 2020. If the City Council is comfortable with the proposed cost share agreement, this timeframe is feasible. If the Council desires to consider a higher contribution with traditional funds or introducing an eligible Tax Increment Financing (TIF) economic development project on the commercial/industrial parcels along Highway 10, review and approval will likely spill into 2021. Capstone has noted a desire to receive project approval by August, 2021 in this scenario, otherwise the project will slide into 2022. At the end of the day, the City is not obligated to contribute to any portion of this project at any given time, although there would be value in doing so. The question at hand is to better determine what funding sources can be secured and at what timeframes. The City may be able to assemble additional funding sources (both internal and external) to increase our participation, but that will take time. Staff feels the current proposal is a reasonable compromise. Future Discussions This case is intended to serve as high-level policy direction. Next steps including, but not limited to Feasibility Report, Approving Plans, Awarding Contract and holding Assessment Hearing will provide additional levels of detail. The intent of this step is to limit the number of alternatives Staff should explore. Alternatives Alternative 1 - Adopt the resolution establishing preliminary framework for continued funding discussions as proposed to the Collector Road and assess remaining balance as noted. Alternative 2 - Recommend that the City Council proceed with a Cost Share as outlined above, but with modifications. 1. Collector Road Contribution Amount 2. Assessment Method (linear frontage vs. net developable acreage) Alternative 3 - Recommend that the City not proceed with the project. Funding Source: The funding for this project is proposed to be a combination of City Contributions and Developer Assessments as outlined below. As it pertains to the City's Cost Share (Municipal Contribution to Collector Road + Assessment Amount for Ownership of Real Property), several funding sources are available. 1. City's Public Improvement Revolving (PIR) Fund (generated from local property tax revenue) 2. Anoka County Redevelopment Authority (ACHRA) 3. State of Minnesota Municipal State Aid (MSA) Account 4. MnDOT Local Partnership Program (LPP - competitive grant up to $710,000)