Agenda - Council - 02/23/2021 - Laserfiche WebLink

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Economic Development Authority (EDA) Meeting Date: 02/ 11 /2021 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development 4.4. Title: Consider Participation in Riverdale Drive Reconstruction Project: Dolomite Street Removal/Lot Configuration Purpose/Background: The purpose of this case is to consider EDA participation in the Riverdale Drive Improvement Project by funding the removal of Dolomite Street. The City has not been able to sell Parcel 40 due to, storm water retention issues, uncertainty of access and the small, irregular lot configuration. The site is currently 1.23 acres. The removal of Dolomite Street, including its access to Highway 10, will be beneficial to future development. The vacation of the Right of Way will result in cleaner property lines each lot gaining an additional 0.232 acres (10,123.50 SF). The City of Ramsey will complete the Street Improvement Project for Riverdale Drive in 2021. The removal of Dolomite Street is not budgeted for the 2021 project. However, there are some cost savings if this is done along with the Riverdale Drive project. In addition, the Riverdale Drive project will include the installation of a storm water systems which will help with the development of Parcel 40 (6710 Highway 10 NW) and other properties in the area. Staff is asking the EDA to consider financial participation in this project to make the City property more marketable. It should be noted that Dolomite Street access to Highway 10 will likely be closed as part of the upcoming Highway 10 Expansion Project. Staff will work to ensure that this cost will count towards our contribution to the broader Highway 10 Expansion Project. Notification: N/A Observations/Alternatives: The removal of Dolomite Street, vacation of right of way and the reallocation of the vacated right of way is a two step process. The vacation is a simple City process, guided by State Statute, where the right of way is split down the centerline of the road and deeded to each property owner on each side. On the face of the overall process, this might seem like an unnecessary additional step, but it is required to start this way by Minnesota Law. The second step would then exchange property to square off property lines. Staff has contacted Able Property Management (owner of property to east) and they have expressed support for this action. The estimated cost for the removal of Dolomite Street is $47,997.24. Of that cost, only $38,562.54 is proposed to come from City Funds. The rest from the State of Minnesota through our allocation of Municipal State Aid (MSA) Dollars. It should be noted that by including this project with Riverdale drive there is a cost savings of $12,520.66. There will be some additional costs relating to the transfer of property after the vacation of the right of way. Staff estimates those closing costs to be less than $10,000. Based on these estimates, Staff is asking the EDA to consider a contribution not to exceed $50,000 to complete the Dolomite Street portion of the Riverdale Drive Reconstruction Project. Alternatives: 1. EDA recommend to City Council to authorize the Dolomite Street Removal Project and to allocate $50,000 from the EDA cash balance to fund the City portion of the project