Agenda - Council - 10/26/2021 - Laserfiche WebLink

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• A solution for payment of the tree preservation credit of $350K to Capstone includes roughly a combination of HRA ($240K) and PIR Funds ($110K) • Staff is proposing an application to the ACHRA in the amount of 950K to cover the City contribution of costs associated with the construction of Riverdale Drive. Notification: N/A Time Frame/Observations/Alternatives: Assessment Method All parties involved have verbally agreed to a split of the assessment between Capstone's residential development and the Pearson's future commercial/industrial development along Highway 10. The assumption is that all parties will agree to these terms in a future Assessment Agreement that eliminates any risk and/or liability from deviating from the 'net developable acreage' method of assessment used on Puma Street on the north side of Highway 10. Capstone and Pearson's have a separate agreement to allocate special assessments that is based on lineal front footage along each property (outlined on Revised Cost Share Framework). City Contribution to Collector Road The January 26, 2021 approved framework is attached along with minutes from Public Works Committee and City Council for additional detail. A key component to the success of this project is obtaining grant money and identifying eligible funding sources for the City contribution to this project. Resolution #21-101 directed staff to explore grant opportunities and other funding sources to reduce the City contribution to the project. The MnDOT LPP Grant, City of Ramsey HRA Funds, MSA Funds and City of Ramsey PIR Funds are eligible funding sources for the City contribution to this project. This project is listed in MnDOT and Anoka County's 2014 Highway 10 Access Planning Study, and the City's 2019 Ramsey Gateway Study. A portion of the full Riverdale Drive project is located on real property owned by Anoka County. This corridor was originally planned for a river crossing across the Mississippi River to the City of Dayton. At this time, Anoka County does not have funding available to contribute to this project (Riverdale Drive Extension). As such, Anoka County has offered that the City can purchase the ROW needed for the construction of Riverdale Drive. This would not be a County Road - it would be a local City Street. The cost for this ROW is estimated to be approximately $283K. As a sidebar, the City still desires to plan for a river crossing, the alignment simply has changed to coincide with Armstrong Boulevard. MnDOT is currently leading a study on the feasibility of this river crossing. Total Assessment Amount and Preliminary Assessment Amount Attached to this case is a detailed breakdown of the proposed Revised Cost Share Framework. Timelines Capstone Homes has their schedule for subdivision approval for Riverstone South by the end of 2021 with construction to commence in 2022. If the City Council is comfortable with the proposed revised cost share agreement, this timeframe is feasible. The City Council could 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. This would extend the desired timeframe. 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. Staff has negotiated with Capstone and the Pearson's and has presented a