Minutes - Council Work Session - 07/18/2023 - Special

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Councilmember Musgrove asked if they have the option of paying themselves back or paying into new projects, such as finishing some of the roads in the COR that are not finished. City Administrator Hagen stated that this is a reimbursable expense if they wanted it to be. Economic Development Manager Sullivan explained that the cost for the newly reconstructed roads and the utilities and sidewalks are TIF eligible expenses. He stated that the Council has already committed to doing the dirt work and getting the cost for Zeolite Street and West Ramsey Parkway. He asked if the Council wants to commit to the construction of Zeolite and West Ramsey or other projects that could be rolled into this bond that Ehlers is referring to. He stated that if they do not do Zeolite and the dirt work then the development will not happen. He noted that they need to spend this money if they want to get a return on it. He said that with the hotel project moving forward and the interest with the residential development, he thinks it is important that they can get commitment to get Zeolite Street built. He added that Zeolite was something that the City had planned on building on its own so it would not be a 60/40 split; however, many of the other roads, like West Ramsey Parkway, are ones that would be a 60/40 split. Councilmember Woestehoff asked if the Elhers’ analysis assumes that the City will have about $5,700,000 more than they are expecting but Staff is saying that all of the improvements will cost over $7,500,000. City Administrator Hagen stated that with the 2023 projects alone they have surpassed the $5,700,000. Economic Development Manager Sullivan stated that is with estimated costs. Councilmember Musgrove stated that they approved the specs and plans for the building of these streets. Economic Development Manager Sullivan confirmed. He reviewed the other areas in the COR where the different developments will go. He noted that in the A-2 section, both developers were given notice that they will each be responsible for 20% of the costs. He stated that as West Ramsey Parkway gets extended to the east, section A-1 will likely have some shared costs with the developers as well but would likely only be a 20% total contribution as the waterfront is on the other side. He explained that from a Staff perspective they are asking the Council for commitment to build Zeolite and West Ramsey next year, at least in the A-2 and F-1 sections. He stated that any future projects in this area will struggle if they do not take care of the roads. Councilmember Woestehoff asked about West Ramsey in the A-1 and if they are limiting site plans in this area by putting these roads in. He asked if it would be better to put the roads in first or to leave the land open and let the future developers help decide where the road goes. Economic Development Manager stated that he thinks that by putting A-1 in first they are setting the boundary for the waterfront park. He said that this also allows them to start working with developers to the south of this area to see what they have for spacing. He noted that whether they City Council Special Work Session / July 18, 2023 Page 3 of 8