Agenda - Council Work Session - 12/12/2023

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.April 9,2024 Council Awards Bid Other low priority improvements that will be required when development occurs are located on the eastern portion of the COR near Ramsey Blvd. This includes the connection of Veterans Drive to Ramsey Blvd(a right in right out access point will be constructed as part of the Ramsey Gateway Project) and Peridot St NW. A high level estimate for these improvements is $2.6 million. Ehlers financial analysis is based on actual dollars spent to date and 2024 tax revenues. It further makes assumptions of future expenses based on engineer estimates for road projects and assumes future development growth,thus generating more tax revenue. The analysis is also predicated on the City receiving special legislation to allow repayment of expenses that occurred without interfund loan resolutions. See the last section of the analysis for a more detailed explanation. A summary of the financial analysis is as follows: Expenses: • $44.2 million- spent to date . $6.952 million must be paid back(paygo notes and 2023A bond) • $37.248 million is highly desired to be paid • $26.5 million worth of eligible expenses which includes interfund loans with necessary resolutions • $10.7 million worth of eligible expenses that the city needs special legislation due to not having interfund loan resolutions . $4 million of road improvements proposed in 2024 • $2.6 million of road improvements remaining on the eastern side of the COR If we look at the expenses under two scenarios,we are left with different totals that can be repaid through tax increment. This is due to the special legislation previously noted. . $50.8 million in expenses (actual and estimated proposed)with special legislation approval • $43.848 million when netting out the required paygo and 2023A bond expenses • $40.1 million in expenses (actual and estimated proposed)without special legislation approval . $33.148 million when netting out the required paygo and 2023A bond expenses Revenue: If development does not occur beyond what is currently being constructed or under purchase agreements, then the projected revenue through 2040 is $22.8 million. Development is likely to occur, and therefore, Ramsey staff provided Ehlers with assumptions on future development and tax revenue. If we use these assumptions, the tax revenue to the City that could be applied back to the eligible expenses is $45 million. Both the $22.8 million and the $45 million in revenue netts out the required payment of the paygo notes and 2023A bond. Other non-TIF Eligible Expenses: The city has incurred$5.1 million in various park improvement, admin and marketing costs. The intent by the city has been to repay those amounts through land sale proceeds. To date, and included in the financial analysis, this has not been able to occur. There is an opportunity for the city to capture some of that through future land sales. Timeframe: Up to 30 Minutes for tonight's discussion Funding Source: The estimated construction costs of Center St,West Ramsey Parkway and Zeolite St. total $4,058,000,plus 3% indirect costs for construction related services including construction staking and administration, and preparing as-built plans. Staff will inspect construction. Previously committed 2024 improvements (July 18,2023): . $950,000 West Ramsey Parkway (west of Zeolite) 0 $819,000 Zeolite Street