Agenda - Council Work Session - 06/17/2003

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CITY COUNCIL WORK SESSION Topic Report: Mississippi Storm Sub- Drainage District No. 1 By: James E. Norman, City Administrator Background: In late 1999, an ordinance was introduced creating Mississippi Storm Sub-Drainage District No. 1. The District was eventually created in the year 2000. A feasibility study for stormwater was requested and completed in 2000, with an estimated total project cost of $391,000. A copy of the feasibility study is attached to this topic report. The reason for the creation of the sub-drainage district was due to a proposed development of a multi-tenant building and storage facility by Mr. Lowell Zitzloff. The original plan called for the City to contribute $102,500 and split evenly between the Stormwater Management Fund and the Stormwater Utility Fund. In 2001, at the request of Councilmember Kurak, the City contribution was changed to $108,100 and paid entirely out of the Stormwater Management Fund. Minutes from the meeting of September 11, 2001 are attached to this topic report. The actual costs of phase I of the Stormwater Project came to $207,940. The estimate for phase II of the project comes to $265,900 for a total Mississippi Storm Sub-Drainage District No. 1 project cost of $472,840. This compares to the original estimate for the project of $391,100. Councilmembers have recently requested the rationale behind why Tax Increment Financing Funds were not utilized for the project. It should be noted that TIF District No. 2 clearly benefits from the storm retention pond on the eastern edge of McKinley Street; however, no TIF monies were used. It was discussed during the September 11, 2001 meeting; however, the issue was not resolved. As Council is aware, some of the property owners in the phase II portion of the property have opposed the Mississippi Stormwater Sub-Drainage District No. 1. The City had directed staff to begin negotiations toward the acquisition of some of those property owners in 2001, however, the T.H. #10 Interregional Corridor Study was released in fall 2001, which showed a realignment of T.H. #10 in the area of the Stormwater Sub- District. With the change of the aligmnent of T.H. #10, the Council directed staff to discontinue negotiations for acquisition of land. The largest portion of phase II of the project was purchased by Plants 'N Things from Robert Dillon and now they are requesting the stormwater extension to their property. Action Statement: Based upon Council discussion. CCWS: 06/17/03