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08-05-2024 JDA Agenda Packet
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08-05-2024 JDA Agenda Packet
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that the State failed to pass a bonding bill, which meant the project did not receive funding <br />from the State. She was hopeful Alatus would be providing the City and County with a new <br />proposal. <br /> <br />Acting Chair Frethem requested an update on the design plans for the spine road. Ms. DeWalt <br />explained the County put out an RFP for the final design of the spine road this spring and <br />received two proposals from Kimley Horn and WSB. Upon review of the proposals, Kimley Horn <br />was chosen for the project. She indicated the design plans for the spine road were currently at <br />60%. She reported construction of the project would hinge greatly on securing adequate <br />funding, but noted the project remains on schedule. She explained construction was slated to <br />begin in the spring of 2026 into 2027. <br /> <br />Commissioner Fabel reported the JDA has met with Ehlers and at one point in the past it was <br />noted the County could bond for the $40 million funding gap and repay the bonds through the <br />sale of the property. He questioned if this proposal has been considered by the County Board. <br /> <br />Acting Chair Frethem explained this has not been considered by the Board because this was not <br />something the County CFO recommends. She indicated the number of years the County would <br />be paying debt service would be a hit on the County’s levy. <br /> <br />Commissioner Monson indicated Commissioner Fabel was talking about temporary bonds and <br />not GO Bonds. <br /> <br />Commissioner Fabel stated he was talking about either temporary or GO Bonds that could be <br />paid off by the sale of the land, which would occur pretty quickly. <br /> <br />Bruce Kimmel, Ehlers, explained he was representing the County on this matter. He noted the <br />idea of the bond sale was brought about by his colleague Stacie Kvilvang, who represents the <br />City in this discussion. He reported he took an in depth look at doing bond financing for the <br />mass grading/gap, and, as Commissioner Frethem alluded to what makes that difficult to pencil <br />out was the number of years for the buyer to purchase the land. He stated the debt then <br />ballooned over time. He indicated they looked at TIF and other options to offset the carrying <br />costs, but based on the assumed take-down schedule for the land, this was not something the <br />County finance department was interested in pursuing at this time. He indicated temporary <br />bond options were also considered, noting these could only be issued for three years and then <br />be rolled over into another three years. He commented that the overall finances for the options <br />that had been analyzed at this time would not work. <br /> <br />Commissioner Monson stated the land sales may not be completed within six years and she <br />understood this was a risk the County was not willing to take, even though this was something <br />traditional landowners and developers would take. <br /> <br /> Commissioner Fabel said that the value estimates of the land would more than cover the <br />$40,000,000 payments for the bonds.
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