07-23-24 JDA - Laserfiche WebLink

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