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<br /> ;I "Ii ~. <br /> CITY OF ARDEN HILLS <br /> - MEMORANDUM <br /> DATE: Octobcr 9, 1997 <br /> TO: Brian Fritsinger, City Administrator <br /> FROM: Tcrrance Post, City Accountant @ <br /> SUBJECT: 1997 General Obligation (G.O.) Bond Issuance <br /> Background <br /> With proposed development activities in the Gateway Business District (GBD), the need for <br /> related public improvements to support such activities exists. Specifically, the public <br /> improvements can be summarized as being required in two areas: <br /> 1. The relocation of Fourteenth Street and related utilities (water, sanitary sewer, <br /> storm sewer) in order to support parcel assembly and improve site plan layout <br /> with respect to the minimum ten (10) acre buildable site ordinance requirement. <br /> 2. The reconfiguration and signalization of the Highway 96lWest Round Lake Road <br /> - intersection. While this intersection currently operates in a marginal capacity, it is <br /> - estimated that additional traffic loads from GBD development activities will <br /> require the intersection to be upgraded for safety reasons. <br /> - <br /> - Internally or Externally Finance <br /> While described more fully below, the proposed cost of public improvements to support <br /> I development activity in Tax Increment District (TIF) #2 (Round Lake Office park) are estimated <br /> at approximately $3.0 million. Although the City currently has a Permanent Improvement <br /> 1 Revolving (PIR) Fund cash balance of approximately $4.0 million, the use of the PIR Fund for <br /> these public improvements would substantially limit the future use and flexibility of this fund - <br /> particularly with respect to the scope of future Pavement Management Program (PMP) activities, <br /> 1 maintenance garage repairs/reconstruction needs and unforseen contingencies. As discussed with <br /> Council at an earlier Worksession on this topic, there appeared to be consensus to externally <br /> finance the GBD public improvements rather than internally finance them. <br /> I Use of Funds for Public Improvements <br /> The Fourteenth Street relocation project costs are estimated to be $1,224,000 with contractors <br /> I costs ($714,000) and engineering fees ($143,000) being major cost elements of the project. Note <br /> that an estimated $250,000 in soil correction costs are not included in the $1,224,000 project <br /> total nor are bond proceeds expected to be used for this purpose. <br /> I <br /> .. <br /> 1 <br />