CCP 10-14-1997 - Laserfiche WebLink

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-~ _ Companies FAXED Comprehen,lve Reill E.\t...te Suvice5 If 00 No,manda]. Boul.v"d. Suit. 200 ID-'1 OJ '.c.14/,_ inneapolt.9, Minnesota 55437-1060 612.897.7700 Fax 897.7704 Blf Facsimile 633-7839 Memo Date: October 7, 1997 TO: Kevin Ringwald, AlCP, City of Arden Hills , FROM: Dick Zehring, Welsh Development Company, LLC REF: Gateway Business District Tax Increment Finandng Plan RE: Extraordinary Site and Soils Correction . At our meeting last Thursday, I indicated to you and Brian Fritsinger that we had, as a result of our additional soil borings, determined that a very significant amount of extraordinary soils correction would be necessary in connection with further development. These new numbers have never been contemplated by us, and, as I indicated to you, make the project as a whole, finandally infeasible without the assignment of approximately $250,000 of these extraordinary correction costs to the tax increment plan, with whatever concomitant adjustments must be made to the Phase II, III and N Assessment Agreements in order to assure coverage of the costs. Additionally, you have asked for this outline of the drcumstances so as to be able to assess the taxable/tax exempt aspects of the proposed bond issue. The bulk of the soil correction costs are in fact on the City property. There will be soils correction work necessary on the Harstad and Zafke parcels, but the bulk of the work, as outlined below, is in fact going to have to be performed in connection with the utilization of the City's own land. Last Friday, Mr. Kretman of HKS Assodates, I believe, provided you with the following additional soils data: 1. Braun Intertech, Geotechnical Evaluation Report for Welsh Companies, Project BBXX-97-D12A dated February 20,1997 2. Braun Intertech, A Geotechnical Evaluation Report for Welsh Companies, Project BBXX-97-108A dated August 20, 1997 . 3. Braun Intertech, A Geotechnical Evaluation Report for Welsh Companies, Project BBXX-97-186A dated August 25,1997.