CCP 10-27-1997 - Laserfiche WebLink

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__m____'___ _____n_'______n__ m____'_,~__'__ DRAFT .. - ARDEN HILLS EDA MEETING - OCTOBER 14 1997 2 RECESS & RECONVENE . MOTION: Malone moved and Keirn seconded a motion to recess the Economic Development Authority meeting at 7:43 p.m. The motion carried unanimously (5- 0). President Probst reconvened the EDA meeting at 8:15 p.m. UNFINISHED AND NEW BUSINESS A. Tax Increment Financing (TIF) Requcst - Welsh Development Company, LLC Mr. Fritsinger distributed a revised staff report on the request from Welsh Companies for additional TIF assistance. The EDA spent several minutes reviewing this new information. Mr. Fritsinger suggested that Mr. Zehring review his request to the City and then he (Fritsinger) can address the issues identified in the staff report. Mr. Dick Zehring, Welsh Deve]opment Company, explained that over the past three weeks, they have had access to significant additional geotechnical findings that have been the result of additional soil borings done on the site. He explained that there were certain reasonable assumptions made about the location of sand on this site and they had reasonably assumed that the sand vein would continue to run through the balance of the phases but, in fact, it terminates . upon entry onto the development site. Mr. Zehring eXplained that the additional data identified significant perched water which will need to be eliminated and significant amounts of clay deposits. He advised that they cannot place buildings of this magnitude onto clay, particularly wet clay. He stated that from a numerical computer modeling aspect they have been able to reduce soil export that was formerly needed based on topography. However, soil export is still necessary due to the condition of the soils on Phase III. They will need to disk the soil in that area to dry the clay material and create a more granular condition. A significant amount of clay needs to be relocated to non-weight bearing areas or exported off the site. Mr. Zehring reported they have determined there will be about $270,000 to $300,000 in unforseen corrective actions needed on the site. He noted this is no one's fault, but was a concealed condition that was not identified by the City's 1989 soil borings. He stated they have invested a significant amOlmt in engineering plans and property purchases and have made good faith efforts to comply with issues raised by the City. He noted that while they have acquired 31.76 acres ofland, due to the processes being required they will end up with 24.42 acres of buildable land after easements, conservation district, retention area, and preservation of wetlands. Mr. Zehring stated if they assume responsibility for all of the costs, including the new costs, they will have $2.76 per square foot invested in the buildable land which creates a serious problem for them. He stated this amount is high for anybody but the physical reality of this property is that this amount which will not change from developer to developer. . __m _m'____'__m