CCP 10-27-1997 - Laserfiche WebLink

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----.-.-- Q f\ """'T , ARDEN HILLS EDA MEETING - OCTOBER 14.1997 ~_~i p~r 6 President Probst commented on the possibility of identifying a disposal location fairly close to . the site and asked if the City is able to do this, how would they recover that increment of $250,000. He stated that rather than being a windfall for the developer, he believes the City should be able to recover those costs. Mr. Zehring stated they do not want a windfall from that work and agreed it would be best to locate the disposition site within several days and go back to the contractor to recalculate. President Probst explained that the Public Works Superintendent and Parks & Recreation Director have indicated the possible need for fill at a City park that has a propensity for flooding He stated it may be worth it to investigate filling that park area to an elevation where it would no longer flood. Mr. Zehring stated this option would be marvelous. Mr. Fritsinger explained that if the EDA wants to proceed with assistance it could be for a not-to- exceed amount with conditions placed to address those issues if there are cost savings. President Probst stated the presentation indicated the addition of about 20,000 square feet of brick. Mr. Zehring explained the cost is $8.50 to $10 per square foot to purchase and install the brick but, if it can be done for less, they will either reduce the amount of the request or increase the amount of the brick. Commissioner Malone stated he does not see $250,000 dollars being involved. Mr. Zehring . explained the estimate for soil corrections is $272,000 and the additional sum is intended to be exactly what is spent on the building upgrades. Mark Ruff, Ehlers and Associates, Inc., stated the numbers they have been working with for TlF and the bond estimates would allow for $45,000 of additional arumal tax increment above the debt service. At a 6.5% interest rate over five years, increment could pay $500,000 of internal financing. He cautioned that if the City is talking about increased TIF from the assessment agreement, the evaluations would need to be signed off by the Ramsey County Assessor. Commissioner Malone asked if the evaluation is based on $30 per square foot. Mr. Ruff stated $30 per square foot is reasonable for this type of building and the assessor has to believe it is a fair market value at the time it is constructed. Mr. Zehring advised tl1e building will cost $45 per square foot to construct. Mr. Fritsinger eXplained that the development agreement dealt with excess TIF and made it available to pay back excess assessments. At the time the agreement was reached, it was that a certain percentage would be held by the City for other public improvement activities and revisited at some point in the future. The issue here would require amending the development agreement. .