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<br /> . <br /> Memorandum, Developer Reimbursement - TIF District No, 2 <br /> Page Two . <br /> September 11, 1998 <br /> 2, It appears that approximately 16,200 cubic yards were hauled out and in as soil correction <br /> quantities. Staff consulted with City Engineer Greg Brown on pricing a hypothetical <br /> 16,200 cubic yard job project as a reasonableness test. He indicated that removal costs in <br /> this market may average $10.00 per cubic yard ($162,000) and that common borrow for <br /> in-fill material may average $7,50 per cubic yard ($121,000), Thus the hypothetical job <br /> pricing of $283,000 is above the reimbursement request of $250,000, <br /> 3. Staff has received and examined copies of Rehbein's outbound truck tickets (i.e., Eagle <br /> Trucking Enterprises, Inc.) and detailed employee daily time tickets from Glenn Rehbein <br /> Excavating, Inc. This documentation supports the overall subcontractor soil correction <br /> cost estimate of$243,635. <br /> 4. The difference between the subcontractor cost ($243,635) and the $250,000 <br /> reimbursement request is $6,325, This level of developer subsidiary reimbursement is <br /> 2.6% ($6,365/$243,635) and appears to be a reasonable overhead charge, <br /> Related Action <br /> On September 3, 1998, check number 14617 was issued to Welsh Development Corporation in <br /> the amount of $82,090 as draw # 1 for soil correction reimbursement. This check was released <br /> prior to EDA formal action in order to facilitate the closing of the Phase IV (1787 Gateway . <br /> Boulevard) property to the new owner, Apache Group. <br /> Recommendation <br /> Staff believes that Developer, Welsh Companies, has provided adequate documentation for <br /> $250,000 in soil correction cost reimbursement and recommends that the Arden Hills EDA <br /> authorize reimbursement for this amount, including $82,090 for draw #1 and $167,910 for draw <br /> #2 at the September 14, 1998 EDA meeting. <br /> Enclosures <br /> . <br />