CCP 12-14-1998 - Laserfiche WebLink

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ARDEN HILLS CITY COUNCIL - NOVEMBER 30,1998 DRAFT 16 I Improvements Fund Number 409. Based on projected expenditures, it was unlikely that there . will be any remaining 1998 TIF Bond proceeds available to fund the revised median alternative project deficit. As of October 31, 1998, Fund Number 409 had a cash balance of approximately $1,215,000. The Fund was established to fund future City cost participation on County projects such as Highway 96 and County Road I, or "one-side" non-assessable streets such as North Hamline Avenue and North Snelling Avenue. Mr, Post indicated, although the City Engineer had revised the median alternative costs downward by some $216,970, the total base costs of this alternative, before enhancements, remain $237,995 higher than the non-median alternative, The issue of benefit for this additional level of cost is still present when comparing the alternatives. Mr. Post noted there is a large swing item in terms of the use of bond proceeds which has yet to be completed - acquisition of the Indykiewicz property and the resulting agreement with Ramsey County. Therefore, he was reluctant to project any remaining bond proceeds until this transaction is finalized. Mayor Probst asked if Mr. Post was implying that, if this issue was resolved favorably, additional funds would be available. Mr. Post indicated that this would ouly put the bonding in a breakeven position. If the City ends up with the whole taking and Ramsey County's participation level was not as expected, the bonding could be in a negative situation. Mr, Fritsinger explained that with the full parcel acquisition, the City will have an amount of dirt to sell which will create proceeds. The equipment on the property will potentially have to be . purchased which would then be sold and there would be the potential of revenue from this, Additionally, if there was a full take on the property, there would be a piece of property which may be marketable with some resale value. Mr. Fritsinger stated these would be three potential revenue sources, Mayor Probst asked if the total revenues of the parcel had been accounted for and added back in to determine the net parcel cost. Mr. Post indicated this was correct. When considering the potential commitment for the I35W bridge participation of $350,000 and the acquisition of the property at the Highway 96 intersection, in the best situation, the City would utilize all of the bond proceeds. Mayor Probst asked, having spent all of the bond proceeds, does the City have a parcel of land with a re-sale value. Mr. Post indicated the City would not if there was a partial taking of the land. Mayor Probst confirmed that the scenario in which all the funds are expended was based on a full taking of the parcel. Mr. Post indicated this was correct. Mayor Probst indicated then, that there would be a parcel of land left over and asked if this would remain as a community asset which has not been liquidated. Mr. Fritsinger pointed there was some additional cost for the acquisition of the land. Therefore, although the land was a potential revenue stream, there are increased costs to acquire the piece of property. Mr. Post pointed out the net cost to the City, even with selling the parcel, would be higher with a . full taking, as the cost for the full taking was higher than the partial taking. Mr. Fritsinger indicated, with the partial taking, the percentage of cost the County would be incurring was greater than would be incurred by the City. In a full taking, the percentages shift and the City would be responsible for a higher percentage of the cost. ---- -- ---------- ---