CCP 01-25-1999 - Laserfiche WebLink

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", tit e . ARDEN HILLS EDA SPECIAL MEETING - JANUARY 4,1999 DRAFT 3 The property owner has suggested that they are amenable to coming to an agreement on the purchase price of the property now, excluding the fixtures and dirt, and continue to work on the value of these items. What is being proposed is that, if a negotiated agreement on the fixtures and dirt is not reached by a certain amount of time, then an arbitration process would begin to resolve the value of those items. Assumably then, the property owner's value would be the worst case scenario for the fixtures and dirt, unless the City's appraisal comes in at a higher number. Why not let Ramsey County build the intersection in their time frame? Ramsey County is in the process of reconstructing Highway 96 from Old Highway 8 in New Brighton to Interstate 35E in White Bear Lake. The original reconstruction schedule for the entire project was estimated to commence in the year 1997 and conclude in the year 2000. It was anticipated that Ramsey County would be working on this portion of the project at West Round Lake Road by this time. It has not yet begun work, however, due to a lack of State and Federal funding availability for Ramsey County. The reconstruction schedule of the Highway 96 project is currently estimated to commence in the year 1999 and conclude in the year 2002. The City can choose to provide traffic police at the corner when the new office/showroom is constructed in the GBD and the traffic levels warrant this action. Otherwise, the City can choose to commence building this portion of the road. The Staff previously estimated that traffic control by police would cost $2,000.00 per week. The developer, Welsh Development, is responsible for paying this service until March 31,1999, after that date it is the City's responsibility. Assuming the Ramsey County project is to be completed October I, 2002, the traffic police option could cost up to $364,000.00. The City would then still have to pay Ramsey County for upgrading the intersection. The City Engineer estimates that this upgrade cost would be approximately $531,910.00. Thereby, bringing the total cost of this option to $895,910.00 and the City would not own the remnant part of the Indykiewicz site. The City had discussed a cost sharing agreement with Ramsey County. The City would advance fund the project which is not an unusual situation in Public Works projects. Total cost for the right-of-way would be $1,150,000.00; fixtures and dirt would be $353,650.00; the road reconstruction would be $1,016,110.00; and the miscellaneous cost would be $52,757.60 for a total project cost of $2,572,367.00. Ramsey County has used the cost of a partial take on the right-of-way and broke out the remaining cost on a percentage of that right-of-way cost. Therefore, of the $2,572,367.00, Ramsey County would be responsible for approximately 55% and the City would be responsible for 45%. Some of the costs would be reimbursable to the City. Ifthe City bought the entire property, the remnant parcel could be resold. Staff estimates this value to be 66% of the value the cost of the parcel. Staff feels confident in the estimated cost of the fixtures and dirt and have estimated its value to be 75% of the original cost. With the sale of these reimbursables, the total revenue return would be estimated at $459,226.88 which would offset the City's cost portion of $1,229,793.42 for a total cost to the City of $770,566.54. The City did not plan to spend the money up front, however, with the original budget for the TIF Fund, the City did anticipate spending approximately $1,136,000.00. There are some short term