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<br />~ <br />~HILLS <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />Apri] 30, 2007 <br /> <br />AGENDA ITEM 7.E. <br /> <br />TO: Mayor and City Council <br />FROM: Michelle Wolfe, City Administrator~ <br /> <br />SUBJECT: County Road H Project: <br />Approval of First amendment to Preliminary Development Agreement <br />Approval of Resolution No. 07-5], Re]ating to Financing of Project; Establishing <br />Intent with Respect to Reimbursement <br /> <br />BACKGROUND <br /> <br />The City of Arden Hills is currently conducting a Master Planning process for TCAAP <br />redevelopment. As part of that project, several transportation improvements will be needed. In <br />terms of phasing and priority, it has been determined that improvements to the County Road H <br />Interchange will be the first improvement needed for the project. The City has been working <br />with the developer (RRLD) to identify funding options for this and other anticipated projects. <br /> <br />DISCUSSION <br /> <br />The strategy for County Road H funding is to attempt to secure federal funding. In order to <br />actually receive funding in time to meet the anticipated construction schedule (2008 <br />construction), it is necessary to begin pre-design engineering. RRLD is willing to fund the pre- <br />design engineering work, however, is requesting that the City take steps to ensure that these <br />expenditures have the ability to be reimbursed if other funding is secured at a later time. <br /> <br />The anticipated budget for this work is $425,000. In order to meet the 2008 construction <br />timeline, pre-design work would need to begin May], 2007. Further delays will likely make any <br />construction in 2008 difficult to achieve. The benefit of starting the bridge work in 2008 is that <br />it a1]ows the possibility of substantial project completion and function at the end of2009. <br /> <br />There are two actions requested of the CounciL The first is to approve a First Amendment to the <br />Preliminary Development Agreement (PDA) with RRLD (attached). As Council is aware, the <br />approved PDA includes language regarding developer reimbursable costs. (Section 5(t) 2). This <br />expenditure for County Road H pre-design would become an additional item on Exhibit E of the <br />PDA. This means that if the PDA is terminated before its expiration, or the term expires with or <br />without an MDA, and the City within two years after the effective date of termination or <br />expiration enters into a definitive development agreement with another developer, then the City <br />