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<br />~ <br />~ILLS <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />May 29,2007 <br /> <br />AGENDA ITEM 7.E. <br /> <br />TO: Mayor and City Council <br /> <br />FROM: Michelle Wolfe, City Administrator <br /> <br />SUBJECT: Approval of Amendment #2 to the Preliminary Development Agreement with <br />RRLD dated March 30, 2007 <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 proj ect, 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 second improvement <br />needed in terms of timing is the Highway 10 and 96 improvement project. However, with the <br />additional time required for right-of-way acquisition and time to review environmental <br />conditions, it is advised to start the pre-design engineering phase at this time. The City has been <br />working with the developer (RRLD) to identify funding options for these transportation projects. <br /> <br />DISCUSSION <br /> <br />The strategy for Highway 10 and 96 funding includes a few options. The County has "turn- <br />back" funds available for the Highway 96 portion of the project. The City and RRLD are also <br />pursuing State of Minnesota funds for this project. Our State legislative representatives <br />submitted "introductory" legislation last week, indicating the City's intent to request funding for <br />this project from the State General Fund as well as through the Governor's Bonding bill. RRLD <br />is willing to fund the pre-design engineering work, however, they are requesting that the City <br />take steps to ensure that these expenditures have the ability to be reimbursed if other funding is <br />secured at a later time. <br /> <br />The anticipated budget for this work is $307,000. In order to meet a 2009 construction timeline, <br />pre-design work would need to begin June 15, 2007. The benefit of starting the project in 2009 <br />is that it allows the possibility of substantial project completion and function at the end of 2010. <br /> <br />There are two actions requested of the Council. The first is to approve a Second Amendment to <br />the Preliminary Development Agreement (PDA) with RRLD (attached). As Council is aware, <br />the approved PDA includes language regarding developer reimbursable costs. (Section 5(t) 2). <br />This expenditure for Highway 10 & 96 pre-design would become an additional item on Exhibit E <br />