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Department Approval <br />° � <br />l�'�, <br />Jy <br />REQUEST FOR COUNCIL ACTION <br />Date: O1/26/2009 <br />Item No.: 7.h <br />City Manager Approval <br />Item Description: Adopt Resolution Allowing Submission of a DEED Redevelopment Grant for the <br />Twin Lakes Redevelopment Area <br />1.O BACKGROUND <br />1.1. The Minnesota Department of Employment and Economic Development (DEED) is soliciting <br />Redevelopment Grant proposals and the deadline for funding requests is February 2, 2009. <br />Eligible activities include land acquisition, demolition, interior abatement, infrastructure <br />improvements, ponding, and environmental infrastructure. Staff discussed potential projects for <br />this program and concluded that the purchase of right-of-way and construction of a portion of the <br />roadway and infrastructure improvements within AUAR Subarea 1 of the Twin Lakes <br />Redevelopment Area would be a competitive project for this funding. <br />Attachment A indicates the project for which the City would be seeking funding. Actives include: <br />Construction of Twin Lakes Parkway from Mount Ridge Road to Prior Avenue and <br />associated pedestrian improvements <br />■ Reconstruction of Prior Avenue and associated pedestrian improvements <br />■ Construction of associated sewer and water improvements <br />Sased on the cost estimates provided by WSS as part of the design work and land price <br />assumptions from the Cost Allocation Study, the total cost of these improvements is approximately <br />$2.61 million--$1.66 million for right-of-way acquisition and $956,000 for the construction of the <br />roadways, pedestrian facilities, lighting, and utilities. <br />1.2. In September 2008, DEED awarded the City $528,000 for the construction of a portion of Twin <br />Lakes Parkway, Mount Ridge Road, and associated infrastructure. <br />2. O POLICY OBJECTIVE <br />2.1. Approving the submission of the Redevelopment Grant Application, the City is taking a proactive <br />step to leverage external funds to assist with the acquisition of right-of-way and construction of the <br />public roadways and utilities. <br />3.O FINANCIAL IMPACTS <br />3.1. As described above, the estimated cost of undertaking this project is $2.61 million of which $1 <br />million is being requested from DEED, leaving the City to fund $1.61 million. The City has a <br />variety of tools at its disposal to obtain these funds, including existing t� increment balances, <br />which could eventually be reimbursed by the development properties as prescribed by the 2008 <br />Page 1 of 2 <br />