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City Gou�ci� Study Session — OS/16/OS DRAFT Minutes - Page 13 6. Update Regarding Improvements to State Highway 36 Public Works Director Duane Schwartz provided three potential project segments for adding a third eastbound lane in conjunction with the replacement of the Lexington Avenue bridge. Mr. Schwartz outlined cost projections for addition of an eastbound lane from I-35W to Rice Street; from I-35W to T-3��., or from I- 35W to Da1e Street. Mr. Schwartz reviewed State Statute (161.361) allowing other road authorities to advance the Commissioner funds to expedite construction on trunk highways, stipulations regarding payment and interest rates; and reviewed costs from $12.8 Million to $15.5 Million. Discussion included traffic projections and ramp locations; requested amount to be advanced by the City; potential for federal or matching funds; width of Rice Street; and disappointment in the projected costs. Councilmember Ihlan noted comments of the City's Finance Director Chris Miller related to the dire financial consequences should the City undertake such a loan of this magnitude for an extended period of time; and questioned why such dire consequences would also not apply to the proposed Twin Lakes Redevelopment project and the developer's request for assistance. At the request of Mayor Klau�ing, Mr. Miller explained that the Highway 361oan to MNDot would remove $15 Million in assets from the City books whereas TIF' does not remove assets from the City's books but instead represents revenue that comes from the new taY base that is created by the new development. Mr. Miller further noted the "but for" test used for a TIF' plan. Councilmember Ihlan opined that there were other ways to fund the Twin Lakes redevelopment outside of increments or bond funds. Further discussion included the traffic congestion on 1-35W and cost prohibitions. Improvements to State Highway 36