WORKSHOP ITEM: 2 Robert Therres, Public Services Manager
Title
PROPOSED USE OF BOND PROCEEDS FOR WOODLAND VILLAGE DEVELOPMENT (SIENNA/GARDENWOOD)
Background
On September 6th Mayor Ryan, Councilmember Herbst, City Manager Arneson, with the assistance of Tom Scott, Engineering Project Coordinator negotiated an $800,000 settlement with the bond company for the unfinished improvements to the Woodland Village development formally known as the Sienna/Gardenwood development.
Since then staff has had the opportunity to meet with Woodland Village to develop a proposal on how to use the $800,000 in bond proceeds. While it is important to get Woodland Village's input on how best to get their project moving forward the Council is the final authority on how the bond proceeds are used.
The City has indicated that it will first reimburse itself for unpaid legal and engineering costs associated with this project and costs incurred in pursuing the bond payment. These costs are estimated at slightly less than $100,000. This leaves $700,000 to be used to complete unfinished public improvements is the development. Woodland Village proposes to do this as follows:
Complete Ghia Street |
$ 48,000 |
Wear course/sidewalks/trails |
$285,000 |
Lexington Ave. turn lane |
$150,000 |
Soil corrections |
$217,000 |
Total |
$700,000 |
|
|
Woodland Village is also requesting up to $30,000 from the EDA to assist with their costs for unanticipated soil corrections on this development. The total cost of soil corrections is estimated at $245,000 so the $30,000 plus the $217,000 from the bond proceeds would take care of the soil corrections.
Woodland Village proposes to use $150,000 towards the Lexington Avenue turn lane with the intent that this would reduce the proposed assessments from $666.00 per lot to $400.00 per lot.
The City would bid and administer the public improvement projects. Another impact of this bond settlement is that the City will be able to reduce an existing $250,000 letter of credit to $40,000.
Council Direction:
The figures used in this proposal are estimates and we know that they will go up and down as we get the bids for the actual improvements. Is the City Council comfortable with the proposed use of the bond proceeds including reducing the turn lane assessments from $666.00 to $400.00?
Is the Council comfortable with using up to $30,000 in EDA funds to help complete the soil corrections in Woodland Village?
One item not included in the proposal is setting aside funds for a traffic signal at Lexington Avenue and Woodland Village Parkway. The reason for this is that a signal is anywhere from 5-10 years away from meeting warrants and it would be a better use of these bond proceeds to get the development moving forward and ready so they can sell lots and build houses as soon as possible.