10-12-88 Council Minutes - Laserfiche WebLink

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MINUTES City Council October• 12, 1988 Country Dr•. Fahey asked for a br•eak-down of the Burke Lane costs. Relocation (Cont.) The City Engineer r•eplied that he did not break-down these costs as ther•e is only a shor~t section of Burke Lane that is included in the cost estimates. Fahey pointed out that the City would be planning to use Tax Increment Financing monies to write down some of the costs of the Countr•y Drive pr•oject. Fahey pointed out that there is an increased cost of approximately $600,000 for lowering Country Drive over• the Engineer's 1987 estimate for upgr•ading of the road. Pat Pelstr~ing, Business Development Services, reported that his fir~m has been wor•king with the Economic Development Committee on studying the issue of lowering Country Drive. Pelstring pointed out that there ar~e appr~oximately 10 acres of developable land along Country Drive and taking a conser•vative appr•oach, the City could expect a$4 million development on this pr•operty. Pelstr•ing estimated that if the property took 6 years to develop and if TIF was used to assist in the development, the City would have a minimum of $420,000 in net TIF proceeds for public improvement costs. Pelstring also pointed out that if Countr•y Drive is lowered, ther~e would be additional r•evenue generated fr~om the sale of the sand that would be removed as part of the project. The City Engineer estimated about $200,000 in revenue from the sale of the excess soil. Pelstring also informed the general public that the Country Dr•ive project would not be begun until the City had a developer for the property. At that time, the City would know what the cash flows of the project would be. Pelstring also r•eported that his fir~m has obtained proposals from thr~ee differ•entmar~ketinpanalysisfir•msto deter•mine what the best use of the site would be. This information could be provided to developers so that the valuation of the site once developed could be maximized. Pelstring reported that once a developer for the site is found, that developer would sit down with the City to work out a detailed financial analysis of the site. Pelstring reported that once the market analysis is pr•epared, the City will be in a good position to go out and discuss opportunities for development of the site. Pelstring estimated that by April or• May of next year, the City will know if the lower•ing of Country Drive is feasible and if a developer can be attracted to the site. Pelstring pointed out that the fir•st major• obstacle for a developer in this case would be site assembly and working with the City on a financing package to br•ing d.evelopment in. Pelstring felt that by having Page -3-