11-05-2018 Council Work Session Packet

Home Search

WS – Item 2 WORK SESSION STAFF REPORT Work Session Item No. 2 Date: November 5, 2018 To: City Council From: Michael Grochala, Community Development Director Re: NE Lino Lakes Drainage Area Improvements Funding Background On October 22, 2018, the City Council authorized preparation of plans and specifications for phase 1 and 2 of the NE Lino Lakes Drainage Improvement Project. The improvements will provide an improved drainage outlet for approximately 1,350 acres of future residential, commercial and industrial land within the City. The project is proposed to funded though the Surface Water Management Fund (SWMF). The SWMF was established in 1992 to fund costs associated administrative, planning and trunk stormwater costs associated with the City’s Surface Water Management System. Similar to the city’s trunk sewer and water fund, the city collects a SWM fee with all new residential, commercial and industrial developments. The fee is based on net developable area (gross area less wetlands, arterial roads, parks). The city also provides credit for open space preservation, and developer installed oversizing of trunk stormwater improvements. The current fee is as follows: Single/two family lots $ 6,865 per acre Multi-family lots $ 9,235 per acre Commercial/Industrial/Institutional Property $10,225 per acre As noted the surface water management fund will the funding source for the NE Drainage Area improvements. The SWM fee for the Watermark project, representing approximately ¼ of the drainage area, is approximately $2.1 million. Staff is working with Springsted, the City’s Financial Advisor, on the financing mechanism for the project. Mikaela Huot, from Springsted, will be present at the meeting to discuss the possible use of Tax Abatement Bonds as the preferred bonding option. Requested Council Direction None Required. Discussion only. Attachments 1. NE Drainage Area Boundary