05/01/2006 Council Packet - Laserfiche WebLink

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• • • As proposed in the JPA, Lino Lakes would be responsible for 50% of the 21st Avenue extension costs estimated at $150,000 and acquisition of the right -of- way in Lino Lakes. The City does not have this project programmed in its draft 5 -year Financial Plan and does not have a potential funding source other than special assessments to the benefiting property owner or a property tax levy. Staff is not recommending the use of property taxes for this project. The property affected by the improvement is currently owned by Mr. Gerald Rehbein. Staff has spoken with Mr. Rehbein regarding the project. He is supportive of the project, and staff has worked with Centerville to address his previous issues with the road alignment. Staff, following review by the City Attorney, has provided Mr. Rehbein with a Petition and Waiver agreement addressing the proposed special assessments as well as the necessary street right -of -way. Project Financing The proposed JPA calls for payment to the City of Centerville in the amount of $75,000 within 30 days of the contract award and the remaining $75,000 dollars upon contract completion. Staff is currently working to determine the best financing mechanism for the project, which may include the issuance of bonds in conjunction with other projects scheduled for this year. Additionally, while Mr. Rehbein is supportive of the proposed assessment he has indicated his interest in having the assessments off -set by existing trunk utility credits he received as part of the Clearwater Creek Business Center Development. As part of the project, Mr. Rehbein installed trunk utilities at his expense. In return the City agreed to provide a credit equal to the cost of the trunk improvements against future Trunk Utility charges collected from development of his properties. He still has an existing trunk credit of approximately $120,000. Staff is currently evaluating this request. Council Direction None Required. Staff is anticipating bringing forward the executed Petition and Waiver agreement and the Joint Powers Agreement to the City Council for consideration at the May 8, 2006 meeting. Attachments 1. Project Layout Page 2