|
The major increase in the 1997 Construction Fund is due to billing Anoka County $1,032,516 for their
<br />share of the cost related to realignment of Otter Lake Road, Anoka County's share had been originally
<br />estimated to be $677,000. Anoka County is reviewing those costs and has not paid the City as of the
<br />audit date.
<br />Town Center Construction Fund
<br />Over the past four years, the City has purchased two different parcels in the "Village Area" of Lino
<br />Lakes for the purpose of reselling the property for development. A third parcel was traded for the land
<br />the Civic Complex is located on. Future and sales are intended to cover the purchase of these three
<br />parcels. In addition, the proceeds from the sale of the former police station land and adjacent lots will
<br />also go toward covering these costs after repaying an interfund loan made by the Water and Sewer
<br />Fund in 1998.
<br />The total amount of the costs incurred on the acquisition of these parcels and the costs associated with
<br />them through the end of 2001 is $2,118,143. Two of these parcels were financed with contracts for
<br />deed; as of 12/31/01, the remaining principal balance of the two contracts is approximately $859,352.
<br />Summary of Activity
<br />Description of Expenditure
<br />1996 - 1999 2000 2001 Total
<br />Capital Outlay (inc.land) $ 1,897,522 $ (120,000) $ $ 1,777,522
<br />Interest expense 30,128 27,811 27,811 85,750
<br />Engineering 50,009 - 50,009
<br />Professional services 190,147 190,147
<br />Legal 14,172 14,172
<br />Other 374 169 543
<br />$ 2,182,352 $ (92,020) $ 27,811 $ 2,118,143
<br />Revenues
<br />Net land sale proceeds 158,257 - 158,257
<br />Remaining deficit $ (2,024,095) $ 92,020 $ (27,811) $ (1,959,886)
<br />Note: the expenditures above do not include any accrued interest on the Rehbien contract.
<br />The interest (and principal portion) will be paid as land is sold. At the end of 2001, the accrued
<br />interest is approximately $165,000. When future payments are made the payments will be applied
<br />first to accrued interest and the remainder then applied to the principal balance.
<br />There are approximately 11.5 developable acres that remain for sale, including the 3 acres from the
<br />former police station land. The above deficit of $1,959,886 (in addition to any other costs that are
<br />charged to this project in future years) will need to be funded from either land sales or other revenue
<br />sources, if the revenues generated from the land sales are not sufficient.
<br />The following table calculates what the "breakeven" price on the remaining "Rehbein" and "Funkhouser"
<br />parcels will need to be to cover the costs incurred through the end of 2001. In addition to these costs,
<br />the sale prices will need to be sufficient to cover any additional costs that will be incurred in future
<br />years; including interest that will be paid as the land is sold. Assuming that the land remaining near the
<br />former police station land is sold for the appraised value of $82,500 per acre, the remaining parcels will
<br />need to be sold for an average of $6.15 per square foot, or approximately $268,000 per acre in order to
<br />cover costs incurred through the end of 2001.
<br />(9)
<br />
|