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nifREQUEST FOR COUNCIL CONSIDERATION Agenda Section: 6. J��D� STAFF REPORT Report Number: 96-1651C REVY AGENDA SESSION DATE April 1, 1996 Report Date: 3-28-96 ISPOSITION Item Description: Consideration of Lands Acquisition for Surface Water Pond (Bronson Drive Reconstruction, Pond Development) Administrator's Review/Recommendation: - No comments to supplement this report V v`fr - Comments attached. Explanation/Summary (attach supplement sheets as necessary.) SUMMARY; In an earlier Surface Water study, the excavation of a water quality/holding pond was identified for the property adjacent to the Bel Rae Ballroom. Staff has contacted the owner of the property, inquiring the possibility of the City purchasing the parcels. Economic Development Coordinator Cathy Bennett has contracted a consultant to appraise the property. This appraisal was received last week. The appraised value of all three parcels was $330,000.00. The property owner originally requested $295,000.00 for only the large parcel. Staff was directed to offer the owner the appraised amount of$330,000.00. The owner has verbally accepted the City's offer. In light of the fact that 60 days must elapse prior to the ordering of an assessed project, staff would request Council direction regarding the purchase of this property. Related to the purchase of these parcels and the Bronson 0 Project is the funding aspect. MSA will pay for land acquisition of the larger parcel, however this expenditure will exceed the City's account balance. Pending projects scheduled for the near future, Old Hwy 8, and reconstruction of Spring Lake Road and reconstruction of County Road H2, will require State Aid Funds. The Surface Water Management Fund balance is approximately $230,000.00. TIF funds are a possible use for the purchase of the two parcels fronting Edgewood Drive. That amount will be determined by Council. The appraised value of all three parcels was for $0.80 per square foot. As mentioned earlier, three major projects are tentatively scheduled for the next five years. Old Highway 8 will require approximately $126,000 in construction costs and an estimated $75,000 in Right of Way expenses for the Matelsky property. Total expenditures will be approximately $195,000. Other funds may be available also (TIF). • Spring Lake Road reconstruction which could occur in 1997, when the turn back will occur is preliminarily estimated by the County at $1,460,000. Ramsey County will contribute $580,000 toward the reconstruction, leaving $880,000 to be funded by MSA. County Road H2 will be turned back to the City in 1996. A reconstruction date for this road has not been scheduled at this time. Estimated reconstruction cost obtained from Rams County at this time are $1,240,000 of which the County will contribute $220,000. The amount remaining eligible for MSA funding is go$1,020,000. Tie ts..imated construction of Bronson Drive is at least $1,153,000. This number includes construction of the Surface Water Pond and land acquisition. To date the City's available funds for construction are $782,987.00. The Bronson project is realistically assessed at 33 percent.