1g Approve Budget Allocation for Non-MSA funded Items, Project 97-1B-2
CITY OF
CHANHASSEN
)0 City Center Drille, PO Box 147
o,anhassen, Minnesota 55317
Phone 612.937.1900
Geneml Fax 612.937.5739
Ellgilleerillg Fax 612.937.9152
lllblic Safi'ty FllX 612.934.2524
m,b !1'!i'/u.cic!uill'il.\sm.llIll.lIi
i
"-L)
MEMORANDUM
TO:
Don Ashworth, City Manager
Anita Benson, City Engineer f't-lj J':V
August 19, 1998
FROM:
DATE:
SUBJ:
Approve Budget Allocation for Non-MSA Funded Items - Coulter Boulevard
Project No. 97-lB-2
The low bid for this project in the amount of $618,044 was awarded to S.M. Hentges & Sons, Inc.
at the July 13, 1998 regular City Council meeting. However, work items which are not eligible for
State Aid Funding were identified for which City Council requested staff evaluate the proposed
funding. These work clements which are not eligible for State Aid Funding include street lighting,
storm sewer, wetland berming and spillway, and landscaping items. Upon review of funding
availability, staff recommends the following means of funding each item:
I. Street Lighting - The street lighting should be relocated to the standard location (4 feet behind
tlle curb) and then State Aid Funding would cover this as an eligible street expense ($29,000).
2. Stoml Sewer - The additional storm sewer and increased sizing which accommodates the
drainage of properties outside of the roadway is ineligible for MSA funds. The total ineligible
storm sewer cost is approximately $46,000. Previously, staff had recommended that the
nonassessable portion of $10,000 be funded through the Surface Water Management Program.
However, upon evaluation of available TIF funding, it is now recommended that this item be
paid for with TIP.
3. Wetland Berming and Spillway - The project plans have incorporated requested wetland
enhancement elements, specifically, wetland berming and spillway in the creek channel. Staff
had previously recommended funding this $40,000 work item with SWMP funding, however,
upon analysis of available TIF funding, tllis is now recommended to be paid tllfough TIF funds.
4. Landscaping - The landscaping amount is approximately $65,000 based on the low bid. MSA
rules limit landscaping funding eligibility to tlIat typically associated with the roadway. For
this project, approximately $28,000 of the landscaping costs will be funded by State Aid. The
remaining $37,000 was proposed to be paid through both TIF andSWMP funding. However,
upon analysis of available TIF funding, it is recommended that tlle total increased landscape
costs of $37,000 be funded by TIF.
In summary, the street lighting for the project will be relocated and the $29,000 cost will be funded
tllfough MSA fU)1ding. The remaining nonassessable costs in the amount of approximately $87,000
will be paid with TIF funding.
jrns
Attachment:
Memo from Todd Gerhardt dated August 19,1998.
c: Phil Gravel, Bonestroo & Associates
l)e City ofCbllllbl15Sel1. A growing cill;}Ilp.g~pliG\9'7db;NpJyqv.~ibu'~e~(Jiwc'Ation'.\100'lIillg downtoll'lI, thrilling bl/sinesses, alld belll/tiful parks. A great plll(t' to lil't', work, alld play
690 GO' Centt'}' Dril'f, PO Box 147 FROM:
Cbllllh,zssen, /lfinnesota55317
Pholle 612.937.1900 DATE:
Genenzl Fax 612.937.5739
l.ilgilleering Fllx 612.937.9152 SUBJ:
PuMit' S~{c~I' Fllx 612.934.2524
CITY OF
CHANHASSEN
w;./I IC/i'li'. 6.d'llllha.i.ieil. mil. lIS
The City of CIJilJJIJasSCJJ. A
MEMORANDUM
TO:
Don Ashworth, City Manager
Todd Gerhardt, Assistant City Manag~r Tb .
August 19, 1998
TIF Assumptions for Gateway Development
Attached for the City Council considerations are three assumptions regarding the
Gateway TIF District.
Assumptions No.1:
Shows the revenues and expenditures as of today and no further development
occur overthe next eight years. Onthe expenditure side, you have special
assessment payments to the following:
1. Heartland America
2. On the Level, Inc.
3. Steiner's second building
City projects include:
1.
2.
3.
4.
Ground storage tank
Coulter Boulevard
Park land acquisition
Sewer, water, road (3rd phase-Cetitury Blvd.)
$2,480,000
$ 87,000
$ 200,000
$ 90,000
Total
$2,857,000
Conclusion - The overall district would be "short" by approximately -$332,000.
Assumption No.2
Shows the revenues and expenditures as of the end of the district and those
qualified users "would" receive TIF assistance. On the expenditure side you have
special assessment payments to the qualified users and the same city projects as
listed in Assumption No.1.
i.itf,
Ii Jan;:ing dOZUII!{!Wl1, thril'ing /lusinfssf,i, and betllltiflll !ltld',i. li gi'i'iitp!,I(C to lil'(. !{'od', illl
Don Ashworth
August 19, 1998
Page 2
Conclusion - The overall district would have approximately $3,000,000 in excess tax increment.
Assumption No.3
Shows the revenues and expenditures as of the end of the district and not extending the city's
three special assessments programs. On the expenditure side, you have special assessment
payments who you have contracts with to date, but no assistance for any new or proposed
projects. The city projects are the same as listed in Assumptions No.1 and 2.
Conclusion - The overall district would have approximately $3,800,000 in excess tax increment.
I have also attached a map of the Gateway Development and the assumption used by lot and
block.
Attachments
1. Assumption No.1 (as of today)
2. Assumption No.2 (proposed development with TIF assistance)
3. Assumption No.3 (proposed development without TIF assistance)
4. Gateway Development map.
5. The assumption used by lot and block.
g:\admin\tg\gateway tif assumptions.doc
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GATEWAY DEVELOPMENT
User as of Today LotIBlock Zoning Proposed Proposed
Year for Increment
Development
Heartland Lot 3, Block 1 Industrial 1999 $162,560
Lot 4, Block 1 Industrial 2001 84,730
All About Lights Lot 5, Block 1 Industrial 2000 89,457
Lot 1, Block 2 Industrial 2003 $105,072
Lot 1, Block 4 Industrial 2001 $85,000
Lot 2, Block 4 Industrial 2002 89,000
Steiner Lot 3, Block 4 Industrial 2000 181 ,760
Lot 5, Block 4 Industrial 2004 373,888
Lot 1, Block 1 Retail 2002 $43,200
Lot 2, Block 1 Retail 2002 55,680
Lot 4, Block 4 Retail 2005 96,000
Lot 1, Block 3 Retail 2003 153,840
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