HomeMy WebLinkAbout8B-Extension of Sewer/Water to Orderly Annexation AreaPrior Lake, MN 55372
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ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: June 17, 2013
AGENDA #: 8B
PREPARED BY: Dan Rogness, Community & Economic Development Director
AGENDA ITEM: Extension of Sewer[Water to Orderly Annexation Area
DISCUSSION: Introduction
The purpose of this item is to provide a report on the status of extending sewer and water through
the SMSC and Menden property to support future development opportunities within the Orderly An-
nexation Area (OAA).
Hi story
City staff has identified this public utility extension as a key issue for the future development of Prior
Lake. Sewer capacity is at its limits to serve any additional land located within the OAA. It must
extend from CR 82 south approximately 800 feet through SMSC and Menden property to connect
with the north end of Stemmer Ridge Road. Such utility extensions typically happen with private
development, but because of its importance to so many future acres of development, staff has begun
to evaluate other options.
Current Circumstances
Staff completed a preliminary cost estimate for extending street, storm sewer, water main and san-
itary sewer from CR 82 to Stemmer Ridge in two phases:
• Phase 1 = $1,750,000 from CR 82 to Howard Lake Rd (access road to Spring Lake Park).
• Phase 2 = $2,305,000 from Howard Lake Rd to Stemmer Ridge Rd.
This total $4 million cost would typically be split between the city and developer based on a local vs.
oversize formula. In this case, Phase 1 is on property owned by SMSC. Phase 2 would be devel-
oped into single family housing (according to the Comp Plan). The street ROW would also be ded-
icated with the plat. Without a developer, the city would need to initiate eminent domain to obtain
the property needed for the street connection, and it would structure bond financing supported by a
possible combination of tax levy, utility funds and assessments for the full cost.
Conclusion
The Phase 1 connection is already shown in the city's Capital Improvement Plan (CIP); the second
phase is not. The EDA may want to contribute its thoughts and ideas to this important issue that
impacts Prior Lake's future development opportunities.
ISSUES: What are the most appropriate steps to take, if any, in order to make sure that the OAA has the key
sewer and water connection necessary to allow future development? Is there a critical time that
may warrant city action to make sure this connection is completed?
FINANCIAL As discussed above.
IMPACT:
ALTERNATIVES: For discussion only.
RECOMMENDED For discussion only.
MOTION:
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