HomeMy WebLinkAbout10C - Waterfront Passage Business Park
CITY COUNCIL AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
MAY 4,1998 0
10C \
FRANK BOYLES, CITY MANAGER'\~
CONSIDER APPROVAL OF REQUEST BY DEERFIELD
DEVELOPMENT TO EXTEND ADELMANN STREET,
SANITARY AND STORM SEWER AND WATER TO THE
PLAT BOUNDARY OF WATERFRONT PASSAGE BUSINESS
PARK.
Historv:
Developers in Prior Lake are required to extend utilities to the
boundaries of their plat. In the case of Waterfront Passage, the City
was the developer.
The 35 acre Waterfront Passage Business Park was acquired by the
City in 1993 through contract for deed. In 1994 the site was graded
and streets, water and sewer were installed. Sewer and water was
installed under Fish Point Road to the southern boundary of the plat, as
well as under Cottonwood and Adelmann to serve the parcels in the
business park.
At the time the business park was acquired, the likelihood of
successful annexation of the Deerfield Property was speculation
although the property is within this orderly annexation area. The
Township viewed all or part of the Deerfield parcel as their business
park. The City decided not to extend Adelmann Street and the utilities
underneath it to the south boundary because: 1) There was no
guarantee that sewer and water could be extended to the Deerfield site
2) If the site remained in the township there was some reluctance to
allow access to this site through the City's business park since the
township development standards were unknown and added traffic
would reduce the road's lifespan.
CurrentC~cumsmnces:
The extension of Fish Point Road and the utilities beneath it could
serve much of the residential development expected in the 260 acre
parcel. The 58 acres reserved for business park development require
162(}~<tl~$~5,491lIDOOke, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
the extension of Adelmann Street and the sewer, water and storm
sewer for access, egress, and utility service.
The extension of the Metropolitan Urban Service Area (MUSA) has
been approved by the Metropolitan Council which allows the area to
be served with sewer and water. The 260 acre parcel has also been
amended into the Prior Lake Comprehensive Plan so it can be
developed in accordance with the City's zoning ordinance.
The attached April 15, 1998 letter from Attorney Bryce Huemoeller
states that "Rather than petition the City for installation of public
streets and utilities within the business park, Deerfield desires to
arrange for, finance and install the required improvements,
provided the City agrees to concurrently extend at the City's
expense Adelmann Street and the sanitary sewer, watermain and
other public utilities within its right of way from its intersection
with Cottonwood Lane to the north boundary of the 58 acre
parcel" .
Issues:
1. What is the cost? The engineering department has prepared the
attached cost estimate for extension of the street, sanitary sewer, water,
and storm sewer in the amount of $76,071.60.
2. Does the City have an obligation to complete the requested
extension? Legally, no. The extension of infrastructure down Fish
Point Road meets the City's ordinance requirements. However, there
are other reasons the City may have an interest in completing this
work. The annexation of this parcel was intended to expand the City's
tax base (residential), increase office park property and allow the City
to control the property immediately adjacent to the existing business
park. The developer submitted his annexation petition with the
understanding he could receive street, sewer and water through the
business park. The sewer and water lines and street dimensions of
Adelmann are sized to serve this acreage to the south. The City has a
shortage of immediately developable business office park property as
the existing park is virtually sold out. The previous City Council
positively embraced the annexation proposal in part because it would
expand the business park.
Conclusion:
The staff Development Review Committee has reviewed this request
and believes that the cost of this extension should be borne exclusively
by the Developer/owner as part ofthe cost of development. The
Economic Development Authority believes that the City should be
responsible for these costs since the City would have extended the
infrastructure at the time of platting had the Deerfield land been part of
I:\COUNCIL\AGNRPTS\5498.DOC
ALTERNATIVES:
FISCAL IMPACTS:
RECOMMENDED
ACTION:
the City at that time and because extension of infrastructure will
promptly provide an additional 58 acres of developable business park
property.
There appear to be three alternatives:
1. Require the developer to pay the total cost of infrastructure
extension estimated at $76,072. The rationale for such action is the
City extended utilities to the plat boundary along Fish Point Road and
fulfilled its obligations.
2. Cost Sharing. The City could agree to pay 50% of the actual
construction cost of infrastructure extension up to a maximum of
$38,036. The rationale for cost sharing is that the City is interested in
expediting the project but does not see itself as solely responsible for
infrastructure extension because it fulfilled its obligations by extending
utilities to the southerly plat line at Fish Point Road. These costs
would be borne by the respective trunk funds.
3. City pays the entire $76,072. There are potential problems with this
option. City Trunk reserves could be used to pay for the sewer water
and storm sewer in the approximate amount of$42,753 (including
contingency). The remaining $33,319 (including contingency) would
have to be programmed into the Capital Improvement Program since
collector street fees are currently frozen. The only other available
source is to build these costs into the TIP programs as City
contribution or as eligible expenses. A further complication is the fact
that if the City conducts the project, plans and specifications must be
prepared and bids received which adds considerable time to the
process. Under this scenario the funding would not be available this
year so the project could not be completed.
The fiscal impacts are outlined above.
The City Council should determine its preferred alternative. Alternate
3 (City pays entire cost) does not meet the developer's timing
requirements since funding for the roadway would have to be built in
to the Capital Improvement Program in 1999 or thereafter. It appears
that the Council should choose between Althernate 1 or 2. The
developer would like an answer from the City so he can determine how
to proceed.
I:\COUNCIL\AGNRPTS\5498.DOC
HUEMOELLER & BATES
ATTORNEYS AT LAW
16670 FRANKLIN TRAIL
POST OFFICE BOX 67
PRIOR LAKE, MINNESOTA 55372
JAMES D. BATES
BRYCE D. HUEMOELLER
April 15, 1998
Telephone (612) 447-2131
Telecopier (612) 447-5628
Prior Lake City Council
16200 Eagle Creek Avenue
Prior Lake, MN 55372
Re: Proposed Commercial Development of Deerfield Development LLC
Gentlemen:
Deerfield Development LLC is the owner of a 58 acre parcel of land, which the
City has designated as "Commercial Business Office Park" with a "B-P" zoning
classification in a comprehensive plan amendment that was recently approved by the
Metropolitan Council. The location of the 58 acre parcel of land is shown on the
attached exhibit that is attached to this letter.
Deerfield intends to begin development of the business park as soon as possible,
and proposes to start construction of the required subdivision improvements by mid
summer of 1998.
Rather than petition the City for installation of public streets and utilities within
the business park, Deerfield desires to arrange for, finance and install the required
improvements, provided the City agrees to concurrently extend at the City's expense
Adelmann Street and the sanitary sewer, watermain and other public utilities within its
right-of-way from its intersection with Cottonwood Lane to the north boundary of the
58 acre parcel.
By financing and constructing the needed subdivision improvements itself,
Deerfield hopes to avoid the delays resulting from incorporating the business park in
the City's 1999 Capital Improvement Budget and continue the current momentum in
business development that has been generated by the Waterfront Passage Business Park.
~ ~.
Prior Lake City Council
Page 2
April 15, 1998
John Mesenbrink and Larry Gensmer, the owners of Deerfield Development
LLC, would appreciate the opportunity to appear at the next City Council meeting to
discuss the the project and the extension of Adelmann Street.
Sincerely yours,
g(
BDH:ab
cc: Deerfield Development LLC
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SITEWORK
1 MOBILIZATION LS 1 $ 2,500.00 $ 2,500.00
2 COMMON EXCAVATION CY 1275 $ 6.00 $ 7,650.00
3 SUBGRADE EXCAVATION CY 175 $ 8.00 $ 1,400.00
4 TOPSOIL BORROW CY 115 $ 10.00 $ 1,150.00
5 SUBGRADE PREPARATION SY 1300 $ 0.35 $ 455.00
6 AGGREGATE BASE, CLASS 5 TON 530 $ 8.50 $ 4,505.00
7 CONCRETE CURB & GUTTER, B618 LF 700 $ 7.00 $ 4,900.00
8 3" BIT BASE TYPE 31 TON 165 $ 24.00 $ 3,960.00
9 1.5" BIT WEAR TYPE 41 B TON 85 $ 26.00 $ 2,210.00
10 TACK MATERIAL GAL 50 $ 1.30 $ 65.00
11 SODDING, LAWN & BOULEVARD SY 150 $ 2.00 $ 300.00
12 SILT FENCE, HEAVY DUTY LF 700 $ 1.25 $ 875.00
13 REMOVE CONCRETE CURB LF 50 $ 4.00 $ 200.00
14 SAW CUT EXISTING PAVEMENT LF 30 $ 4.00 $ 120.00
T SITEWORK SUBTOTAL $ 30,290.00
SANITARY SEWER
15 CONNECT TO EXISTING EA 1 $ 1,000.00 $ 1,000.00
16 10" PVC SEWER SDR 35 (0-8') DEEP LF 335 $ 17.00 $ 5,695.00
17 48" DIAMETER SANITARY SEWER MANHOLE EA 2 $ 1,300.00 $ 2,600.00
18 6" PVC SERVICE PIPE LF 35 $ 12.00 $ 420.00
19 CLEAN OUT LS 1 $ 1,000.00 $ 1,000.00
20 DEWATERING LS 1 $ 1,000.00 $ 1,000.00
T SANITARY SEWER SUBTOTAL $ 11,715.00
WA TERMAIN
21 CONNECT TO EXISTING EA 1 $ 1,800.00 $ 1,800.00
22 12"DIP LF 335 $ 25.00 $ 8,375.00
23 FITTINGS lBS 1000 $ 1.10 $ 1,100.00
24 HYDRANT WITH 6" VALVE EA 1 $ 1,750.00 $ 1,750.00
25 6"DIP LF 35 $ 18.00 $ 630.00
26 6" GATE VALVE EA 1 $ 475.00 $ " 475.00
27 DEWATERING lS 1 $ 2,000.00 $ 2,000.00
T WATERMAIN SUBTOTAL $ 16,130.00
ADLEMANN.xLS
Page 1
~
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STORM SEWER ,
28 12" RCP IF 32 $ 23.00 $ 736.00
29 24" RCP IF 165 $ 29.00 $ 4,785.00
30 CBMH EA 2 $ 1,500.00 $ 3,000.00
31 CONNECT TO EXISTING EA 1 $ 500.00 $ 500.00
32 STMH EA 2 $ 1,000.00 $ 2,000.00
T STORM SEWER SUBTOTAL $ 11,021.00
$ '69,156.00.
10% CONTINGENCY $ 6,915.60
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ADLEMANNXLS Page 2