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HomeMy WebLinkAbout6. Resolution No. 2004-3, A Resolution Amending Resolution 2003-5, A Resolution Adopting the 2004 Budget *b CITY OF SHAKO PEE Memorandum TO: Economic Development Authority FROM: Paul Snook, Economic Development COOrdinato~ SUBJECT: Resolution No. 04 - 3, A Resolution Amending Resolution 03 - 5, A Resolution Adopting the 2004 Budget MTG DATE: August 3,2004 INTRODUCTION and BACKGROUND: At the July 6th meeting, the City Council heard a request from the Scott County Housing and Redevelopment Authority to be involved in a three way split of a $240,000 cost overrun for the Northridge Court Project. At the July 20th meeting, the City Council, in determining that Northridge Court is an economic development project, directed that the City's portion of the funding for the project cost overrun come from the EDA budget reserve (see attached memo). There is $391,000 (as of 12/3103) in the EDA budget reserve. ACTION REQUIRED: Offer Resolution No. 04 - 3, A Resolution Amending Resolution 03 - 5, A Resolution Adoptingthe 2004 Budget, and move its adoption. CITY OF SHAKOPEE Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Northridge Court Cost Participation DATE: July 14, 2004 INTRODUCTION: The Council is asked to give direction as to the source of funding for cost participation for the Northridge Court project, and to also consider a delay in the construction of the Levee Drive parking lot. BACKGROUND: At the July 6th meeting, the Council heard a request from the Scott County Housing and Redevelopment Authority to be involved in a three way split of a $240,000 cost overrun for theNorthridge Project. After discussion, the Council directed that: 1. The Levee Drive parking lot be constructed now, as had been previously negotiated; 2. The City would pay 1/3 ofthe shortfall, or $80,000. Staff was directed to recommend a source of funding for that. The City had previously paid the $36,000 as its agreed-to share of the Levee Drive parking lot cost to the HRA. The source of funding for that was the Park Reserve Fund. The Levee Drive parking lot is to be a trailhead lot, and therefore is logically a park expense. This money was provided in the FY 04 budget. DISCUSSION: The HRA's original intent to have the Levee Drive lot constructed prior to the August 1 st Northridge Court opening is not possible. Engineered drawings are in the process of being finalized. In addition, since the July 6th meeting, it was determined that the anticipated undergrounding of electrical lines over the site of the parking lot could not be done prior to construction, even ifthe HRA was able to proceed. What is being recommended at this time from the HRA is that the construction ofthe parking lot be deferred for one year - until July or August of 2005. That will allow SPUC an opportunity to get approval from the Shakopee Public Utilities Commission to underground the electrical lines (money was provided in their 2004 budget, but not yet approved). In addition, it will allow the Park Board an opportunity to review the design of a parking lot in that area, and be certain that a location is provided for the DNR trail. All this is contingent upon the HRA being able to negotiate a firm price with their contractor - the need is to have the parking lot cost be the same as in their existing contract ($72,000). BUDGET IMPACT: As stated earlier, the $36,000 as the City's share ofthe parking lot construction came from the Park Reserve Fund. Regarding the $80,000 that Council approved at the July 6th meeting as a share ofthe shortfall, there are three possible sources of funding. In staffs recommended order, they are: 1. Capital Improvement Fund - Assuming the entire $80,000 is designated towards the construction of the Fuller Street opening; the CIF is a logical source for this. The existing CIF balance is approximately $3 million. 2. General Fund - If used, there would be a need to amend the General Fund budget, and take $80,000 out of the General Fund balance. 3. EDA Fund - There is $391,000 (as of 12/3103) in the EDA budget reserve. In order to use this as a source of funding, however, the Council would have to determine that the Northridge Court Project is an economic development project. Construction of the Fuller Street opening, as suggest above, would be a regular "City function". RECOMMENDATION: I recommend the following: 1. That the Levee Drive parking lot be allowed to be deferred until mid-2005, with the HRA constructing it at that time. 2. That the Council authorizes $80,000 to come from the CIF Fund as the City's participation. ACTION REQUIRED: Ifthe Council concurs, it should, by motion, authorize the following: 1. Authorize the HRA to construct a Levee Drive parking lot (after normal City engineering review) in mid-2005. 2. Authorize $80,000 to come from the Capital Improvements Fund for the City's share ofthe project shortfall. Mark McNeill City Administrator MM:th CC: Gregg V oxland Bill Jaffa *Co CITY OF SHAKOPEE Memorandum TO: EDA Commissioners Mark McNeill, Executive Director FROM: Gregg Voxland, Finance Director RE: 2004 Budget Amendment Resolution No. 2004-3 DATE: Jul y 21, 2004 Introduction Attached is Resolution Number 2004-3, which amends the 2004 Budget. Background The 2004 budget needs to be amended to provide for the funding support of the Northridge project. The Shakopee City Council has requested that the EDA fund $80,000 in unanticipated costs for the Northridge housing project. Action Offer Resolution Number 2004-3, A RESOLUTION AMENDING RESOLUTION NO. 2003-5 A RESOLUTION SETTING THE TAX LEVY FOR 2003/04 BY THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF SHAKOPEE AND ADOPTING THE 2004 BUDGET, and move its adoption. Gregg Voxland Finance Director g, \budget03 \Budamend03 \ RESOLUTION NO. 2004-3 A RESOLUTION AMENDING RESOLUTION NO. 2003-5 A RESOLUTION ADOPTING THE 2004 BUDGET WHEREAS, the Economic Development Authority for the City of Shakopee has adopted a Budget for 2004, and WHEREAS, due to changing conditions and circumstances, there is reason to amend the Budget, NOW, THEREFORE, BE IT RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF SHAKOPEE, MINNESOTA, that the 2004 Budget is amended to increase expenditures by $80,000. Adopted in session of the Shakopee Economic Development Authority for the Ci ty of Shakopee, Minnesota held this day of August, 2004. Chairman ATTEST: Executive Director " b, CITY OF SHAKOPEE a~Q~ Memorandum TO: Economic Development Authority FROM: Paul Snook, Economic Development coordinat~ SUBJECT: Authorization of payment to Scott County HRA MTG DATE: August 3, 2004 Upon adopting Resolution No. 04 - 3, the EDA should authorize payment of$80,000 to the Scott County HRA for the N orthridge Court proj ect cost overrun.