HomeMy WebLinkAboutA010 - Council Action Form dated September 8, 1992 r
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ITEM
DATE September 8, 1992
COUNCIL ACTION FORM
SUBJECT: Southern Hills Industrial Park Special. Assessment Program
BACKGROUND:
In early August, the City Council received a request from Maggie Sevde,
representing the Southern Hills Industrial Park, for the City to consider a
special assessment program to finance sewer and water improvements on her
development on Airport Road.
Historically, the developers of a parcel of land are required to pay the costs
associated with all public infrastructure improvements. This request to have
the City special assess these improvements would therefore be breaking with
tradition.
However, at the time the City was considering utilizing TIF as an incentive to
promote a community industrial park, proposals were solicited from various
developers throughout the City. The two finalists for the community industrial
park included the Ford Street Development Company and the Sevde Partnership.
At the time the City Council decided to establish the community industrial park
on East Lincoln Tray, indications were given to the Sevde's that the City Coun-
cil would look favorably on utilizing incentives other than TIF to insure that
their project on Airport Road received City support.
ALTERNATIVES
1. The City Council can approve the request from Maggie Sevde for the City
to special assess the water and sewer utility improvements at the Southern
Hills Industrial Park.
2. The City Council can reject .the request from Maggie Sevde for the City to
special assess the water and sewer utility improvements at the Southern
Hills Industrial Park and ask the developer to pay these costs.
MANAGER'S RECOMMENDED ACTION:
Given the strong indication from the City Council of the willingness to support
the successful completion of this project, it is the recommendation of the City
Manager that the City Council adopt Alternative #1 and approve the concept of
a special assessment program to finance the water and sewer utility improve-
ments at Southern Hills Industrial Park.
The cost of this project, estimated to be $24,741, will be spread over a ten-
year period for a total principal and interest cost to the industrial park owners
of $33,573. Because of the relatively small amount involved in this project, the
financing will be advanced from the Special Assessment Fund.
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In order to accomplish this alternative, the City Council must (a) approve an
agreement for assessment, (b) approve a preliminary resolution, (c)' approve
plans and specifications, and (d) approve the resolution of necessity.
COUNCIL ACTION: