City Council Meeting Date: July 12, 2016
To: Mayor and City Council
From: Ben Martig, City Administrator
Title
Consider Resolution establishing a “Committed” Fund Balance Designation for Certain TIF#4 Funds for the Purpose of Site Improvements Associated with the “Save the Northfield Depot” Redevelopment Project and Related Transit Hub.
Body
Action Requested:
The Northfield City Council consider Resolution establishing a “Committed” Fund Balance Designation for Certain TIF#4 Funds for the Purpose of Site Improvements Associated with the “Save the Northfield Depot” Redevelopment Project and Related Transit Hub.
Summary Report:
The City Council met at the Work Session of July 12 to review the attached request from the Save the Northfield Depot. They are requesting designation of TIF#4 funds for site improvements they are estimating, based on the attached quote, in the amount of $129,125. There is approximately $150,000 in available TIF#4 funds that have not been formally designated by the City Council. Staff is recommending designating the full remaining funds to provide for the estimated cost plus extra contingency. This designation of use of funds would appropriate funds available for the project.
The City Fund Balance Year-End Classification Policy establishes guidelines for designating fund balances for particular purposes. Staff is recommending establishing the restrictions as a “Committed” fund balance which requires approval by resolution. The policy is attached with the related section highlighted in yellow.
Staff is not recommending authorizing the expenditure at this time pending further review of the design and other site ownership considerations as further outlined in this memo.
The City Engineer’s office is currently reviewing the quote received by the Save the Northfield Depot’s contractor ProCon. City Administrator Martig is recommending that the improvements meet public design standards in order to ensure that improvements would meet minimum standards to adequately serve a potential transit hub. Staff is reviewing options to re-plat the site in conjunction with creating a separate parcel for a potential future transit hub along with clarifying the shared use of the driveway by either an easement or dedication of public right of way. This final plan may clarify whether it is appropriate for the City to construct the improvements through a public bid or alternatively expend funds privately via contractor for the Save the Northfield Depot.
The Save the Northfield Depot is interested in moving the project along in a timely fashion in order to meet their site development needs. However, they have been supportive of the recommendations being presented and considerations currently under review. Staff intends to continue to pursue these and meet with the Save the Northfield Depot representatives to bring back further recommendations to the City Council.
Alternative Options:
A. Do not approve the designation and alternatively allow the other project details to come forward prior to designation of funds.
Financial Impacts:
There is approximately $150,000 in available TIF#4 funds available that are not designated.
Tentative Timelines:
Recommendation to consider designation of funds at the regular meeting of July 19, 2016.