Corcoran caps facility bond at $2.75 million

Selects Ebert as construction manager

The Corcoran city Council authorized proceeding with a bond sale to fund the new public works facility, and capped the amount at $2.75 million.

The council also appointed a Corcoran company as the public works construction manager, and heard an update about the sewer/water project.

PUBLIC WORKS

FACILITY

The council took action on several items related to construction of a new public works facility on Roehlke family land on the eastern edge of County Rd. 19 just south of County Rd. 10.

The council received three proposals for construction management — from the Ebert, RJM and Kinghorn construction companies. Mayor Ken Guenthner and councilors Rich Asleson, Tom Cossette, George Gmach and Roz Milbrandt ultimately chose Ebert, of Corcoran, to head the public works facility construction management.

“They decided to go with Ebert as the best lower overall cost with the best performance,” city administrator Dan Donahue later said.

The council also received two architectural proposals, one from public works phase one design architect Oertel, and the other from the DJ Medin group. Donahue said Ebert, the construction manager, would have input on the design before the council chooses a facility architect.

“The council wants Ebert to have its fingerprint on everything from the design to the final construction,” Donahue said. “They’ll be our representative and manage the construction process.”

Construction is anticipated to begin late winter/early spring, with fall 2013 completion.

In related matters, the council authorized proceeding with a bond sale after receiving different options from the Northland Financial group. The council approved resolutions setting up the process for a public works bond sale, and also a certificate for capital improvement.

In seeking the bond sale, the council had to set a dollar amount. Once that amount is set and a public hearing is conducted, the city can seek a bond for that amount or can go lower, but cannot go higher. The council decided to cap the bond at $2.75 million, which was recommended under phase one of the architectural study.

The public hearing for the bond was set for Thursday, Sept. 13.

“The recommendation is to sell the bonds and pay them back over 25 years,” Donahue said. “Part of the process is to determine a year-by-year basis of what debt service would be. We can structure it, such as for ascending or descending payments. They’ll look at different options and set a schedule for principal and interest.”

Donahue noted that with the city’s tax increment financing districts set to expire next year, the city would be positioning itself for $90,000 to $100,000 more yearly tax revenue that would be available for the general fund.

“The thought is this will pay for the increased debt service (for the public works facility bond),” Donahue said. “Plus we anticipate a lot more development to pay for some of it.”

Lastly, in related matters, the council went into closed session after the meeting and authorized purchasing 12.62 acres of land from the Roehlkes at $15,000 per acre.

 

SEWER/WATER

In further matters, the council heard a sewer and water project update.

The city engineer said everything is on schedule for construction to start this month. Construction would last about a year, and sewer and water services would be online next July at the earliest.

The first extension will come from Maple Grove west to County Rd. 116 by St. Thomas Catholic Church.

The city council is still deciding whether to extend services to the downtown area.

“I’d say we’ll have a decision on downtown by September,” city administrator Donahue later said. “We’ll have another meeting with the property owners, and the city council will look at options.”

Part of the process is determining the city’s five-year financial plan, which will consider “x” percent assessments versus “x” city contribution.

“What’s the impact on budget surpluses, etc?” Donahue said. “We’ll look at scenarios and determine whether to move ahead or not.”

In other action, the council:

RECEIVED the five-year financial plan, which must be approved in order to sell public works facility bonds. Part of the plan projects out debt service and surpluses year by year. This is needed for a bond rating and for fiscal management. It would be adopted most likely before the end of September.

HEARD that the owner of the condemned downtown County Rd. 10 commercial building is proceeding with a plan to demolish the building, which would circumvent any need for city action.

-Compiled by Aaron Brom

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