The Dayton City Council met for a special meeting Tuesday, April 2. The agenda included consideration of hiring a planning assistant and considering pursuit of a TED grant.
The council authorized hiring Matt Gindele as the city’s new planning assistant. He has experience working in Jaynesville, Minn. in planning. His official status is contingent on a background check and drug test, per standard procedure. Gindele will begin April 29 at the starting salary of $38,000.
Also during the meeting, the council authorized staff to move forward with preparing materials to submit for the TED grant as a potential funding vehicle for the Brockton Lane/Interstate 94 project. The city will seek up to $7 million in grant funds from the TED grant. Kevin Jullie, of SRF Consulting explained the project’s financing concept based on what the city thinks it can receive from other contributors. Expected funding sources are as follows:
• $7 million from the TED grant
• $2 million from the city of Rogers including Varde and Stones Throw addition
• $3 million from City of Dayton
• Other surrounding cities and private land owners
• Surface Transportation Funding – federal funding program through the Metropolitan Council
Phase I of the Brockton Interchange project is estimated to cost $16.3 million. Phase I is required to get full access to I-94. Construction in this phase would include the main road connecting Brockton Lane to County Road 81 and half of the bridge and a two-lane road in each direction along with enough ramps to provide access.
The city heard from Bruce Kimmel, vice president and senior financial advisor at Ehlers & Associates, Inc., about possible ways for the city to come up with its $3 million share for the project.
He explained the city’s existing general obligation bond issues. All of the city’s current bond issues are callable within the next seven years with some of them able to be paid down early with new development and trunk area charges and fees.
Kimmel said if the city borrowed $3 million to pay the city portion of the Brockton Interchange project and assuming the bonds were issued in 2014 wit payment on the issuance not beginning until 2017, the bonds could be back loaded, taking into account that there would be development to help pay the debt. Kimmel estimated the Brockton bond would be equal to about 9 percent of the existing debt service based on an estimated interest rate of 3.25 percent. The average payment on the bond would be about $200,000 annually.
The cost to prepare the grant is $8,000. City staff will coordinate with SRF Consulting to prepare the grant.
Contact Mindy Mateuszczyk at email@example.com.