01-27-1997 Council Packet - Laserfiche WebLink

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CO(y/vc/^ REQUEST FOR COUNCIL ACTION DATE: 1997 ^irvop ITEM NO: OftO/Vo Department Approval: Name Ron Moorse Title City Administrator Administrator Reviewed: 7 Agenda Section: City Administrator ’s Report Item Description: Orono Ice Arena Inc. Water and Sewer Connection Charges The Orono Ice Arena Inc. as part of the Icc Arena construction project, is required to pay a number of costs. To this point they ha’,v luid the city's plan review fee and the Met Council's SAC charges at the time their building permit was issued. Remaining costs are the cost of extending the city water and sewer lines to serve the Ice Arena project and the water and sewer connection charges. The Orono Ice Arena Inc. has requested the city extend water and sewer as a public project, and assess the costs to the Ice Arena over the normal special assessment period (12 to 15 years). The estimated cost of this project is approximately $50,000. The city is moving forward with the process required to assess this public project to the Orono Ice Arena Inc. Five Year Payment Period for Water and Sewer Connection Charges Orono Ice Arena Inc. has also requested the ability to pay :■ e water and sewer connection charges over a five year period rather than at the time the building permit is issued (please see the attached letter from Orono Ice Arena Inc.). The total connection charges are $101,880 ($8,490 per unit X 12 units). The Orono Ice Arena Inc. has requested the connection charge amount be payable annually over a five year period with interest, and has indicated the unpaid amount will be secured by a letter of credit. Water and sewer connections are normally due at the rime of issuance of the building permit. The Ice Arena project is unique in that the project site is outside of the original sewer and water "assessment district", and the project is being constructed on public property by a non-protit organization. It is reasonable in this situation to provide some additional time for payment of the connection charges. If, as requested by the Orono Ice Arena Inc., the first installment of the sewer and water connection charges is minimized, it may be easiest to provide for four equal installments in the amount of $25,470 to be payable in January of 1998, 1999, 2000, and 2001 with interest to be paid on the unpaid balance at an annual rate of 6%. If these terms of payment are generally acceptable to the Council, staff can de velop a form of agreement to reflect these terms. COUNCIL ACTION REQUESTED: Motion to indicate the terms of the Orono Ice Arena Inc. payment of the $101,880 of water and sewer connection charges.