Abby Nadeau
Staff Writer

While the city isnít swimming in a pool of cash, they are certainly dipping their toes in it.

Or so they hope.

In a special workshop Forest Lake city council members evaluated current and future projects that are facing the city. A few of the top projects include the West Broadway roundabouts, the future of the cityís golf course and the possible ice arena.

City Administrator Chip Robinson started off the meeting by stating ìWe have the money for these things. One of the goals tonight is make sure that you [council members] feel comfortable with these numbers.î

ìThese numbersî include spending $4 to $5 million on the West Broadway project, $4 million on Headwaters projects, $2 million on an ice arena and several other six figure numbers for projects like a remodeled city hall.

Even though many of the projects will contribute to the much needed update of the Forest Lake area, council members are still not sold on the idea of spending a large amount of money, in a short amount of time.

It was Robinsonís goal to show the council members the money will be there.

Revenue Streams

In Robinsonís agenda he listed seven different anticipated ìrevenue streams.î

The city is expected to receive $8 million from Fenway Investments, for the sale of the Headwaters project and at least $1.2 million from Washington County.

Park fees take up $2000 for each residential unit or commercial acre. Most of the fees would come from the Headwaters development.

ìThe thought was to take the Headwaterís development park fees and put them directly back into the park amenities,î Robinson said.

Those park amenities would include trails, playing fields and possibly play ground equipment.

Other sources of revenue would come from the sale of the remaining city land in the industrial park triangle, water and sewer fees, transportation fees and Minnesota State Aid funds.

Currently the city has about $1 million in MSA dollars saved up for MSA streets. The city can also ìborrow aheadî from MSA funds.

In the case of the Headwaters residential intersection with Fenway the city would not have to build the entire project at once.

ìNot all the intersections will be built right away,î said City Engineer Phil Gravel. ìYou can incur two thirds of the cost up front, then the last third could be paid five years down the line.î

Robinson agreed.

ìThe cash flow does work,î said Robinson, ìyou may have to carry those costs longer than you would like, but they can be done.î

Council member Susan Young, questioned the idea of spending money they donít have now.

ìI think we need to prioritize,î Young said. ìI donít know what money we will be spending eight years out, so I donít want to offer the revenue eight years out.î

In response Robinson asked, ìdo you expect us to be stagnant for eight years?î

Ochs was more optimistic when it came to the MSA money.

ìWe still have to be projecting and planning forward,î Ochs said. ìAs the money comes in there are going to be issues that are going to require us to make the nautical change for that moment in time. Iím convinced that the money will always be there, it always shows up.î

Community Center

Members from the Community Center Executive Board announced in their report that bonding ì$7.5 million through lease revenue bonds is not feasible.î

Instead, the group proposed another recommendation to appease the council.

The group has plans for one indoor sheet and one refrigerated, sheltered outdoor sheet, instead of the original two-sheet ice arena.

The estimated cost would be $3.5 to $4 million, half the cost of the original proposal.

The recommendation stated that the plan ìis fully endorsed by the two major user groups: the Forest Lake Hockey Association and the Forest Lake Area Schools.î

As the council discussed the possible ice arena Robinson stated that a $2 to $3 million lease revenue bond is a possibility.

ìWe need to look at a lease revenue bond at $2 to $3 million, find the annual impact and see if we can make a cash flow,î Robinson said.

Mayor Terry Smith agreed, ìwe would have a beginning point.î

Castlewood Course

The cityís nine-hole golf courseís future was uncertain as both Smith and Young confirmed that the city was actually losing money on the property.

Currently the golf course is being subsidized by the city.

ìIt is something we need to decide on before the spring,î Robinson said. ìIt is a very valuable piece of property that could provide another $6 to $7 million down the road.î

The golf course is covered in both water and sewer. Although the city didnít specifically state what the land would be used for, it is surrounded by several town homes.

The missions and goals workshop was designed so council members could sit and discuss all the current and up coming projects.

The goal of the evening was to make the council more comfortable with the numbers being thrown around for various projects.

No actions were taken, but council members were at least made aware of what projects are making the biggest waves in the city.

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Forest Lake Times
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880 SW 15 St.
Forest Lake, MN 55025
651-464-4601
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