Medina to sell $1.2M in bonds for road in Deerhill Preserve

BY SUSAN VAN CLEAF
[email protected]

On July 18, the Medina City Council authorized the sale of $1,235,000 in General Obligation bonds for the purpose of funding road improvements in the Deerhill Preserve single family residential subdivision, located east of Homestead Trail and west of Deerhill Road.

At the meeting, the City Council also took up other business.

BOND SALE
The city of Medina is collaborating with developer, Stonegate Farms/ Property Resources Development Corporation, in constructing a public street in the Deerhill Preserve subdivision. The street will connect the existing Deerhill Road to Homestead Trail. The city will use bond sale proceeds to construct the road, and the developer will construct related storm water and utility improvements.

City financial advisor Shelly Eldridge, of Ehlers, explained the proposed bond sale and its risks. She said the city would use special assessments to pay off the principal and interest of the General Obligation debt. The owner of a new home in the subdivision would pay a special assessment as part of the purchase price of the property.

The term of the bond sale would be 12 years, Eldridge said. If lots in the subdivision sell quickly, the city could pay off the debt at an early date. However, some lots might not be sold during the 12 years. Medina would be required to find a source of funds to cover the unpaid special assessments in order to pay off the debt.

Ehlers will seek an updated bond rating from Moody’s Investors Service. Medina’s bond rating currently is Aa2. The City Council will review purchase bids from prospective lending institutions on Aug. 15.

FUND RAISING FOR POLICE COMMUNITY EVENTS
The City Council approved a resolution authorizing fund raising and expenditures for police department community events, such as Night to Unite. The council took action to enable Medina Police to take advantage of a bill passed by the State Legislature in May. The law allows cities and police departments to solicit funds for events related to building police community relationships. Cities must pass resolutions approving the fund raising activities.

LOT COMBINATION
32 Hamel Road LLC, based in Orono, asked for City Council approval of preliminary and final plats for 32, 36 and 42 Hamel Road in the Uptown Hamel Road 2 zoning district. Plat approval would enable the applicant to combine the three lots into one lot, measured at 30,258 square feet. After hearing from City Planner Dusty Finke, the council directed city staff to draft an approval resolution.

Finke said the smallest of the three properties spans 3,600 square feet and the largest spans 16,340 square feet. The applicant wants to combine the three lots to gain more flexibility with potential additions to an existing building and parking area. 32 Hamel Road LLC had not mentioned any proposed construction.

The combined property is located directly west of the site of Hamel Brewing Company, which has plans to build on its property.

GRANT APPLICATIONS
The City Council approved two grant applications, which, if successful, would provide funds for implementing Lake Ardmore Area best management practices. The goal of the project is to reduce the amount of phosphorus entering Lake Independence by 8.7 pounds per year and the amount of phosphorus entering Lake Ardmore by 1.1 pounds per year. Medina is seeking a Natural Resources Opportunity Grant amounting to $20,000 and a Clean Water Legacy Act Grant amounting to $122,000.

Estimated total cost of the project is $163,050. Medina and the Pioneer Sarah Creek Watershed Management Commission each would pay $10,525.

OTHER
During the July 18 meeting, the City Council also approved a temporary liquor license requested by Holy Name of Jesus Church for Sept. 15 and 16.

Lastly, the City Council approved a permit allowing the Northwest Area Jaycees to conduct lawful charitable gambling at Inn Kahoots, located at 45 Hamel Road.