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Od. Kaufhold suggested that the City require Ryan to build on the option site, even if the company decides <br />not to. Fernelius stated staff has not formally responded back to Ryan or Transoma and will incorporate all the <br />suggestions. He added that staff is very pleased that this block may be developed a year ahead of schedule. <br />Sculthorp questioned whether the west side is behind the projected revenue. Lotter replied that the debt is <br />structured with capitalized interest through 2013, the west side is anticipated to be built out by then, and there is <br />no levy to pay bonds in 2008. <br />Property Acquisitions <br />Black announced that the City is now the owner of the post office and Ferrellgas properties. He added that <br />Ferrellgas will be off the site by July I" and staff is still working on an agreement to relocate the post office. <br />Sculthorp asked whether Midwest Asphalt had relocated near the Northwest Quadrant. Larson replied that they <br />have relocated at the Belair site and staff has sent Belair a notice that they need to stop the crushing activities. <br />Fernelius added that staff has concerns that they have violated the conditions of their special use permit, which <br />allows storage but not crushing and recycling of aggregate. This is being handled as a zoning code violation <br />and a nuisance issue. <br />Project Management <br />Black reported that a question-and-answer section that will be included in the new City newsletter, and a section <br />has been added to the City's web page. I-larmon asked if the railroad tracks are going to be removed from the <br />rthwest Quadrant site. Larson replied that trains will still use the rail; the coal trains that block intersections <br />Woughout the City will be the only ones that will no longer use it. Kaufhold asked if it could possibly be used <br />for light rail. Black stated that it is possible since this track ends in Fridley, not far from the Northstar Corridor. <br />Black reported that staff recently met with the owner of the railroad and the operator to discuss the rail <br />abandonment. Fernelius stated while Estes is close to purchasing the USF Dugan site, staff is reluctant to <br />purchase the property without an agreement in writing from the railroad. <br />Kaufhold questioned if the boulder storage was a legitimate use of the rail. Fernelius replied that this was part <br />of the discussion and the operator, John Gohmann, told staff that there is a contract to store the boulders thru <br />2008. Fernelius added that the wye could take two to three months to construct and then the boulders would be <br />relocated to that site which has been agreed to by Gohmann. <br />Financial Model <br />Black reported that an updated sources-and-uses table will be provided when available. <br />AUAR <br />Ken Nimmer reported on the requirements for updating the Alternative Urban Areawide Review (AUAR) for <br />the Northwest Quadrant and the process the City is using. The AUAR is a planning tool that helps determine <br />the environmental impacts of a development. In 2002 Ryan Companies completed an AUAR; none of the <br />development scenarios outlined in the original AUAR have yet been implemented, <br />re are several benefits of using an AUAR. If done correctly, the City will not have to do site-specific <br />W'heironmental assessment worksheets, or an environmental impact statement. Flahave inquired who grants the <br />authority to use this planning tool rather than the environmental assessment worksheet or impact statement. <br />Nimmer replied that the City can decide what level of analysis it needs for the managing of the development. <br />Page 3 of 4