WORTHINGTON -- The question of how much site preparation assistance to provide for a proposed Dollar General store was the subject of considerable debate during Monday's Worthington City Council meeting.
Council members ultimately resolved to cover costs of $18,750 identified with "soft and inconsistent clay lying under the topsoil," as City Engineer Dwayne Haffield described, in the project's footing area. Council also agreed to mitigation of any topsoil of less than 18 inches deep for the site's floor area and parking lot.
While indicating further study of the property site will be needed, Haffield estimated that about one-fourth of the $7,426 in requested assistance identified with the floor area would fit the council's provision, along with about one-half of the $12,856.25 identified with the parking lot.
The proposed Dollar General store, a 9,147-square-foot retail facility, has been proposed at 1190 Ryan's Road. An on-site parking lot would accommodate 38 vehicles, with the site to be leased by the developer to Dollar General.
Dan Dahlgren, a representative of Lantern Development LLC of Greendale, Wis., was in attendance Monday. His firm, citing studies from its own engineer, had submitted a site assistance request of $39,032.75 to the city.
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Brad Chapulis, the city's manager of planning and economic development, explained the developer would be receiving $55,627 in annual lease payments from Dollar General under established lease terms. But, with a total cost now estimated at $612,430, the developer has indicated the project will not cash-flow, Chapulis said.
"The way this (site report) has come back, we are at a point where we have to decide if we're going to pull out of the project," Dahlgren added.
One important consideration for council members included how much to allot from a tax increment financing (TIF) fund designated to help with development occurring through 2011 within the same TIF district as the Dollar General project. About $150,000 remains in that pool, Chapulis noted.
Another aspect was the amount of money the proposed project is projected to deliver in property tax revenue.
"The thing I was pleased to see is that they (developer) are taking property that is agricultural and putting something on it that's going to generate property taxes," Mayor Alan Oberloh said.
In making the motion to provide assistance, Alderman Lyle Ten Haken added the property, which is generating about $1,000 in annual tax revenue, would bring in approximately $26,278 yearly in property taxes.
A completion date for the Dollar General store is currently targeted for this summer. The retailer has stores in 31 states and is scheduled to open its 8,000 store on March 3.
In other business, the council:
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l Approved, following a public hearing, improvements for a proposed through street, water and storm sewer extensions. The proposed street would be within Park View Acres, a plat abutting the west side of South Crailsheim Drive from Nobles County 12 north approximately 1,500 feet.
The total cost of all improvements is estimated $383,500, with slightly more than 72 percent ($276,602.94) deemed the city's share. The total to be raised by assessments is estimated at $88,147.06.
A separate project that called for extension of the municipal wastewater collection system for land located north of Oxford Street will not move forward, as a public hearing on that matter revealed the petitioners' request that the project be terminated.
