After a brief public hearing without public comment Tuesday, the Sherburne County Board adopted its 2016-2020 Capital Improvement Plan (CIP).

 

Adopting the plan is another step to move ahead with the Government Center Expansion project.

 

Over the past year, the county has been working to get final architect’s plans and cost estimates for the project.

 

Preliminary estimates last December put the cost at about $44 million. But in April, Doug Wild of  BWBR Architects and Patrick Sims, construction manager from Adolfson and Peterson said the cost will likely be closer to $63 million.

 

The county asked its financial advisor, Northland Securities to look at ways to finance the project.

 

Tuesday, Administrator Steve Taylor explained why the county developed the CIP.

 

“It has been determined that the county will likely bond to finance a portion of the project cost,” he said. “In consultation with the county’s financial advisor, the lowest cost borrowing option appears to be general fund capital improvement plan bonds. In order to issue them, the county must have an approved five-year capital improvement plan.”

 

The CIP states the county intends to use between $15 and $20 million in existing funds to reduce the borrowing need, and intends to bond for up to $50 million to fund the balance of the project. The bonds are structured with a not-to-exceed 25-year term, with principal payments deferred until February 2020.

 

George Eilertson of Northland Securities said adopting the CIP is not a commitment to bond for the project.

 

“You’re not issuing bonds today,” he said. “It’s just giving preliminary approval to the concept of issuing general obligation capital improvement plan  bonds.”

 

Eilertson said the CIP will help move things along if and when the board gives final approval for the project.

 

“As part of the process we worked closely with county staff, as well as architects and engineers in putting together the scope and timing of potential financing,” said Eilertson. “So that’s something that behind these scenes is actively being done as well.”

 

Bids for the site work and final costs for the project will be presented at the Aug. 3 board meeting.

 

The board approved an agreement with the MN Commissioner of Transportation, allowing the county to receive a $109,791.71 grant to fund a portion of the Co. Rd. 53 bridge replacement project. The county’s matching portion is $725,830.29. The project is slated for this year’s construction season.

 

The board approved tobacco license applications for Sand Dune Spirits (Orrock Twp.), Santiago County Store (Santiago), Frontier Liquor, Holiday Station Store 239, Jim’s Market, P & A Liquor, Speedway Superamerica 4535, Uptown Off-Sale and Casey’s General Store #3458 in Zimmerman.

 

The board approved five other tobacco license applications contingent on their local town board’s approval: Holiday Station Store 598 and SAFE Discount Liquor (Becker Twp.), Station Operations/ Sandune Stop (Orrock), Briggs Lake General Store (Palmer) and Ridgeway Bar Resort (Baldwin).

 

In other action the board:

• Approved a three-year collective bargaining agreement with AFSCME Assistant County Attorney Unit;

 

• Approved a joint powers agreement with the State of Minnesota for the county to be reimbursed $0.04 per ballot in the event a recount is needed for the 2016 primary and general election;

 

• Approved the final payment of $4,550.77 to Helmin Construction for adding a right turn and bypass lane on Co. Rd. 9.