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City of <br /> Pequot <br /> Lakes - <br /> March 25, 2015 <br /> Timothy Bray P.E. <br /> Crow Wing County Engineer <br /> 16589 County Road 142 <br /> Brainerd,MN 56401 <br /> Dear Tim, <br /> The Pequot Lakes City Council held a special Council meeting last evening,March 24, 2015,to <br /> discuss the County's proposal to turn back CSAH 11,CR 112 and TH 371 to the City. The City <br /> Council has struggled with the concept of accepting the roads due to the long range financial <br /> impact to the City. <br /> The City Council requested a financial study by Springsted, Inc. on the impact of taking back the <br /> three aforementioned roads. Following much discussion and review of the financial study the <br /> Council came to the following consensus: <br /> CR 112 <br /> The City will accept the County's offer of$793,500 along with the turnback of CR 112. The City <br /> Council had previously worked with the County and a property owner on the design standards of <br /> the road. By doing this,the City has led the County to believe that the City will accept the <br /> turnback of the road. <br /> CSAH 11 <br /> The City is considering accepting the CSAH 11 turnback but only if the City is not required to <br /> pay the interchange cost share of$558,000 and receives the proposed$659,000 from the County. <br /> The legs of the interchange(and the two roundabouts at the top)are and will be made up of State Trunk <br /> Highway and County State Aid Highway.Both the State and County have access to gas tax monies;the <br /> City does not. And,the City will have to take care of the street lights for this interchange. If the City were <br /> required to pay the$558,000,the$101,000 remaining from the money the County is offering would not <br /> cover the necessary improvements to the road. <br /> TH 371 <br /> The City had an analysis on the current and long range financial impacts if the City were to <br /> accept the road along with the $4.2 million dollars offered by the County. The City Council <br /> concluded that the long range financial impact to the Pequot Lakes taxpayers would be <br /> burdensome. The City is not eligible for state funding to take care of the road. It was the <br /> 4638 COUNTY ROAD 11 •PLQUOT LAKEs,MN 56472• (218) 568-5222•FAK: (218) 568-5860•wwwpequodakes-mn.gov <br />