An extension of Minnesota Street east of the southeast connector appears to be on track after the Rapid City council approved agreements Monday with two developers that establishes a timetable for construction.

The council approved developers' agreements with Plum Creek and Dennis Zandstra Real Estate Holdings. Zandstra is in the process of buying Plum Creek.

Within the next 90 days, the developers are required to dedicate enough property to build the street and must complete the design by Sept. 1. The first portion of the street - the connection with the bypass - must be built by Aug 1, 2009.

The connection at Minnesota Street will create a secondary access point for hundreds of homes in the Plum Creek and Elks Country Estates subdivisions -something that has been long sought by residents. The only permanent access for those homes currently is through Jolly Lane to S.D. Highway 44.

The previous second access was cut off by the southeast connector construction, but the state allowed a temporary access at Willowbend Road, which isn't built to any standards or specifications, in the interest of public safety.

The city has wrestled with providing a secondary access for a number of years. Last September, progress appeared to be made when the council approved a tax increment financing district to help extend Minnesota Street. But the developer's agreement was delayed for several months while the developers tried to find a way to cooperate.

Other parts of the agreement approved Monday include a deadline of June 1, 2011, to complete all of Minnesota Street to near Jolly Lane. After a construction contract for the street is in place and a surety is provided, the developers can plat property, but the city won't issue certificates of occupancy for any homes until the road is built.

In April, the state Department of Transportation told Rapid City officials not to approve any more plats in and around the Plum Creek subdivision until Minnesota Street is built. In exchange, the DOT is allowing the city to continue to use a temporary access to the connector at Willowbend Road until June 1, 2010.

Alderwoman Deb Hadcock, who voted against the agreement, expressed concern about the lack of a signed purchase agreement between Zandstra and Plum Creek.

"Based on some of the issues that have been raised before on this development with different companies, it's the follow-through," Hadcock said. "What guarantee do we have without a purchase agreement … that everything's going to go through on this without any glitches?"

A previous TIF district that would have built a portion of Minnesota Street was created in December 2005 but dissolved in February 2006 because the developers then could not work together. Though there are different developers involved this time, Hadcock worries that something unforeseen may pop up.

Allen Nelson, an attorney for Zandstra, said Monday night that the purchase agreement wasn't signed, but the final draft is in the hands of the seller, and he believes an agreement in principle has been reached. Nelson suggested the council could approve the agreements contingent on receiving a signed purchase agreement.

But city attorney Jason Green said the council doesn't have legal authority to contingently approve an agreement. Instead, Green said, the city could rely on the mayor and finance officer not signing the agreement until there is a signed purchase agreement.

Alderman Tom Johnson said the agreement, and the street extension, will open a large area east of the connector for development.

"This will help our transportation network system, open up hundreds of acres that have not been able to have any development happen and will help our community grow. It's a good thing," Johnson said.

It will also resolve the ongoing issue of a secondary access for residential homes nearby, he said.

"It's a matter of public safety. It's a matter of fairness, … and it's also a matter of extending our public infrastructure," Johnson said.

The council voted 7-3 to approve the agreement. Johnson, Bob Hurlbut, Bill Okrepkie, Ron Weifenbach, Karen Gunderson Olson, Ron Kroeger and Lloyd LaCroix voted yes. Hadcock, Malcom Chapman and Sam Kooiker voted no.

Contact Scott Aust at 394-8415 or scott.aust@rapidcityjournal.com