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<br />Prepared by: Bolton & Menk, Inc. FINANCING <br />Jackson Street Improvements ǀ 0N1.125375 Page 5 <br />VI. FINANCING <br />Street: The City’s Assessment Policy for reconstructed rural to urban streets outlines the following <br />criteria for various property types. <br /> Commercial Properties <br />· 80% of street reconstruction costs be assessed. <br />· 100% of new curb and gutter costs be assessed. <br />· Utility costs will not be assessed. <br />· An assessment cap can be used. In accordance with similar special benefit appraisals <br />performed for the City, a commercial assessment cap of $1.00 per square foot will be <br />used. Based on the estimated assessment amounts, commercial caps will likely be <br />utilized on for this project. <br /> Residential Properties <br />· The 2021 front-foot assessment rate of $80.26 shall be used as the basis for <br />calculating the assessments. The rate is adjusted annually for inflation using the <br />Engineering News-Record Construction Cost Index for the Minneapolis area. An <br />assessment rate of $87.49 is utilized on this project. <br />· Residential properties of similar size and use can be grouped and assessed on a per <br />unit basis for equal treatment. This methodology is utilized on this project. <br />· The special assessment policy includes special provisions for corner lots, rear-facing <br />lots, lots that have already been assessed, and minimum/maximum front footages; <br />notes and adjustments for these parcels are listed in the Assessment Roll in Appendix <br />C. <br />· An assessment cap can be used. In accordance with similar special benefit appraisals <br />performed for the City, a residential assessment cap of 3% of the estimated market <br />value of the property is used. Based on the estimated assessment amounts, residential <br />caps are unlikely for this project <br /> Residential Properties (Rear-Facing) <br />· Properties with non-primary access to the reconstructed street shall be assessed at <br />20% of the policy rate. <br />Water, Sewer, and Storm: This project includes only minor water, sanitary, and storm sewer <br />repairs. As such, in accordance with the City’s Special Assessment Policy, water, sanitary, and <br />storm sewer improvements will not be assessed. Instead, they will be funded by the City’s <br />Infrastructure Capital Improvement Fund. <br /> <br />