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MINUTES <br />CITY COUNCIL <br />OCTOBER 23, 1990 <br />Fahey indicated that both the Rudy and Frattalone <br />parcels would be assessed again if Condit is improved. <br />However, there is no improvement of Condit contemplated <br />at this time. <br />Scalze pointed out that the problem is that there are <br />people living in residential homes on comercial <br />property. Scalze noted that these property owners <br />would not be willing to give up their commercial <br />zoning. <br />The City Administrator reported that the City cannot <br />automatically spread the cost of an improvement. <br />Assessments must be based on benefits.received. <br />Rudy asked if the State is participating in the cost of <br />the improvement since the State highway right-of-way <br />borders Country Drive on the east. <br />The City Administrator replied that the State is not <br />participating on a front foot basis in the assessment. <br />However, the project is a State Aid project, and it is <br />estimated that of the $402,000 cost of the project, <br />$308,000 will be reimbursed through the City~s State <br />Aid allocation. The City receives annual State Aid <br />allocations. All the funds to cover the cost of this <br />improvement will not be received by the City at one <br />time, and it could take 5 or 6 years before the City <br />recovers these costs. There will be a cost of carrying <br />this money until it is recovered through MSA <br />allocations. <br />The City Engineer reported that the major portion of <br />MSA funds comes from road taxes paid by trucks that use <br />the roads. The City Engineer also pointed out that the <br />State determines how much of the cost of the project is <br />eligible for MSA reimbursement. <br />Ted Zinner, owner of Quebec Apartments, asked how the <br />$150,000 figure to be assessed was arrived at. <br />The City Engineer pointed out that there are $402,000 <br />in total project costs. Through a balancing act of <br />determining the portion of the improvement that would <br />be necessary to meet State Aid standards, as well as <br />determining appropriate percentages of residential and <br />commercial improvement costs, it was determined that <br />37% of the total cost of the improvement should be <br />assessed. <br />Zinner pointed out that he has a residential use on his <br />land. Zinner also stated that he has 400 feet of <br />Page 13 <br />