10-12-1983 Council Agenda - Laserfiche WebLink

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NORTHWEST ASSOCIATED CONSULTANTS INC. MEMORANDUM TO: FROM: DATE: RE: FILE N0: Little Canada Maiyor and City Council David Licht r i} 4 October 1983 Little Canada Assessment Policy 758.09 As requested at your meeting on 14 September, we have looked into the City's assessment policy as well as practices of other communities. We have also had several conversations with Mr. Chlebeck concerning this matter. Our conclusion supports our previous position, that we believe the City should undertake a bonding and assessment policy which facilitates the small developers at the time they are ready to undertake subdivision and develop- ment. This practice would work towards a very critical objective of imple- menting a coordinated circulation system for the northeast area of the community. Sirnultaneously, the City wishes to minimize or eliminate any additional burden on the general fund and general tax payer of the City. This objective is attainable if all improvement costs are assessed at 100 percent. This level of assessment for new construction is common practice and the approach which we would suggest (should the City wish the existing practice of an 80 %/20% split on water and sewer construction could continue in areas where streets are already in place). The City can go further to protect its general fund from deliquencies. One metro community consulted requires any developer to post bonds, a letter of credit or other acceptable security to assure the payment of assessments. It is also quite common practice to have bond sales and bids for numerous small projectsoccur at only two or three a year. In this fashion, the City minimizes administrative costs and typically receives favorable bids from contractors due to the volume of work involved. It is our opinion that having the benefit of having the City handle utility' and street work, plus spreading the costs for such work over a long period (time of sale or 5 years) and a reduced interest rate is a major advantage to a developer, expecially on a small, limited project. Having to assume the extra twenty percent or total 100 percent of the costs is outweighed by such benefits. The City's benefit is that its utility and circulation system will be more rapidly pieced together and land utilization will he more efficient and logical. Sirnultaneously, the tax base will also be increased. 9 4820 minnetonka boulevard, suite 420 minneapolis, nmi 55416 612 /925 -9420