#06 - Call for 15th St N Assessment Hearing

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STAFF REPORT DATE: September 3, 2023 CONSENT AGENDA ITEM: 15th Street North Improvements – Resolution Declaring Costs to be Assessed and Calling for Hearing on Proposed Assessment SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Nicole Miller, City Administrator Sarah Sonsalla, City Attorney Marty Powers, Public Works Director Clarissa Hadler, Finance Director Chad Isakson, Project Engineer ISSUE BEFORE COUNCIL: Should the City Council call a final assessment hearing for the 15th Street North Improvements to be held on October 1, 2024? BACKGROUND: The City of Lake Elmo awarded a construction contract on May 7, 2024 to Bituminous Roadways to complete the 15th Street North Improvements. The project is in construction with a substantial completion date of September 15, 2024. In accordance with the approved feasibility report, a portion of the project costs are to be assessed to the properties benefitting from the improvements. PROPOSAL DETAILS/ANALYSIS: Pursuant to Minnesota Statutes, Section 429, the Council must declare the amount to be assessed against the benefitting properties and Call the Hearing on the Proposed Assessment for these improvements. The Final Assessment Hearing is proposed for October 1, 2024. The Final Assessment Roll will be certified to the County Auditor by November 15, 2024. Staff has enclosed a proposed Final Assessment Roll which has been calculated in accordance with the approved Feasibility Report and the City’s Special Assessment Policy. A portion of the project is proposed to be assessed to the benefitting properties. The proposed street assessment is $39,800 for the commercial property located at 8281 15th Street North (Pine Crest Storage Inc.), and $8,200 for each of the 3 residential properties with direct access to the improved street. Several properties have been placed, either wholly or partially, into Met Council Ag Preserve designations. As an Ag Preserve property, the City cannot assess the properties. Therefore, the properties 8280 15th Street North, 8291 15th Street North, and PID 28.029.21.22.0001 have been removed from the final assessment roll. Assessments for street improvements will be levied over a 15-year period and charged an interest rate of 5.5%. FISCAL IMPACT: The total estimated project cost is $532,000. The improvements will be funded through a combination of Municipal State Aid Funds, in the amount of $330,000; Special Assessments, in the amount of $64,400, and General Tax levy funds in the amount of $137,600. RECOMMENDATION: Staff is recommending that the City Council approve, as part of the consent agenda, a Resolution Declaring Costs to be Assessed and Calling for the Hearing on the Proposed Assessment. If removed from the consent agenda, the suggested motion to approve this action is as follows: