03-06-00 - Laserfiche WebLink

Home Browse Search

VI-9 MEMO To: Honorable Mayor and City Council Members From: Tom Montgomery Subject: Authorize Benefits Analysis for 2000 Improvements Date: March 2,2000 Council is requested to authorize the City to contract with the appraisal firm of Bettendorf,Rohrer,Knoche and Wall to prepare a benefits analysis for typical assessments for the Roadside Park neighborhood affected by the proposed 9`h, 10`}', 11"and Forest St. improvements, for the properties abutting Todd Field for the proposed 10th St. improvements, and the east Oh & 7`h St. neighborhood for the proposed improvements of Oh&7'Streets east of Bailey Street. Proposed assessments for street and storm sewer work in the Roadside Park and 10'St. neighborhoods are quite high, with a typical assessment for a 70 ft.wide lot ranging from$3,000 to $8,000. One double lot on the corner of Forest and 11th would be facing a estimated assessment of$16,000. The 6"'&Vh St. neighborhood is also facing high estimated assessment costs of close to $11,000 when including sewer and water extensions. A booming economy,high oil prices and high raw material costs are driving up construction costs. While Community Development Block Grant funds have been set aside to offer assessment abatement,not all residents are going to meet low or moderate income limits. Additional City participation will likely be required on these projects in order to meet the benefits test-a property's value should increase by an amount equal to or greater than the assessment levied against it. The proposed benefits analysis would provide a range for typical assessments for each of the three neighborhoods that could be supported by increased property value attributable to the street and utility improvement. The estimated cost of the benefits analysis for the three neighborhoods is $10,000. This cost can be funded through the 2000 construction program. In addition, it may be time to revisit the assessment policy which was last revised about 15 years ago. The benefits analysis would provide helpful information for evaluation of assessment alternatives. The proposed benefits analysis would not be completed until late this summer. At the March 20,2000 Council meeting, Council will be asked to approve construction of the proposed 2000 projects. While assessments for these projects will not be levied until the fall of 2001, Council should recognize when considering action of these projects that additional City participation will likely be required in order to meet the benefits test. COUNCIL ACTION REQUESTED Council is requested to authorize the City to contract with the appraisal firm of Bettendorf,Rohrer,Knoche and Wall to prepare a benefits analysis for typical assessments for the proposed 2000 Improvement Program at an estimated cost of$10,000.