HomeMy WebLinkAbout20090302 - VIII-A-2MEMO
To: Honorable Mayor and City Council
From: Tom Montgomery
Date: February 2rj, 2009
Re: Set Proposed Assessment Rate for 2009 Industrial Park Improvements
Council is requested to set a proposed assessment rate for use at the
neighborhood hearing on March 12 for the proposed Industrial Park street and
utility improvement project.
The assessment ordinance calls for assessing properties at 90% of the
appraised benefit -the amount a properh•'s value increases directly attributable
to the new street and utility construction. The benefits analysis prepared by
BRKW Appraisals would indicate an assessment rate of $i2~ per front foot.
The assessment ordinance notes that state aid streets are to be assessed at
2$ % of the estimated project cost. Spiral Boulevard is a State Aid street, and
2~% of the estimated project cost for reconstructing Spiral Boulevard would
result in an assessment rate of $8o per front foot. (Industrial Court and Millard
Avenue are not State Aid streets and would be subject to the higher $i25/FF
rate.)
The Operations Committee met on February 24 to discuss project issues,
including setting a proposed assessment rate for distribution at the March 12
neighborhood meeting. The Committee reviewed past years' assessment rates:
~~ s,
• $g,8_So/FF - 2004 31~ St. Industrial Park Street and Utility
Reconstruction
• $562~/FF -Dakota Hills Area Street and Utility Reconstruction
• $bo/FF - 2006 3r~ St. Area Street and Utility Reconstruction
• $bo/FF - 200 Stn St. Area Street and Utility Reconstruction
• $bo/FF - 2008 North Vermillion Area Street and Utility Reconstruction
The 2006 3~ Street Area benefits analysis indicated an assessment rate of
$8o/FF, however at the public hearing, the City Council
lowered that rate to $6o/FF. The $bo/FF rate was continued
for the Stn St. and North Vermillion area improvements as they
were roughl}~ in the same neighborhood as the 3r~ St. project. _ ~- ~-~'~ --
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ctN of x~as'rtHSs
The Operations Committee agreed that a single assessment rate should
apply to Spiral Boulevard, Industrial Court and Millard Avenue, but they were
concerned that the $8o/FF rate might be too high and recommended a proposed
assessment rate of $~~/FF. At $75/FF, the highest assessment would occur for a
very large corner lot, at a cost of almost $59,000. Amore typical Industrial Park
assessment would range from $i2,ooo to $i~,ooo.
COUNCILACI'ION REQUESTED
Council is requested to set a proposed assessment rate for the Industrial
Park improvement project of $75/FF for use at the March I2 neighborhood
meeting. This action is not intended to set the actual assessment rate_ The
affected property o~nmers will have the opportunity to comment on the setting of
the proposed assessment rate at the public hearing on proceeding ti~ith the
project to be held later this spring, and another chance to comment on adopting
an assessment rate at the project's assessment hearing that would be held in the
fall of 200_
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CITY OE HAST1NfiS
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CITY OF HASTINGS
PROPOSED CITY PROJECT 2009-1
INDUSTRIAL PARKAREA IMPROVEMENTS
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