8.9. SR 03-21-1994
CONSULTING ENGINEERS
CIVil ENGINEERING
ENVIRONMENTAL
MUNiCIPAl
PlANNING
STRUCTURAL
.URVEYING
TRAFFIC
TRANSPORTATION
1326 Energy Park Drive
St. Paul, MN 55108
612-644-4389
Fax: 612-644-9446
_00 Shelard Parkway
Minneapolis, MN 55441
612-546-0432
Fax: 612-544-6398
AGENDA ITEM 8.9.
February 24, 1994
File: 230-161-75
Mr. Pat Klaers
City Administrator
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
RE: STORMSEWERIMPACTFEE
Dear Mr. Klaers:
As requested by the City Council, we have researched various metropolitan communities to
determine how they deal with storm sewer charges for improvements off of a project site.
The communities we contacted and from whom we received responses back include
Shoreview, New Hope, Golden Valley, Lakeville, Bumsville, Brooklyn Park, Lino Lakes,
and Roseville. We found that the vast majority of these communities have already
implemented a surface water management utility fee. However, they are split on the issue
of an impact fee versus trunk storm sewer assessments. The Cities of Shoreview, New
Hope, and Golden Valley currently do not have any type of impact fee. However, they do
still charge trunk assessments for improvements outside the boundaries of developments.
The City of Brooklyn Park is currently in the process of developing a new plan to include
a surface water management utility fee and are considering an impact fee as part of that. The
Cities of Lakeville, Bumsville, Lino Lakes, and Roseville have impact fees. For the most
part, they are charged on a square footage basis with rates varying for different types of
development. Interestingly, the City of Lino Lakes has a policy to not assess for storm
sewer; therefore, their only method of paying for it is the impact fee charged on a square
foot basis. The City of Lakeville has used this approach for over 10 years.
If the City of Elk River were to consider an impact fee as discussed at the last meeting, I
believe it should be considered not an additional charge, but a charge in lieu of a trunk storm
sewer assessment. I believe it is the intent to construct trunk storm sewer facilities utilizing
the impact fee and the surface water management utility fee. In most cases, if not all, this
type of approach should be less expensive for developers. This is because they will be
paying only the impact fee and the potential owners of their development will pay the
ongoing surface water management utility fee.
e
Mr. Pat Klaers
February 24, 1994
Page Two
As we discussed last Monday, the potential rates for an impact fee would be $50 per unit for
rural residential developments, $100 per unit for urban residential developments, and $600
per acre for commercial and industrial properties. These rates would be collected similarly
to the park dedication fee, that is, payable prior to recording of the plat.
I hope this additional information is helpful. If you have any questions or would like me to
do further research, please call.
Sincerely,
MSA, CONSULTING ENGINEERS
~~~~
Terry J. ~;urer, P.E.
TJM:tp
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161-2405.feb
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CONSULTING ENGINEERS
CIVil ENGINEERING:
ENViRONWNTAI
MUNiCIPAl
PlANNING
STRUCTURAl
.URVEYING
TRAFFIC
TRANSPORTATION
fEe l S 199~
February 25, 1994
File: 230-161-75
Mr. Pat Klaers
City Administrator
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
RE: STORM SEWER IMP ACT FEE
Dear Mr. Klaers:
This is a follow-up to my February 24, 1994, memo in which I summarized our findings
from a survey of several metroPolitan communities. In that particular memo, I neglectedto
include specifics on the impact fees charged by some of the metropolitan communities. As
you will recall, the memo indicated that four of the communities we contacted in the metro
area do have impact fees. We were able to recontact three of them and get the specifics on
those. The following table lists the costs in dollars per square foot charged by the Cities of
Bumsville, Lakeville, and Lino Lakes.
Single Family
Multi-Family
Churches
Commercial/Ind ustrial
Rnmsville
$0.11
0.15
0.15
0.17
0.14
T ,~keville
$0.105
0.116
T ,inn T .;:JKes
$0.10
0.147
As you can see from these three communities, a typical single family lot of 10,000 to
15,000 square feet would pay $1,000 to $1,500. On the other end, commercial/industrial
property would pay on the order of $6,000 to $7,500 per acre. These rates are roughly
1326 Energy Park Drive ten times higher than those being contemplated by the City of Elk River.
St. Paul, MN 55108
612-644-4389
Fax: 612-644-9446
_800 Shelard Parkway
Minneapolis, MN 55441
612-546-0432
Fax: 612-544-6398
It is our understanding that these communities still require the developer to build lateral
facilities within the developments and the impact fees are used for trunk facilities and/or
any oversizing of the intemallateral facilities.
e
Mr. Pat Klaers
February 25, 1994
Page Two
I'm sure there are other metropolitan communities that have impact fees similar to these.
If you would like, we could do further research on this issue. Please let me know if
additional information is needed.
Sincerely,
MSA, CONSULTING ENGINEERS
T2~
TJM:tp
161-2505.feb
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