INFORMATION 08-29-1994
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To: Mayor and City Council
From: John Dietz, Councilmember
Re: Sandpiper utility Extension
Date: August 29,1994
DR A F-r
The two options listed below are offered as possible compromise
solutions to the Sandpiper Estates utility extension issue. I ask
the Council to consider these options this week before makmng a
fina! decision on September 6th.
Option 1
1) The City will forgive the $3800 per acre trunk fee for the 24
homes currently in Sandpiper Estates. Any new homes built in the future
would have to pay this assessment.
2' The City will forgive the lateral storm sewer assessment for the
24 homes currently in Sandpiper Estates. Any new homes built in the
nttture would have to pay this .assessment.
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3) The interest rate for the assessment payback would be set at
6% with a choice of 5, 10, or 15 year payback periods.
4) Interest on the assessment would not begin to accrue until
May 16, 1997. The first payment would be due on the October 15, 1997
property tax statement.
5) Owners of the 24 existing homes would not have to hook up to
city sewer until the spring of 2001 (6 year period to hook up).
6) Assessments would be certified agains,ttheproperties when the
bonds are .sold for the project.
This option would cost the City about $140,000 for the balance of the
Sandpiper assessments, about $75,000 for the two yearinteres.t
deferral and an additional interest amount (depending on the bond
rate) for the G% rate attached to the assessments. Some of these
costs would be recovered as assessments are paid on new development
in the subdivision.
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Option 2
1) Extend the tru~k line through the Sandpiper addition but do not
extend laterals into the development.
2) Council initiate action to rezone Sandpiper Estates RlB with a
minimum lot size of one acre. No lot splits would be allowed
unless lateral sewer and water is extended into the development.
720 Dodge AvenueN.W.; Elk River, Minnesota 55330 (612) 441-7420
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Sandpiper Utility Extensions
Page 2
August 29, 1994
3) The Sandpiper development would remain in the sewer and water
district. The Council would consider a petition by property
owners to extend laterals into the development at any time
in the future. The Council would likely not consider such a
petition unless it was signed by more than 50% of the property
owners in Sandpiper Estates.
4) The $3800 per acre trunk fee will be deferred for Sandpiper
Estates at this time but the City reserves the right to charge
that fee when laterals are extended into the development.
5) Sho~ld environmental concerns develop about the safety of
wells and septic systems, the Council could take action to
extend utilities into the Sandpiper addition.
6) If this solution is chosen, the Council immediately pass a
moratorium preventing lot splits of less than one acre in
Sandpiper Estates until the RIB zoning has been adopted (limiting
lot size to one acre minimum.)
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The cost to the City to extend the trunk line through Sandpiper
Estates would be about $200,000.
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