5.5. SR 04-29-1996CONSULTINGENGINEERS
1326 Enemy ParkDrive
St. Paul, MN 55108
612-644-4389
1-800-888-2923
Fax:612-644-9446
April 24, 1996
File: 230-246-12
Mr. Pat Klaers
City Administrator
City of Elk River
13065 Orono Parkway
P.O. Box 490
Elk River, MN 55330
DODGE AVENUE AND 5TH STREET
FINANCIAL FEASIBILITY
Dear Mr. Klaers:
ITEM 5.5.
CIVIL ENGINEERING
ENVIRONMENTAL
MUNICIPAL
R~ANNING
SOLID WASTE
STRUCTURAL
SURVEYING
TRAFFIC
TRANSPORTATION
ELECTRICAL/MECHANICAL
ENGINEERING
HVAC
POWER DISTRIBUTION
SCADA
SYSTEM CONTROLS
OFFICES IN:
MINNEAPOLIS
PRIOR LAKE
ST. PAUL
WASECA
This correspondence is intended to provide a summary of the issues you, Lori, and I
discussed on Thursday, April 18, 1996, concerning the financial feasibility of a Dodge
Avenue/5th Street improvement project. The project in question would complete the
upgrade of Dodge Avenue from approximately the Prairie House to 5th Street and the
upgrade of 5th Street from TH 169 to Auburn. The estimated total project cost for those
improvements is $375,000 to $400,000. In reviewing last year's Dodge Avenue
improvements, there were two segments done by change order with assessments to the
abutting properties. The three office buildings in the Barrington Square development were
each assessed $10,000, the office building which houses Re-Max Realty was assessed
$10,000, the Goodyear Auto Service Store was assessed $12,000, and the McDonalds was
assessed $14,000. Reviewing the December 1994 feasibility study for these improvements
and keeping in mind the assessments that were levied last year, it appears that the
assessment spread given on page 9 for 50% front footage and 50% unit are the general
amounts we could expect to be assessed against properties for a continuation of the project.
From those amounts, it appears assessments would fund $125,000 to $135,000 of the
project costs.
In 1994 when this feasibility study was prepared, it was estimated that the total project cost
would be 50% assessed and 50% funded by the City. These current numbers appear to
reflect a one-third assessment and two-thirds City funding. There are several reasons for
this change. First is a two-year increase in construction costs and following an assessment
spread based on 1994 costs. Second, the south end of Dodge Avenue contains the
Kentucky Fried Chicken and Indy-Lube properties which have extremely long frontages
for the size of the property and also are corner lots with frontage on Dodge Avenue and
5th Street. These properties cannot support assessments equal to the cost of street
construction along their total length of both streets. Finally, the addition of 5th Street
results in a stretch between Baldwin and Auburn where there is virtually no assessable
property. There are four to five residential properties along this stretch. However, it is
not recommended to include these in the assessment, since properties west of Auburn were
not assessed when that portion of 5th Street was upgraded with the recently completed
storm drainage project.
An Equal Opportunity Employer
Mr. Pat Klaers
April 24, 1996
Page Two
On Thursday afternoon, I contacted Mr. Gary Santwire and relayed to him this
information, telling him that any petition he has signed by the affected property owners
should be based on the approximate assessment values shown in the feasibility study under
the 50 % front footage and 50 % unit amount. I also indicated that we were likely, with
these assessment amounts and the project costs, to go from a 50% assessment to a 33%
assessed project. I indicated to him that 35 % of the affected properties, based on the size
of the proposed assessments, could constitute a valid petition, but that I thought a greater
show of support may be needed to proceed with this project since the City Council is
considering numerous projects which all require City funding which is in limited supply.
If you have any questions regarding this or would like me to do any further work, please
call.
Sincerely,
MSA, CONSULTING ENGINEERS
TJM:tw
246-2211.apr