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5.6. SR 07-24-1995~ ~\ rty of lk~ River **Item 5.6.** MEMORANDUM TO: Mayor & City Council FROM: Pat Klaers, City Administ ator DATE: Jul 24, 1995 Y SUBJECT: East Elk River Benefit Study Quotation During the June 26, 1995, City Council worksession on the east Elk River public improvement project, some discussion took place regarding the need for a benefit study for this project area. In this regard, the city engineer and I met with Mike Amo of St. Cloud Appraisals, Inc., in order to discuss the scope of the public improvement project and to obtain a quotation from him to do a benefit study or appraisal for this area. The city and county used Mr. Amo's services for the purchase of 1.8 acres for the extension of Orono Road through the fairgrounds. The county and the city both found Mike's work to • be acceptable and the city feels comfortable using this firm for this east Elk River benefit study. The benefit study is for future residential properties along County Road 12 as well as for the East Highway 10 commercial and industrial corridor. Attached for your review is the quote from Mr. Amo for his services for this east Elk River benefit study. This benefit study is necessary in order to help determine the maximum assessment rate per acre for trunk utilities that can be justified and substantiated in court. Recommendation Staff recommends approval of the quote in the amount of $4,200 for services from Mike Amo of St. Cloud Appraisals, Inc., to complete a benefit study for the east Elk River public improvement project. • council:ehwylOgt 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 C. • 11111„~~ Real Fslale Appraierale ~~~~~ ~~ST. CLOUD APPRAISE JllI 1 ~ INC. Suite 101 • Roosevelt Office Park • 606 South 25th Ave. • St. Cloud, MN 56301 Phone (612) 253-4488 • FAX (612) 253-8124 Mike Amo, RES President Thomas W. Montreuil, SRA Vice-President July 13, 1995 ~'ir. Patrick D. Klaers City Administrator 13065 Orono Parkway P.O. Box: 490 Elk River, MN 55330 Connie M. Hentges Appraisal Coordinator Sharon R. Wiebke Associate Kurt L. Dayton Associate Re: Re-Quote of Fee, Benefit Study, U.S. Highway #10 Corridor East, Elk River, Minnesota. Dear Mr. Klaers: As you requested today, I have calculated the fee necessary for me to complete a study. Specifically, I would estimate the value benefit to real estate due to the addition of certain city services, versus the value of real estate lacking the city services amenity. I estimate that the fee would not exceed $4,200, and would include a meeting with the council to explain the results of the study. The assignment should be completed shortly after Labor Day, 1995. I look forward to the opportunity of working for the city, and if I may be of assistance in other matters, please contact me. Sincerely, ~~ e Amo, RES President MA:cmh U