HomeMy WebLinkAbout8A Welcome Industrial Park Assessment Hearing O� P ���
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Prior Lake. MN 55372
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CITY COUNCIL AGENDA REPORT
MEETING DATE: MAY 13, 2013
AGENDA #: 8A
PREPARED BY: KATY GEHLER, PUBLIC WORKS � NATURAL RESOURCES DIRECTOR
PRESENTED KATY GEHLER
BY:
AGENDA ITEM: ASSESSMENT HEARING FOR CITY PROJECT 12-012, WELCOME INDUSTRIAL
PARK IMPROVEMENTS.
DISCUSSION: Introduction
The purpose of this agenda item is to hold the Assessment Hearing related to the Wel-
come Industrial Park Improvements. The purpose of the hearing is to give property
owners an opportunity to express concerns about the actual special assessment. Each
property owner has received a mailed notice of the hearing containing a property spe-
cific proposed property assessment (see attached proposed assessment roll). At the
assessment hearing the council shall hear and consider all objections to the proposed
assessment, whether presented orally or in writing. The Council may also consider a
resolution adopting the assessments.
Historv
On August 15, 2011, the City Council placed the Welcome Avenue Utility Extension in
the CIP for 2012. Through the feasibility process potential components of the project,
benefits, and synergies with other City priorities were discussed that included:
1. Wellhead Protection Plan (WHPP) Compliance
2. Markley Lake Flood Protection Strategy
3. Economic Development Potential
4. Code Enforcement
5. Future Annexation Potential
The final recommended project included extension of water and sanitary sewer in
compliance with the WHPP, urban street construction to encourage development in
line with the WHPP goals, construction of a stormwater pond to address the needs of
the project area and also half of the compensatory flood volume to meet the Markley
Lake Flood protection strategy and street lighting to address security concerns
The proposed improvements are considered new development under the current as-
sessment policy which allows up to 100% of the costs of the project to be assessed. A
unit assessment, equal to each parcel, was originally considered for this project. How-
ever, significant disparities between the sizes and current development statuses of the
existing lots would likely not equate to equal benefits to each lot supporting a per lot
assessment rate. Therefore an area-based assessment method has been contem-
plated that considers the developable area (or adjusted area) of each parcel.
In February of 2012 the City completed representative appraisals to gauge the special
benefit of each of the project components to the properties proposed to be assessed.
Two lots were chosen to represent the potential high and low benefit from the im-
provements. The rates were broken into three components: Streets (including storm
sewer), water and sewer, and regional stormwater improvements.
Total special benefit for the project area was estimated by applying the rates of the
representative appraisals, totaling $1,500,000. The Special Assessment Committee
reviewed the results and recommended a reduction in the assessed rate for the water
and sewer component, supported with considerable additional funding from the Water
Fund due to the benefit to the public water supply. Project funding has been devel-
oped under this direction considering a total assessment amount of $1,000,000 from all
properties combined.
Various project approvals have taken place in accordance to the 429 process allowing
the project to be bid. The bids were opened and tabulated on April 2, 2013. As you
recall an alternative was bid extending the road surface from the north end of Welcome
Avenue to the east property line of the City's newly acquired parcel. The bid tabulation
is attached.
In addition the cost includes an estimate to widen the road to 36'. The original 2007
feasibility study noted ROW constraints limiting the road to 28'. However, review of the
title work by our attorney identified enough width to construct the road to our current
standards for an industrial area. The extra width will not only convey the larger vehi-
cles in a more efficient and safe manner, but will also allow for parking on one side of
the road. Final costs will be presented with the bids.
The bid price has historically been used to calculate the final proposed assessment for
residential reconstruction projects based on a unit assessment. The assessments for
this project, however, are based on the special benefit and adjusted area, therefore the
assessment rates ($/sq.ft.) have not changed.
Current Circumstances
The next step in the project process is to hold the Assessment Hearing. The Assess-
ment Hearing provides property owners an opportunity to express concerns about the
actual special assessment. All benefitting property owners have been mailed an As-
sessment Hearing Notice, proposed assessment amount based on the full project, and
a sample payment schedule. The Notice of the Special Assessment Hearing was pub-
lished in the newspaper on April 27, 2013 and May 4, 2013.
Under State Statute, the City may only assess a property up to the amount the proper-
ty is specially benefitted by the public improvement. Special benefit is defined as the
difference between fair market value before and after the project. Staff has adjusted
the assessment on the property located at 6000 Credit River Road (Prior Lake Mini
Storage) based on the guidance of a site-specific appraisal. The appraisal noted two
benefit amounts based on a project with or without Alternative 1.
The property owners who believe that the proposed assessment exceeds the special
benefit have a right to appeal their assessments in District Court. In order to perfect
their right to appeal their assessment a property owner must submit their written and
signed objections to the proposed assessment to the City Manager prior to the As-
sessment Hearing or present it to the City Council at the Assessment Hearing.
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Two property owners have done so including Prior Lake Mini-Storage and Mr. Archie
Pavek (see attached). Other property owners may elect to submit an appeal in person
or at the hearing itself.
Within 30 days of adoption of the assessments, the property owner must also file an
appeal in District Court. Once filed with the court, the appeals process can take 8-12
months before a final assessment amount is determined.
Conclusion
The Council should open the public hearing at the time set forth in the notice and re-
ceive public input.
If the Council wants additional testimony or information from property owners or staff,
State Statute 429.061 Subd. 2 allows the council to adjourn (or continue) the public
hearing to a subsequent meeting
429.061, Subd 2:
At the adjourned hearing the council or a committee of it may hear further written or
oral testimony on behalf of the objecting property owner and may consider further
written or oral testimony from appropriate city officials and other witnesses as to the
amount of the assessment.
If there are additional issues that arise from the hearing, the following process is rec-
ommended:
1. Adjourn the hearing to the Special Assessment Committee citing a specific date
and time (i.e. May 23, 2013, 4:30 PM).
2. Continue the Assessment Hearing at the Special Assessment Committee Meet-
ing to hear testimony from not only objecting property owners but also staff.
3. Have the Committee report back to the City Council at a subsequent Council
Meeting (i.e. May 28, 2013).
ISSUES: 1. The total project cost and therefore assessment amount will be influenced by
whether the council elects to add Alternative 1 which is the road extension and
if the 36 foot wide road alternative is approved which would allow for parking on
one side of Welcome. A table showing the impact of this option is shown below
under Financial Impact. The Council may wish to consider which construction
option it intends to choose prior to adopting the assessment.
2. Appeals of assessments are likely with this project. Two notices have already
been received. The appeal process will take 8-12 months for mediation, discov-
ery, and potential litigation before the final assessment amount is known. The
City must pay the construction costs of the project as shown below in any case.
Bonds plus other contributions from various funds will accomplish this. To the
extent that the appeals reduce any of the assessments, the Council would have
to replenish this amount at its discretion through tax levy, reserve contribution,
additional fund contributions or any combination of the three.
FINANCIAL The table below shows the financing breakdown.
IMPACT:
Feasibility Bid w/
Construction Cost Study Base Bid Alt. 1
Surface Improvements $1,239,410 $1,148,927 $1,148,927
Sanitary Sewer $212,133 $201,644 $201,644
Watermain $326,562 $262,884 $262,884
Storm Sewer $304,133 $205,853 $205,853
Additional Road Extension $0 $0 $163,862
36' Road Width $0 $130,000 $130,000
Property Acquisition $150,000 $149,000 $149,000
Total Estimated Cost $2,232,238 $2,098,308 $2,262,170
Preliminary Financing
Water Fund $600,000 $600,000 $600,000
Water Quality Fund (Storm upsizing) $50,000 $157,000 $207,000
Watermain Trunk Fund (Watermain upsizing) $20,000 $53,048 $53,048
Sewer Trunk Fund (Sewer extra depth) $20,000 $0 $0
Storm Trunk Fund (Markley Lake Flood Protection) $301,000 $301,000 $301,000
Assessments $1,000,000 $892,970 $954,970
Bonding $170,000 $94,290 $146,152
Total Financing $2,161,000 , $2,098,308 $2,262,170
ALTERNATIVES: 1) Hold the Assessment Hearing and adjourn or continue the hearing to a specific day
and time for the submission of additional testimony and special assessment com-
mittee discussion.
2) Hold the Assessment Hearing, close it at the conclusion of the testimony and con-
sideration approval of a resolution adopting the assessments.
RECOMMENDED Alternative 1.
MOTION:
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4646 Dakota Street SE
'�jN�so'��' Prior Lake, MN 55372
RESOLUTION 13-xxx
A RESOLUTION ADOPTING THE ASSESSMENT ROLL FOR THE WELCOME INDUSTRIAL PARK
IMPROVEMENTS, PROJECT 12-012
Motion By: Second By:
WHEREAS, Pursuant to proper notice duly given as required by law, the council has met and heard and
passed upon ali objections to the proposed assessment for Improvement No. 12-012, the
Welcome Avenue Industrial Park Improvements.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. Such proposetl assessment, a copy of which is attached hereto and made a part hereof, is hereby
accepted and shall constitute the special assessment against the lands named therein, and each tract
of land therein included is hereby found to be benefited by the proposed improvement in the amount of
the assessment levied against it.
3. Such assessment shall be payable in equal annual installments extending over a period of 10 years for
street improvements antl 20 years for sewer and water improvements, the first of the installments to be
payable on or before the first Monday in January 2014, and shall bear interest at the rate of 4.25%
percent per annum from the date of the adoption of this assessment resolution. To the first installment
shall be added interest on the entire assessment from the date of this resolution until December 31,
2013. To each subsequent installment, when due, shall be added interest for one year on all unpaid
installments.
4. The owner of any property so assessed may, at any time prior to certification of the assessment to the
county auditor, pay the whole of the assessment on such property, with interest accrued to the date of
payment, to the city treasurer, except that no interest shall be charged if the entire assessment is paid
within 30 days from the adoption of this resolution; and he/she may, at any time thereafter, pay to the
city treasurer the entire amount of the assessment remaining unpaid, with interest accrued to
December 31 of the year in which such payment is made. Such payment must be made before
November 15 or interest will be charged through December 31 of the next succeeding year.
5. The clerk shall forthwith transmit a certified duplicate of this assessment to the county auditor to be
extended on the property tax lists of the county. Such assessments shall be collected and paid over in
the same manner as other municipal taxes.
PASSED AND ADOPTED THIS 13T" DAY OF MAY 2013.
YES NO
Hedber Hedber
Keene Keene
McGuire McGuire
Morton Morton
Souku Souku
Frank Boyles, City Manager
� htta:l/solash/teams/amlOctober 4 2010/May 13. 2013/Welcome Adoot Assessment RES.docx
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LL
MALKERSON GUNN MARTIN r.LP
1 900 U.S. BANK PLAZA SOUTH TOWER
LLO SOUTH SIXTH STREET
MINNEAPOLIS, MINNESOTA 55402
TELEPHONE 612-344- 1 1 1 1
FACSIMILE 612-344- 1 41 4
Phillip R. Krass, Esq. Direct: (612) 455-6630
NATIONALLY CERTIFIED CIVIL TRIAL SPECIALIST rod.krass@mgmllp.com
May 1, 2013
Honorable Mayor
City Council
City of Pri�r Lalce
4646 Dakota Street S.E.
Prior Lake, MN 55372
RE: Notice of Hearing on Proposed Assessment- Welcome Industrial Improvements
Project No. 12-012
PID No.: 259010280
Property Address: 6000 Credit River Road S.E.
Our File No.: 2698.001
Dear Mayor and Members of the Council:
Our office represents Prior Lake Mini Storage, Inc. and we aze in receipt of your April 26, 2013
letter and Notice of Hearing for the proposed assessment against my client's property, a copy of
which is enclosed.
Please be advised that on behalf of my client, we are objecting to this assessment. The reasons
for our objections include, but are not limited to:
I. The property has not received a special benefit from the public improvement being
assessed to it by an amount at least equal to that assessment.
2. The assessment is not uniform upon all parcels assessed in the same class of property.
3. The property has not received any special benefit from the public improvement assessed
against it.
Very t rs,
hillip R. Krass
156241
May 1, 2013
Page 2
PRK/jmm
Enclosure
cc: Prior Lake Mini Storage
I56241
-
���
& �,- enqinee�ing • planning • enviionmental• const�uction 70� xenia Avenue South
Suite 300
Minneapolis, MN 55416
Tel: 763-541-4800
Fax: 763-541-1700
April 3, 2013
Honorable Mayor and City Council
City of Prior Lake
4646 Dakota Street SE
Prior Lake, MN 55372
Re: Welcome Avenue Street and Utility Construction
Recommendation Letter
City Project No. 12-012
City of Prior Lake in Scott County
WSB Project No. 1964-01
Dear Mayor and Council Members:
Bids were received for the above-referenced project at 10:30 a.m., Apri12, 2012, were opened, and read
aloud. A total of seven (7) responsive bids were received. The bids were checked for mathematical
accuracy and tabulated. Please find enclosed the bid tabulation indicating the low bidder, as follows:
Bidder Base Bid Alternate 1 Grand Total Base Bid
(Schedules A-D) (Schedules E & F)
Chard Tiling & Excavation $1,819,308.00 $163,862.00 $1,983,170.00
Engineer's Estimate $2,247,307.50 $169,935.00 $2,417,242.50
We recommend award ofthe contract to Chard Tiling & Excavating, Inc., for $1,983,170.00,
representing the Grand Total Base Bid. The Council may elect to accept the Base Bid plus Alternate
No. 1.
Sincerely,
WSB 8c Associates, Inc.
��
_.� C���-�
` son Wedel�, P.E.
Project Manager
Enclosures
cc: Chard Tiling & Excavation
sm
St Cloud • Minneapolis • St. Paul
Equal Opportunity Employer
wsbeng.com
K:�0196W IOUdMo\Comtruction Admin\I%J-01 RecommendxHoo LTR OJI511.doc
�.__. '
Ar�hie P$vek
1367 Z Orch�rd Gate R.c�
Poway, Ca. 92Q64
,
May 7, 2013
Pt78LYC HEAR.iNG N(]TtCE ON ASSESSM�I�TS
�t.QJ.#12-Q12, WP..LCOME 1NDUST�tT,AT., AARI� IMPRQNLnILENT,�
1'4: City C}f Pr�or i�alc�
4646 bakota St SE
Prior La1ce, Mn. 55372 Fa�: 952�447�42�5
At�ttn: Katy GEhler, P.E.
l�efezence is mt�e tv your letter dated Apti126, 2013
� I will n.ot be in atbendanc� ak the mee�ti�g referred to above. I�p� ta hav� a
repr�se�►taxive on r�y b�l�a�f.
As I hav� indicated �revitiusly, I oppose any prupossd assessments ta mY I�P�Y. I
never use Wetcome Ave nor � 1 i�end to us� it in the £utut�e. Th�re�oce it is not an
improuement to �.1! of rny pmpert?'. 1 use �ndustrial Circle Co �cess mY �Pe�Y '►'�+'ith the
, majority of the �ie�ildings Ioc�ted at tlaat site. However i wauld cc��,4ider a split of the
assessmetrt c�n VGTelt�om� Ave as p�nt af my p�r�operty would benefrt from the
imgrovement.
S�veral ycaars aga wh�n � requested a�t upgr�de to•Indt�st�ni�l. C`atcIe, I was intormed t�at I
would 1�►ve to c�ve� the entir� cust. �C.ie was tl�at the ChurCb does not use the street
They use th� Str�t. Now that 1�Vel�ome Ave is �rettirig a� impsovertletrt seell[1S thRt
� Industrial Circle sh�uld t�e next with the cost be�o;g shared by ali prapeRy owners. This �
may b� the tit�� �a cv�sider dc�ing i�otri proj+�ts•
if you need fu�tlter infarrnation, please contact me ar.
SS8-486�2257(h� $58-395-1853(c}
�r�,�i,�: t�IrnwiicarcEtCr,�cc�x_n�4.
r �
�.!yf�..L: .
C�II'� �&V�IC
Cc; Frank B+Qyl�s, City Ma,nag+cr
Larry Pappler, City �ng�neer
GPIKPGGTKPIRNCPPKPIGPXKTQPOGPVCNEQPUVTWEVKQP
701 Xenia Avenue South
Suite 300
Minneapolis, MN 55416
Tel: 763-541-4800
Fax: 763-541-1700
April 3, 2013
Honorable Mayor and City Council
City of Prior Lake
4646 Dakota Street SE
Prior Lake, MN 55372
Re: Welcome Avenue Street and Utility Construction
Recommendation Letter
City Project No. 12-012
City of Prior Lake in Scott County
WSB Project No. 1964-01
Dear Mayor and Council Members:
Bids were received for the above-referenced project at 10:30 a.m., April 2, 2012, were opened, and read
aloud. A total of seven (7) responsive bids were received. The bids were checked for mathematical
accuracy and tabulated. Please find enclosed the bid tabulation indicating the low bidder, as follows:
BidderBase Bid Alternate 1 Grand Total Base Bid
(Schedules A-D)(Schedules E & F)
Chard Tiling & Excavation $1,819,308.00 $163,862.00 $1,983,170.00
Engineer’s Estimate $2,247,307.50 $169,935.00 $2,417,242.50
We recommend award of the contract to Chard Tiling & Excavating, Inc., for $1,983,170.00,
representing the Grand Total Base Bid. The Council may elect to accept the Base Bid plus Alternate
No. 1.
Sincerely,
WSB & Associates, Inc.
Jason Wedel, P.E.
Project Manager
Enclosures
cc: Chard Tiling & Excavation
sm
7X'PSYH1MRRIETSPMW7X4EYP
Equal Opportunity Employer
wsbeng.com
K:\01964-010\Admin\Construction Admin\1964-01 Recommendation LTR 041513.doc