Loading...
HomeMy WebLinkAbout7B TH13 Duluth Public Hearing Report Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: MARCH 5, 2018 AGENDA #: 7B PREPARED BY: JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER PRESENTED BY: JASON WEDEL AGENDA ITEM: PUBLIC HEARING TO CONSIDER APPROVAL OF A RESOLUTION ORDERING THE DULUTH AVENUE INTERSECTION IMPROVEMENT PROJECT, CITY PROJECT #TRN15-000003 AND PREPERATION OF PLANS AND SPECIFICATIONS DISCUSSION: Introduction The purpose of this agenda item is to receive comments on the Duluth Avenue Intersection improvements and if appropriate order the improvements. Ordering the improvements requires a 4/5ths vote. History A feasibility report was originally prepared for the Duluth Avenue Intersection Improvement project in January 2015. The feasibility report was accepted and the project was ordered by the City Council on January 26, 2015. However, due to projected tax levy impacts, the project construction was delayed. The feasibility report was updated in 2018 to included assessments to adjacent properties that will benefit from the proposed improvements as part of the overall financing of the project. The revised feasibility report was approved by the City Council on February 5, 2018 and the public hearing was ordered for this evening. The M.S. Chapter 429 process applies to all projects that will be financed in whole or part through special assessments or bond proceeds. The proposed amount of assessments is less than 20% of the estimated improvement costs, so the City is proposing to utilize Street Reconstruction bonds as outlined in State Statute 475 rather than General Obligation bonds. However, the process will still follow the 429 process. The Duluth Avenue Intersection Improvement Project includes widening the intersection to include dedicated left, thru, and right turn lanes on Duluth Avenue in both directions at the intersection with TH13. It also includes the addition of a right turn lane into the Holiday Station Store’s northerly entrance, the construction of a median on Duluth Avenue to restrict the access to the entrance for the Village Lake Mall to right -in/right- out near the intersection, the construction of a mini roundabout at the intersection of Duluth and Village Lake Drive, as well as modifications to several of the southerly entrances to the Village Lake Mall property and the realignment of the Toronto/Village Lake Drive intersection. 2 Current Circumstances The properties deemed to specially benefit from the improvements, in most cases the properties abutting the streets located in the project area, are subject to assessment. Each of the affected property owners have been notified in accordance with the statute regarding tonight’s Public Hearing. Individual meetings and/or phone calls have been made to all of the impacted property owners. This includes the Village Lake Mall, Holiday Station Store, Subway, Wells Fargo, Ace Hardware, Prior Lake Transmission, Brooksville Apartments and Honest1 Autocare. After the presentation of the Feasibility Report to the City Council on February 5, 2018, City staff determined that the proposed improvements on Duluth Avenue will not include the driveway entrance to Honest1 Autocare. That property has therefore been removed from the proposed assessment roll. The majority of the affected property owners are generally in favor of the project. However, the owner of the Brooksville Apartments did voice concerns with being assessed for the proposed improvements to Toronto Avenue. Conclusion The purpose of this Public Hearing is to determine whether the project should move forward. Completion of plans and specifications is the next step. Once the plans and specifications are completed, they will be submitted to the City Council for approval and authorization to advertise for bids. The Council could decide not to continue with the project upon receipt of bids. A separate Assessment Hearing will be conducted this fall. In summary, the project is feasible from an engineering and economic standpoint. If the project is approved, City staff will continue to work on completion of plans and specifications. ISSUES: The City hired Nagell Appraisal to provide a report that reviewed the proposed improvements and provided a general range of benefit to the adjacent properties based on the improvements to the roadway itself as well as the improved function of the street network in the area. The appraiser noted that the benefit ranged from $125 to $175 per linear foot for the first 100 feet of road frontage and $50 - $100 per linear for street frontage in excess of 100 feet. This information was present to the Assessment Review Committee on January 12, 2018. The consensus of the committee was to utilize the low end of the benefit range provided by the appraiser. It was also the consensus of the committee to assess based on acreage rather than street frontage due to the amount of the existing street frontage being disproportionate to the various properties. For example, Wells Fargo has a significant amount of street frontage along Duluth but the total area of their property is relatively small. The Village Lake Mall on the other hand has very little frontage along Duluth but they have a very large area compared 3 to the other properties in the area. The total assessment amount was therefore calculated on the total street frontage within the project area and apportioned to each benefiting property based on their area. These assessment amounts are reflected in the amended feasibility report that was presented to the City Council on February 5, 2018. This is the first project the City has completed where Street Reconstruction bonds are being utilized as part of the overall funding in combination with assessments. Since the City is unable to able to assess 20% of the project cost, this has required a dual process of amending the City’s 5-year Street Reconstruction plan to include this project as required by State Statute 475 in combination with following the requirements outlined in State Statute 429 for assessing benefitting properties. This method of financing allows the City to assess at a level below 20%. FINANCIAL IMPACT: Due to the removal of Honest1 Autocare from the proposed assessment roll, the total amount of special assessments has been reduced by $9,824 compared to what is shown in the feasibility report. To offset the reduction in assessments the Tax Levy portion of the proposed funding will need to be increased accordingly. The Duluth Avenue Intersection Improvement Project is proposed to be financed by a combination of funding source as shown below: Special Assessments $163,025 Tax Levy $906,975 MSAS (State Aid) $400,000 MnDOT $710,000 Total $2,180,000 The total amount proposed to be assessed is $163,025. The remaining funding will come from the tax levy, State Aid and MnDOT. The approved 2018 Capital Improvement Program and Budget contemplate these expenditures. ALTERNATIVES: 1. Conduct the public hearing and unless new substantive information is offered, approve a Resolution Ordering the Duluth Intersection Improvement Project, City Project #TRN15-000003. 2. Deny this item for a specific reason and provide staff with direction. 3. Table the item until some date in the future. RECOMMENDED MOTION: Motion and second for alternative #1. Approval of this agenda item requires a 4/5ths vote. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 18-___ A RESOLUTION ORDERING IMPROVEMENTS AND PREPARATION OF PLANS AND SPECIFICATIONS FOR THE DULUTH AVENUE INTERSECTION IMPROVEMENT PROJECT (TRN15-000003) Motion By: Second By: WHEREAS, The Prior Lake City Council on its own initiative has determined that it desires to complete the Public Improvements for the Duluth Avenue Intersection Project; and WHEREAS, On February 5, 2018; the City Council accepted the Feasibility Report and called for a Public Hearing to be held for the Duluth Avenue Intersection Project which includes signal replacement, storm sewer, aggregate base, concrete curb and gutter, bituminous surfacting and appurtenant work; and WHEREAS, Ten days mailed notice and two weeks published notice of the hearing was given, and the hearing was held on the 16th day of April, 2018, at which time all persons desiring to be heard were given an opportunity to be heard thereon; and WHEREAS, Since the project was initiated by the City Council it must be approved by 4/5ths vote in accordance with Minnesota Statutes 429.031 Subdivision 1(f). 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 improvement is necessary, cost-effective, and feasible as detailed in the feasibility report. 3. The City Council by the required statutory 4/5ths votes does hereby order the project as outlined in the feasibility report. 4. The Public Works Director is hereby designated as the the Engineer for these improvements and is authorized to record engineering expenses in the Construction Fund (#501-43500.00- 55020-TRN15-000003). 5. The Engineer shall have prepared plans and specifications for the making of such improvements for the Duluth Avenue Intersection Improvement Project. 6. The City Council authorizes the following preliminary funding sources and corresponding transfers to the Construction Fund for the project: MnDOT $710,000 MSAS $400,000 Tax Levy $906,975 Special Assessments $163,025 Total $2,180,000 2 7. The City has determined to make a declaration of official intent (“Declaration”) to reimburse certain estimated costs for this project from proceeds of bonds expected to be in an amount not to exceed $1,400,000 in accordance with the Internal Revenue Service Reimbursement Regulations (Treasury Reg. 1.150-2). 8. The City may declare other separate statements of reimbursement intent in connection with specific public improvements projects as they are initiated under Minnesota Statutes Chapters 429 and 444, or for other capital projects, with the understanding that such additional declarations of reimbursement intent will supplement this resolution. All reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations. Passed and adopted by the Prior Lake City Council this 16th day of April 2018 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager