HomeMy WebLinkAbout5J Public Infrastructure Cost Allocation Tool Report
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4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: SEPTEMBER 16, 2019
AGENDA #: 5J
PREPARED BY: CASEY MCCABE, COMMUNITY DEVELOPMENT DIRECTOR
PRESENTED BY: CASEY MCCABE
AGENDA ITEM:
APPROVAL OF PUBLIC INFRASTRUCTURE COST ALLOCATION TOOL
GOAL AREA AND
OBJECTIVE:
Transportation & Mobility
2. Promote neighborhood connectivity and safety through development and street
reconstruction projects.
4. Support complete street designs that ensure pedestrian mobility and multi-modal
transportation options.
5. Focus on key corridors that take advantage of collaboration with state and county
projects.
DISCUSSION: Introduction
The purpose of this agenda item is to receive city council approval of a public
infrastructure cost allocation tool to support subdivider deposits as detailed in
Subsection 1005.302 (3) of the Subdivision Code.
History
As a result of the MN Supreme Court opinion in Harstad vs. City of Woodbury related
to street infrastructure development fees, the Prior Lake City Council sought
additional information related to the city’s future transportation needs and the
appropriate allocation of benefits related to future transportation projects.
The city contracted with SRF Consulting Group in January 2019 to evaluate future
transportation infrastructure needs and allocate infrastructure costs to benefiting
properties. SRF worked with city staff to identify future transportation infrastructure
needs and then completed an infrastructure cost allocation tool. The cost allocation
tool was presented to the city council during their September 3, 2019 work session.
Current Circumstances
In May 2019, the city council approved amendments to update the subdivision and
zoning codes to clarify language, update fees and identify methods of installation or
funding for public improvements that are made necessary as a result of development
in the community.
The system provides for the developer to build or the city to build and assess the
developer for all improvements needed for a development. This will include, but is
not limited to, collector streets, intersections needed at the time of development,
medians, turn lanes, right of way acquisition, curbs, gutters, sidewalks and trails. If
the developer is unwilling to build the needed improvements, or have the city build
and assess, the development can be deemed premature. For improvements that are
not needed at the time of development (i.e. intersections needed later) the developer
will provide a deposit to be used toward the improvement.
Subsection 1005.301, Public Improvements, states, “The subdivider is responsible
for the installation, construction and cost of all public improvements required to serve
the subdivision, whether such improvements are located on or off of the subdivided
property (all required public improvements are referred to in this Section as “Public
Improvements”). The City shall determine what improvements are required to serve
the subdivision, including but not limited to the following: streets, curb and gutter,
traffic and street signals and signs, street lights, medians, and turn lanes; sanitary
sewer, water and storm water infrastructure; site grading and ponding; underground
utilities; monuments; sidewalks, trails and boardwalks; erosion control; wetland
improvements and signage; and landscaping.”
The City may, in the City’s sole discretion, agree that some of the public
improvements, though impacted by the subdivision, need not be installed or
constructed immediately. In such cases, the City may agree to accept a deposit from
the subdivider to pay for the subdivider’s portion of the future public improvements.
The City and the subdivider shall enter into a deposit agreement which, at a minimum,
shall establish the need for the public improvements, set forth the subdivider’s share
of the cost, and address the accounting for and refund of any excess deposit.
The public infrastructure allocation tool identifies the expected improvements and
how those improvements will be allocated between currently undeveloped property.
City staff will not know exactly what is needed for each improvement until the
improvement is planned and designed. However, the public infrastructure cost
allocation tool provides placeholders (which staff can update as more information is
gathered or for inflation) to provide an estimate of the expected project.
ISSUES: The new system is not perfect. It does not work nearly as well nor is it as equitable
as the previous street fee system. However, it does work and is supported by current
law. Staff believes that a legislative solution is still the best answer, but in the interim
this system may be our best alternative. The public infrastructure cost allocation tool
will support the deposit method of public infrastructure improvements as outlined
above.
ALTERNATIVES: 1. Motion and second, under the consent agenda, to adopt the public infrastructure
cost allocation tool as presented during the September 3, 2019 city council work
session.
2. Remove item from the consent agenda for additional discussion.
RECOMMENDED
MOTION:
Alternative #1