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ARDEN HILLS CITY COUNCIL-MAY 12, 2014 6
<br /> Assistant City Engineer Anderson reported that the project is proposed to be assessed consistent
<br /> with the City's Assessment Policy and past practices, which states that 70% of the costs for
<br /> roadway improvements will be assessed in commercial/industrial areas, with the remaining
<br /> portion financed by City funds. Financing for the project is consistent with City policy and past
<br /> practices and is summarized in the table below. The project costs include engineering and
<br /> overhead costs as follows:
<br /> Funding Source Construction Overhead Total
<br /> Street $1,211,778 $448,358 $1,660,136
<br /> Storm Sewer $276,370 $74,619 $350,989
<br /> Water $278,457 $75,183 $353,640
<br /> Lighting $120,481 N/A $120,481
<br /> Total $1,887,086 $598,160 $2,485,246
<br /> Assistant City Engineer Anderson explained that the calculation of the amount to be assessed as
<br /> approved by Council Resolution 2014-023 is as follows:
<br /> Item Calculation Result
<br /> 70% of street construction $1,211,778 x 0.7 $848,244
<br /> Add 37% Overhead $848,244 x 1.37 $1,162,095
<br /> 45% of Storm construction $276,370 x 0 .45 $124,366
<br /> Add 27% Overhead $124,366 x 1.27 $157,945
<br /> Total Assessable $1,162,095 + $157,945 $1,320,040
<br /> Assessment Rate 1,320,040/6,902.13 $191.25 per front foot
<br /> Assistant City Engineer Anderson also noted that the Council established that the interest rate
<br /> would be 4.60% and the term would be ten years.
<br /> Assistant City Engineer Anderson stated that on Thursday, May 8, 2014, staff received a formal
<br /> objection from the property at 1777 Gateway Boulevard, Arden Towers, Inc. A copy of the
<br /> objection is attached. This is the parcel at the east end of Gateway Boulevard that contains a
<br /> communication tower. In fact, Arden Towers, Inc. owns two adjacent lots in this area; one vacant
<br /> and the one with the tower. Since all developed lots are proposed to be assessed with this project
<br /> and vacant parcels were not, staff included the parcel with the tower in the assessment but not the
<br /> vacant Arden Towers parcel. Staff will be looking for direction regarding the formal objection for
<br /> the parcel at 1777 Gateway Boulevard.
<br /> Assistant City Engineer Anderson reported that as provided for in State Statute, no appeal may
<br /> be taken as to the amount of any assessment adopted unless a written objection signed by the
<br /> affected property owner is filed with the City at or prior to the assessment hearing. After the
<br /> adoption of the assessment roll, property owners who have submitted an objection in writing have
<br /> 30 days to serve notice of an appeal to the City, and within 10 days after serving notice to file with
<br /> the District Court.
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