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Building'a Better world <br />for All of Us' <br />January'11, 2018 <br />Honorable.Mayer and City Council <br />City of Gem Lake <br />4200 Otter Lake Rd. <br />Gem Lake, MN 5511.0-3763 <br />Dear Mayor and Council: <br />RE: City of Gem Lake <br />Scheuneman Road improvements <br />5EH No. GEMLK 143869 14.00 <br />This letter supplements the Scheuneman Road Reconstruction Feasibility Report dated November 15, <br />2017 and accepted by the City Council on Tuesday, November 21, 2017 -at their regular meeting. This <br />letter provides additional costs and` riforrnat on concerning the water main extension only and also <br />provides the results of the appraised work by Real Estate Appraisal and Advisors to identify the estimated <br />benefit of the. reconstruction project to the benefitting properties. <br />WATER EXTEN&ON ONLY OPTION <br />The extension of water main in Scheuneman Road from its .current location, approximately 400 feet north <br />of County Road .E, .to the: north end of Scheuneman Road .at Hwy 61 is estimated to cost $305,000. The. <br />new water main would be installed in the. west side of Scheuneman Road with hydrants spaced for fire. <br />protection and water services stubbed to each unserved lot. The west half of the Scheuneman Road <br />pavement would be replaced along with patches:of the entire width of Scheuneman where water service <br />lines are stubbed to parcels along..the east side of Scheuneman. <br />.Assessing 1.00% of the water main extension only. costs over the parcels benefitting from the extension of <br />municipal water results in a per square foot assessment of $0.58. <br />With this option.5cneuneman Road would remain a rural section road without curb and: gutter. The <br />existing pavement on the east half (north bound lane) would remain as is with the water main extension <br />only option. <br />APPRAISAL. RESULTS: <br />The City engaged Real Estate Appraisal & Advisors to complete an appraisal report of the proposed <br />special. assessments in the Feasibility Report in December. Their report was dated. January 8, 2018 and. <br />sent to the City on January 10. The appraisal report found that .the average value of commercial: property <br />in this area with municipal sewer and water service to be $7-$12 per square foot.. Commercial properties <br />with municipal sewer and a private well to be $1-$3 per square foot less. <br />As part of the 2009 Scheuneman Road improvements, the City assessed five parcels in the current <br />project limits for street improvements at that time. Those parcels have been excluded from street <br />assessments for the proposed improvements. The proposed special assessments to reconstruct <br />Scheuneman Road as defined in the feasibility report are. summarized below with two assessment. <br />options for the City to consider. Option 1 has the City covering the street assessments for the five lots <br />assessed in.2009, a cost of $100,815. <br />engineers. I Architects I Planners I Sclentlsts <br />Short Elliott.HBndrlckson Inc., 3535 Vadeals Center Drive,. St Paul, MN 56110-51.86 <br />SEH is.100% employee -owned I sehlno,com 1 651,490,2000 1 .800,3251055 1 888.908:8166 fax <br />