2012-03-27_PWETC_Minutes - Laserfiche WebLink

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Mr. Schwartz advised that property owners were protected under Chapter 429 language, noting that property owners already had the option to require an appraisal, with the City having to prove the benefit to individual properties. At the request of Member Vanderwall regarding the cost of and process for appraisals, Ms. Bloom advised that the average appraisal cost to determine the market rate for residential properties was $3,500.00; with that appraisal providing comparable sales and average increase in values for similar properties. Ms. Bloom advised that commercial appraisals were variable, with a recent Nicollet Mall appraisal costing $20,000.00. In using the recent Rice Street—Phase I project as an example, Mr. Schwartz advised that the majority of that project was funded by federal and state bonding funds, with little in local dollars. However, in noting that not all costs were yet in, Mr. Schwartz opined that in all likelihood, when all funding sources had been identified, the City of Roseville's cost-share of the project would be confined to utility replacement costs. In using Phase I of the Rice Street project, Ms. Bloom noted that, of the $28 million project, Roseville's cost share was approximately $200,000 for utility replacement. Mr. Schwartz noted that the City's Feasibility Study construction estimates incorporated potential cost-share contingencies; but noted that utilities were funded differently and not assessable costs. Mr. Schwartz noted that to spend $10,000 estimated appraisal costs for a $300,000 project was not an efficient use of public funds. Ms. Bloom noted that an appraisal, especially for commercial projects, could put the City in a better position to justify the assessment if the assessment was appealed or challenged, and would become a subset of feasibility reports. Ms. Bloom noted that staff was still reviewing right-of-way costs as part of a city- wide benefit; and advised that they would present something in writing in the near future for PWET Commission consideration, hopefully more simplistic, and addressing the question: "What is assessable?" Further discussion included currently no difference for assessments for local, state or county roadways with the current policy all-inclusive; recognizing that a 50% assessment for project costs would seldom come into play. However, Ms. Bloom provided a specific example of a challenging situation in the past and applying the 50% assessment scenario. The project was for the signal at Hamline Avenue and Commerce Streets, with Hamline Avenue a County road, although he west leg is city-owned and the east leg is a private street; and there were no funding mechanisms in place for the east leg, since it was a private driveway, with the City of Roseville responsible for 50% of that project. Ms. Page 8 of 15