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ITEM 4.1. <br /> <br />Howard R, Green Oompany <br />QQNSULTING ENGINEERS <br /> <br />July 30, 1997 <br />File: 230-365M-0564 <br /> <br />CONSULTING ENGINtERS <br /> <br />Consulting Engineers <br /> <br />The Honorable Mayor and City Council <br />City of Elk River <br />13065 Orono Parkway <br />P.O. Box 490 <br />Elk River, MN 55330-0490 <br /> <br />RE: MACON STREET/RIVERVIEW DRIVE ASSESSMENT HEARING <br /> <br />Dear Council Members: <br /> <br />As you are aware, the assessment hearing for the Macon Street/Riverview Drive Improvements <br />is scheduled for Monday night's City Council meeting. I will be prepared to make a brief <br />presentation and answer any questions the City Council or affected property owners may have. <br /> <br />There have been a couple of changes since the feasibility study that positively affects the <br />proposed assessments. First of all, the bids received were significantly lower than the <br />feasibility study estimates. This was particularly true relative to the cost of the sanitary sewer. <br />Also in the feasibility study, it was proposed to assess the sanitary sewer and watermain on a <br />per lot basis with 24 lots being on the Country Crossing side of the street and 17 lots on the <br />existing home side of the street. However, the street and storm drainage cost were proposed to <br />be split in half and then divided by the number of lots. This resulted in a higher assessment to <br />the existing lots than the proposed Country Crossing lots. For this assessment hearing we have <br />recalculated all assessments based on an equal split per lot. <br /> <br />Attached to this letter is the overhead I intend to present at the assessment hearing. As you <br />can see from the overhead, the existing lots were proposed to be assessed $6,000 for street <br />and storm drainage in the feasibility study, the new assessment is 20% lower at $4,800 per lot. <br />The proposed assessment to the Country Crossing lots is $9,800 per unit versus the $11,275 <br />estimated in the feasibility study. This represents approximately a 13% percent reduction in <br />this assessment rate. The other favorable news relative to these assessments is the interest <br />rate the City will charge. In the feasibility study it was estimated at 8%. The assessment <br />notices were sent out at 6.75% but based on the recent bond sale, this interest rate can be <br />reduced to 6.31%. <br /> <br />One other development since the public hearing, Mr. Sanudo, who owns Lots 1 and 2 of Block <br />2 Grandview Addition has combined his lots under one parcel number. We were unaware of <br />this at the time the assessment notices were sent, therefore Mr. Sanudo was sent two <br />assessments. We will be prepared to recommend at the assessment hearing that the roll be <br />amended to reduce his assessment to one unit. <br /> <br />At this time, the City has not received any formal written appeals from property owners. <br />Individuals may appeal this project assessment by presenting a signed, written objection to the <br /> <br />1326 Energy Park Drive · St. Paul, MN 55108 · 612/644-4389 fax 612/644-9446 toll free 800/888-2923 <br /> <br /> <br />