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Ehlers calculated the cost per acre for installing the proposed water and sanitary sewer extensions into the northeast and northwest areas. Project costs were allocated by land use and development type and based on the estimated gallons used per net acre per day for each development type. This analysis is shown in Appendix C. Estimated fees were calculated on a per acre basis and are referred to as trunk fees. These could also be collected as WAC and SAC fees, shown on a per unit bases, or a combination of the two. Table 5.7 — Estimated Development Fees for Water Infrastructure Expansion Expansion Land Use Water Trunk Fee per Fee per Fee per Area Developable Acre Square Foot Unit Single Family $17,503 $0.40 $8,751 Northeast Mixed Residential $43,757 $1.00 - Neighborhood Commercial $54,319 $1.25 - Single Family $22,891 $0.53 $7,630 Northwest Mixed Residential $38,151 $0.88 - Highway Business $47,360 $1.09 - The fee per dwelling unit is higher in the northeast area because land use estimates indicate there will be an average of 2 single family dwelling units per net developable acre in the while the northwest area is expected to develop with an average of 3 single family dwelling units per net developable acre. The majority of the land in both areas is slated for single family home development. Table 5.8 — Estimated Fees for Sanitary Sewer Infrastructure Expansion Expansion Land Use Water Trunk Fee per Fee per Fee per Area Developable Acre Square Foot Unit Single Family $7,268 $0.17 $3,634 Northeast Mixed Residential $18,170.38 $0.42 Neighborhood Commercial $23,258.09 $0.53 Single Family $7,005 $0.16 $2,335 Northwest Mixed Residential $17,512.10 $0.40 Highway Business $22,415.49 $0.51 The fees shown in Tables 5.7 and 5.8 would need to be in addition to the existing EMRU WAC fee and City SAC fee. The total fees for the northeast and northwest areas are shown in Tables 5.9 and 5.10. Table 5.9 — Water and Sewer Development Fees for a Single-Family Home in the Extension Areas Northeast Extension Areas Northwest Extension Areas Development Estimated Cost per Fee/Assessment Single Family Unit Water Extension Costs $8,751 WAC Fee $3,990 Sewer Extension Costs $3,634 SAC Fee $5,769 Total $22,144 Development Estimated Cost per Fee/Assessment Single Family Unit Water Extension Costs $7,630 WAC Fee $3,990 Sewer Extension Costs $2,335 SAC Fee $5,769 Total $19,724 The City and ERMU will take on more financial risk if their fees are substantially higher than other suburban and exurban communities. Special assessments are factored into land costs: the cost of the improvements is essentially netted out of the sale price that the seller receives. If, however, costs are recovered through connection fees then land sellers will attempt to sell their properties at full value for land served by public utilities, and the developers will then need to pay the fees "on top of' the land cost. If the fees are higher Feasibility Report Northeast & Northwest Urban Service Area Expansion Study City of Elk River, MN WSB Project No. 020010-000 Page 26