9.1. SR 07-25-1994 - Laserfiche WebLink

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. . . Riverside Development Company July 25, 1994 Mayor Hank Duitsman City of Elk River 13065 Orono Parkway P.O. Box 490 Elk River, MN 55330 SUBJECT: TRUNK ASSESSMENT FEES Dear Mayor Duitsman: Thank you for the opportunity to discuss this issue with you and the City Council. As a local real estate developer, I am very concerned about the method and rationale used to determine the $3,800 per acre assessment fee being placed on all development in this City. This fee hits me unjustifiably hard as the Hillside Estates and Hillside Crossing subdivisions continue in their logical development. The raw land carried a higher purchase price due to their proximity and eventual accessibility to the municipal trunk lines already planned to be established in this northeast portion of the City. Further, the assessments are already being incurred by me for these properties. These existing conditions actually validate a more accurate cost to this benefit area of $1,700 to $1,800 per acre, not the artificially created fee of $3,800 per acre. The result of this subjective fee is an unjust subsidization of development in other parts of the community, and in some locations where development has not begun, but is only hoped to occur sometime in the future. Please keep in mind that this letter is not to infer that a trunk fee is not applicable, but is intended to focus on the arbitrary method that it was established. Fees established by the City are required to follow the principles outlined in the City's own Assessment Manual; that is. to assess a fee based on the actual cost of the proiect. and then assessed to the area which eventually receives the benefit of the project. The City has deviated from this manual in the past, but has decreased the fees, not subjectively increased them. 241 Main Street. Suite 4 * E[k River. Minnesota 55330 (612) 241-0714 * Fax (612) 441-4575