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<br />. <br /> <br />Regarding $3,800 in the east part of our community, information is too <br />preliminary at this time to know whether or not this figure will be sufficient. <br /> <br />. <br /> <br />The focus of the Council's discussion on this topic relates to the northeast <br />area of the City. The City began applying this $3,800 amount to the <br />northeast area somewhere around 1991-92. This figure was based on our <br />experience in the northwest area and in the west area. This figure was also <br />based on information in the 1991 and 1992 area-wide study for the northeast <br />area. As the Council may recall, we were having discussions about the need <br />and financing of a water tower in this vicinity at that time. The cost of just <br />the sewer system, water system with the booster station and pressure <br />reducing valves, was estimated at $3,500 per acre. This was well before any <br />commercial project or sewer project between Hillside and the existing trunk <br />sewer line was ordered. The City used the $3,800 amount for Hillside I and <br />II and for CherryHill Bluffs in order to be consistent and uniform on a city- <br />wide basis and due to the uncertainty as to when the project would happen, <br />and the actual costs for the improvements. This was deemed to be an <br />appropriate amount to "buy into" the urban system and to finance the <br />necessary improvements. The Council should note that this $3,800 amount <br />was paid for the CherryHill Bluffs subdivision to flow into an existing sewer <br />pipe where no additional construction costs were incurred. This was simply <br />the price for CherryHill Bluffs to buy into the urban system and develop in <br />an urban manner and this was consistent throughout the City at that time. <br /> <br />My previous memo outlines some of the thoughts on this issue, and staff <br />continues to believe that $3,800 on a city-wide basis is appropriate. We do <br />not dispute that the actual cost in the northeast area may be slightly lower, <br />but how much lower is debatable based on the unknown total costs, lateral <br />benefits, total assessment area, and when actual payment of Green Acre <br />properties will be received. It is clear that the benefit to developers exceeds <br />$3,800 per acre for the right to hook up to the urban system and develop in <br />an urban manner. <br /> <br />. <br />