4.4. SR 01-28-2002 - Laserfiche WebLink

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VIII. FINANCING AND ASSESSMENTS The improvements discussed in this report are proposed to be financed through a number of different methods. These include cooperative agreement financing provided by MnDOT, trunk watermain funds, and lateral assessments for sanitary sewer and watermain improvements to Saxon Motors, Napa Auto Parts, Americlnn, and the two undeveloped properties adjacent to Zane Street. The following paragraphs discuss each of these financing methods in greater detail. MnDOT has notified the City that funds have been encumbered for this project in the 2002 fiscal year. A detailed cost estimate for the proposed improvements has been prepared and is included in the Appendix. This cost estimate puts the cost of the various improvements into the appropriate column for funding by MnDOT cooperative agreement dollars or City costs. According to the agreement with MnDOT, the state has agreed to pay for 60% of the street costs and 100% of the median closure. An analysis of the project costs indicates that the estimated construction cost financed by MnDOT is $120,000. Assuming MnDOT will pay 18% on top of this for overhead, the additional dollars would be $21,600, for a total of $141,600. Trunk watermain is being extended from the current termination point at the north property line of Mississippi Ridge to the 16-inch stub across TH 10 by the Americlnn. Trunk watermain charges were assessed to these properties in the Eastern Area project in 1998. It is proposed that trunk watermain funds in the amount of $15,000 be used. An analysis was performed to determine the lateral benefit to the properties adjacent to Zane Street NW. Currently, the City of Elk River's assessment policy is to assess $50.00 per linear foot of frontage for lateral sewer and water. The Americlnn is located on a private driveway to the north of Zane Street. Due to the location of the property, the front footage abutting the roadway is not representative of the size of the lot. In order for the assessment to be representative of the size of the property, it is proposed that for this project the assessments be based on acreage. In 1998, as part of the Eastern Area Project, these properties were assessed trunk watermain costs based on FEAS-STUDY 8