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CONSULTINGENGINEERS <br /> <br />1326 Enemy ParkDrive <br /> <br />St. Paul, MN 55108 <br /> <br />612-644-4389 <br /> <br />1-800-888-2923 <br /> <br />Fax:612-644-9446 <br /> <br />April 24, 1996 <br />File: 230-246-12 <br /> <br />Mr. Pat Klaers <br />City Administrator <br />City of Elk River <br />13065 Orono Parkway <br />P.O. Box 490 <br />Elk River, MN 55330 <br /> <br />DODGE AVENUE AND 5TH STREET <br />FINANCIAL FEASIBILITY <br /> <br />Dear Mr. Klaers: <br /> <br />ITEM 5.5. <br /> <br />CIVIL ENGINEERING <br />ENVIRONMENTAL <br />MUNICIPAL <br />R~ANNING <br /> <br />SOLID WASTE <br />STRUCTURAL <br />SURVEYING <br />TRAFFIC <br />TRANSPORTATION <br /> <br />ELECTRICAL/MECHANICAL <br />ENGINEERING <br /> <br />HVAC <br /> <br />POWER DISTRIBUTION <br /> <br />SCADA <br /> <br />SYSTEM CONTROLS <br /> <br />OFFICES IN: <br /> <br />MINNEAPOLIS <br /> <br />PRIOR LAKE <br /> <br />ST. PAUL <br /> <br />WASECA <br /> <br />This correspondence is intended to provide a summary of the issues you, Lori, and I <br />discussed on Thursday, April 18, 1996, concerning the financial feasibility of a Dodge <br />Avenue/5th Street improvement project. The project in question would complete the <br />upgrade of Dodge Avenue from approximately the Prairie House to 5th Street and the <br />upgrade of 5th Street from TH 169 to Auburn. The estimated total project cost for those <br />improvements is $375,000 to $400,000. In reviewing last year's Dodge Avenue <br />improvements, there were two segments done by change order with assessments to the <br />abutting properties. The three office buildings in the Barrington Square development were <br />each assessed $10,000, the office building which houses Re-Max Realty was assessed <br />$10,000, the Goodyear Auto Service Store was assessed $12,000, and the McDonalds was <br />assessed $14,000. Reviewing the December 1994 feasibility study for these improvements <br />and keeping in mind the assessments that were levied last year, it appears that the <br />assessment spread given on page 9 for 50% front footage and 50% unit are the general <br />amounts we could expect to be assessed against properties for a continuation of the project. <br />From those amounts, it appears assessments would fund $125,000 to $135,000 of the <br />project costs. <br /> <br />In 1994 when this feasibility study was prepared, it was estimated that the total project cost <br />would be 50% assessed and 50% funded by the City. These current numbers appear to <br />reflect a one-third assessment and two-thirds City funding. There are several reasons for <br />this change. First is a two-year increase in construction costs and following an assessment <br />spread based on 1994 costs. Second, the south end of Dodge Avenue contains the <br />Kentucky Fried Chicken and Indy-Lube properties which have extremely long frontages <br />for the size of the property and also are corner lots with frontage on Dodge Avenue and <br />5th Street. These properties cannot support assessments equal to the cost of street <br />construction along their total length of both streets. Finally, the addition of 5th Street <br />results in a stretch between Baldwin and Auburn where there is virtually no assessable <br />property. There are four to five residential properties along this stretch. However, it is <br />not recommended to include these in the assessment, since properties west of Auburn were <br />not assessed when that portion of 5th Street was upgraded with the recently completed <br />storm drainage project. <br /> <br />An Equal Opportunity Employer <br /> <br /> <br />