1998-07-09 Costsr .~
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CJ
MEMORANDUM
TO: DUANE BERNING, JOHN VETSCH, DAVE LUND, LIZ STOCKMAN,
PETE CARLSON ^`'
FROM: MIKE COURI, CITY ATTORNEY
SUBJECT: PROPOSED OUTLET MALL DEVELOPMENT COSTS.
DATE: JULY 9, 1998
The following are a list of fees sent to Jim Morse of JMJ earlier this spring. Dave
Lund, Pete Carlson and myself have discussed these fees and have proposed as negotiating
positions the items shown in bold.
City Charges
1. Rezoning (if necessary)--$400.00 plus $Z50~ escrow and any additional professional
fees incurred. Currently the property is zoned PUD with an underlying business use,
so a rezoning may not be needed. Not needed-rezoning appears to be complete.
2. Planning review, Legal review, Engineering review--Costs vary depending upon the
complexity of the project. Albertville's expenses will be passed through to the
Developer. The City can waive the planning, engineering and legal fees,
probably in the area of $15,000 to $20,000.
a. Site plan review--$300 base fee plus $250 escrow and any professional fees
incurred (does not include building inspection review). Can be waived.
b. Subdivision/preliminary plat--$300 base fee plus $50 per lot/outlot, plus $100
public hearing fee and a $500 escrow plus any professional fees incurred.
Can be waived.
c. Park dedication fees--10% of the value of the land as platted. (Probably
between $60,000 to $75,000). Do not waive. May stagger the fees over a
three year period.
3. Building Permit fees-Listed below are the old fees under the 1988 UBC schedule.
The City has since adopted the 1994 UBC Schedule, but I do not have the updated
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• costs under the 1994 schedule as the City building inspector is unavailable at the
time of this writing due to a death in the family. I will forward the new costs when I
receive them. The old fees were as follows:
a. Building permit fee--Based upon the 1988 Uniform Building Code Schedule--
$3,539.50 for the first million dollars of value, plus $2.00 for each additional
$1,000 of value. (1994 schedule, $4,955 for the first million, plus $2.75 for
each additional $1,000. 60% of the fee goes to the building inspector.)
Estimated fees fora $12 million project are $35,000, of which the City
will receive approximately $14,000. The $14,000 can be waived.
b. Plan review fee--65% of building permit fee. This fee is approximately
$22,750. 90% of this fee goes to the building inspector. The City may
waive its approximately $2,275.
c. Plumbing permit fee--1.25% of job cost (for jobs over $30,000). Amount
unknown. 90% to building inspector. City's portion not considered
significant.
d. HVAC permit fee--1.25% of job cost (for jobs over $30,000). Amount
• unknown. 90% to building inspector. City's portion not considered
significant.
e. State Surcharge Fee--.0005 of the job or construction cost as a state surcharge
fee. This fee is collected by the City and passed on to the State. Cannot be
waived.
f. Separate electrical and fire protection inspection fees must be paid to the State
of Minnesota. Cannot be waived.
4. Sanitary Sewer Trunk Charges--To be established in the near future with the first
major sewered development in that quadrant of the City--will cover costs of
upgrading lift station, etc. The City Engineer has roughly estimated these charges as
approximately $1,400 per acre, although fmal numbers will not be available until the
district is actually established. Collect the $500 per acre for lift station upgrades,
but this amount may be staggered over a period of years. Remaining $900 per
acre may offset against developer installing a larger lift station.
5. Sanitary Sewer Access Charges--$3,200 per 225 gallons of daily flow. It has yet to
be determined whether calculation will be on a maximum or average daily flow--
City engineer and Developer will discuss this as more information is available.
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• Approximately $270,000. The. City must collect all amounts, but can stagger
collections over a four or five year period.
6. Sanitary Sewer Rate Charges--Assuming normal household-type sewage, the current
quarterly rates are $36.05 for the first 15,000 gallons and $2.63 per additional 1,000
gallons. Sewer billings are billed quarterly. Rates for stronger sewage (i.e.
restaurant waste, etc.) will vary, depending upon the treatment required. These must
remain unchanged.
7. Water Access Charge--$200.00 fee. This can be waived.
8. Water Trunk Charge--To be established in the near future, probably with the first
major trunk extension in that quadrant of the City--will cover the costs of extending
trunk water mains and looping water mains. The City engineer roughly estimates
this cost to be approximately $1,000 per acre, although final numbers will not be
available until the district is actually established. City needs to collect full amount,
although this can be specially assessed over aten-year period (with interest)
rather than collected up front.
9. Storm Sewer Fee--This fee is in two parts:
• a. Connection Fee--The connection fee is an acre-based fee which references the
percent of impervious surface on the site. Current charges are $759.40 per
acre for developments which contain 66% to 100% impervious surface.
Developments with 35% to 65% impervious surface are charged $421.90 per
acre. Lesser per acre amounts apply for developments with less impervious
surface. The City can waive this since Developer will be building all of his
own ponds and water will go straight from the ponds to the lake.
b. Quarterly Fee--A quarterly fee in the amount of $31.89 per acre for
developments which contain 66% to 100% impervious surface.
Developments with 35% to 65% impervious surface are charged $17.72 per
acre per quarter. Lesser per acre amounts apply for developments with less
impervious surface. This should,,b~e waived or modified.
10. Special assessments--There may be some deferred special assessments existing for
water mains (these assessments would have been levied by the Joint Powers Water
Board and should show up on a special assessment search). If the City extends
sanitary sewer service north on highway 19, or constructs road or water
improvements which benefit the property, the costs of these improvements may be
specially assessed if not financed via a trunk charge such as that described in
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• paragraph 8 above. The City is under the assumption at this time that any such
projects will be undertaken by the Developer. None pending (other than as
discussed above), but should discuss assessing Developer for 20% of the cost of
I-94 ramps, if they are built in the future. The 20% assessment would allow the
City to bond for the ramps without a bond referendum.
Joint Powers Water Board
The Developer will be meeting with Donna Kipka of Joint Powers at 11 a.m. on
Monday.
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