1998-05-12 Update on Applicable CostsMichael C. Couri-
Andrew J. MacA~thur
Marcus W. Miller
'ALro licensed in/Ilinois
May 12, 1998
Mr. Jim Morse
JMJ Properties, Inc.
107 Sinclair Drive
Muskegon, Michigan 49441
CO URI & MACARTHUR
Anorneys at Law
705 Central Avenue East
PO Box 369
St. Mid:ael, MN55376
(612) 497-1930
(612) 497-2599 (FAX)
Re: City of Albertville; Minneapolis Factory Shoppes.
Dear Jim:
• As you requested, listed below is an update on the applicable costs and fees that
would be charged by the City of Albertville should you choose to proceed with the proposed
outlet mall. Several of these fees have changed from the amounts quoted to you in June,
1996, and are subject to change in the future.
I have also listed the estimated charge that you would have to pay the Joint Powers
Water Board for water related services.
Citv Charges
1. Rezoning (if necessary}-$400.00 plus $250 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.
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.
a. Site plan review--$300 base fee plus $250 escrow and any professional fees
incurred (does not include building inspection review).
• Mr. Jim Morse
May 12, 1998
Page 2 of S
b. Subdivision/preliminary plat--$300 base fee plus $SO per lot/outlot, plus $100
public hearing fee and a $500 escrow plus any professional fees incurred.
c. Park dedication fees--10% of the value of the land as platted.
3. Building Permit fees-Listed below aze the old fees under the 1988 UBC schedule.
The City has since adopted the 1994 UBC Schedule, but I do not have the updated
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 forwazd the new costs when I
receive them. The old fees were as follows:
t ':F ,.~
a. Building permit fee--Based upon the 1:9$8 Uniform Building Code Schedule--
$~;5'39r`50~ for the first million dollars of value, plus $2:00- for each additional
$1,000 of value. N ' '`
• b. Plan review fee--65% of building permit fee.
c. Plumbing permit fee-1.25% of job cost (for jobs over $30,000).
d. HVAC permit fee--1.25% of job cost (for jobs over $30,000).
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.
f. Separate electrical and fire protection inspection fees must be paid to the State
of Minnesota.
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 final numbers will not be available until the
district is actually established.
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.
• Mr. Jim Morse
May 12, 1998
Page 3 of S
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.
7. Water Access Charge-$200.00 fee.
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.
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.
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.
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
paragraph 8 above. The City is under the assumption at this time that any such
• projects will be undertaken by the Developer.
• Mr. Jim Morse
May 12, 1998
Page 4 of 5
Joint Powers Water Board
1. Water Access fee--Joint powers charges a fee of $1,300 for every 3,000 square feet
of commercial space, but excludes elevator shafts, mechanical rooms, stairwells,
restrooms, and unfinished storage areas from that calculation. This item must be
paid before a building permit will issue from the City. Note that restaurant space
will not be charged on a square foot basis, but will instead be charged at a $1,300 fee
for each 22 seats if the restaurant uses disposable paper plates, glasses and silverware
(more if the restaurant is of a sit-down type with reusable plates, glasses and silver).
2. Water meter--The cost of the meter depends on its size. The number of water meters
and their size should be coordinated with the Joint Powers Water Board.
3. Plan Review-both fees listed in a and b below must be paid:
• a. If a 2-inch or greater water line is to be installed to the property (which serves
only the property in question), the developer must place a $1,500 deposit with
Joint Powers to cover plan review and inspection (this is the minimum fee).
Any Joint Powers expenses over $1,500 will be billed to the Developer.
b. If a 2-inch or greater water line is to be installed to the property which will
serve other properties as well (e.g. as in a subdivision of property), the
developer must place a $2,500 deposit with Joint Powers to cover plan review
and inspection. Any Joint Powers expenses over $2,500 will be billed to the
Developer.
4. Permit fee--an $85 permit fee must be paid upon application to Joint Powers.
5. Water rates--Billed quarterly, $17.60 for 10,000 gallons, $.00176 per gallon
thereafter. Minimum quarterly charge of $17.60. These quarterly billings are done
on a per-unit basis, meaning that if the building had 20 separate tenants, each tenant
would be a "unit" and the building owner would have to pay 20 minimum quarterly
charges, plus any per gallon overages.
Because the Joint Powers Water Board is a separate govemmental entity from the
• City, you may want to independently verify these amounts with the Joint Power Water
Board. You can contact the secretary for the Board, Donna, at (612) 497-3611 from 8 a.m.
to 3 p.m. Central time Monday through Thursday and 8 a.m. to 1 p.m. on Fridays. Finally,
• Mr. Jim Morse
May 12, 1998
Page 5 of 5
the Joint Powers Water Board is currently exploring "turning back" portions of the water
system to the cities in which the lines are currently located. If this occurs, the fee structure
detailed above will likely change, but at this time no one is able to predict which fees may
change or how much they may change.
Please feel free to contact Dave Lund (City Administrator), Linda Goeb (City Clerk)
or myself if you have any questions regarding the fees detailed above. Thank you.
Sincerely,
~~z~~~~
~ ~~~
Michael C. Couri
RADZWILL & COURI
cc: Mr. Dave Lund
• Ms. Linda Goeb
Ms. Liz Stockman
Mr. Pete Carlson
•