2005-03-25 Project Cost Participation-A
SEH
TO:
FROM:
DATE:
RE:
MEMORANDUM
Larry Kruse
City Administrator
Robert Moberg, PE
Project Manager
March 25, 2005
Albertville, Minnesota
70th Street Corridor - Project Cost Participation
SEH No. A-ALBEV0506.00 14.00
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At the request of City staff, I have developed a recap of the project cost participation for the Towne Lakes
development, as it relates to installation of a paved roadway in 70th Street between CSAH 19 and MacIver
Avenue. When the developer's agreement for Towne Lakes 3`d Addition was executed, the agreement
identified the developer's responsibility for project cost participation in CSAH 19 improvements, as well
as for 70`h Street improvements. According to the agreement, the developer was required to accept an
assessment of $115,688 for improvements on CSAH 19. In addition, the developer was required to pay
the City $144,474 for improvements to 701h Street either when the 1615t lot was platted, when a contract
was executed by the City for improving 701h Street, or when the City was required to reimburse the City
of Otsego for improving 701h Street. With the platting of Towne Lakes 61h Addition, more than 161 lots
have now been platted in the development.
The City of Otsego has a policy in place whereby developers are required to contribute $1450 for each lot
developed. Monies collected from developers are to be used for regional roadway improvements. When
MacIver Avenue was reconstructed in 2004, it was anticipated that developer contributions from
benefiting properties would be utilized to pay for the improvements. The proposed Hunter's Pass Estates
development in Albertville will use MacIver Avenue as a primary access. According to the preliminary
plat for the development, 96 lots will be created on the site. Using Otsego's formula, the developer's
contribution for MacIver Avenue improvements would be 96 x $1450, or $139,200.
The esti cost for impr ving 701h Street to a two-lane rural roadway between CSAH 19 and MacIver
Aven is $549,000. If th cities are responsible for 50% of the project cost, Albertville's share is
$274 00. If thi were to be levied against the adjacent benefiting properties, Towne Lakes and
Hunte ss Estates would each be responsible for 50% of Albertville's share or $137,250. Since
Towne Lakes is already committed to an amount of $144,474, I recommend the City consider requiring
an identical commitment from Hunter's Pass Estates. The amount of $144,474 would translate to a cost
of approximately $1505 per lot.
Please call me at 651.490.2147 if you have any questions.
tlo
c: Mike Couri, City Attorney
x: ae`albe \050600\correspondence,kruseO32505splits.doc
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