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Home My WebLink About15.A.3. Declare Cost to be Assessed and Set Hearing for Project No. 2002-5-Res. No. 5859 / 5. A. ) . CITY OF SHAKOPEE Memorandum TO: Mayor & City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Declaring Cost to be Assessed and Establishing a Public Hearing for Vierling hnprovements, from Sage Lane to CSAH 17, Project No. 2002-5 DATE: March 4, 2003 INTRODUCTION: Attached is Resolution No. 5859, declaring the costs to be assessed, ordering the preparation of proposed assessments and setting a public hearing date for the Vierling Drive improvements, from Sage Lane to CSAH 17, Project No. 2002-5. BACKGROUND: City Council ordered plans and specifications by Resolution No. 5756 on July 16, 2002 for the above referenced project. On August 20, 2002, City Council approved Resolution No. 5767, awarding the contract to Egan McKay Electrical Contractors, Inc. for $165,724.22. The improvements have essentially been completed with the final costs projected for construction at $172,857.28. The total costs for engineering, administration and traffic control cabinet for the project is $49,891.63, therefore, the total project costs is $222,748.91. The attached resolution shows how these costs are being paid and the costs to be assessed. In the feasibility report and at the public hearing, this project was proposed to be 100% assessed to the commercial properties in Crossroads Center and Boulder Ridge subdivisions. At the public hearing, the property owners that were to be assessed did request that the City pick up a portion of the traffic control signal cost and the cost should not be 100% assessed to the commercial properties. This is a policy question for the City Council on whether the signal improvement does have overall City benefit, as well as benefit to adjacent property owners. Previously, prior to the platting of Crossroads Center and Boulder Ridge, a traffic report prepared by the developer did indicate a future traffic signal to be installed at the intersection of Heather Street and Vierling Drive. Prom the feasibility study, the estimated total project cost was $276,203.13. At the bid award, staff did estimate the total project cost, based on the bids, to be $235,000.00. The project has been completed and the final project cost is $222,748.91. ALTERNATIVES: 1. Adopt Resolution No. 5859. 2. Deny Resolution No. 5859. 3. Table for additional information from staff, based on proposal requests from property owners affected by the proposed assessments. RECOMMENDATION: Staff recommends Alternative No.1. However, if Council feels the City should participate in the cost of the improvement project, direction should be provided by Council to staff in the preparation of the proposed assessments. ACTION REQUESTED: Offer Resolution No. 5859, A Resolution Declaring the Cost to be Assessed and Ordering the Preparation of Proposed Assessments for Vierling Drive Improvements, from Sage Lane to County State Aid Highway 17, Project No. 2002-5 and move its adoption. ~Wn~ Public Works Director BUpmp MEM5859 Assessment Costs Vierling Drive - CSAH 17 (Marschall Rd) to Sage Lane C.P. 2002-5 City of Shakopee Engineering Costs Current Costs (12/31/02) $ 40,897.57 Projected to Completion $ 1,500.00 Construction Costs Current Costs (12/31/02) $ 168,857.28 Projected to Completion $ 4,000.00 Misc Costs ( Phone, Printing, Etc) Current Costs (12/31/02) $ 520.80 Projected to Completion $ 100.00 SPUC Costs Current Costs (12/31/02) $ 241.00 Interest Current Costs (Thru April 03) $ 6,567.26 Projected to Completion $ - County Costs Assessement Roll $ 14.00 Parcel Costs ($3/Parcel) $ 51.00 Total Current Costs $ 217,083.91 Total Projected to Completion $ 5,665.00 Total Project Cost (To be Assessed) $ 222,748.91 RESOLUTION NO. 5859 A Resolution Declaring The Costs To Be Assessed And Ordering the Preparation Of Proposed Assessments For Vierling Drive, From Sage Lane To County State Aid Highway 17 Project No. 2002-5 WHEREAS, a contract has been let for the construction of Vierling Drive, from Sage Lane to County State Aid Highway 17 by installation of a traffic control signal system, street concrete median and any appurtenant work as described in the feasibility report, and the contract price for such improvements was $165,724.22, and the final contract price for such improvement is $172,857.28, and the expenses incurred or to be incurred in the making of such improvement amounts to $49,891.63, so that the total cost of the improvements will be $222,748.91. Of this cost the City of Shakopee will pay $ -0- as its share of the cost, Scott County will pay $ -0- and the Shakopee Public Utility Commission will pay $ -0- as its share of the cost. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA: 1. The cost of such improvement to be specially assessed is hereby declared to be $222,748.91. 2. The City Clerk, with the assistance of the City Engineer, shall forthwith calculate the proper amount to be specially assessed for such improvement against every assessable lot, piece, or parcel of land within the district affected, without regard to cash valuation, as provided by law, and keep a copy of such proposed assessment in her office for public inspection. 3. That the City Clerk shall, upon the completion of such proposed assessment, notify the City Council thereof. BE IT FURTHER RESOLVED: 1. That a hearing shall be held on the 1st day of April, 2003, in the Council Chambers of City Hall at 7:00 P.M. or thereafter, to pass upon such proposed assessments and at such time and place all persons owning property affected by such improvements and proposed assessments will be given an opportunity to be heard with reference to such assessment. 2. That the City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper of the City of Shakopee at least two weeks prior to the hearing and she shall state in the notice the total cost of the improvements. She also shall cause mailed notice of such hearing to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. Adopted in session of the City Council of the City of , Shakopee, Minnesota, held this day of ,2003. Mayor of the City of Shako pee ATTEST: City Clerk r' ,- IS. R, 3 .. · border 965 Decatur Ave N FOODS Golden Valley, MN 55427 Tel: 763.489.2970 Fax 763.489.2971 March 4, 2003 Shakopee City Council City of Shakopee l29 Holmes Street South Shakopee,~ 55379-1351 Re: Pending Assessment for Traffic Signal located on Vierling Drive, Shakopee, ~ City Project No. 2002-5 Taco Bell PID #272350090 Dear Members of the Shakopee City Council: Border Foods, Inc. formally objects to the assessment referenced. We also respectfully request that City Council continue this matter for further discussion. Sincerely, Barbara Schneider Vice President of Development Border Foods, Inc. is a franchisee of YUM! Brands I - ... .. March 4,2003 Shakopee City Council City of Shakopee 129 Holmes Street South Shakopee, MN 55379-1351 Re: Pending Assessment for Traffic Signal located on Vierling Drive, Shakopee, MN City Project No. 2002-5 Dear Members of the Shakopee City Council: We represent Sidal Crossroads Co. LLC and Cub Foods, who are listed as the taxpayers for certain parcels which are the subject of the referenced pending assessment. The Feasibility Report for this project has proposed to allocate liability for the assessment in proportion to the number of daily vehicle trips generated by each parcel. The parcel numbers, number of trips, and the percentage share of the proposed assessment proposed by the City are as follows: Taxpayer Parcel No. Trips Percentage Share Cub Foods (Shakopee 27-235004-0 7248 38.61% 1997 LLC) Sidal Crossroads Co. 27-235005-0 724 3.86% LLC 27-235006-0 300 1.60% 27-236004-0 268 1.43% 27-236004-0 268 1.43% 27-236003-0 1587 5.45% Total 51.52% On behalf of our clients, we are respectfully requesting that the City share in the cost of the traffic improvements, by paying one-half of the cost assessed to our clients. For the taxpayers listed above, this would represent City funding of $57,960 of the total assessment of $225,000.00, or approximately 26% of the total. We are requesting that the City participate financially in the cost of the signal for the following reasons: 1. Vierling Drive is a collector street, which is a primary road of travel for residential and commercial use. The addition of the signal has improved the public safety within the community and improved travel for all, not just for the nearby commercial property owners and their tenants. 2. The parcel owners/taxpayers of Crossroads Shopping Center currently pay significant taxes, which have been greater than what they have experienced in similar markets throughout the metropolitan area for comparable properties. . ~ l .. .. ""f': Shakopee City Council City of Shakopee March 4, 2003 Page 2 3. The additional tax assessment will be an extreme hardship for the tenants who are the real taxpayers, and will likely result in vacancies and challenges in leasing. Ultimately, this diminishes the value of the Center and the real estate taxes generated by the Center. 4. The City should have required that the expense of the traffic signal be paid or escrowed by the initial developer of the Center. In that case, the cost would have been borne by the developer and not the tenants and other taxpayers. 5. We do not believe that the increase in fair market value of the Center resulting from installation of the traffic signal equals or exceeds the assessment. The City's participation in the costs of this project will assist the current tenants occupying these parcels, who would like to continue to participate successfully in the commercial trades of Shakopee. We look forward to your response. Thank you. Very truly yours, Gregory D. Soule GDS/dcm 008168/897073/230038_1