Request for Committee Action

A briefing memo explaining the purpose, background, and impact of the requested action.

Upper Harbor Terminal Public Infrastructure (Dowling Ave N, 33rd Ave N, and W River Rd N) Street Reconstruction: Project approval, assessment, and areaway abandonment (RCA-2023-00080)


ORIGINATING DEPARTMENT

Public Works

To Committee(s)

# Committee Name Meeting Date
1 Public Works & Infrastructure Committee February 2, 2023
Lead Staff:
Michael L. Richie, P.E. Professional Engineer, Transportation Engineering & Design
Presented By:
Michael L. Richie, P.E. Professional Engineer, Transportation Engineering & Design

Action Item(s)

# File Type Subcategory Item Description
1 Resolution Assessment

Passage of Resolution ordering the work to proceed and adopting special assessments in the amount of $2,353,837.99 for the Upper Harbor Terminal Public Infrastructure Street Reconstruction Project, Dowling Ave N (Lyndale Ave N to W River Rd N), Phase 1 – W River Rd N, and 33rd Ave (2nd Ave N to Mississippi River), Special Improvement of Existing Street No. 2294 (PV122).

2 Resolution Bond

Passage of Resolution requesting the Board of Estimate and Taxation authorize the City's issuance and sale of assessment bonds in the amount of $2,353,837.99 for the project.

3 Resolution Street Project

Passage of Resolution ordering the abandonment and removal of areaways located in the public right-of-way in conflict with the project.

Ward / Neighborhood / Address

# Ward Neighborhood Address
1. Ward 4 Camden Industrial
2. Ward 4 McKinley
3. Ward 4 Webber-Camden

Background Analysis

The proposed project will reconstruct 1.8 miles of Dowling Ave N (Lyndale Ave N to W. River Rd N), Phase 1 – W. River Rd N., and 33rd Ave (2nd Ave N to Mississippi River). The layout was approved by Council October 22, 2021. The reconstruction portion of the project will include a full reconstruction due to the age and deteriorated condition of the street. This reconstruction project includes railroad crossing improvements, sidewalks, bike trail, ADA-compliant pedestrian ramps, curb/gutter, green infrastructure, utility improvements, lighting, and signage.

Schedule and Funding
The project is planned to be constructed beginning in the 2023 construction season. The project cost estimate is $26,000,267. The funding breakdown is estimated as follows:

  • $11,468,920 in Other MN Agencies;
  • $3,092,310 in Net Debt Bonds;
  • $3,219,000 in Municipal State Aid Funds;
  • $2,353,838 in Special Assessment Bonds;
  • $500,000 in Transfer from PVO75;
  • $527,884 in Hennepin County Funds;
  • $3,153,152 in CPED Funds

Street Reconstruction Assessments

The proposed Dowling Ave, W. River Rd N, and 33rd Ave N Reconstruction project special assessments were determined by applying the 2023 Uniform Assessment Rate for reconstruction to the land area of benefitted parcels located within the street influence zone along the improved streets. The 2023 reconstruction assessment rates are:

$2.75/ sq. ft. -- Non-Residential
$0.91/ sq. ft. -- Residential

The proposed total assessment amount for the Dowling Ave, W. River Rd N, and 33rd Ave N Street Reconstruction project is $2,353,837.99. Collection of individual assessments of more than $150 would begin on the 2024 real estate tax statements with interest charged at a rate to be determined by the Finance Department. Assessments of $150 or less would be collected in their entirety on the 2024 real estate tax statements with interest charged at a rate to be determined by the Finance Department.

Information has been provided in the notices as to how persons may prepay the special assessments in full without interest if they so choose.

City Council has passed resolutions whereby a deferment of special assessments may be obtained by showing hardship for any homestead property owned by a person 65 years of age or older or retired by virtue of a permanent and total disability.

Abandonment and Removal of Conflicting Areaways
Section 95.90 of the Minneapolis Code of Ordinances provides a procedure for dealing with areaway encroachments that would interfere with public improvements being made in the public right-of-way such as street construction. Before the City may abandon and remove conflicting areaways (upon the failure of the abutting property owner to resolve or agree to resolve the conflict) and then later assess the costs, a public hearing must be held. Public Works recommends that this areaway public hearing be held in conjunction with the Project Approval and Public Hearing. A second Public Hearing will be held at a later date to consider the proposed special assessments against any affected properties for the cost of the areaway abandonment and removals.