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Request for Committee Action

A briefing memo explaining the purpose, background, and impact of the requested action.
37th Ave NE (Central Ave NE to Stinson Blvd) Street Reconstruction: Project approval, assessment, and areaway abandonment (RCA-2023-00130)

ORIGINATING DEPARTMENT
Public Works
To Committee(s)
# Committee Name Meeting Date
1 Public Works & Infrastructure Committee Feb 16, 2023
Lead Staff:
Alebel Mehari, Professional Engineer, Transportation Engineering & Design
Presented By:
Alebel Mehari, 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 $370,157.32 for the 37th Ave NE (Central Ave NE to Stinson Blvd) Street Reconstruction Project, Special Improvement of Existing Street No. 6778 (PV127).

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 $370,157.32 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 1 Waite Park
Background Analysis

The City of Minneapolis, in partnership with the City of Columbia Heights, will be reconstructing a 1-mile segment of 37th Avenue NE between Central Ave and Stinson Blvd. This street represents the municipal boundary between Minneapolis and Columbia Heights. The 37th Ave NE layout was approved by Council March 4, 2022. The project will include a full reconstruction due to the age and deteriorated condition of the street. The project will include sidewalks, ADA compliant pedestrian ramps, an off-street bike trail, boulevards with trees, green infrastructure, new curb and gutter, new pavement, traffic signal improvements, pedestrian street lighting, and utility improvements as needed.

Schedule and Funding
The project is planned to be constructed beginning in the 2023 construction season. The project cost estimate is $13,473,567 of which approximately $6,853,678 is the City's share.                                                                                                        

The City's funding breakdown:

  • $1,700,000 in Municipal State Aid Funds;
  • $1,500,000 in Net Debt Bonds;
  • $370,157.32 in Special Assessment Bonds;
  • $3,500,000 in Federal Aid.

The total City funding for the project is $7,070,157.32

Street Reconstruction Assessments
The proposed 37th Ave NE 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 37th Ave NE Street Reconstruction project is $370,157.32. Collection of individual assessments of more than $150 would begin on the 2024 real estate tax statements with interest charged at a rate of 4.78% as 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 of 3.71% as 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.