2018-00021 - Mid-City Industrial Reconstruction: Project designation, cost estimate, and appropriation increase

2017-01311 - Mid-City Industrial Reconstruction Project

Scope

The proposed project consists of reconstructing approximately 2.2 miles of streets in the Mid-City Industrial Neighborhood of Northeast Minneapolis. The project includes Arthur Street NE, Cleveland Street NE, Hoover Street NE, Kennedy Street NE, R Street NE, Taft Street NE, Traffic Street NE, and Winter Street NE. The elements of the project include new sidewalks, ADA-compliant curb ramps, new pavement, curb and gutter, and utility improvements. The project will also include boulevard trees, signal improvements, and signage. Additional storm sewer work was added to the original scope of the project to improve the capacity of the existing drainage system reduce risk of flooding.

Schedule and Funding

The project is anticipated to begin construction in the 2018 construction season. The project cost estimate is $22,284,551.

The City’s funding breakdown:

• $3,065,000 in Net Debt Bonds
• $4,075,000 in Cash Transfer
• $7,344,268 in Special Assessment Bonds
• $1,861,000 in Storm Sewer Funds (07300-9010932-CSW039)
• $366,000 in Storm Sewer Funds (07300-9010932-CPV124)
• $5,500,000 in Sanitary Sewer Funds (07100-9010932-CSA001)
• $95,000 in Water Funds

The total funding for the project is $22,306,268.

Street Reconstruction Assessments

The proposed Mid-City Industrial project special assessments were determined by applying the 2018 Uniform Assessment Rate for reconstruction to the land area of benefited parcels located within the street influence zone along the improved streets. The 2018 reconstruction assessment rates are:

                $2.60/ sq. ft. – Non-Residential

                $0.87/ sq. ft. - Residential

The proposed total assessment amount for the Mid-City Industrial project is $7,344,267.61. Individual assessments of more than $150 would begin collection on the 2019 real estate tax statements with interest charged at 4.6% and assessments of $150 or less would be collected in their entirety on the 2019 real estate tax statements with interest charged at 3.6%.

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 abandoning areaway encroachments that would interfere with public improvements being made in the public right-of-way, such as street construction. The City has identified areaways that are in conflict with the project. The responsible owners have been notified of the conflict and have not exercised their right to perform the removal work by their own means. Before the City may abandon and remove the conflicting areaways, a public hearing must be held. It is our recommendation that an areaway abandonment public hearing be held in conjunction with the project Approval and Public Hearing. If the city ultimately performs the areaway abandonment work, a second Public Hearing must be held, at a later date, to consider proposed special assessments against the affected properties.