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Request for Committee Action

A briefing memo explaining the purpose, background, and impact of the requested action.
Sidewalk repair assessments (RCA-2024-01182)

ORIGINATING DEPARTMENT
Public Works
To Committee(s)
# Committee Name Meeting Date
1 Climate & Infrastructure Committee Oct 24, 2024
Lead Staff:
Tina R. Schauer, Real Estate Investigator II, Transportation Engineering & Design
Presented By:
Jeff Handeland, PE, Principal Professional Engineer, Transportation Engineering & Design
Action Item(s)
# File Type Subcategory Item Description
1 Resolution Assessment

Passage of Resolution adopting and levying the assessments for sidewalk repair and construction for the 2023 construction season on the list of properties dated October 18, 2024.

Background Analysis

Public Works completed its annual inspection and repair of public sidewalks in 2023. All property owners who did not contract for the repairs themselves received a bill from the City for the completed work. If the owner did not pay the bill, the cost of the work will be assessed to the property taxes. If the property owner chose to contest the cost of the work, they had the opportunity to appeal at an Administrative Hearing. If the property owner is satisfied with the determination of the Administrative Hearing Officer, no further action is necessary. If the property owner chooses to contest the Administrative Hearing Officer's determination, they may elect to appeal at a public hearing before the Climate & Infrastructure Committee of the City Council. If they are not satisfied with the decision of the Committee, they may then appeal to the District Court. This appeal must be made within 30 days after the adoption of the assessment roll by the City Council. A list of properties and the charges to be assessed will be provided at the time of public hearing.

The properties on the list to be assessed, which are on file with the City Engineer’s Special Assessment Office, had sidewalk repair and construction work performed in 2023 by the City’s sidewalk contractor. The amount to be assessed as special assessment principal is the cost of the work plus the sidewalk overhead charge. The sidewalk overhead charge is 10% of the cost of the work with a cap of $50. The total principal amount of the proposed assessments on the list of properties to be assessed, less pre-payments received and adjustments based on the Administrative Hearings, is $1,287,230.62.  Assessments of more than $1500 would be collected over 10 years beginning on the 2025 real estate tax statements with interest at 4.10%. Assessments of more than $150 up to $1500 would be collected over 5 years beginning on the 2025 real estate tax statements with interest at 3.90%. Assessments of $150 or less would be collected in their entirety on the 2025 real estate tax statements with interest at 3.80%.  Upon request of a property owner, Public Works recommends that one assessment would be collected over 20 years beginning on the 2025 real estate tax statement with interest at 4.50%.

The amount of assessments proposed to be collected over 1, 5, 10 and 20 years are:

20-year total $11,069.32

10-year total $983,560.06

5-year total $235,897.72

1 year total $2,060.82

The Minneapolis City Council has passed Resolutions whereby a deferment of special assessment may be obtained by showing hardship for any homestead property owned by a person 65 year of age or older or retired by virtue of a permanent and total disability or military personnel ordered into active military service.