Request for Committee Action
A briefing memo explaining the purpose, background, and impact of the requested action.
Grand Ave S (Lake St W to 48th St W) Street Reconstruction: Project approval, assessment, and areaway abandonment (RCA-2020-01295)
ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Transportation & Public Works Committee | January 20, 2021 |
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 $2,008,604.86 for the Grand Ave S (Lake St W to 48th St W) Street Reconstruction Project, Special Improvement of Existing Street No. 6768 (PV141). |
| 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 $2,008,604.86 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 8 | King Field | |
| 2. | Ward 8 | Lyndale | |
| 3. | Ward 11 | Tangletown |
Background Analysis
The proposed project will reconstruct 2.25 miles of Grand Ave S between Lake St W and 48th St W. The Grand Ave layout was approved by Council August 22, 2020. The project will include a full removal and reconstruction of the roadway due to the age and deteriorated condition of the street. The project also includes pedestrian and bicycle safety enhancements, expanded boulevards with plantings and enhanced stormwater treatment, and utility improvements as needed.
Schedule and Funding
The project is planned to be constructed beginning in the 2021 construction season with completion in 2022. The Grand Ave cost estimate is $15,900,000. The funding breakdown is estimated as follows:
- $2,532,000 in net debt bonds,
- $6,421,000 in Municipal State Aid Funds;
- $5,624,000 transfer from the General Fund
- $550,000 transfer from Stormwater fund, and
- $2,008,604.86 in special assessment bonds.
Street Reconstruction Assessments
The proposed Grand Ave Street Reconstruction project special assessments were determined by applying the 2021 Uniform Assessment Rate for reconstruction to the land area of benefitted parcels located within the street influence zone along the improved streets. The 2021 reconstruction assessment rates are:
$2.66/ sq. ft. -- Non-Residential
$0.88/ sq. ft. -- Residential
The proposed total assessment amount for the Grand Ave Street Reconstruction project is $2,008,604.86. Collection of individual assessments of more than $150 would begin on the 2023 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 2023 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.