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HomeMy WebLinkAboutPacketROSEMOUNT AGENDA City Council Special Work Session Tuesday, October 16, 2007 C I T v C o U N C I L Following Regular Meeting City Council Chambers, City Hall CALL TO ORDER 2. DISCUSSION A. Discussion of Rental Housing Inspection Program B. Assessments for County Road 38/132" Court West Street and Utility Improvements, City Project #387 3. UPDATES 4. ADJOURNMENT City Council work sessions are held for Council and staff to discuss items for future Council agendas. Comments from the public during work sessions are not generally solicited. ROSEMOUNTEXECUTIVE SUMMARY CITY COUNCIL City Council Work Session: October 16, 2007 AGENDA ITEM: Discussion of Rental Housing Inspection AGENDA SECTION: Program Discussion PREPARED BY: Kim Lindquist, Community Development Director AGENDA NO. ATTACHMENTS: Draft Ordinance APPROVED BY: RECOMMENDED ACTION: Provide Staff Direction DISCUSSION Over the last year, the Council has discussed various aspects of implementing a rental licensing program in the City. Initially the program was going to be an inspection only program but recently the city attorney indicated that it may be more beneficial to have a rental license component. The attached is a draft ordinance that the City Attorney has written for the City based upon input from staff and Council. Procedurally the ordinance is similar to that previously discussed. The owner of a rental property must apply for a license. Information required with the application includes information about the owner, location of the rental premises, contact information, and business names and addresses of any other rental property within MN communities. Issuance of the license is predicated on a successful inspection; proper information on the application; up-to-date property taxes, fines, and penalties; and if the building has 4 or more units attendance at a crime -free multi - housing program. The inspection will continue to focus on the life/safety issues previously discussed with the Council. It would also include compliance with the maintenance code, zoning code, and parking regulations. The one issue included in the ordinance not previously discussed is the conduct of the tenants. Similar to many other communities, the draft ordinance includes an enforcement component associated with the conduct on the licensed premises. The ordinance notes five violations that can occur on the property that could ultimately lead to revocation, suspension, or non -renewal of the rental license. Revocation is the harshest penalty and would mean that three conduct violations had occurred within a 6 month time period. The conduct violations include disorderly conduct, noisy parties, prostitution or acts relating to prostitution, unlawful use of or possession of firearms, or violations of nuisance laws. Staff had asked the City Attorney to include this language so the Council can discuss whether they would like to include tenant conduct as part of the licensing ordinance. There are three options available to the Council; not include any conduct related performance standards, address conduct of renters by this ordinance, or enact a citywide ordinance for conduct, regardless of whether it is an owner occupied or rental unit. The Citywide ordinance would affect all property owners violating the above items, and would not single out only rental properties. In talking with the Police Chief there are both rental and owner occupied properties that would be considered a nuisance by surrounding neighbors. Presently the enforcement is limited to individual ticketing per offense. A citywide ordinance would allow the city to address the cumulative affects of negative behavior by penalizing the property owner, usually through a fine, to aid in addressing "problem properties" in a neighborhood. Staff is asking Council's direction on this matter. If the Council would like to investigate a citywide ordinance, staff would recommend removing the conduct section from the rental ordinance which would be redundant. Chief Kalstabakken would begin looking into drafting a citywide ordinance and further research the administrative side of implementing the program. CONCLUSION Staff is looking for feedback on the draft ordinance. After receipt of any changes, modifications to the ordinance will be made and the item will be scheduled for formal Council review and adoption. CITY OF ROSEMOUNT ORDINANCE NO. AN ORDINANCE AMENDING TITLE 9 OF THE CITY CODE, ADDING NEW CHAPTER 8 THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA ORDAINS AS FOLLOWS: Section 1. Rosemount City Code is amended by adding a new Chapter 8 to Title 9 as follows: CHAPTER 8 RENTAL LICENSING AND INSPECTION 9-8-I: PURPOSE: It is the purpose of this section to assure that rental housing in the City is decent, safe and sanitary and is so operated and maintained as not to become a nuisance to the neighborhood or to become an influence that fosters blight and deterioration or creates a disincentive to reinvestment in the community. The operation of rental dwelling units is a business enterprise that entails certain responsibilities. Operators are responsible to take such reasonable steps as are necessary to assure that the citizens of the City who occupy such units may pursue the quiet enjoyment of the normal activities of life in surroundings that are: safe, secure and sanitary; free from crimes and criminal activity, nuisances or annoyances. 9-8-2: SCOPE: This section applies to all dwellings and dwellings units that are leased in whole or in part for residential purposes. This section does not apply to retail, commercial, or industrial rental activities; nursing homes as licensed by the State Department of Health and Human services; assisted living facilities as licensed by the State Department of Health and Human services; and manufactured home parks where the owner of the building is the primary occupant of the structure. 9-8-3: DEFINITIONS: Unless otherwise provided here, the definitions in section 9-4-5 of this Code apply to the terms in this Chapter. CITY: The City of Rosemount. CITY COUNCIL: The City Council of the City of Rosemount RENTAL DWELLING UNIT: A dwelling unit occupied and leased by a tenant. 9-8-4: LICENSE REQUIRED: No person shall lease any dwelling or dwelling unit for residential purposes without first obtaining a license and paying a license fee. Licenses are required for each unit of a building. 320918v3 MDT RS215-I A. License Application: An application for a license must be made on a form provided by the City. The application must include all information requested on the form, including, but not limited to: The applicant's full name; business address; email address and telephone numbers ("contact information"); 2. Contact information for the proposed license holder, if different from the applicant; 3. Contact information for the owner of the property; 4. Contact information for the property manager; 5. The location for which the license is sought; and 6. Business names and property addresses for rental properties operated by the applicant in other Minnesota municipalities. B. Action on License: The City Council or designee may approve or deny the license upon completion of review of the application. If the City Council denies the license, it will notify the applicant of the denial and appeal rights under section 9-8-11. C. Term: All licenses are issued for a period of one year. The license period is from January 1 to December 31. D. Transfers: A license may not be transferred to another location or another person without the prior approval of the City Council or designee. E. Renewals: A license renewal will be handled in the same manner as the original application. F. Denials: The City Council may deny the issuance or renewal of a license for the following reasons (this list is not exhaustive): 1. The applicant has had previous rental license revocations; 2. The applicant fails to provide any information required on the City's form, or provides false or misleading information; 3. The applicant has outstanding fines, penalties, or property taxes owed to the City; 4. The building or dwelling unit fails the initial property inspection in the 3209180 MDT RS215-1 2 opinion of the City's Building Official. G. Crime -Free Multi -Housing Program: Within 12 months of obtaining a license, licensees operating four (4) or more rental dwelling units in the City must attend, or require a property manager to attend, an approved training program in the Minnesota Crime -Free Multi -Housing Program as a condition of continued licensure. The City may also require such training as a penalty, in addition to the penalties described in section 9-8-10. 9-8-5: LICENSE FEE: The City Council will determine the license fee by resolution. Applicants must pay the fee at the time of application. For licensing periods of less than one year, the fee will be prorated. 9-8-6: APPLICABLE CODES: The City of Rosemount Building and Property Maintenance Ordinance and the State building code, which adopts by reference the International Building and Residential code and the International fire code in their entirety, except as modified or amended in this code, are adopted by reference and are made a part of this Chapter as if fully set out at length. 9-8-7: MAINTENANCE: The owner of rental property must maintain all dwellings and dwelling units, including common areas, in compliance with the applicable codes identified in section 9-8-6. 9-8-8: CITY INSPECTIONS: All rental dwelling units are subject to City inspections. The owner or property manager must permit access to the City for the following inspections: A. An initial inspection upon application for a license. The City will not issue a license until each rental dwelling unit for which a license is sought complies with the applicable codes in section 9-8-6. B. Any follow-up inspections required due to non -compliant items. C. Inspections scheduled in response to complaints to the City. D. Biannual inspection of each rental dwelling. 9-8-9: CONDUCT ON LICENSED PREMISES: It is the responsibility of the licensee to see that persons occupying the licensed premises conduct themselves in such a manner as not to cause the premises to be disorderly. A. For purposes of this section, a premises is disorderly at which any of the following activities occur: 1. Violation of section 7-1-1 of the City Code (disorderly conduct) or violation of laws relating to disorderly conduct as defined in Minn. Stat. 3209180 MDT RS215-1 3 §609.72; 2. Violation of section 7-1-5 of the City Code (noisy parties or gatherings); 3. Violation of laws relating to prostitution or acts relating to prostitution as defined in Minn. Stat. § 609,321; 4. Violation of laws relating to unlawful use or possession of a firearm as defined in Minn. Stat. § 609.66; 5. Violation of laws relating to nuisances as defined in Minn. Stat. §617.81 B. First Instance of Disorderly Conduct: Upon determination that a licensed premises was used in a disorderly manner, the City Administrator will give notice to the licensee of the violation and direct the licensee to take steps to prevent further violations. C. Second Instance of Disorderly Conduct: If another instance of disorderly conduct occurs within three months of the first instance, the City Administrator will notify the licensee of the violation and require the licensee to submit a written report of the actions taken, or proposed to be taken, to prevent further instances of disorderly conduct. The licensee must submit the written report to the City Administrator within five days of the notice of the disorderly use of the premises. D. Third Instance of Disorderly Conduct: If another instance of disorderly use of the licensed premises occurs within three months of any two previous instances, the City may revoke, suspend, or not renew the rental license, following notice to the licensee and a hearing before the City Council. E. Adverse License Action: Following a hearing, the City Council may revoke, suspend, or not renew the license for all or any part or parts of the licensed premises that it deems necessary, or impose a penalty pursuant to section 9-8-10. The City Council may postpone or discontinue adverse action against a license if it appears that the licensee has taken appropriate measures to prevent further instances of disorderly use. A licensee may appeal the City Council's decision pursuant to section 9-8-11. 9-8-10: PENALTIES: The City may revoke a license or impose a civil fine for violations of this Chapter. A. Revocation: The City may revoke a license for the following reasons (this list is not exhaustive): Violation of the applicable codes described in section 9-8-6. 2. Failure to maintain the property in compliance with the applicable codes. 3209180 MDT RS215-1 4 3. Leasing any dwelling or dwelling unit without a license. 4. Commission of a felony related to the licensed activity on the property. B. Fines: The following fines may be imposed for violation of this Chapter: Violation: First Violation $100.00 fine Second new violation (based upon complaint) $200.00 fine within 12 months or failure to comply with initial order Third or more new violations (based upon $300.00 fine complaint) within 12 months or failure to comply with initial order 9-8-11: APPEALS: The following appeal process will apply in the case of a license denial or revocation or if a property owner objects to a penalty imposed under section 9-8-9. A. Hearing: Following receipt of notice of a license denial or revocation or a notice of a violation and fine, an owner may request a hearing before the City Council. An owner must request a hearing in writing and file the request with the city administrator or city administrator's designee within ten (10) days of the mailing of the notice of the license denial or revocation or the alleged violation and fine. Following receipt of a written request for hearing, the owner will have an opportunity for a hearing before a committee consisting of the city administrator or city administrator's designees. B. Findings: After the committee conducts the hearing, it will report its findings and make a recommendation to the City Council. If the committee finds that the license denial or revocation is proper or the owner has violated this chapter, the council may affirm the license denial, revocation, or the fine given to the owner. The City Council may also conclude that the license denial or revocation or the fine is not warranted and dismiss the penalty. C. Default: If the owner does not request a hearing within the ten (10) day period, then the license denial, revocation or civil fine imposed will take immediate effect by default. In that case, the city administrator or designee will mail notice of the license denial or revocation or fine to the owner. The owner must pay the fine within 30 days of this notice. Section 2. This Ordinance shall be in effect following its passage and publication. 3209180 MDT RS215-1 5 ADOPTED this day of , 2007, by the City Council of the City of Rosemount. CITY OF ROSEMOUNT William H. Droste, Mayor ATTEST: Amy Domeier, City Clerk 3209180 MDT RS215-1 RO.JEMCJl_.11 1 EXECUTIVE SUMMARY CITY COUNCIL City Council Work Session: October 16, 2007 AGENDA ITEM: Assessments for County Road 38/132" Court West Street and Utility AGENDA SECTION: Improvements, City Project #387 PREPARED BY: Morgan Dawley, PE, Project Enginee AGENDA NO. ATTACHMENTS: Project Cost and Funding Summary; Map; ROW Map; Assessment Roll; Work APPROVED BY: Session Executive Summary and Map RECOMMENDED ACTION: Discussion BACKGROUND: At the October 2, 2007 regular Council meeting Council held a Public Hearing regarding the assessments of Old County Road 38/132nd Court Street and Utility Improvements. At that last meeting, the City Council asked for additional information about special assessments proposed for tracts of land along Bonaire Path. The entire project area comprised of properties proposed to be levied assessments to offset project costs is guided for single family housing densities. The area north of Bonaire Path and west of Bacardi Avenue is zoned agricultural but guided for Transitional Residential (TR) which calls for an average density of 2 units per acre. This designation was presented to Council for discussion at the February 15, 2006 City Council Work Session at a time when there was interest in development of the area. The remaining properties in the project area are guided for Urban Residential (UR) which allows a range of density from 1 to 4 units per acre. All properties proposed to be assessed on a front foot basis, with the exception of the Xcel Energy substation (Map Reference No. 6) and the Northern Natural Gas receiver station (Map Ref. No. 9), are sufficiently sized to subdivide a 60 foot right-of-way for public street access and create lots in excess of the minimum 125 foot depth requirement. Parcels specifically noted during the public hearing (refer to Map Reference Numbers 20, 21, 22, and 23) are fairly large, approximately six acres in size, two of which lie along Bonaire Path (20, 21) and two of which are served by driveway easements through the properties on Bonaire Path (22 and 23). The proposed front footage assessment rate was arrived at as an aggregate based on two separate portions of project costs, roadway construction and land acquisition (permanent tight -of -way — refer to attached map for easement and right-of-way costs by parcel). During review of the proposed assessments with the City Attorney, the initial proposal was to assess the properties on Bonaire Path (20, 21) for the full amount but not the properties behind them, as no right-of-way was acquired from the latter (22, 23). At that time, the City Attorney raised concerns that the owners of property along Bonaire Path would object to such an assessment on the ground that the properties behind them were also served by Bonaire Path and that therefore they benefited from the improvement as well. The only road access for those properties is to Bonaire Path. Therefore, Bonaire Path is the roadway serving those properties and Staff revised the assessments such that all four properties were proposed to be assessed an equal amount, as was presented G:\ENGPROJ\387\Assess.mtQues6msCWS10-16-07.doc to Council at the public hearing. According to the City Attorney, if all four of these properties were single-family residential lots, charging each of the lots a comparable assessment for the road that provides them with access to the City's street system is reasonable. If a property owner feels an adopted assessment exceeds the special benefit (meaning the increase in fair market value to a property caused by the construction of an improvement) caused by the project, the assessment appeal process exists and actual appraisals are done at that time to determine that increase in fair market value to the property. Staff is currently seeking input from a certified appraiser on the issues specific to the properties in question and expects additional information for discussion during the work session, however it may be assumed that an assessment of the amount proposed might only be justified for property that can be subdivided so that the cost of the assessment per subdivided lot is lower. The City Attorney has now raised concern about the two back lots in that they cannot currently be subdivided under the City's subdivision regulations. Even though they have driveway access, subdivision would not be possible without a variance because the subdivision regulations require that lots have frontage on a public street. Therefore, before the back lots can be subdivided, local street access must be made available to those parcels. If it were certain that local street access would come from Bonaire Path, an appraiser might conclude that there was substantial benefit from the upgrading of Bonaire Path because the extension of the City's road infrastructure to that area would allow properties to be subdivided. As development from the south may occur first, it is not at all certain that these back lot properties would be served with local streets leading to Bonaire Path, but instead from Connemara Trail Therefore, it may be difficult to demonstrate benefit in the amount as currently proposed. Again, staff anticipates having additional information on this matter from an appraiser available for the Council at the work session. SUMMARY: Staff will present this information to Council at the Work Session and be available to respond to questions. Project Costs W.SB Project: Old County Road No. 38 (Bonaire Path) & 132nd Court W. Project Location: City of Rosemount City Project No.: 387 & 393 WSB Project No.: 1591-02 & 1556-52 Design By: BDC Checked By: AJB Date: 10/12/2007 Old County Road 38 lmorovements 1) Surface Improvements 2) Sanitary Sewer Improvements 3) Water Main Improvements 4) Storm Sewer Improvements $2,348,912.45 $545,229.41 $1,810,706.45 $1,245,372.35 Old County Road 38 SUBTOTAL $5,950,220,66 132nd Court West Improvements 5) Surface Improvements 6) Sanitary Sewer Improvements 7) Water Main Improvements $79,704.49 $74,111.70 $47,934.45 11 132nd Court West SUBTOTAL $201,750.64 Additional Incurred Costs 8) Road Right -of -Way Acquisition 9) Pending Easement Acquisition 10) Private Utility Relocations 11) Railroad Crossing Installation 12) Indirect Costs (LEAF - 20.4 % of Improvement Costs, Items 1-7) $1,068,330.89 $934,254.00 $1,154,932.00 $205,000.00 $1,257,495.34 Additional Incurred Costs SUBTOTAL $4,620,012.23 11 TOTAL Project Costs $10,771,983.53 1 of Project Funding WSB Project: Old County Road No. 38 (Bonaire Path) & 132nd Court W. Design By: BDC Project Location: City of Rosemount Checked By: AJB CityProject No.: 387 & 393 WSB Project No.: 1591-02 & 1556-52 Date: 10/12/2007 Old County Road 38 Improvements 1) Dakota County $2,900,000.00 2) Street Capital Improvement Program $767,712.93 3) Storm Sewer Core Fund $1,255,606.27 4) Sanitary Sewer Core Fund $657,117.65 5) Water Main Core Fund $2,181,948.91 6) Developer & Property Owner Pre -Paid Assessments $581,400.00 7) Assessments $2,185,290.00 Old County Road 38 SUBTOTAL $10,529,075.76 132nd Court West Improvements 8) Street Capital Improvement Program $16,080.21 9) Sanitary Sewer Core Fund $89,230.49 10) Water Main Core Fund $57,713.08 11) Assessments $79,884.00 132nd Court West SUBTOTAL $242,907.77 TOTAL Project Costs $10,771,983.53 H m X LU T c E E O O a E_ T 06 w W Q 0 K a O0w zw} ER m W co 2 0 H z z z z z W W W H H V) V) w U U V)fNm W W N w w 0 7 W 00 y U N a a ¢ ¢ Q C O N M d z' Q a a� b O O U - 'E3 N O T A ?i � o o C 0 o R' O O O O A O m ro m m O O o O T 3 0 0 0 0 O K O1 T C @ 0 0 N O W 0 N C � O r r 0 O LL O LL N N o ° C Z g o Z y Y Z Z E a E a o m O o .. $ H x o Q .: x Z<? a n 0 0 o m m 0 0 0 0 0 0 Z o 0 0 0 0 0 d 0 o 0 0 0 0 0 0 N N N N N N O O O O O O V M < M V M V M V N1 V M F W J O zz Z J Oa W w J O LL � O� z LU U N W fN fN a V C J N E O y p E O U T 7 W O LL V% C O > lL v r a 0 O U Q U 9 C N ro � v r o O O N � N � N y O N U C m = O > C OMOzF- LU W oO a U t W Z WLu } m W W 7 W W to S m f a Z z z zzwww FF�gg UU qJ m U) W W N(n 0 0 W W w OO w NH) a a Q Q C E m a $ H d m � a c Q w ' E y a�a ' E 3 (A O a a v v r r r r T c1 M M M O O p N » N N » 0 0 0 0 m O ro m m ro o O o 0 T i0 0 0 0 A « « « « O O1 T c ; �v W Q N o LL o LL s N o A w 'O Z � Z �n z u+ " < Z v Z �i� R ezz`=>`' Z o ca O J O C O E 9 O O � E dJ O c o° E O O O O C O O N U N C T 0.v Z G Vt M O M M M M M O N M < MV � Z O O O O O O O O O O O LL O O O O O o 0 0 0 0 0 0 0 M M M M M M M M F Ci x w w N J c� rz Z j Oa w� y J O J Ix C LL r }O z F U N LU W y a 4 W 0M O�a w z W ? 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( / - zk Bk LULU /) uj \ \ \ \ \ 0 « )E \E § \ \ \ \ \ 2 \ } { \ § § 5LU § J ! _ _ \ )\ k \\(}}§ �� ��SEMOUNT EXECUTIVE SUMMARY CITY COUNCIL City Council Work Session: February 15, 2006 AGENDA ITEM: Transition Residential Property North of 135 Street AGENDA SECTION: PREPARED BY: Kim Lindquist, Community Development Director AGENDA NO. ITEM 2B Andy Brotzler, City Engineer ATTACHMENTS: Location Map APPROVED BY: RECOMMENDED ACTION: Provide Staff Direction ISSUE Some time ago, staff discussed the County Road 38 road project with the City Council. At that time there was some discussion about the ramifications of upgrading the street and extending utilities in the area for those rural residential or agricultural properties north of County Road 38. Staff wants to clarify the , Council's position because we are aware that there are developers looking at various properties in this area. DISCUSSION Staff is aware that developers are looking at the properties north of old County Road 38, west of Bacardi Avenue, and south of 130"' Street. The vast majority of the land is owned by the Nieland family. There are other parcels also in the area. One developer has come to the city with a concept that included much of this "block". It is staffs understanding that the Council recognized that property owners affected by the road and utility upgrade and assessments would be permitted to develop, after a formal planning review process. However, in this particular area, it would appear that more than just the properties immediately adjacent to old CR 38 would be developed. One reason is that the ownership extends further north than just the properties immediately next to the road. From a planning and engineering standpoint, it would be preferable to have the entire area developed concurrently so that road systems, neighborhood access, and regional ponding could be designed. CONCLUSION Staff is requesting clarification from the Council regarding their intentions about property north of old County Road 38, east of Bacardi Avenue. This area is designated Transition Residential and is already located within the City MUSA boundary. However, the property is zoned agriculture. Specifically, Staff would like to gauge Council's comfort level with all properties in the area being developed or would the preference be to only allow properties immediately adjacent to the County Road 38 road project develop at a more urbanized rate. If the whole "block" were to develop some time in the future, staff would expect 130`h to serve as the dividing line between urban and rural development. ROSEMOUNTEXECUTIVE SUMMARY CITY COUNCIL City Council Work Session: October 16, 2007 AGENDA ITEM: Assessments for County Road 38/132" Court West Street and Utility AGENDA SECTION: Improvements, City Project #387 PREPARED BY: Morgan Dawley, PE, Project Engine' AGENDA NO. ATTACHMENTS: Project Cost and Funding Summary; Map; ROW Map; Assessment Roll; Work APPROVED BY: Session Executive Summary and Map RECOMMENDED ACTION: Discussion BACKGROUND: At the October 2, 2007 regular Council meeting Council held a Public Hearing regarding the assessments of Old County Road 38/132"d Court Street and Utility Improvements. At that last meeting, the City Council asked for additional information about special assessments proposed for tracts of land along Bonaire Path. The entire project area comprised of properties proposed to be levied assessments to offset project costs is guided for single family housing densities. The area north of Bonaire Path and west of Bacardi Avenue is zoned agricultural but guided for Transitional Residential (TR) which calls for an average density of 2 units per acre. This designation was presented to Council for discussion at the February 15, 2006 City Council Work Session at a time when there was interest in development of the area. The remaining properties in the project area are guided for Urban Residential (UR) which allows a range of density from 1 to 4 units per acre. All properties proposed to be assessed on a front foot basis, with the exception of the Xcel Energy substation (Map Reference No. 6) and the Northern Natural Gas receiver station (Map Ref. No. 9), are sufficiently sized to subdivide a 60 foot right-of-way for public street access and create lots in excess of the minimum 125 foot depth requirement. Parcels specifically noted during the public heating (refer to Map Reference Numbers 20, 21, 22, and 23) are fairly large, approximately six acres in size, two of which he along Bonaire Path (20, 21) and two of which are served by driveway easements through the properties on Bonaire Path (22 and 23). The proposed front footage assessment rate was arrived at as an aggregate based on two separate portions of project costs, roadway construction and land acquisition (permanent right-of-way — refer to attached map for easement and right-of-way costs by parcel). During review of the proposed assessments with the City Attorney, the initial proposal was to assess the properties on Bonaire Path (20, 21) for the full amount but not the properties behind them, as no right-of-way was acquired from the latter (22, 23). At that time, the City Attorney raised concerns that the owners of property along Bonaire Path would object to such an assessment on the ground that the properties behind them were also served by Bonaire Path and that therefore they benefited from the improvement as well. The only road access for those properties is to Bonaire Path. Therefore, Bonaire Path is the roadway serving those properties and Staff revised the assessments such that all four properties were proposed to be assessed an equal amount, as was presented G: \ENGPROJ\ 387\AssessmentQues6onsC WS10-16-07. doc. to Council at the public hearing. According to the City Attorney, if all four of these properties were single-family residential lots, charging each of the lots a comparable assessment for the road that provides them with access to the City's street system is reasonable. If a property owner feels an adopted assessment exceeds the special benefit (meaning the increase in fair market value to a property caused by the construction of an improvement) caused by the project, the assessment appeal process exists and actual appraisals are done at that time to determine that increase in fair market value to the property. Staff is currently seeking input from a certified appraiser on the issues specific to the properties in question and expects additional information for discussion during the work session, however it may be assumed that an assessment of the amount proposed might only be justified for property that can be subdivided so that the cost of the assessment per subdivided lot is lower. The City Attorney has now raised concern about the two back lots in that they cannot currently be subdivided under the City's subdivision regulations. Even though they have driveway access, subdivision would not be possible without a variance because the subdivision regulations require that lots have frontage on a public street. Therefore, before the back lots can be subdivided, local street access must be made available to those parcels. If it were certain that local street access would come from Bonaire Path, an appraiser might conclude that there was substantial benefit from the upgrading of Bonaire Path because the extension of the City's road infrastructure to that area would allow properties to be subdivided. As development from the south may occur first, it is not at all certain that these back lot properties would be served with local streets leading to Bonaire Path, but instead from Connemara Trail. Therefore, it may be difficult to demonstrate benefit in the amount as currently proposed. Again, staff anticipates having additional information on this matter from an appraiser available for the Council at the work session. SUMMARY: Staff will present this information to Council at the Work Session and be available to respond to questions. 2 Project Costs WSB Project: Old County Road No. 38 (Bonaire Path) & 132nd Conn W. Project Location: City of Rosemount CityProject No.: 387 & 393 WSB Pro'ect No.: 1591-02 & 1556-52 Design By: BDC Checked By: AJB Date: 10/12/2007 Old County Road 38 Improvements 1) Surface Improvements 2) Sanitary Sewer Improvements 3) Water Main Improvements 4) Storm Sewer Improvements $2,348,912.45 $545,229.41 $1,810,706.45 $1,245,372.35 Old County Road 38 SUBTOTAL $5,95 ,220.66 132nd Court West Improvements 5) Surface Improvements 6) Sanitary Sewer Improvements 7) Water Main Improvements $79,704.49 $74,111.70 $47,934.45 11 132nd Court West SUBTOTAL $201,750.64 Additional Incurred Costs 8) Road Right -of -Way Acquisition 9) Ponding Easement Acquisition 10) Private Utility Relocations 11) Railroad Crossing Installation 12) Indirect Costs (LEAF - 20.4% of Improvement Costs, Items 1-7) $1,068,330.89 $934,254.00 $1,154,932.00 $205,000.00 $1,257,495.34 Additional Incurred Costs SUBTOTAL $4,620,012.23 TOTAL Project Costs $10,771,983.53 1 of 1 Project Funding WSB Project Old County Road No. 38 (Bonaire Path) & 132nd Court W. Design By: BDC Project Location: City of Rosemount Checked By: AJB City Project No.: 387 & 393 WSB Pro'ect No.: 1591-02 & 1556-52 Date: 10/12/2007 Old County Road 38 Improvements 1) Dakota County $2,900,000.00 2) Street Capital Improvement Program $767,712.93 3) Storm Sewer Core Fund $1,255,606.27 4) Sanitary Sewer Core Fund $657,117.65 5) Water Main Core Fund $2,181,948.91 6) Developer & Property Owner Pre -Paid Assessments $581,400.00 7) Assessments $2,185,290.00 Old County Road 38 SUBTOTAL $10,529,075.76 132nd Court West Improvements 8) Street Capital Improvement Program $16,080.21 9) Sanitary Sewer Core Fund $89,230.49 10) Water Main Core Fund $57,713.08 11) Assessments $79,884.00 132nd Court West SUBTOTAL 5242,907.77 TOTAL Project Costs $10,771,983.53 1 of 1 W W W W W W O O O O O O Z O O O O O O O O O O O O A 3 T 9 c11 O Z O? x z v ; a � 91 n. 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ITEM 2B Andy Brotzler, City Engineer ATTACHMENTS: Location Map APPROVED BY: RECOMMENDED ACTION: Provide Staff Direction ISSUE Some time ago, staff discussed the County Road 38 road project with the City Council. At that time there was some discussion about the ramifications of upgrading the street and extending utilities in the area for those rural residential or agricultural properties north of County Road 38. Staff wants to clarify the , Council's position because we are aware that there are developers looking at various properties in this area. DISCUSSION Staff is aware that developers are looking at the properties north of old County Road 38, west of Bacardi Avenue, and south of 130`' Street. The vast majority of the land is owned by the Nieland family. There are other parcels also in the area. One developer has come to the city with a concept that included much of this "block". It is staffs understanding that the Council recognized that property owners affected by the road and utility upgrade and assessments would be permitted to develop, after a formal planning review process. However, in this particular area, it would appear that more than just the properties immediately adjacent to old CR 38 would be developed. One reason is that the ownership extends further north than just the properties immediately next to the road. From a planning and engineering standpoint, it would be preferable to have the entire area developed concurrently so that road systems, neighborhood access, and regional ponding could be designed. CONCLUSION Staff is requesting clarification from the Council regarding their intentions about property north of old County Road 38, east of Bacardi Avenue. This area is designated Transition Residential and is already located within the City MUSA boundary. However, the property is zoned agriculture. Specifically, Staff would like to gauge Council's comfort level with all properties in the area being developed or would the . preference be to only allow properties immediately adjacent to the County Road 38 road project develop at a more urbanized rate. If the whole "block" were to develop some time in the future, staff would expect 130`h to serve as the dividing line between urban and rural development.