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06-23-08 PHPRESENTATION TO OTSEGO CC Mr. Mayor, members of the Council: I would like to talk to you tonight about who we are, why we are here and what we are asking for. We are collectively the Mississippi Riverwood Associates, Incorporated. We are aANot for Profit Corporation. The corporation is governed by a board of directors elected by the members. I am the president of that board. My name is Perry Edwards. The corporation has one asset. That is the property located at 8660 Quantrelle Ave, NE, here in Otsego. Our property is adjacent to the Mississippi River and is in the Wild and Scenic River Overlay area and behind the Mn/DOT sound wall. Which we hope is soon replaced. Over 90% of our property is below the 100 year flood plain level and some areas are within the 10 year flood plain. On this property we operate a seasonal Recreational 115E a Vehicle Campground for the exclusive use of our members and their guests. Our season runs from mid-April thru mid- October. Our amenities include a swimming pool, a club house, a mini golf course, shuffle board courts, horse shoe pits, a common area green belt adjacent to the river, and two playgrounds for our grandkids. There are 118 members. Membership includes a lease to a specific RV site times only 10% are occupied for the full six month season 20% are occupied 3-5 months of the season 22% are occupied 1-3 months of the season 38% are occupied on weekends and vacation 10% are vacant and or otherwise not occupied Clearly, to the vast majority of us, Mississippi Riverwood is our version of that Minnesota dream known as "The Cabin up North" Because of Not for Profit status, we can not engage in --2-- commercial activity or even hold bake sales to raise money. Our only source of revenue is to assess dues to the members to cover operating expenses. Of our 118 members All but five are eligible for membership in Approximately 70% are fully retired That means their only source of income is SS, retirement plans and savings from a life time of hard work. Being retired is a special time in an individual's life. On the up side of the Golden Years is leisure time, no schedules to meet, and grandkids to enjoy. On the down side, the assets you have are it. Be it savings, pension plan payments or just Social Security. There is no hope of a promotion to increase your income. No opportunity for a job change to a better paying position. The best you can hope for is to maintain against inflation and hope that no --3-- unexpected expense upsets the delicate balance of your personal budget. Our park operating expenses are kept low because of a spirit of volunteerism within the membership and by doing most of the maintenance work ourselves. It provides an affordable place to live and we try to be good stewards of the land. The reason we are here We are here because of the proposed extension of the existing sewer and water system approximately 1200 feet, past two commercial lots, to the cul-de-sac in front of our property, at the end of Quantrelle Ave. We oppose this project. A feasibility study for this project has been prepared by the City Engineer. The apparent impetus for the extension is that Mn/DOT will be reconstructing Quantrelle Avenue and these me municipal services should be placed under the street in conjunction with that project. Doing so will, according to the feasibility study, "provide substantial cost savings estimated at $340,000" So why do we appose it? There are two parts to the proposal -- Water and Sewer. Lim Our campground water needs are supplied by a well and distribution system to each camp site. The pump is less than 2 years old and is a state of the art variable speed, constant pressure unit. The well is at a depth of approximately 80 feet, in an aquifer not connected to the river, and provides sufficient flow to accommodate our needs. We regularly test the water. Most recently the water was been sampled and tested by Water Laboratories, Inc of Elk River, a state certified laboratory. It DOES meet or --5-- exceed State and Federal requirements for safe drinking water. It is our understanding that city staff has recommended that we not be required to connect to the water system. We have no need for the city water. SEWER The staff recommendation is to proceed with the project and require us to connect to the sewer. This we oppose. The Feasibility Report splits the cost of installation between us, an organization consisting primarily of retired people on fixed incomes, and our neighbor, the 101 Market, owner of the commercial lots. Our proposed share of the cost is set at approximately 40% or $109,000. We strongly oppose the sewer for several reasons. First, the study asserts that, "this project benefits the abutting properties." We fail to see how. According to the Wright County tax assessor putting in this project would d� NOT trigger an increase in our assessed valuation. As he put it, our flood plain property has little commercial value and since we could flush our toilets before the project and again after the project is completed, only after we would have to pay a monthly sewer bill, there would be no increase the valuation. Second, the study cites an expressed interest in municipal services. Mississippi Riverwood has never expressed an interest in municipal services. Third, the study describes our septic system as non -conforming. We understand that our system is a LEGAL, non -conforming system. It is in good condition, operating properly and is well maintained. Rotz Septic Service has routinely maintained our system since it was installed. Neither Mike, nor Steve Rotz has ever reported any potential problem areas. Fourth, the study asserts that by placing the pipes --7-- under the street the need for easements on adjacent land would be alleviated. It seems reasonable to us that pipes could be installed along either side the road at a time when the services are required for commercial development. The land west of the street is already designated Right -of -Way for the 101 highway. Finally, we oppose this project because it is just too expensive. It makes no sense to us to spend approximately 70% of the property's assessed value for a water and septic system that we do not need and that adds no value to the property. This project is a lot more than a couple of circles with red and blue lines extending down a street on a map. This Project affects over 200 living beings. It directly affects our ability to continue to use our campground. It creates a lot of emotional upset and concern for the future. It would require taking money from our living expenses to pay for the project and related expenses. Need I point out that gasoline is IM hovering near $4.00 a gallon, groceries are at an all time t;lOG�1/fiLf1 Con i /P� c�57i¢7C' high, the market;' in the tank, and the stock market is struggling as well? On top of that, the inflation factor used for Social Security and most other cost of living adjustments does not include fuel and food in the data base. The $109,000 proposed construction assessment is just the beginning of the expenses involved with this proposal. We have had to retain engineers, attorneys, appraisers and septic experts. Their fees could easily amount to one half of our annuall budget this year aloneeftr Then we have the Sanitary Sewer Connection Fee which comes to $170,950 for the privilege of connecting to the sewer. We understand that this fee is to pay for sewer plant and other infrastructure costs. We also understand that the City Engineer, used a reduced Residential 6 Equivalency numberAin his calculations; and, we are appreciative that the Council further reduced that number. EM However, our research leads us to believe that the average daily flow used in the study is too high. Our total water usage over the last four years has averaged 1,640,000 gallons per season. Using the 9,066 gallons per day projected flow used in the study gives a sewer flow considerably greater than our water consumption. Additionally, we are told that the design flow for a campground with hookups, according to the PCA, is 100 gallons per day per site. Not the 175 gallons per day used in the study. But, using the study proposed cost brings our cost to $280,000 and we have yet to use the system. We now must modify our existing system (our legal, properly operating system, I might add) to be able to discharge into the manhole we are now being asked to pay $280,000 for. In discussion with the City Engineer a force main system with 3 lift station was suggested. We have consulted with the civil engineering firm of John Oliver and --10-- donations. The director of the center is quoted as saying, "Between the housing slump and the economy being down, people just can't get by on what they earn." We assume that conditions are the same in Otsego as Elk River. We ask that you NOT approve this project. Don't make it worse for us. Please, don't do this. We don't need it, we can not afford it. Thank you. --13-- f 101 Market Taxable Market Value 2007 2008 2009 $ 372,000.00 $ 626,800.00 $ 884,300.00 ($ 1.71 sq. ft. *) ($ 2.88 sq. ft. *) ($ 4.06 sq. ft. *) Must be up to Estimated Market Value by 2010 Estimated Market Value is $1,144,000.00 ($ 5.00 sq. ft. *) Sewer and Water will raise Estimated Market Value to $ 8 - $ 12 per sq. ft. Estimated Market Value $ 1,742,400.00 ($ 8.00 sq. ft. *) $ 2,613,600.00 ($12.00 sq. ft. *) * Numbers are approximate ( 5 acres @ 43,560 sq. ft. per acre)