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10-10-02 WSHakanson 1 Anderson Assoc., Inc. MEMORANDUM 3601 Thurston Avenue, Suite 101, Anoka, MN 55303 Phone:763/427-5860 Fax:763/427-0520 To: Honorable Mayor and City Council From: Ronald J. Wagner, PE Date: 10/10/02 cc: Mike Robertson, Administrator Judy Hudson, Clerk Andy MacArthur, City Attorney Re: Storm Water Impact Fee South Sub District The cost for Sub District of the East Commercial Area of the North Mississippi Watershed District is estimated at $208,500. Cost Includes: a. Construction b. Inspection c. Design d. Staking e. Testing f. Contract Administration g. Future work west of CSAH 42 h. Legal Does not include any right-of-way or easement acquisition costs as all required easements were granted by petitioning parties who are the Bank of Elk River (Bank) and Christ Lutheran Church (Church). The study completed in February of 2000 and revised in July of 2000 estimated the storm water impact fee for the South Sub District to be $4,100/acre. There are several options, which we would like the Council to review concerning how much the impact fee will be and how the storm water impact fee will be instituted. Option 1 is to take the total estimated cost and divide it by the acreage disregarding any payment or credit given for easements granted by properties and only include areas that have not yet developed (i.e. exclude portions of Bank and Church property). $208,500/39.8 acres = $5,250/acre Civil 6- Municipal �� - Engineering G:\Mutiicipal\AOTSEGO\418\ot4l8hmcc.doc Lang Surveying for Option 2 is to take the total estimated cost and divide it by the acreage disregarding any payment or credit given for easements granted by properties and include all properties (developed or not developed). $208,500/44.8 acres = $4,650/acre Option 3 is to take the total estimated cost plus equity granted for easements granted and divided by acreage only including areas that have not yet been developed. $223,000/39.8 acres =$5,600/acre Option 4 is to take the total estimated cost plus equity granted for easements granted and divided by all property area (developed or undeveloped). $223,000/44.8 acres - $4,975/acre Equity considered for easements granted was determined as follows: Bank 15' x 300' easement 0.10 acres @ $15,000/acre (1/2 estimated $30,000 value due to edge type easement) = $1,500 — Paid out of SAC and WAC 25' x 300' temporary easement 0.17 acres @ 10% value of $30,000/acre = $500 — Paid out of SAC and WAC Church 50' x 420' drainage easement 0.48 acres @ $30,000/acre (estimated value of easement, which divides the land) = $14,400 — Added to cost for South Sub District and paid out of South Sub District Fund 15' x 200' easement 0.069 acres @ $15,000/acre = $1,295 — Paid out of SAC and WAC 25' x 150' temporary easement 0.086 acres @ 10% value @ $30,000/acre = $258 We recommend Option 1 or Option 4. Option 1 excludes the existing developed properties that could argue they see no change due to the added storm sewer improvements. Any new properties coining in would be required to hook up to the trunk storm lines and pay as part of their development agreements with the City. Option 4 includes the existing developed properties, but gives them credit for easements granted. The Bank, which has 2.5 acres developed within the South Sub District, would be required to pay 2.5 acres @ $5,000/acre or $12,500, but would receive $2,000 back from SAC and WAC funds G:\Muiiicipal\AOTSEGO\418\ot4l8iiincc.doc Hakanson Anderson Assoc., Inc. for easements granted and would be allowed to expand their building or parking with no further storm water impact fee. The Church which has 2.5 acres developed would also be required to pay $12,500, but would receive $14,400 back for drainage easement from the South Sub District or a positive $1,900. This could be given as a credit for any future expansion or given in cash. An additional $1,295 for other easements would be forth coming from SAC and WAC funds. All options are feasible although Options 2 or 3 may be more difficult for all properties to agree to because of inequities they may perceive. G:\Muiiicipal\AOTSEGO\418\ot4l8limce.doc Hakanson Anderson _ Assoc., Inc.