Public Works Dept.

Memo

To:                 Mike Wildgen

cc:                David Corliss, Debbie Van Saun, Terese Gorman, and Linda Finger

From:            Chuck Soules

Date:            April 21, 2004          

Re:                3rd and Alabama Benefit District

 

At the City Commission meeting on April 27 the City Commission will hold public hearings on the following two projects: 

 

1.      The construction of 3rd Street from Alabama to Illinois.

2.      The construction of Alabama from the intersection of 3rd Street south approximately 200 ft.

 

These projects are being initiated from the development of six lots in Perkin’s Place.  The six residential lots are located in the southeast corner of the intersection of 3rd and Alabama.  When platted, the owner of the property entered into an agreement not to protest the improvement of W. 3rd Street, Alabama Street, and Illinois Street.  Since platting, the property has changed ownership and the new owners/developers are Tenants to Homeowners, Inc.

 

During the platting process it was explained that this development would be a “clustered infill” project.  Access would be from an improved access easement (alley) in the rear of the lots.  The lots will still front on Alabama and Illinois Streets but have garages that access the improved easement.  The plat was approved without conditions.  City Staff’s expectation was that the streets would be improved. 

 

Tenants to Homeowners, Inc.  plan to develop six single family residential homes for low/moderate income households.  They plan on selling the improvements but retaining the property.  Tenants to Homeowners, Inc.  feel that the projected (estimated) costs of the two projects would make their proposal unaffordable and would like the City to consider the following two issues:

 

1.      Alabama Street not be constructed.

2.      City participation in the costs of the improvements on 3rd Street.

 

With respect to the first issue, Alabama Street does not exist between 3rd Street and 4th Street.  The other property owner in the benefit district is Medical Arts Building, Inc.   They have also expressed that they are not interested in the improvement of Alabama.  Both owners have expressed that the existing mature tree line provides a buffer between the office and parking facilities of the Medical Arts facility and the residential development.  On the south end of Alabama, just north of 4th Street, there are a couple other residential homes that face Alabama and take access off a narrow asphalt “drive”.  An option for consideration would be to look at the construction of Alabama from 3rd Street to 4th Street to correct the issue at the south end.  However, the establishment of a benefit district may not be possible at this time for the construction of Alabama from 3rd Street to 4th Street.  Another option would be not to construct Alabama at this time but wait until a couple other tracts (re)develop to the south and request the street access.  The Tenants to Homeowners, Inc. acknowledges the agreement not to protest the formation of the benefit district and the construction of the improvements, which will continue to be valid into the future. 

 

The second issue is with respect to funding the improvement of 3rd Street.   The Tenants to Homeowners, Inc. recognize that 3rd Street is narrow and only a chip sealed street.  The road is in poor condition.  As the only street that will serve the rear access of the development they would agree that 3rd Street needs to be improved.  As an infill project they are requesting some City participation.  The Commission has participated in similar projects; most recently Folks Road.  The owner to the north is Mr. Harold Shephard.  He has also expressed that he has owned these properties for a number of years and the road serves his purpose and is not interested in the formation of a benefit district; however, does not own enough property in the benefit district to stop the improvements.  As Mr. Shephard is an existing owner, the Commission may wish to consider some type of deferment of these assessments for his properties.

 

If additional information is needed, please let me know.

 

Action Requested:  Hold public hearing and pending discussion direct staff to proceed with the appropriate improvements.

 

Respectfully submitted,

Charles F. Soules, P.E.

Director of Public Works

 

CFS/je