Agenda - Council - 02/08/1994 - Laserfiche WebLink

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Memorandum To: From: Date: Ryan ~chroeder, City Administrator Jame~ Gmmberg, Project Managek/~'jV~ JanuarY 28, 1994 Subject: ComlS. ax'ison of Cul-De-Sac Lots to Trough Street Lots Listed below is Ge information regarding the cOmparison of through street lots as compared to cul- de-sac lots. This ~omparison shows that, in general, cul-de-sac lots are more valuable to the city in property tax val~e of the homes built upon the lot and the development of neighborhoods. The following subdiv!sions have been reviewed for confm-nation of this assumption: Chestnut Pond, Chestnut Hill, Ri4ver's Bend and Flintwood Hills. A list of.deductions follows the numerical data for each area. : Chestnut Hills ~and Chestnut Pond LOT '~ TOTAL VALUE NUMBER AVERAGE VALUE TYPE ? (000) UNITS (000) [ , ~hrough street 3,036 38 79.89 Cul-de-sac i 1,181 13 90.85 [Wetland driv'e ~ 1,326 13 102.00 we and 333 I !'- .oo Average value of homes (based on building permit valuation) on through streets is 12 percent l~ss ($10,960) than on cul-de-sac lots. This increase in value equates to approxim~itely $40.25 per year if the tax value is based only upon the building permit valuation ~ind does not include the lot value. If the a~,erage cul-de-sac is 600 feet in length this would, correlate to $604 of additional taxes raised. This complWison should be fairly accurate as the areas chosen for the study were developed by the same company arid provided certain definable boundaries. Cul-de-sac lots appear to be absorbed at a faster rate than lots on a through street; 100 percent for cul-de-sacs as compared with 96 percent for through streets. Through street lots became available in September 1991, compared to June 1992 for cul-de-sac lots. These volt,es do not include the lot values that would be added to market value for tax purposes. Generally, land values for cul-de-sac lots are higher than through streets. (Data for this arelt is not yet available.) Cul-de-sacs generally encourage the formation of neighborhood bonds as there is a definite end and beginning to the area. Cul-de-saOs, based upon the absorption rates :mentioned, are more desirable to homeownet,'s than through street lots. The estimated additional time ~pent for snow plowing 'a cul-de-sac compared to a through street is teB minutes. Using this number, in an average year, the City would see an additional ~rOSt of approximately $26. ,57