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October 24, 2016 <br />City of Ramsey, MN <br />Objection to Special Assessment <br />Page 4 of 5 <br />and is now being restored. The cost of the road was already paid for by the property owners <br />through the cost of their original developed lot and continued to be paid for through property <br />taxes for maintenance which they didn't receive. <br />The special benefits appraisal did not even value any of the properties being assessed. The <br />appraisal used data from other areas over periods not even in the same decade to try to <br />demonstrate that upgrading a road provides an increase in market value of the properties. <br />However, there are so many other factors that could have influenced the sales prices of the <br />homes, that to attribute the increase in market value to the condition of the road alone is quite <br />unlikely. There were significant adjustments made due to time factors, economic conditions, etc. <br />However, what about capital improvements to the properties, bargain purchases on the before <br />price, upkeep and state of repair (i.e. curb appeal), and so many other factors to list? <br />The appraisal looked at several older projects in other market areas. However, it failed to <br />include the Jarvis Street reconstruction and the Northfork overlays that were very recently done <br />and in the immediate area. <br />Replacing a Black Top Road Does Not Increase The Market Value Of The Home <br />I spoke to a county appraiser and to a prominent realtor and both told me that replacing an <br />existing blacktop road with a new blacktop road does not increase the tax appraisal or market <br />value of the home in any meaningful way. The county does not increase its taxable assessed <br />value when a road has been reconstructed. In fact, the realtor said that when they notice a new <br />road, they make sure that the seller pays for any special assessment on the road. This makes <br />sense since the road maintenance is paid for through property taxes and is not the responsibility <br />of the homeowner to pay again for the road. In fact, the homeowner pays for the road when it is <br />first constructed through the cost of the developed lot and throughout the life of the road it is <br />paid for through property taxes. Again, the costs included in calculating the special assessment <br />are only those that essentially reconstruct what was already there and should have been properly <br />maintained. Had it been properly maintained, including an overlay and additional seal coatings, <br />it would very likely have many years of quality life left at this time. <br />While a nice, brand new road does add to the attractiveness of the neighborhood initially, it does <br />not sustain that look. After just a short time, it blends in with the community and does not retain <br />its new look and, therefore, any perceived increase in value. <br />New Assessment Policy <br />The special assessment being proposed may be among the first under the new assessment policy <br />of the City of Ramsey. My understanding is that the reconstruction of Jarvis may have also been <br />under this policy, but it was a joint project with the City of Elk River and the Ramsey <br />assessments were $4,500. Also, an overlay was completed on other Northfork Development <br />streets and the assessments were $730. <br />Without Any Special Assessments, The City's Cost is Still 18% Less Than The Original <br />Estimate <br />