Agenda - Public Works Committee - 11/21/2017

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Mr. Bash stated, in his City Council experience, he has been on both sides of road assessments. good policy. Mr. Bash stated Sunwood Drive was constructed in 1996, and Connexus worked with the City of Ramsey when the development first opened. He added this is a unique situation in terms of road reconstruction, because typically everything is already developed. He noted, in this case, their parcel is undeveloped. Mr. Bash stated the City of Ramsey has looked at all the options for assessing roads, including front footage, area or is paid for by the property owners. He added the remaining 75% should not have to be paid by taxpayers who may or may not use the road. He noted, in any assessment scenario, the City must show that the property increases in value by the amount of the assessment. Mr. Bash stated assessed values of every property, as well as percent of assessed values, are available on the Anoka County website. He added there are significant differences. He noted properties which are assessed at 2%. He stressed the importance of equitable assessments, and consideration of whether the 5% assessment is fair and in keeping with the spirit of the Minnesota Statute. Mr. Bash stated, from a real estate perspective, if a property were to be marketed with a pending $40,000 assessment, a buyer would not pay the list price because the assessment is a detriment. He added Connexus will not contest the assessment, but he stressed that he would like the City to consider possible changes to its special assessment policy. Councilmember Kuzma stated the City Council is in a difficult position, attempting to determine a fair policy for both commercial and residential property assessments. He added franchise fees and other scenarios were reviewed, and added that the City hires an appraisal consulting firm to prepare a valuation report for street reconstruction projects to verify benefits to properties. Councilmember Kuzma stated the preliminary assessment is based on front footage, which the City Council has deemed a fair policy. He added the final assessment can be reviewed after the valuation is received. Mr. Bash s which is highest and best use. He added it is unfair as the property should be valued at its current worth, and not what it might be worth someday, which makes a judgment about future potential values. Councilmember Johns biggest consideration is the successful construction of roads with a 60-year service life, by which time there may be further development on the property, including expansions and improvements. She added that since the City is building roads for the future, the highest and best use decision comes into play. Public Works Committee / September 19, 2017 Page 3 of 11