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AGENDA RECOMMENDATION |
8.A.
City Council Regular Meeting
- Meeting Date:
- 01/27/2025
Agenda Item:
Consider reduction to obstruction fees for the Silos Apartments development.
Recommendation/Action(s):
Consider reduction to obstruction fees to the Silos Apartment development by $15,950.
Summary:
City Code (Sec. 6.06 – Right of Way Management) establishes rules and fees for construction activities that obstruct the use of public right-of-ways (ROW). The fees are set by the City Council to encourage private construction projects to minimize disruptions to public infrastructure and to partially compensate the public for such disruptions. Fees are higher in areas of the City where obstructions cause more disruption to the public. In recent years, significant developments have been built in the Downtown area and obstruction fees have been applied according to the ordinance. Another large development is currently planned on Main Street that is expected to require significant closures and associated obstruction fees.
In the case of the Silos Apartments development at Plum Street and 2nd Street, obstructions were anticipated on both Plum Street and 2nd Street. Early on, $20,000 was earmarked for obstruction fees in the TIF agreement for the project. City staff observed actual obstructions during construction and invoiced a total of $40,800 (an amount reduced from the amount outlined in code).
Brennen Companies, the developer of the Silos Apartments, has requested the City Council to reduce the total amount by $15,950 – from $40,800 to $24,850. Their request is based on the fees charged for obstructions of Plum Street concurrent with the City’s reconstruction of Riverfront Drive. Plum Street was closed at Riverfront Drive during this time. Plum Street from 2nd Street remained open and was an important public access point for the businesses on Plum Street and connecting alley. Plum Street was the only access to 201 N. Riverfront. It is likely that traffic volumes were significantly reduced on Plum Street due to the barricades at Riverfront Drive.
In the case of the Silos Apartments development at Plum Street and 2nd Street, obstructions were anticipated on both Plum Street and 2nd Street. Early on, $20,000 was earmarked for obstruction fees in the TIF agreement for the project. City staff observed actual obstructions during construction and invoiced a total of $40,800 (an amount reduced from the amount outlined in code).
Brennen Companies, the developer of the Silos Apartments, has requested the City Council to reduce the total amount by $15,950 – from $40,800 to $24,850. Their request is based on the fees charged for obstructions of Plum Street concurrent with the City’s reconstruction of Riverfront Drive. Plum Street was closed at Riverfront Drive during this time. Plum Street from 2nd Street remained open and was an important public access point for the businesses on Plum Street and connecting alley. Plum Street was the only access to 201 N. Riverfront. It is likely that traffic volumes were significantly reduced on Plum Street due to the barricades at Riverfront Drive.