Resolutions adopting Final Assessments on Capital Improvement Projects:

• 11005; Victory Drive - Phase 1
• 11057; Germania Park - Phase 4
• 11058; North Belmont Drive
• 11125; 2025 Petition Alley
• 11131; 2025 Resurfacing, Miscellaneous Sidewalks & Alley Improvements

Adoption of the attached resolutions.

The current agenda item is to conclude the Chapter 429 special assessment process by conducting the final assessment hearing and for Council to consider adoption of the final assessment by Resolution for the Capital Improvements Projects:

• 11005; Victory Drive - Phase 1
• 11057; Germania Park - Phase 4
• 11058; North Belmont Drive
• 11125; 2025 Petition Alley
• 11131; 2025 Resurfacing, Miscellaneous Sidewalks & Alley Improvements   

A preliminary assessment hearing was conducted for the above projects 11005, 11057 and 11058 on February 12, 2024, in the Council Chambers of the Intergovernmental Center in Mankato, Minnesota. At the hearing, there were no objections, and the project was ordered and the preliminary assessment roll was adopted. The City’s past practice has been to conduct a second final assessment hearing using the actual costs of the project and send a notice to property owners to account for any changes in the assessment from what was approved at the preliminary assessment hearing.
 
Changes between the preliminary and final roll primarily result for one of three reasons:

• The first is additional requested work on private property consisting of replacement or repair of utility services to bring into code compliance and/or hard surfacing or reconstruction of driveways, parking areas, or sidewalks. This work is petitioned by the property owner and 100% of the actual cost of the improvement is assessed.
• The second is the actual cost of sewer and water services.  As part of all reconstruction projects, if a property has a sewer and water service located within the project area, the service is replaced from the main to the right of way whether it is code compliant or not.  If it was determined to be code compliant by field inspection prior to construction, no assessment is charged against the property. Sewer and water services are estimated as a lump sum cost as part of the preliminary assessment, then revised to match the bid contract price for the final assessment.  The following are the changes regarding service costs:
  • 11005; Victory Drive – Phase 1
    • Preliminary Service Estimate = $5,000
    • Final Service Cost = $4,656.30 and $6,286.74 (only 2 total)
  • 11057; Germania Park - Phase 4
    • Preliminary Service Estimate = $4,550
    • Final Service Cost = $5,981.18
  • 11058; North Belmont Drive
    • Preliminary Service Estimate = $4,300
    • Final Service Cost = $3,955.60
• The third is actual cost of the driveway approach/apron construction within the project area. As part of all reconstruction projects, if a property has a driveway approach/apron, the portion within the right of way is replaced with like material from the edge of city street to edge of the right of way. Driveway replacements are estimated based on an estimated area and estimated cost during the preliminary assessment.  For the final assessment, the cost of the driveway is based on a field measured area of the actual as-built condition multiplied by the as bid contract price for the project.  

An improvement hearing was conducted for the above projects 11125 and 11131 on February 24, 2025, in the Council Chambers of the Intergovernmental Center in Mankato, Minnesota. At the hearing, there were no objections, and the project was ordered, declared to be assessed and preparation of the proposed assessment was ordered. The City’s past practice has been to conduct the final assessment hearing for resurfacing type projects the same calendar year as construction based on the actual costs of the project and send a notice to property owners of the final assessment amount.
 
The law sets out discrete timelines and procedures for noticing for hearings. This includes a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing and a mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. The proposed assessment notice was published in the Free Press on September 25, 2025, and the proposed final assessment notices were mailed to property owners on September 24, 2025, for all the projects.

Property owners have been informed of the amount to be specially assessed against each parcel, that the council may adopt the assessment roll at the hearing, the right of the property owner to prepay the entire assessment, that prepayment may be made without assessment of interest, and the proposed interest rate on the assessment. For assessments not paid in full, the assessment amount will be certified to Blue Earth County Taxpayer Services for collection of property taxes over a five-, ten-, or fifteen-year period with an annual interest rate of 4.5%.
 
Assessments are payable over 5, 10, or 15 years, depending on the amount of the assessment. Deferrals are available for property owners who are over 65 years of age, retired by disability, or call to active duty in which paying the assessment would represent a hardship. Interest does accrue on deferred assessments. 
 
The final assessment shall be payable in equal annual installments with the first installment to be payable on or before the first Monday in January 2026, and shall bear interest at the rate of four and one-half percent (4.5%) per annum from the date of the adoption of the final assessment resolution. Any deferred installments shall bear interest at four and one-half (4.5%) per annum beginning January 1, 2026. To each subsequent installment, when due, interest shall be added for one year on all unpaid installments.
 
Property owners were also informed of their right and the process for appealing their proposed special assessment. In accordance with State Statute, if property owners have any objection to the proposed assessment on their property, they must either present a written objection, signed by an owner, and file with the City Clerk at 10 Civic Center Plaza, Mankato, Minnesota, 56001, and/or appear at the hearing and personally object to the proposed assessment before the council.
 
State law requires that at the final assessment hearing, or at any adjournment thereof, the Council shall hear and pass upon all objections to the proposed assessment, whether presented orally or in writing. The council may amend the proposed assessment as to any parcel and by resolution adopt the same as the special assessment against the lands named in the assessment roll. Notice of the date, time, and location of any adjournment of the hearing shall either be stated during the meeting, as reflected in the minutes, or the City may provide notice in the same manner as required by statute for notice of assessment hearings generally.
 
An owner may appeal an assessment to district court pursuant to Minn. Stat. § 429.081 by serving notice of the appeal upon the mayor or clerk of the city within 30 days after the adoption of the assessment and filing such notice with the district court within ten days after service upon the mayor or clerk. No appeal to district court may be taken as to the amount of an assessment unless a written objection signed by the affected property owner is filed with the municipal clerk prior to the assessment hearing or presented to the presiding officer at the hearing.
 
At the time of this report, the City Clerk had received one letter (see attached) of objection from Grace Baptist Church.