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AGENDA RECOMMENDATION |
Consent Calendar 6.BB.
City Council Regular Meeting
- Meeting Date:
- 01/12/2026
Agenda Item:
Resolutions ordering preparation of a feasibility report and setting February 9, 2026, as the date of public hearing for Capital Improvement Project 11141; Third Avenue (CSAH 5).
Recommendation/Action(s):
Adoption of attached resolutions.
Summary:
Construction Services is ready to proceed with Capital Improvement Project 11141; Third Avenue (CSAH 5) as scheduled in the 2026 Community Investment Plan. Third Avenue is a county state aid roadway with city-owned utilities below the pavement. Blue Earth County is undertaking the design, bidding, and construction administration of the improvements. The City and Blue Earth County entered into an agreement to cost participate for the design of CSAH 5 on February 26, 2024.
The estimated City of Mankato costs and funding sources for the project are as follows:
Setting the date of hearing is the first step in the process of making an improvement with special assessments. Projects that have special assessments are initiated either through property owner petition or by the council (like in this case).
The feasibility report provides the background of the project, details on the proposed improvements, the cost of the improvements and the method and amount of proposed special assessments. This report is received by the council during the public hearing on the feasibility of the project. The hearing allows all interested persons to provide testimony to the council on the project for council deliberations prior to ordering the project. Should the council find the project feasible, a resolution is passed ordering preparation of plans and specifications, and authorizing advertisement for bids. Notice will be provided to assessed property owners of the improvement hearing.
The law sets out discrete timelines and procedures for challenging a city’s special assessment. For the most part, objections must be raised at or before the assessment hearing. Only those who object at this stage may proceed to appeal an assessment to the district court. Further, these provisions for appeals to the district court are the exclusive method of appeal from a special assessment levied under the local improvement code.
No one can formally object to, or appeal, the amount of an assessment unless the property owner signs a written objection and files it with the city clerk prior to the assessment hearing or presents it to the presiding officer at the hearing. Property owners are informed of this requirement in the mailed notice.
The final assessment hearing is one year after construction is substantially complete. This allows time for any additional assessment items that property owners may choose to add to their assessment (i.e. driveway or service construction on private property).
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 called to active duty in which paying the assessment would represent a hardship. Interest does accrue on deferred assessments.
Staff is recommending the Council adopt the resolution setting February 9, 2026, as the date of the improvement hearing as well as the resolution ordering the preparation of the feasibility report for this project.
| Resolution ordering preparation of a feasibility report and calling for a hearing on improvement | 1/12/2026 |
| Project improvement hearing | 2/9/2026 |
| Resolution receiving report & ordering improvement (preliminary assessment roll provided in report) |
2/9/2026 |
| Open Bids & Award Contract (TBD by Blue Earth County) | Feb/March 2026 |
| Begin construction (TBD by Blue Earth County) | Summer 2026 |
| Substantial Completion (TBD by Blue Earth County) | Fall 2026 |
| Resolution declaring costs to be assessed and call for assessment hearing (Prepar final assessment) | September 2027 |
| Assessment hearing and Resolution adopting an assessment | October 2027 |
| Certify assessment roll to Blue Earth County | November 2027 |
The estimated City of Mankato costs and funding sources for the project are as follows:
| CSAH 5 (3rd Avenue) | |
| ITEM | COST |
| Sidewalk, Lighting, & Fiber | $477,355.92 |
| Stormwater Pollution Prevention | $0.00 |
| Storm Drainage Construction | $0.00 |
| Sanitary Sewer Construction | $705,200.00 |
| Watermain Construction | $1,609,400.00 |
| TOTAL CITY CONSTRUCTION COST | $2,791,955.92 |
| Construction Contingency | $279,195.59 |
| Administration | $153,557.58 |
| Engineering | $153,557.58 |
| TOTAL CITY PROJECT COST | $3,378,266.66 |
| FUNDING SOURCE | AMOUNT | PERCENT |
| Special Assessments | $910,000.00 | 27.0% |
| Stormwater Revenue | $0.00 | 0.0% |
| Sewer Revenue | $740,460.00 | 22.0% |
| Water Revenue | $1,689,870.00 | 50.0% |
| General Obligation Bonds | $37,936.66 | 1.0% |
| TOTAL FUNDS | $3,378,266.66 | 100.0% |
Setting the date of hearing is the first step in the process of making an improvement with special assessments. Projects that have special assessments are initiated either through property owner petition or by the council (like in this case).
The feasibility report provides the background of the project, details on the proposed improvements, the cost of the improvements and the method and amount of proposed special assessments. This report is received by the council during the public hearing on the feasibility of the project. The hearing allows all interested persons to provide testimony to the council on the project for council deliberations prior to ordering the project. Should the council find the project feasible, a resolution is passed ordering preparation of plans and specifications, and authorizing advertisement for bids. Notice will be provided to assessed property owners of the improvement hearing.
The law sets out discrete timelines and procedures for challenging a city’s special assessment. For the most part, objections must be raised at or before the assessment hearing. Only those who object at this stage may proceed to appeal an assessment to the district court. Further, these provisions for appeals to the district court are the exclusive method of appeal from a special assessment levied under the local improvement code.
No one can formally object to, or appeal, the amount of an assessment unless the property owner signs a written objection and files it with the city clerk prior to the assessment hearing or presents it to the presiding officer at the hearing. Property owners are informed of this requirement in the mailed notice.
The final assessment hearing is one year after construction is substantially complete. This allows time for any additional assessment items that property owners may choose to add to their assessment (i.e. driveway or service construction on private property).
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 called to active duty in which paying the assessment would represent a hardship. Interest does accrue on deferred assessments.
Staff is recommending the Council adopt the resolution setting February 9, 2026, as the date of the improvement hearing as well as the resolution ordering the preparation of the feasibility report for this project.