Continued Project Feasibility Hearing (from January 13, 2025) for Capital Improvement Project; 11120 Woodshire Drive.

Adoption of the attached resolutions.

On January 13, 2025 the City Council held public hearings and took action on the following three projects:

• 11078 West 7^th Street (Approved as recommended)
• 11114 Germania Park Phase 5 (Continued hearing to March 10, 2025)
• 11120 Woodshire Drive (Continued hearing to February 10, 2025)

This item is for the continued public hearing for 11120 Woodshire Drive.

During the hearing regarding this project, a representative of the Twin Valley Council Boy Scouts (TVC) spoke regarding their concerns about the proposed project and asked that TVC be removed from the preliminary assessment roll. No other property owners spoke at the public hearing. Concerns raised by TVC included:

• Need for Improvements – The representative felt the existing roadway, sidewalk and public utilities serving the TVC property were in adequate condition and did not need improvements to serve the TVC property. The representative expressed concern that the street parking reductions were proposed as part of the proposed street width reduction from 32’ to 28’.
• Special Assessment Benefit – The representative questioned the benefit TVC receives from the improvements and felt the proposed preliminary assessments contained in the feasibility report of $102,473.41 exceed the benefit of the proposed improvements to the TCV property.

The staff has reviewed the concerns raised by TVC and offers the following:

• Need for Improvements (staff comments):  The roadway adjacent to the TVC property is in poor condition (Pavement Condition Index = 27) and requires reconstruction. The existing pavement, constructed in 1956, exhibits severe alligator, block and edge cracking. Several large areas have been patched, including a large 200-foot-long patch along the TCV property. The project also includes significant sanitary sewer, water and stormwater improvements. The costs of these improvements will be funded through their respective utility funds and will not be assessed to adjoining properties.
• Special Assessment Benefit (staff comments) – Special assessments are governed by Minnesota Statute 429, which sets specific rules and procedures for public improvements with special assessments. This process includes two public hearings. The first, near the beginning of the process, is the Project Feasibility Hearing (where this project is at currently).  At this hearing, the City Council considers the preliminary information contained in the project’s feasibility report, including a preliminary assessment roll. The preliminary assessment roll has been prepared following the City’s long-established Assessment Policy. This policy sets out a standardized procedure for different property types and situations and is intended to treat similar properties similarly.

In Mankato, the second hearing is typically held a year after construction – the Assessment Hearing. In preparation for this hearing, a final assessment roll is prepared, shared with property owners and presented to the City Council for consideration. The preparation of this assessment roll includes a more individualized review of the proposed assessments. In cases where the City is aware of potential disagreements or where certain property types or conditions exist that differ from commonly found assessment situations, the City engages an appraiser to review the proposed assessments. Based on this additional appraisal information, staff may recommend changes to the preliminary assessment roll to address the issue of benefit for City Council consideration at the Assessment Hearing. Again, this additional appraisal work typically occurs after construction in preparation for the Assessment Hearing. In the case of TVC, staff will engage an appraiser to review proposed assessments for the TVC property before the 2026 Assessment Hearing should the City Council decide to proceed with this project.

The proposed improvements are much needed and staff recommends that the City Council proceed with the project. The issue of special benefit to TVC and other properties will be resolved as part of the Assessment Hearing process that would occur in the fall of 2026 should the project proceed.