Adopt Resolution #26-055 Approving Assessment Agreements for MSA Bunker Lake Boulevard Reconstruction, Improvement Project #26-01

Purpose:
The purpose of this case is to adopt Resolution #26-055 approving the assessment agreements for 8341 147^th Lane NW, 14800 Ferret Street NW, and 14799 Jackal Street NW for MSA Bunker Lake Boulevard Reconstruction, Improvement Project #26-01.
 
Background:
The 2026 – 2035 Capital Improvement Program (CIP) identifies Bunker Lake Boulevard between Armstrong Boulevard and 600 feet west of Jackal Street (the tie-in point from the 2018 project) for reconstruction in 2026. A street segment summary is attached to this case.
 
During development of the Bunker Lake Industrial Park, city staff reached an agreement with the property owner of 8341 147^th Lane NW, 14800 Ferret Street NW, and what is now 14799 Jackal Street NW to be assessed with this phase of Bunker Lake Boulevard reconstruction, after actual bid prices would be known. Other developers chose to pay a development fee to cover the estimated costs as part of the development costs. Oppidan paid ($200,000) and Kwik Trip paid ($27,600) as part of their development costs. Staff proposes to recover $83,153.84 when the remaining parcel along Bunker Lake Boulevard (PID 29-32-25-11-0015) develops.
 
On February 12, 2026, bids were publicly opened for the MSA Bunker Lake Boulevard Reconstruction. North Valley, Inc. was the low bidder with a total bid of $1,066,382.87. Including 23-percent indirect costs, the total project costs are $1,311,650.93. Municipal utilities are not eligible for assessments. After removing these utility costs, the remaining project costs total $1,204,934.50.
 
Staff has followed the same 60% ($722,960.70) city, 40% ($481,973.80) developer cost split used with the first phase of Bunker Lake Boulevard. A formula based on area is being used, resulting in a per square foot assessment of $0.198415218.
 

PID No.	Owner	Benefiting Area (SF)	Special Assessment ($ / SF)	Property Address	Property Assessment
293225120008	BLIP III LLC	250,083.19	$0.1984154218	14799 Jackal Street NW	$49,620.36
293225110016	PSD LLC	161,855.32	$0.1984154218	14800 Ferret Street NW	$32,114.59
293225120009	BLIP IV LLC	273,339.10	$0.1984154218	8341 147th Lane NW	$54,234.69

 
The previously obtained and proposed future development fees create a shortfall of $35,250.32, which will be covered via the PIR Fund.

If City Council approves the assessment agreements, staff will continue to work with the property owner(s) to finalize the agreements.

Observations:
The assessment agreements are pending final review and confirmation by the property owner.
 
A contract is proposed to be awarded to the low bidder, North Valley, Inc. in a separate case as part of tonight’s regular agenda.
 
Alternatives:
Motion to adopt Resolution #26-055 approving the assessment agreements for 8341 147^th Lane NW, 14800 Ferret Street NW, and 14799 Jackal Street NW for MSA Bunker Lake Boulevard Reconstruction, Improvement Project #26-01.

Funds collected by these special assessments will be directed towards the MSA Bunker Lake Boulevard reconstruction project, which will offset street and storm sewer project costs. Other funding sources for the improvement project includes Tax Increment District #18, Municipal State Aid, Water Utility, and Storm Sewer Utility.

Staff recommends adopting Resolution #26-055 approving the assessment agreements for 8341 147^th Lane NW, 14800 Ferret Street NW, and 14799 Jackal Street NW for MSA Bunker Lake Boulevard Reconstruction, Improvement Project #26-01.

Motion to adopt Resolution #26-055 approving the assessment agreements for 8341 147^th Lane NW, 14800 Ferret Street NW, and 14799 Jackal Street NW for MSA Bunker Lake Boulevard Reconstruction, Improvement Project #26-01.