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Downtown Street & Utility Project

OLD VILLAGE PHASE 4: STREET, DRAINAGE, AND UTILITY IMPROVEMENTS

PROJECT CONTACTS: If you have any questions or concerns about Old Village infrastructure improvements please contact the City of Lake Elmo Engineering staff.

PROJECT UPDATE: October 12, 2018 – The City Council approved award of a contract to A-1 Excavating, Inc. to complete improvements on the Old Village Phase 4 project in 2018. Construction updates for each area are provided below.

36th Street / Layton Avenue Area (week of October 15):

  • Concrete work is scheduled to start Monday to finish driveways, curb replacement, and commercial accesses along 36th Street and Layton Avenue. Notices will be handed out to the impacted properties.
  • Grading, electrical work, and concrete work is planned to occur in Lions Park.

32nd Street Neighborhood (week of October 15):

  • Roadway grading (material removal with sand and gravel backfill) is scheduled to be complete on Monday.
  • Concrete curb and gutter is planned to be installed later in the week along. No vehicle traffic is allowed over the new concrete until it has had 7-days to cure. Notices will be handed out to the impacted properties.

SCOPE OF IMPROVEMENTS:  The City of Lake Elmo is extending sanitary sewer to serve the existing properties in the Old Village area to replace the use of private on-site sewage treatment systems. As part of the project the City will be replacing the aged watermain pipes and reconstructing the public streets that are disturbed during the work. The proposed project includes improvements in two areas of the village including:

  • 32nd Street Neighborhood – street, storm sewer, extension of gravity and low pressure forcemain sanitary sewer, and watermain replacement is proposed along 32nd Street North.
  • Layton Avenue Area – street, storm sewer, extension of sanitary sewer, and watermain replacement is proposed along 36th Street North and Layton Avenue North. A trail is proposed to connect Lions Park and VFW Park. Construction of a pickleball court and replacement of the surface of the sand volleyball court is also included in the scope.

PROJECT FUNDING:  The improvements will be paid for by using a combination of funding sources including the water, sanitary sewer and storm sewer enterprise funds, park funds, fund reserves, bond funds, special assessments, and the general tax levy.

Assessment details are as follows as approved by the City Council at the June 5, 2018 meeting:

  • Street and drainage improvements will be assessed to the benefitting properties in accordance with the City Special Assessment Policy. Residential properties are assessed 30% of total costs on a per unit basis. Commercial property is assessed 60% of total costs on an adjusted front foot basis.
  • Sanitary sewer improvements will be assessed 100% to the benefitting properties on a residential equivalent unit method (REC). Properties receiving a service stub will be required to connect to the system within two years after sewer becomes available for connection.
  • Watermain improvements will not be assessed to existing water system customers. Watermain replacement costs will be funded through the water enterprise fund.
  • Trail and park improvements along Layton Avenue will not be assessed and costs will be funded through the City park fund.

PROPERTY ASSESSMENTS AND COST IMPACTS: Final assessments were adopted by Council at the June 5, 2018 council meeting. The final assessment rolls are available at the link at the bottom of the page and details each impacted property. Please see the Feasibility report dated April 2018 for project information.

  • 32nd Street Neighborhood: Street and Drainage improvements assessment.
    • Residential property assessment is $7,800 (reduced from $8,300 presented in the report).
    • Assessments are payable over 15 years at an interest rate of 4.5%.
  • Laverne Area: Street, Drainage, and Sidewalk improvements assessment.
    • Residential property assessment is $8,400.
    • Commercial property assessment is $132 per lineal front foot (reduced from $220 per lineal front foot). See assessment schedule.
    • Assessments are payable over 15 years at an interest rate of 4.5%.
  • Sanitary sewer improvement assessment: This assessment will be a unit assessment amount of $11,600 per REC unit.
    • Residential property assessment is $11,600 per REC unit.
    • Commercial property assessment is $11,600 per REC unit. See assessment schedule.
    • Assessments are payable over 20 years at an interest rate of 4.5%.
  • Additional sanitary sewer connection fees: Connection to the sanitary sewer will be required within 2 years of the City project.
    • Sanitary Sewer Availability Charge – $3,000 per REC unit.
    • Sanitary Sewer Connection Fee – $1,000 per REC unit.
    • Sanitary Sewer Permit Application Fee – $65 per connection paid up front with permit.
    • Met Council Sewer Availability Charge – $2,485 per REC unit (2018 fee).
    • Cost to run your private line from the property line to your home. This is a property by property specific charge. A typical cost for this connection for a residential property is $5,000.
    • Incentive program and financing options made available by the City are detailed on the website 
  • The City Assessment Policy includes Hardship deferral provisions for qualifying property owners.

Adding it all up, the typical residential property can expect an “all in” cost of approximately $26,500. For this cost the property receives City sewer, including City and Met Council connection costs, a new watermain (not assessed), and a new street with drainage improvements. The only additional cost is for each property to retain a contractor to connect your private sewer service to your home.

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