Kasson City Council adopts final assessments, awards contract for Southwest reconstruction after public hearing

The Kasson City Council on Tuesday adopted final special assessments for the Southwest Reconstruction project and awarded the construction contract to S and L Contracting, moving the neighborhood-wide street, sewer, water and storm improvements into construction planning.

The action followed a public hearing during which residents questioned why single-family properties and townhomes were being assessed roughly $9,030 per residential equivalent unit (REU), how interest on unpaid assessments would be charged, and whether the project would reduce recurring basement and street flooding.

At the hearing Brandon Thiebel, consulting city engineer with WH Cass and Company, described the project as a full reconstruction of streets and utilities in the southwest portion of town — bounded roughly by Highway 14 (south), Highway 57 (east), Old Highway 14 (north) and Masten Creek (west) — that includes new roadway pavement, new sanitary sewer with manholes and new sewer services to the property line, new water mains and services, larger storm sewers and a permanent stormwater basin on city-owned land along Masten Creek. He told the council the total estimated project cost after bidding is about $5.6 million and the proposed assessed portion is $803,000, roughly 14% of the total project cost.

The city used a residential-equivalent-unit (REU) method to assign assessments: one REU for a single-family residential lot was shown on the assessment roll as $9,030; larger commercial properties and apartment complexes were assigned multiple REUs (examples shown in the project presentation included 2, 6 and 8 REUs for some parcels). Thiebel said there are 89 REUs assigned across the project area.

Why it matters: the assessed amount becomes payable either as a one‑time prepayment (to avoid interest) or is placed on a property tax statement and amortized over 15 years. The council voted to reduce the assessment interest rate from 9% (the prior policy rate discussed earlier in the process) to 5.5% for assessments carried on the tax roll. Thiebel described the November 15, 2025 prepayment deadline for avoiding the spread and the 15‑year amortization terms if unpaid.

Several residents raised concerns at the podium. "I live in townhomes . . . and the assessment we're getting is $9,030. We are not getting sidewalk or anything," said Sandra, a resident at 307 Fourth Street Southwest. She pressed staff on why privately maintained drive areas and some properties with no sidewalk were being assessed an amount equal to a full REU.

Thiebel and other staff explained the rationale: the neighborhood benefits from new public water main, sanitary sewer infrastructure to the property line, full roadway replacement and stormwater upgrades, and the council treated the private lots as part of the neighborhood being reconstructed. "The whole neighborhood shares in the new water, the new sewer, the new street, the new sub drain," Thiebel said. He added that properties with private drives still abut the new public curb, gutter and roadway and therefore were included in the assessment roll.

Residents also asked about storm drainage and maintenance. Renee Rodell of 209 Fourth Street Southwest said she had been clearing the existing surface drains herself and feared recurring maintenance. Thiebel said the project upsizes underground storm sewer, adds many more catch basins in low areas and will route more stormwater west to the new pond and ultimately to Masten Creek. He also said public works remains responsible for ongoing maintenance of public storm infrastructure and encouraged residents to call the city when drains clog.

On financing and liens, Thiebel and other staff described the statutory assessment process under Minnesota Statute Chapter 429: the council may adopt an assessment roll, property owners can file written objections at the hearing, and an appeal to district court can be filed within 30 days after adoption. Clerk Linda Rappi was named as the contact in the notice for appeal processing. The engineer told property owners that if the assessment is not prepaid, the city will borrow or bond for the work and the unpaid assessment will be included on tax statements with the agreed interest rate and amortization.

After the hearing, Councilmember Mel moved to adopt the final assessments; Councilmember Brian seconded. The council then separately approved a resolution to award the Southwest Reconstruction construction contract to S and L Contracting. Both motions were approved by the council.

What comes next: if the project proceeds as approved, Thiebel said construction is scheduled to begin in early spring 2025 with completion anticipated in the fall of 2025; the city plans an April 8 construction open house to discuss phasing, driveway access and construction contacts. Residents with questions were given City Hall contacts (Tim and Lynn were mentioned as city staff points of contact), and staff said they will publish an amortization schedule and provide email updates to people who sign up.

Votes at the meeting related to this item: the council adopted the final assessments for the Southwest Reconstruction project and voted to award the construction contract to S and L Contracting. The council also recorded that there were no written objections submitted at the hearing.

Ending note: staff emphasized that some utilities (natural gas, electric) may replace or upgrade their lines in the same window; property owners should expect coordination and additional outreach about private service connections, lead service notifications if a lead service is found, and options such as senior deferrals for qualifying owners.