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Blaine orders Zest Street extension; two property owners face large assessments with option to defer until development
Summary
Council approved the Zest Street construction project and set out assessment options for two affected parcels, including possible deferment until development occurs; staff recommended design contracting with WSB.
The Blaine City Council on Feb. 19 approved a feasibility report and ordered improvements to construct a portion of Zest Street and extend Lakes Parkway according to state-aid standards. The project includes new pavement, turn lanes, and a planned signal at Lexington Avenue.
City engineering staff presented an estimated project cost of about $1.8 million, with $730,000 proposed to be assessed to two benefiting property owners. Under the council’s direction, staff recommended treating 50 percent of the cost as city-funded and 50 percent as assessable to the two parcels, with the council offering an option to defer assessments until the parcels are developed.
Staff reported they had contacted the two affected property owners directly. The south parcel owner (12200 Lexington) objected to an assessment in the roughly $400,000 range and said he was unwilling to defer payment and doubtful he could pay such a cost. The north parcel owner (12256 Lexington) objected to paying for road improvements intended to serve other development and suggested negotiating cost-sharing with prospective developers.
During the council discussion staff clarified that assessments are calculated on frontage and current land use; because one parcel has substantially more frontage the south parcel’s assessment is larger. Deferment means the city would place the assessment on its books and collect interest until the property sells or is developed; staff estimated past projects’ deferment interest rates have ranged from about 3 percent to 6 percent but said the city would set an explicit rate when preparing assessments.
Council later authorized a final-design contract with WSB in the amount of $312,000 and approved a 10 percent contingency, bringing the engineering authorization to about $343,000. Council approved the resolution ordering improvements and the WSB contract by motion.
Why it matters: Two private property owners could face six-figure assessments to fund road construction intended to enable development in the area. Council provided deferment as an option but did not commit to an interest rate during the meeting.
Quotation: “There is a desire to have this connection for access to the site,” Dan Schulander, director of engineering, said as he described the project and the city’s shared-cost recommendation.
Provenance: The feasibility presentation, property-owner outreach summary, public hearing (no public speakers), and contract authorization are recorded in the Feb. 19 meeting transcript.
