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Committee approves three street reconstructions; staff details assessments and financing
Summary
The committee approved reconstruction resolutions for 1st Avenue South ($11.54M), Cedar Avenue ($17.6M, city share ~$4.25M) and Lowry Avenue Phase 2 ($14.39M, city participation ~$2.42M). Staff explained assessment rates, financing and construction timelines; public commenters raised concerns about assessment burdens on nonprofits and businesses.
The Climate & Infrastructure Committee voted on Nov. 13 to approve resolutions ordering work and adopting special assessments for three local street reconstruction projects.
Public Works engineers presented project scopes, costs and proposed assessment methods. Mohammed Omar described the 1st Avenue South reconstruction (City Project 2347) — a roughly half-mile full right-of-way rebuild between Grant Street and Franklin Avenue that includes sidewalks, ADA ramps, bicycle accommodations and stormwater improvements. Staff estimated the total project cost at $11,540,000 and cited a sample reconstruction assessment of $637,767 based on 2026 uniform assessment rates; assessments are payable over 20 years.
Spencer Everett briefed the committee on the county-led Cedar Avenue reconstruction (City Project 2370), covering about 0.75 miles between 24th St E and Lake St E. Total project cost was listed at $17,596,038 with approximately $4,250,000 as the city’s portion. The total street reconstruction assessment figure reported in the presentation was $828,170.32, calculated with 2026 uniform assessment rates and the influence area method.
Alabel Mahari presented Lowry Avenue Northeast Phase 2 (City Project 2361), a 0.74-mile reconstruction between Marshall St NE and Washington St NE. Total anticipated cost was $14,388,153.16 with the city participation estimated at $2,421,000 and a total reconstruction assessment of $871,039.23, payable over a 20-year period. Hennepin County staff said construction would be staged over two seasons starting in spring 2026, weather dependent.
Public testimony on Lowry highlighted the financial impact of assessments on small nonprofits and businesses. A representative identified as Abdi described a community organization that faced more than $70,000 in assessments and requested the council consider waivers or reductions. Staff (Paul Keating) said assessments are spread over 20 years with interest set by the finance department and that deferment options exist for certain homestead residential properties but not for nonresidential parcels.
Council members asked staff to follow up with parcel-level assessment details in cases where commenters reported unexpectedly large charges. The resolutions for the three projects were moved and approved by voice votes during the meeting.
Project approvals will allow staff to proceed with sale of assessment bonds and removal or abandonment of area ways in conflict with the projects, as described in each project’s presentation.
