St. Joseph council adopts final assessments for 2024 street improvements, awards Knife River contract after contested hearing

The St. Joseph City Council on Aug. 5 adopted final special assessments for the city’s 2024 Street Improvements, excluding properties tied to the Elm Street East extension, and awarded the construction contract to Knife River Corp.

The decision followed a public improvement hearing in which city staff and consultants presented project locations, bid results and the assessment methodology. SEH consultant Bryce Johnson told the council the construction total for the project is "$786,900" and the grand total including design, borings, legal and administrative costs is "$1,075,900." He explained that a third‑party appraiser calculates a maximum market benefit for each parcel and that the city uses that figure to cap assessments (for example, a $10,000 per‑lot cap for many single‑family residential lots).

Why it mattered: The council had two separate votes after closing the hearing — whether to adopt the assessment roll as proposed and whether to award the construction contract — and both measures passed by voice vote. Council also approved a supplemental letter agreement with SEH for construction engineering services.

Residents pressed the council on fairness and timing. Kale Court resident Sherry Langseth said many neighbors recently paid for new septic systems and lack city utilities, and urged the council not to assess them for a paving project they consider unnecessary: "we're all very against this project because we feel that our court, the pavement there is fine," she said. Other residents questioned the appraisal method, the treatment of corner lots, and whether repaving now will be undone if utilities extend to the area later.

Council and staff response: City Engineer Randy Sabart and SEH staff repeatedly described the statutory process (Minnesota Chapter 429) and the appraisal approach measuring the "before and after" market value change. Staff said the assessment policy typically levies up to 60% of overlay/reconstruction costs and that some trail and park‑related items are 100% city‑subsidized. On payment terms, the consultant said assessments may be paid in annual installments over 10 years at 5% interest, with no interest charged if paid in full within 30 days of adoption (the consultant identified Sept. 4, 2024 as the 30‑day cutoff tied to the anticipated adoption date).

Deferrals and appeals: Several residents asked about deferral eligibility. Staff explained deferral is separate from an appeal: property owners may request a deferral (for seniors, disabled persons, or active‑duty military when assessments exceed a statutory threshold) and the council must approve any deferral request. "The deferral can occur after council action tonight," staff told the room, noting there is a statutory framework and that hardship criteria apply.

The votes: After the public hearing closed, the council moved to adopt Resolution 2024‑048 adopting final assessments excluding Elm Street extension properties and the motion carried. The council then moved to approve Resolution 2024‑049 awarding the 2024 Street Improvements bid to Knife River Corp.; that motion also carried. The council subsequently approved a supplemental letter agreement with SEH to provide engineering construction services for the project.

What's next: With the assessment roll adopted and contract awarded, staff said construction could start as soon as September 2024 with substantial completion targeted for October 2024 and final completion by May 2025. Property owners retain the right to file written objections at the hearing or follow the statutory appeal process after adoption, and staff said written petitions already received for the Elm Street portion will be kept on file for that delayed work.