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Saint Joseph council awards Knife River contract, adopts assessments for 2025 street improvements

St. Joseph City Council · October 24, 2025
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Summary

After a public hearing, the council awarded the 2025 street‑improvement contract to Knife River, approved final special assessments totaling roughly $524,443 of property owner share on a $981,073 project, and set payment terms including a 5% interest rate and a 10‑year installment option.

The St. Joseph City Council voted to award the construction contract for the 2025 street‑improvement project to Knife River and adopted final special assessments after a public hearing on Aug. 3.

Consulting city engineer Randy Sabart and SEH engineer Bryce Johnson presented the project scope and funding: a total project cost estimated at $981,073, special assessment revenue projected at $524,443 (about 53% of the total) and the city covering the remaining roughly 47% as subsidy. Bryce Johnson said, "So we've come to a special assessment revenue of $524,443, which is 53% of the total project cost again at 981,073." He described assessment calculations based on frontage (linear feet) and the city’s third‑party benefit analysis that capped many individual assessments.

Residents pressed council members on fairness and affordability during the open hearing. Nancy Notch, who gave her address and age, asked why she was being assessed $4,000 for work she described as a single patch. "I'm 84 years old ... I can't afford $4,000 on that road," Notch said. Council and staff explained that her property’s raw assessment had been reduced by the market‑benefit cap and that the city would pay the balance.

Staff noted procedural issues: two parcels owned by Timothy and Susan Borish did not receive mailed notice for the hearing. City staff told council they could recess the hearing to Aug. 18 to permit those owners to speak, but warned delaying a bid award could put the city outside the bidders’ timing window. Council closed the hearing and proceeded to vote.

Council awarded the construction bid to Knife River (resolution 2025‑049). The award passed by a recorded vote, reported as 4‑1. Council then voted to adopt the final assessments (resolution 2025‑050); staff reminded property owners that assessments can be paid in annual installments over up to 10 years at 5% interest, with full prepayment within 30 days of adoption avoiding interest, and that deferral options exist for seniors, disabled residents, or active‑duty service members when an assessment exceeds $3,000.

The council also adopted a separate resolution earlier in the meeting (2025‑048) to assess a single resident’s delinquent water/sewer invoice to property taxes for 2026 at 0% interest, after no one from the public appeared to speak to that specific hearing.

The council approved the bid award and the assessments despite objections from multiple residents who argued special assessments are unfair or too frequent; staff and consultant remarks emphasized special assessments are a common funding tool in Minnesota and that alternate city‑wide approaches generally require higher overall taxes.

The contract schedule presented by staff anticipates construction to begin in August or September, with the bulk of work completed before the end of the construction season and final completion expected in July 2026.

Votes at a glance: resolution 2025‑049 (award to Knife River) — passed, reported 4‑1; resolution 2025‑050 (adopt final assessments) — passed (reported tally recorded in minutes).