Residents urge Hermantown council to table $9,400 parcel assessment for Hermantown Road project

Hermantown City opened a public hearing on proposed assessments for Road Improvement Districts 541 and 542 (Hermantown Road and Old Midway Road) and heard several residents say the city should not apply a flat $9,400 assessment to properties that they said would not receive a measurable market-value benefit.

Mulder, speaking for city staff, outlined the multi-year project and financing: construction costs around $3,500,000 plus an estimated $600,000 in soft costs for a total of about $4,100,000, about $3,000,000 of which the city plans to fund with general‑fund debt (roughly 75% of the project) repaid over 20 years. Staff said about 100 parcel assessments of $9,400 each are proposed (about $1,884,000) and that assessments could be paid up front or spread over 15 years at a stated interest rate of 5.5% (an annual payment the presentation listed as about $936).

Residents at the podium challenged the legal and technical basis for the assessment and urged the council to table the proposal. Nathan Gilbertson (5854 Hermantown Road) said the city hired a local appraiser, Sanford Hoff, who also owns development interests in the city and "by definition, this is a conflict of interest," arguing that the assessment therefore lacks credibility and violates the statutory special‑benefit test cited in the assessment documents. Rebecca Gilbertson (5854 Hermantown Road) said the appraisal relied on commercial datasets (RERC) unsuitable for predominantly single‑family residential properties and urged the council to "permanently table" the assessment, saying residents were being "assessed $9,400 without any anticipated financial benefit."

Other residents raised similar points. Paul Pearson (5382 Hermantown Road) cited what he said was a 2022 court decision—First Baptist Church of Saint Paul v. Saint Paul—and argued the work is maintenance, not a special assessment, and therefore constitutionally questionable. Rachel Lanto (5319 Hermantown Road) said she supports the road repair but described the flat assessment as inequitable and unaffordable for older and lower‑income homeowners, saying, "I cannot afford this." Jonathan Thornton (5869 Hermantown Road), a longtime local home seller, told the council, "moving from a bumpy paved road to a smooth paved road does not add a dollar of value" to residential property and asked the council to find another financing approach.

Several commenters also raised construction‑quality concerns. Dennis Lofold (5464 Hermantown Road) said ditch and shoulder work in places appears to be poor and urged the city to require the contractor to redo shoulders with proper materials.

Mayor Bushev closed the public hearing and explained the next steps: individual objection hearings will be scheduled in September (dates to be finalized) and the council expects to make a final decision in October (possible final action dates mentioned were Oct. 6 or Oct. 20). The council emphasized no final vote would occur that night.

The record of public comments and the staff presentation will inform the council’s follow‑up, including scheduled individual objection hearings and the October decision. Residents who wish to file written objections were told they may submit them to the city clerk before the end of the public hearing or appear at the objection hearings when dates are posted.