Council approves moving Southwood Shores phase 1 into design with adjusted assessment approach

The Detroit Lakes City Council approved proceeding with design work for Southwood Shores Estates phase 1 and endorsed a funding approach that could reduce developer assessments by asking the city to share a portion of site‑grading costs.

City engineer John Pratt described the layout as a 24‑lot phase on annexed agricultural ground, with a design that uses ribbon curb and shallow infiltration swales for stormwater (rather than conventional storm sewer). Pratt said that approach increases site grading needs and that the project is estimated at about $1,400,000 overall. "There is about $210,000 of site grading costs" and only approximately $7,000 of conventional storm sewer in the plan, he said.

Under the city's assessment policy, Pratt said street costs are typically fully assessed to the developer while stormwater is split 50/50 with the stormwater utility fund. Because the project substitutes grading for storm sewer, staff and the Public Works Committee recommended the council consider treating site grading like stormwater and share it 50/50. Pratt estimated that shifting about $105,000 of site‑grading cost to the city would reduce per‑lot assessments from roughly $58,600 to below $55,000.

Council also discussed the city's prepayment policy for projects and agreed to allow a 25% developer prepayment for this 24‑lot phase (a variance from the standard 50% threshold for 20+ lot projects) to avoid an illogical mid‑phase stop. The motion to prepare plans and specifications and adopt the recommended funding and prepayment approach was made, seconded and carried.

Staff said more detailed numbers will be provided in the assessment proceedings and that the developer will receive preconstruction requirements and options for payment terms once the project proceeds to bidding.