Park Rapids council adopts Central Avenue special assessments after extended public hearing

The Park Rapids City Council on Nov. 25 voted unanimously to adopt the special assessment roll for the Central Avenue (CSAH 1) utility and street reconstruction project, closing a contentious public hearing in which several residents said the costs and notice process left them facing large, unexpected bills.

The council approved Resolution 2025-196 to adopt the special assessments as presented. Administrator Angel Weasner told residents the assessments will be placed on tax rolls in 2026 unless property owners pay the balance in full within 30 days; otherwise the assessments will be spread over 20 years at 5% interest, she said.

Residents cited specific bills and asked for relief. Tom Parks, who described two adjoining parcels he bought for $23,000, said the city’s assessments pushed the combined figure to about $50,000: “I paid $23,000 and with the tax assessment you guys have got on it of about $27,000, that puts it up around $50,000,” Parks said, asking for a reduction or alternative. Steve Nawa, who said he moved back to Park Rapids from Anchorage in 2024, described arriving to find his driveway and services disrupted and later receiving an assessment notice for roughly $22,000: “I bought this property thinking it would be a nice place to live…then I get a love letter from the village that I owe $22,000,” Nawa said.

Engineering consultant Jon Olson reviewed the project costs and the assessment methodology: the total project cost was presented at about $4.4 million, with Hubbard County covering approximately $2.645 million, a city share of $1.725 million and a proposed $1.1 million assessable roll against properties along the corridor. Olson explained that standard-sized utility costs are the basis for the assessments and that the city removes oversizing costs from the assessed amount (those are covered by the general levy). He said some benefits of the project accrue beyond the immediate parcels, which complicates efforts to spread costs citywide.

Multiple residents asked why the city had not spread more of the cost across the entire city population. Administrator Weasner said spreading the assessable $1.1 million across the city would require a different revenue approach and could mean substantial increases to water bills or taxes; she estimated an illustrative residential share would be hundreds of dollars per household annually, depending on the funding mechanism.

Councilmembers pressed staff to research alternatives and the council agreed to consider policy changes moving forward. Councilmember Liz Stone asked staff to research minutes and previous decisions related to earlier dedications and to place assessment policy review on the council’s work plan. Councilmember Joe Christensen raised statute 429 and whether some assessments exceed statutory limits tied to increase in value; Olson and Weasner said the assessment roll was prepared according to current practice and statute but that legal counsel could be consulted for any owner challenge.

Before the final vote, the council approved an amendment to defer three parcels (including two small parcels described by Parks) until developed rather than placing charges on the tax roll immediately. The motion to adopt the roll as amended passed unanimously (mover: Stone; second: Little).

The council also approved Resolution 2025-194 to certify delinquent utility bills to the Hubbard County Auditor and Resolution 2025-193 authorizing pay estimates to Hubbard County for project work. Staff reiterated that the deadline to submit the assessment roll to the county required action now: assessments must be submitted to the county by the end of the business day on Nov. 26 to meet the tax-roll process.

Next steps: property owners have 30 days after adoption to pay assessments in full to avoid certification to taxes; otherwise amounts will appear on 2026 tax statements and be payable under the 20-year, 5% schedule.