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Hugo council adopts assessments for 125th Street and Delwood Ridge street project
Summary
The Hugo City Council adopted Resolution 2024-46 to assess $258,500 of a $2,877,000 street-improvement project to affected parcels, setting residential assessment rates at $5,200 (reconstruction) and $3,400 (reclamation); payments may be spread over 10 years at 5.1% or prepaid by Nov. 6, 2024.
The Hugo City Council on Oct. 7 approved Resolution 2024-46 adopting assessments for the 125th Street and Delwood Ridge Neighborhood Street Improvement Project.
The council approved assessing $258,500 of the project's roughly $2,877,000 cost to affected parcels under the city’s assessment policy. Staff said the policy yields a $5,200 per-unit assessment for properties facing a complete reconstruction and $3,400 per unit for properties facing a roadway reclamation. The assessments were described as below 10% of the total project cost.
City staff presented the project scope, saying 125th Street received reclamation-type repairs while Heather and Upper Heather avenues in Delwood Ridge were fully reconstructed with new curb, gutter and storm work. Staff said Dressel Contracting was awarded the construction contract earlier this year and that the city followed a series of neighborhood meetings and feasibility work dating to July 2023.
Staff said assessments are proposed to be paid over a 10-year period at a rate of 5.1% (based on the finance director’s conversation with bond counsel). Property owners may prepay without interest if payment is received within 30 days of the assessment hearing (staff set the prepayment deadline at Nov. 6, 2024). If not prepaid, assessments will be certified to Washington County and included on property tax bills; subsequent-year redemptions must be paid in full.
Staff noted the city follows the process described in the transcript as “state statutes chapter 4 29,” which the presenter said requires at least two public hearings; council members confirmed this public hearing was the second. Staff also said a senior-citizen deferral program is available for property owners who can demonstrate financial hardship through the finance director.
There were no public speakers at the hearing. Council discussion praised the finished project and thanked staff and contractors; council members and staff noted they would monitor vehicle speeds on newly paved streets with law enforcement. The council voted and the resolution passed.
The council’s action means assessed parcels will receive mailed notices with payment details and the assessment will be certified to Washington County this fall; property owners with questions were referred to the city finance director and staff for clarification.
