Hugo council adopts assessments for 2025 street improvement project after public hearing

Mayor White and the Hugo City Council on Sept. 15 approved Resolution 2025-35 adopting property assessments tied to the 2025 street improvement project covering Duck Pass, Palmy's Long Lake Estates and Ingersoll Avenue North.

City staff presented the project and said the work was primarily roadway reclamation with minor culvert repairs. Project costs came in at $1,296,232, staff said, with proposed assessments totaling $177,378 and the estimated city share at $1,118,854. Staff said assessments were calculated at $3,400 per unit and would be spread over 10 years at a 5.05% interest rate; full prepayment without interest is allowed within 30 days of roll adoption and senior deferrals are available for owners age 65 and older, with interest accruing during any deferral period.

The hearing drew one public speaker, landowner John Dostel, who identified himself as the general partner of the Dostel Family Limited Partnership and owner of roughly 100 acres near Palmy's Long Lake Estates. "I'm here tonight to object to the assessment proposed for that property," Dostel said, telling the council his northwest parcel lacks direct access to the improved roadway because of a large ditch and steep bank and therefore receives no special benefit from the neighborhood improvements. He said he submitted a written objection to the clerk and asked the council to remove the assessment on his parcel.

Mark, the city presenter, responded that the city's assessment policy historically assigns assessments to adjacent agricultural or vacant parcels in similar circumstances and that the parcel in question abuts the right-of-way. He noted the policy considers potential future development and parcel density when assigning assessment units and pointed to a slide he said showed the parcel in question. "The project came in, just under $1,300,000 so $1,296,232," Mark said while explaining the assessment calculation and the $3,400/unit rate.

A council member pressed for clarification about current access and staff said the parcel has access from Jody Avenue through contiguous land, though not from 125th Street Circle North. Another council member explained the policy is written to assess based on potential future access as well as current access.

Council Member Scribe moved to adopt the assessments and Council Member Petrick seconded. A roll call vote was taken and the mayor declared the ayes have it; the resolution was approved.

Next steps: staff said detailed letters with payment options will be mailed to affected property owners and that assessments will be certified to Washington County for taxes payable in 2026. The council's formal adoption concludes the hearing process as described under the state statute cited by staff.