1d Arterial Collector Fee #04-05
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone 9522271100
Fax 952.2271110
Building Inspections
Phone 952227.1180
Fax 952227.1190
Engineering
Phone 9522271160
Fax 9522271170
Finance
Phone 9522271140
Fax 9522271110
Park & Recreation
Phone 952227.1120
Fax 9522271110
Recreation Center
2310 Coulter Boulevard
Phone 9522271400
Fax 9522271404
Planning &
Natural Resources
Phone 9522271130
Fax 9522271110
Public Works
1591 Park Road
Phone 952227.1300
Fax 952227.1310
Senior Center
Phone 9522271125
Fax 9522271110
Web Site
www.ci.chanhassen.mn.us
teL
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MEMORANDUM
TO:
Todd Gerhardt, City Manager
V ()j
Paul Oehme, Dir. of Public Works/City Engineer t'~
September 26, 2005
FROM:
DATE:
SUBJ:
Consider Amendment to the City's Subdivision Ordinance
Concerning Arterial and Collector Roadways - Project 04-05
REQUESTED ACTION
Approve Amendment to the City's Subdivision Ordinance Concerning Arterial
and Collector Roadways.
BACKGROUND
On June 27, 2005, staff discussed an arterial collector fee for new developments
to help pay for future improvements to collector roadways.
DISCUSSION
As new areas are developed in the city, major and minor roadway improvements
will be required within and adjacent to the development areas. The City and
Carver County are working on upgrading arterial & collector roadways as they
became warranted. In 1994, Carver County and the Cities of Chanhassen and
Chaska entered into an agreement to identify funding splits for upgrading several
arterial and collector roadways within the two cities. This agreement is currently
being evaluated between the two cities and the County. City staff is intending to
develop a consistent approach for a fee in lieu of special assessments for roadway
improvements that will help pay for arterial and collector roadway expansions
required because of future development.
Consistent with past City policy, minor roadway improvements may be
constructed by the developer, or the City may construct them as a public
improvement and assess a majority of the costs to the developer. The developer is
also responsible for the dedication of the right-of-way/easements required for the
construction of the roadway and the associated utilities.
The City does not currently have a policy or methodology for a fee or assessment
of costs associated with major roadway improvements. This would include the
widening of existing arterial or collector roadways within the city as necessary to
meet the needs of development. The arterial or collector roadways may be under
the jurisdiction of the City or Carver County.
The City of Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play.
Todd Gerhardt
September 26, 2005
Page 2
City staff is proposing to develop a methodology for a fee in lieu of special
assessments associated with major roadway improvements.
2. PROPOSED ARTERIAL & COLLECTOR ROADWAY FEE IN
LIEU OF SPECIAL ASSESSMENT
The arterial and collector roadway fee in lieu of special assessments would
provide partial funding for the reconstruction and widening of existing two-lane
roadways to a four-lane urban section design. The fee is proposed to provide
funding for the following:
· 40% of the cost for the reconstruction of the existing two-lane
roadway section. This is consistent with current City street
reconstruction assessment policy.
· 50% of the cost for the widening of the roadway from two-lanes to
four-lanes and for the cost to upgrade the roadway from a rural design
to an urban section.
The City and/or Carver County would need to provide a funding source
for the remainder of the improvement costs.
3. FEE RATE CALCULATION
A standard fee rate is proposed to be developed based upon the following
parameters:
· A one square mile (640 acres) proposed development area.
· The need for one mile of arterial/collector roadway reconstruction as a
part of the proposed development.
· An estimated cost of $1,000,000 for the reconstruction of one mile of
existing two-lane roadway.
· An estimated cost of $2,250,000 for the widening/upgrading of one
mile of roadway from two-lanes to four-lanes and from a rural section
to an urban section.
Based upon these parameters, the proposed arterial and collector roadway fee rate
calculation is as follows:
($1,000,000 x 0.40) + ($2,250,000 x 0.50)/640 Acres = $2,400/Acre
This fee rate would be applied to residential properties.
Todd Gerhardt
September 26, 2005
Page 3
It is proposed that commercial properties be assessed at a rate that is 1.5 times the
rate for residential property considering the increased traffic volumes that they
generate. The proposed commercial property fee rate is, therefore, as follows:
$2,400/Acre x 1.5 = $3,600/Acre
The fee would be applied to only the developable portions of the property,
excluding wetland areas or other non-developable areas.
Some situations may require that benefiting properties pay special assessments in
addition to the standard fee in lieu of a special assessment. These would include
the following:
· When the arterial/collector roadway improvements include the
construction of new roadways, not the reconstruction of existing
roadways.
The special assessments for this situation would be determined using the City's
current assessment practice.
The arterial and collector roadway fee would not provide funding for any of the
following:
· Traffic signals.
· Turn lanes on arterial and collector roadways required as a part of
proposed development.
· Any special amenities (streetlights, landscaping, etc.) requested by
developers.
Separate fee methodologies will need to be developed for these improvements on
a case by case basis. The fee would be evaluated on an annual basis to ensure the
fee is consistent with current construction costs.
4. PA YMENT FOR FEE IN LIEU OF SPECIAL ASSESSMENTS
It is the intent of the fee in lieu of special assessment to be charged against new
developments. The fee would be incorporated into the development contract.
The fee would not be charged against existing property owners.
Attachment
g:\eng\public\04-05 2005 musa\bkgd arterial collector fee 92605.doc
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 18
OF THE CHANHASSEN CITY CODE CONCERNING
ARTERIAL AND COLLECTOR ROADWAYS
THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS:
SECTION 1. Section 18-78 of the Chanhassen City Code IS amended by adding
subparagraph (b )(13) to provide as follows:
Arterial and collector roadways abutting a proposed subdivision must be improved
in accordance with the City's adopted Five Year Capital Improvement Plan. If there
is a nexus between the need for the improvement and the subdivision, the subdivider
must construct the improvement or pay a proportionate fee to allow the City to
construct the improvement. If the construction work is undertaken by the
subdivider, the City will reimburse the subdivision 40% of the cost for
reconstructing a two lane roadway section and 50% of the cost of widening a
roadway from two lanes to four lanes, or upgrading a roadway from a rural design to
an urban section. In lieu of the subdivider performing the construction work, at the
City's option, the subdivider shall pay an equivalent fee to the City, based upon
estimated construction costs. The fee shall be deposited in a dedicated fund for the
purpose for which it was collected.
SECTION 2. This ordinance shall be effective immediately upon its passage.
PASSED AND ADOPTED this
of the City of Chanhassen, Minnesota.
day of
, 2005, by the City Council
ATTEST:
Todd Gerhardt, City Manager
Thomas A. Furlong, Mayor
(Published in the Chanhassen Villager on
, 2005).
12081OvO I
RNK:09//19/2005