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Because estimated assessment rates were significantly higher than the previous project, Gaylord’s City Council, earlier this month, adopted a new assessment policy for the 2008 Street and Utility Improvement Project.

Estimated assessment rates will be presented at a public hearing on the 2008 street/utility project. That meeting will be held Tuesday, December 4th at the Gaylord Fire Hall (7:00 p.m.).

It is the City’s policy to assess a portion of the project cost to benefitting property owners.

For the 2007 street/utility project, reconstructed street, curb and gutter, sanitary sewer main, water main and road was assessed at 40% of the project cost. To keep rates similar for property owners benefitting from next year’s project, council members agreed to drop that percentage to 25.1%. It is estimated that each unit (a buildable lot) receiving all improvements will be assessed $12,720 for the 2008 project.

According to Justin Black, of Short Elliot Hendrickson Inc (SEH), next year’s project presents a “unique” situation because it is not a typical city block/lot situation. The primary reason for the increase is the smaller number of assessable units compared to total project cost. Assessment rates are determined by dividing the cost of each improvement by the total number of units benefitting from the project.

Because the 2008 project contains fewer units, estimated assessment rates were higher than previous projects. The total project cost for this year was approximately $3.5 million with 108 assessable units. Improvements in 2008 are estimated to cost $3.5 million with 66 assessable units.

Black explained that lots abutting the 2008 project are larger and some have street on two or even three sides and are only assessed as one unit. There is also City Park property and City property near the stormwater pond that is currently not assessed for the improvements.

Earlier this month, City Council members accepted a feasibility report on the project. According to the report, streets included in the project are as follows:

• Lincoln Avenue (CSAH 21) from Sixth Street to the East Gaylord Stormwater Pond;

• Lake Avenue north of Lincoln Avenue;

• Fifth Street from Lincoln Avenue to Park Avenue (this portion of the project is being bid as an alternate);

• First Street East north of Lincoln Avenue (this portion of the project is being bid as an alternate);

• Lake Avenue East (this portion of the project is being bid as an alternate).

It was also the consensus of the City Council that an on-street trail along Lincoln Avenue be included in the plans. This work will also be bid as an alternate.

A bid opening for the 2008 street/utility project is scheduled for April 22nd. Construction is set to begin in May with work being substantially completed by November.