Special Assessment Commission Hearing Minutes
Thursday, August 29th, 2024, 9:00 AM City Commission Chambers
Minutes
SA Commissioners Present: Randy Engelstad, Chairperson, Steve Bladholm, Dylan Dunn
City of Fargo Staff Present: Doug Durgin, Linda Stewart, Dana Debele, Tom Knakmuhs, Steve Sprague, Michelle Turnberg
Chairman Randy Engelstad called the hearing to order at 9:00 AM.
Chairman Engelstad introduced the Special Assessment Commissioners and City of Fargo staff, and he gave a brief description of the hearing procedures.
BN-22-L, New Paving & Utility Construction – 14½ St N and NP Ave N
Gary Kvidera, 9 14½ St North, addressed the commission regarding the project. He asked why the estimate v/s the actual assessment was approximately 39% higher. His initial estimate was $52,769.07, but the final assessment is $73,307.61. Mr. Kvidera also questioned why it was constructed with concrete rather than asphalt.
Doug Durgin, the Special Assessment Coordinator, explained that the initial estimate was too low, and the bids came in 21% higher than expected. According to the city’s policy, construction will proceed if the bids come in at 40% or less of the expected cost.
City Engineer Tom Knakmuhs answered Mr. Kvidera’s question regarding Concrete v/s Asphalt. He feels concrete was the right choice for 14½ Street. If it had been built using asphalt, property owners would have had to pay for the full cost of the future asphalt wear course and seal coat through additional assessments.
Gary’s son Jason Kvidera also addressed the commission regarding the popping on the concrete and broken curb.
Tom Knakmuhs indicated that city staff will investigate the issue of the popping and will contact Jason.
Gary & Jason Kvidera’s concerns will be forwarded as a protest to the City Commission hearing on October 2, 2024.
James Baum, 20 14½ St N, addressed the commission regarding BN-22-L. He mentioned that he has owned the property for over 50 years. He mentioned that the valuation of the property continues to increase and that adding $70,000 in special assessments increases the burden on capital gains. Mr. Baum also noted that he believes the new apartment is responsible for the installation of the concrete roadway. Mr. Baum plans to sell the property in the near future.
Special Assessment Coordinator Durgin stated that he realizes the burden it can be on a property owner. He mentioned that the special assessments stay with the property at the time of sale and that they are allocated over 25 years. He noted that the interest rate is the city bond amount plus 0.75%. He stated that the city could charge up to 1.5% more than the bond rate allowed by North Dakota Century Code.
Robert Huber of Huber Electric, 12 14½ St N addressed the commission. He stated that he stands on the same ground as the Kvidera’s and Mr. Baum. He believes a 39% increase from the estimated assessment is ridiculous and that the new apartment should cover the cost of the added on-street parking. He asked if it would’ve been less if there was no on-street parking.
Tom Knakmuhs responded to Mr. Huber’s concerns explaining that the land use and zoning is what dictates the type of roadway to be constructed. He stated that 11th and 12th Streets to the east were recently completed with the same roadway design.
Commissioner Steve Bladholm informed the residents in attendance that the Special Assessment Commission’s role is to ensure the policy was set forth and adhered to. If any of the attendees wish to take their concerns to the next level, they can be forwarded to the City Commission hearing on Monday, September 30th. He noted that construction costs have escalated and that city staff uses historical costs as estimates.
Tom Knakmuhs added that the role of the Special Assessment Commission is to determine that the benefit is allocated correctly. He stated that the Special Assessment Commission does not have the authority to lower the costs. The next step would be to attend the City Commission Hearing on September 30. It would be up to the City Commission to decide whether they are willing to buy down any of the project costs.
BR-22-A, Paving & Utility Rehab/Reconstruction – 32nd Ave S from 22nd to 33 Streets
Chairman Randy Engelstad acknowledged a letter was received from Linda McCaw at 2620 25th St S. He asked that the special assessment staff respond to her concerns and that her concerns be forwarded as a protest to the City Commission on September 30.
On a motion by Dylan Dun, seconded by Steve Bladholm, the hearing was adjourned at 9:26 AM.