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Several unhappy property owners contested the cost of assessments for planned 2023 street improvements during a public hearing at the April 25 Chisago City Council meeting. News that the low bid on the million dollar street project came in more than $100,000 over engineer’s estimates added to the problem. The planned street improvements include portions of Railroad Avenue, Wallmark, Bloom and East Streets on the east side of downtown Chisago City.

Engineer Ryan Goodman told the council that the low bid, from Bituminous Roadways, came in $109,000 over engineer’s estimates. He explained that the overage was primarily due to the unexpected cost of street lighting. Street lights matching those purchased for a similar street project just a few years ago, now cost three times as much. 

The 2023 street project cost totals $1.027 million. Of that amount, 30 percent, or $299,376, was to be assessed against 19 properties in equal units. Each unit was to pay an assessment of $9,172 with corner properties (assessed on two sides) paying an additional .33 percent, or $12,199. The assessments can be paid in full within 30 days of the council meeting or in installments over the next 15 years at 3.5 percent interest. 

The first property owner to speak at the hearing said the south half of his property was assessed after the last street project on Stinson, and now the north half is being assessed for this one. 

The second property owner asked, “Why do these assessments have to be so high? It’s of no benefit to me to have all this done.” He contended the improved streets mainly benefited people traveling between two local bars. “I’m wondering why I have to pay this high assessment for that,” he said.

Property owner Dan Charpentier, who owns a home occupied by his parents, asked, “How much are the (residential) property owners being assessed as opposed to the businesses? You can’t park a car in front of my parents’ house. The bars (customers) take every parking spot on Bloom and Wallmark. I don’t think residential property owners should be assessed as much as businesses.”

One resident said he was already stressed by inflation. “I already pay a lot in taxes and with inflation, it throws me.” He pleaded with the council to consider some type of reduction. Another man said, “I don’t know where I’m going to come up with the money, especially for the first year.”

The council and engineer offered the residents reassurances that the assessment could be spread over 15 years, that the improvements would enhance property values, and that additional street improvements wouldn’t be made for at least another 22 years.

“We hear you, and we understand,” Councilmember  Jeremy Dresel told the unhappy audience. “We’ll take it into account, and we’ll talk about it.”     

After closing the hearing and further discussion, the council agreed to have the city assume the cost of the overage caused by the higher than anticipated bid and reduced the total amount assessed against property owners by 10 percent.

In a related action, the council then passed a resolution requesting a $424,000 advance of its state aid funds for Municipal Street Projects in order to pay for the 2023 street work, which is added to the $526,000 currently available in Chisago City’s State Aid Construction Account. It will be repaid with future accruals from the city’s municipal state aid street construction funds.

Chisago City’s municipal street construction allotment from the state in 2023 was  $242,806.

In other business, the council:

- accepted the resignation of public works employee Eaun Smith, and approved the hiring of Samantha Lundstrom, a new part-time employee in the Department of Motor Vehicles. The city received 25 applications for the DMV position. Lundstrom, was one of 15 candidates interviewed.

- moved to take over several tax-forfeited parcels offered to the city by Chisago County. Pechman explained that it appeared all of the parcels are outlots involving drainage or utility systems. 

“These are all basically ponds,” said Pechman. “The idea would be to get them under city control” because they receive drainage from city streets. The tax-forfeited properties legally can be conveyed to the city if they meet the special circumstance where developers failed to convey them either to local government or to a homeowners association. The parcels are located near Bennet Avenue, in Hidden Forest (two sites) and on the north shore of Martha Lake (two sites). The total appraised value of the sites was less than $2,500.

- suspended the agenda in order to discuss two items which were not added to the agenda at the beginning of the meeting. The first was a request by real estate agent Chris DuBose to temporarily waive the requirement for a tree survey on land being developed just off Highway 8 near O’Reilly’s. DuBose appeared on behalf of the unnamed developer. A preliminary sketch of the proposed project showed both commercial and residential lots. The council granted the request.

- chose not to pursue a request by Sam Ashkar of Hometown Internet. Last month Ashkar had urged Chisago City to use $100,000 of its American Rescue Plan Act (ARPA), city leverage funds to a Chisago County grant to provide high speed internet service.  The city must apply to the county for the matching funds for the project to move forward.  “If we don’t apply, the county won’t look at it,” Pechman told the council.

Council members were not eager to proceed, saying the city’s remaining ARPA funds are being considered for many purposes. 

“The greater good for that money would be to provide sewer down Highway 8 (when the highway is reconstructed west of downtown),” said Councilman Craig Meyer.  Council Member Marie Rivers concurred citing the timelines involved for use ARPA funds. Administrator 

Orderly annexation agreement update

Chisago City held a special meeting April 11 to vote on a corrected Orderly Annexation Resolution involving the annexation of several sections of Lent Township. The previously approved resolution had to be corrected and reconsidered due to errors in the property description. Administrator Pechman said the corrected resolution has been submitted to the state.

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