Financials
Overall, Lake Street Reconstruction & Streetscaping will cost more than $30 million, making it one of the largest road projects in Hennepin County history.
For the street reconstruction, approximately 90 percent of the cost will be paid from a package of federal, state and county sources; and the remaining 10 percent through city funding that includes a special assessment levied against benefited property owners.
Street assessments are based on a city-wide formula and can be paid over a 20-year period. In 2005, the street-assessment rate is $1.30 per assessable square foot for commercial property and $0.40 per assessable square foot for residential property.
An additional assessment will likely be required based on the streetscape design chosen. The assessment for “base-level” streetscaping on Lake Street is estimated to be $175 per linear foot of Lake Street frontage, representing less than half of the total cost. Hennepin County will provide the balance.
Property owners may agree to be assessed at a higher amount for an “enhanced” streetscape. Assessments for streetscape have a 15-year term of repayment with simple interest. An enhanced streetscape will require the creation of a Special Service District for maintenance, triggering an additional assessment.
The Minneapolis City Council has the final determination on the level of streetscaping. Its action is based on petitions delivered by benefited property owners.
In the segment of Lake Street between between 5th Avenue and Hiawatha Avenue, petitions were organized through business associations. A base level streetscape was approved throughout, with an enhanced streetscape in the Chicago-Lake and Bloomington-Cedar-Lake business areas.
In the segment east of Hiawatha Avenue, the businesses elected to construct a base and enhanced streetscape for the entire length of Lake Street (from Hiawatha Avenue to West River Parkway).
The businesses elected to construct a base and enhanced streetscape for the entire length of the project, between Dupont and Blaisdell Avenues and on Lyndale Avenue from 24th to 31st Streets.
