The Blaine City Council July 10, over the course of four votes, approved street renovation projects and a bond sale to pay for these projects in the short-term before funds are available to cover all costs.
A different company was the low bidder for each project.
Valley Paving Inc. bid approximately $539,000 for the reconstruction of Able Street from County State Aid Highway 10 to 89th Avenue.
Park Construction Company bid about $518,000 to reconstruct multiple streets in the third and final phase of the 93rd Lane industrial park area. The project area includes Baltimore Street from 91st Avenue to Eldorado Street, Radisson Road from 91st Avenue to 93rd Lane, Eldorado Street from Baltimore Street to 91st Avenue, and Hastings Street from Radisson Road to the cul-de-sac.
Douglas-Kerr Underground bid about $301,000 for reconstructing the service road on the east side of Central Avenue from 87th to 89th avenues.
To have the funds for the city’s pavement management program for projects like this, the council also approved the sale of $3,245,000 of general obligation bonds. The interest rate will be 1.88 percent.
“It’s darn near free money,” Councilmember Russ Herbst said.
Finance Director Joe Huss originally anticipated the principal amount of the bond sale would be $3,420,000 and the interest rate would be 1.91 percent, but the nine bids the city received came in favorably. The city received a AA-plus bond rating from Standard & Poor’s, which is the second-highest rating a city can receive.
Mayor Tom Ryan said they are entering the fifth year of the pavement management program that seeks to have a more defined schedule and budget on road projects and an emphasis on keeping up with maintenance needs – such as sealcoating and overlays – before more expensive reconstructions are needed. The council approved bids for these lower-cost maintenance projects in other areas of the city earlier this year.
Property owners along these reconstructed routes will face assessments that could be paid off without interest within 30 days of the assessment hearing later this fall or over 10 years with an interest rate that would be finalized at the assessment hearing. The assessments would be based on actual construction costs and not estimates, according to City Engineer Jean Keely.
On Able Street, the estimated cost per residential lot is $1,952.54. An apartment complex in the project area will be assessed $24.20 per front foot, Keely said.
The property owners within the 93rd Lane industrial park area that will benefit from the reconstructed roads in the third phase will be assessed $34.33 per front foot. A vast majority of property owners will only face an estimated $92.69 assessment, but three large parcels will be facing more than $10,000 assessments, according to the feasibility report.
The property owners along the east Central Avenue service road between 87th and 89th avenues will be assessed $63.12 per front foot. Most are estimated to be assessed $6,312.
Eric Hagen is at [email protected]