The 2024-2025 Street Project continued to wind toward its conclusion with the Council’s passage last week of the related assessments. These assessments are taken on by residents who are, in theory, positively affected by the project’s improvements, though during this meeting there were several concerns raised over just how justified the assessments would be given the project’s mixed results.
“In a way, sometimes, I don’t really feel like it was much of an improvement,” resident Carla Manning told the Council, stating that her basement had flooded twice in the past year due to water from Skunk Creek now pooling into her yard during storms. She was far from alone during the lively period for public comments, with a gathering of residents living along 4th, 5th, and 6th Avenue weighing in with complaints of other localized flooding, ice pooling, and flat lawns replaced with bumps and weeds as just some of the issues in the wake of the project’s aftermath.
A few immediate neighbors on 6th Avenue banded together to complain of “shoddy work,” according to Kyle Ashcroft, who continued on to say that from his admittedly layman’s point of view, the project doesn’t seem to have been well planned. “It wasn’t like this before,” he added, regarding flooding issues sending rainwater directly into the yard of the house across from his. Smaller but still not positive changes were augmented sidewalks, which resident Charles Rennwald noted had resulted in plowed snow ending up piled on the sidewalk routinely during winter, rendering them unusable. And although the project allowed for residents to gain trees, Sharon Kettner stated the maple tree she had asked for was planted in her yard without the crew asking where to put it, resulting in its location being hazardously close to freshly placed utility lines. The rest of her yard, meanwhile, was left a tripping hazard and not restored as she hoped. The contractors used for the project, Northland Constructors of Duluth, as well as subcontractors, were noted by several property owners as having been difficult to communicate with and seemingly apathetic to residents’ concerns and possible hazards.
The Council listened and took notes but remained mostly quiet throughout the comment period, seeking calm amidst outbursts from some attendees. Before the assessments vote, Councilor Ben Redden pushed for an immediate response to the calls for repairs. City Engineer Andy Brotzler went over some fixes already on their task list, such as turf restoration, with other matters such as tree placement needing more follow-up.
Councilor Robin Glaser pointed out it was not the first time this contractor’s work had been a problem in the area. “Believe me, it was in front of my house several years ago. These are things that will be addressed,” she stated, adding that notes taken by the Council will be sent on to review by the Public Works Committee. “I want you to know that we will get after it the best that we can.” Councilor Todd Redmann echoed Glaser’s sentiments. “Certainly, I think if we’re paying contractors, they should be doing quality work,” he said. “We will be taking your comments seriously and getting eyes on these issues.” It was acknowledged, however, that due to the time of year, substantial changes will not be likely until after this winter.
Prior to the public comment period, Brotzler provided a presentation running through the technical basics of the project and its assessments. The project was a collaboration between Lake County and the City of Two Harbors, spanning sections of 5th Street, 4th Avenue, 5th Avenue, and 6th Avenue. The City’s portion was most of the work area on 6th and 5th Avenue, while 4th Avenue and 5th Street were handled by the County. Its purpose was to replace sanitary sewer, water, and storm sewer lines along with full reconstruction of streets and some sidewalks. Construction began in 2024 and was mostly completed this past summer, though final contract closeout with the contractor is still in progress.
Costwise, the bulk was taken on by the City, which handled around $6.5 million of the overall $9.8 million cost. Of that $6.5 million, the City of Two Harbors is paying for around $5 million with tax levy dollars and sewer and water utility funds. The remaining $1.5 million will be paid for with the assessments to affected residents. The assessments, Brotzler stated, are “in accordance with the council-adopted assessment policies for improvements of this nature” and affect properties next to the City or County project streets, as they are the ones benefiting from the replacements.
These assessed costs are as follows: For streets, 50% of eligible costs are assessed for lots that front the street and 15% for corner lots with a non-project street name. Sidewalks are assessed at $50 per equivalent 5ft by 5ft square. Sanitary sewer services are assessed at 100% of the standard service cost to each property owner. This, Brotzler explained, is because, by city code, property owners are responsible for maintenance of sewer services all the way out to the sewer main located in the middle of the street, so replacement costs of those services are assessed at full value. On the other hand, remaining costs like the water main, water service, and sanitary sewer main are funded by city utility funds as they are the City’s responsibility.
The assessment cost for residential property owners is calculated by parcel size, with four categories based around the idea of a standard local lot size of 7,000 square feet. Small parcels are 0 to 5,250 square feet and are assessed at a rate of 0.75. Average parcels are 5,251 to 8,749 square feet and are assessed at a rate of 1.00. Large parcels, 8,750 to 10,500 square feet, are assessed at a rate of 1.25. Finally, extra-large parcels above 10,500 square feet have their assessment rate based on actual square foot area. Similar to extra-large residential parcels, commercial parcels are assessed on an individual level.
Street and sidewalk assessments for residential parcels have their rate determined by size. This ranges from a Small having assessments of $8,190 for street and $420 for sidewalks to a Large having assessments of $13,650 for street and $700 for sidewalks. Sewer service, meanwhile, is a flat rate of $4,470 per service for all sizes. This, Brotzler said, is because “essentially, with the city’s sewer system, sanitary sewer main being located in the center of the street, there is no distinguishment between lot size, as every parcel has typically one sewer service.”
So, what do all these numbers add up to? Brotzler gave an example of assessments for an average parcel of around 7,000 square feet: Street, $10,920. Sidewalk, $560. Sanitary sewer service, $4,470. Total it all up and the parcel owner would owe an assessment of $15,950. The exact amount for each affected owner has been mailed out to them already, with instructions and details.
By state statute, these property owners have a minimum of a 30- day period during which they can pre-pay part or all of their assessment at City Hall without interest. In this case, property owners have until the end of 2026. Beginning in 2027, any unpaid assessments will be subject to a $50 Lake County assessment fee and will be added to property taxes with a repayment term of 15 years at an interest rate of 4.4238% per year. In addition to public comments, this meeting served as the time for residents to make an objection to the assessments as part of the process to file a formal appeal.
