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Dunbar Fees Analysis February 7, 2001 Page 3 Highway 12 Current S/W Connection Charge Prior to March 2000 the 1989 Highway 12 Sewer and Water Connection Charge unit rate totaled $9,695 per unit.In March 2000 Council adopted Ordinance 195,Second series which converted this to an acreage charge in order to assure repayment of remaining project bonds regardless of the ultimate number of units developed,and to keep the connection charge somewhat reasonable for the types of development anticipated and wanted in the Highway 12 area. The acreage charge under the 2001 fee schedule is$5,105/acre for sewer and$8,440/acre for water,for a total of$13,545 per acre. This applies to both residential and non-residential properties. Connection Charge Options for Dunbar Project The question remaining,then,is what to charge for the additional 34 units required for Outlot F.Two options appear to exist: Option 1. A case can be made that the site has 41 of 75 units paid, or 55% of the required units, and should pay 45% of the current connection charge for the remaining 34 units. The total site is 6.7 acres. The connection charge would be calculated as follows: 6.7 acres x $13,545/acre x 0.45 = $40,838 (this figure would change slightly depending on the final number of required units) Option 2. It could be argued that Rebers initially paid this property's fair share of the costs of sewer/water installation, having been assessed approximately $277,100 for the 44 units for Phases I and II, and should incur no additional costs regardless of the number of units ultimately developed. Note that SAC charges for the project will be at the current Met Council rate of$1150 per unit or totaling approximately $86,000. Note also that the excess units needed for Outlot F are directly a result of the senior housing project, and would likely not be needed if all of Outlot F were to develop commercially as currently zoned. Therefore, the cost of the excess units should be attributed to the senior housing, not the office building.