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11-13-1984 Council Minutes
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11-13-1984 Council Minutes
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TABLE 1 <br /> �. Proposed mains are located within C. 1. This increases road replacement <br /> the paved roadway. costs and pipe installation costs . <br /> 2. This is unnecessary in many cases <br /> since the 16 ft wide (average ) <br /> roads lie on 40-60 foot wide <br /> rights-of-way. <br /> 3. The reasons presented for this <br /> plan is that sewer accesses are <br /> "easier to find in the winter" and <br /> "will not require acquisition of <br /> easements . " <br /> D. Engineering, administrative fees of D. 1. Other cities, eg. Victoria pay 15% <br /> 25%. fees. <br /> E . Exclusion of abutting properties E. 1. Raises per unit costs <br /> served by project mains e.g. Art 2. MUSA line immaterial , ref. Old <br /> - Center. Crystal Bay Road. <br /> F. Other issues: 12 dead end pipes F. 1. w'e need a qualified review to <br /> ( Is this excessive?); double piping reduce costs. <br /> in front of Council Chambers (Is <br /> this necessary?); accuracy of cost <br /> estimate (recent bidding has exceeded <br /> engineering estimates . ) <br /> 3 . Farrell Appraisal "Theory" <br /> While substantial issue may be taken with the absolute numbers provided <br /> and his choice of comparable properties is at tne very least seriously <br /> flawed, Mr. Farrell has used a "Theory" to arrive at his conclusions <br /> that has no basis in fact, reason, or real estate appraisal practice. <br /> "The value conclusion estimate for the subject syste� is based on theory <br /> that a property with a private system would sell in the lowest range of <br /> th��, e�bi�mates. Conversely, a residence with a public sanitar�F,s����m <br /> and�.�ne��J'�road ways sell �in the higher end of the range. ° (Empb�s�}�,, ; <br /> added. ) <br /> In practice he concludes that if his three questionable private system <br /> comparable properties have "values" of, for example, $50,000, $52,000 <br /> and $54,000 an the public system comparable properties have "values" of <br /> $56,000, �58,000, and �60,000; the before and after values are $50,000 <br /> and �60,000. This is fallacious logic, has no basis in fact or practice <br /> and is a self-admitted "theory. " <br /> An equally reasonable (or unreasonable) theory would be to conclude; <br /> based on housing demand in Orono both with and without public systems <br /> that the private system property would sell in the highest range because <br /> it is located near to Lake Minnetonka, the School District, and City of <br /> Orono, with its excellent septic system administration, while the public <br /> property would sell in the lowest part of the range since it really <br /> offers no practical additional benefit. In practice, properties in the <br /> un,�4�ered parts of Orono; the Farm at Long Lake, Green Trees, Webber <br /> Hills, the developments along Old Crystal Bay Road and Willow Drive, <br />
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