Detroit Lakes road projects diverging from special assessment policy; formal changes expected in coming months

Detroit Lakes, Minn. (KDLM) – The Detroit Lakes City Council approved special assessments for upcoming road projects on Campbell Avenue, Linden Lane and Summit Avenue during their meeting on Tuesday.

The May 9 meeting featured presentations from city engineer Jon Pratt, who explained the city’s special assessment policy may be changing in coming months.

“The change is, instead of assessing 75% of those sewer and water main costs, the city would assume 100% of those costs, meaning, those would not be assessed,” said Pratt. “It’s a pretty dramatic change, frankly, and has a pretty dramatic impact on what’s assessed.”

Even though the city’s special assessment policy hasn’t officially changed yet, Pratt said, the most recent construction projects have used the new formula to reduce the assessment costs on homeowners.

Under the new cost-sharing arrangement, 77% of the $4.1 million Campbell Avenue and Linden Lane street and utility improvement project will be covered by the city with 23% of the project being assessed to homeowners along the project path. The new cost sharing breakdown will save those homeowners more than $500,000 in costs that would have otherwise been assessable.

On average, each homeowner will receive between a 35-45% reduction in assessable costs due to using the new formula.

The special assessments for the Campbell Avenue and Linden Lane project are expected to hit homeowners property taxes in 2024.

Residents who are over the age of 65, are permanently disabled, or serving active duty in the military may file for an assessment deferral with the city. The deferral must be submitted annually by Nov. 15.

The street and utility upgrade projects are expected to be completed over the summer.