072087 CC Sp AgP
BADGER PARK TO GLEN ROAD VA TERMAIN
PROJECT 87-4
CITY OF SHOREWOOD, MINNESOTA
FRONT FOOTAGE AND AREA ASSESSMENT
OSM COMM. NO. 1744.73
7-20-87
FRONT RATE I FOOTAGE AREA RATEI AREA NET TOTAL
NAME FOOTAGE FOOT CHARGE (AC. ) (AC. ) CHARGE ASSESSMENT ASSESSMENT
~i. LCCA( cf.,.'" ~{C((C, ,
1. CAR WASH 131 $27.23 $ 3,567.15 0.45 $2,808.81 $ 1,263.96 $ 4,831.11
- 93.90 $ 4 .737 . 21
2. MTKA. TRANS. 65 27.23 1,769.96 0.34 2,808.81 954.99 2,724.95 * 4,000.00
3. HEILAND AUTO 65 27.23 1,769.96 0.34 2,808.81 954.99 2,724.95 * 4,000.00
4. VILLAGE PUMP .~ 240 27.23 6,535.23 1.70 2,808.81 4,774.97 11,310.20
.:) - 219.82 11 ,090.38
5. CITY 610 27.23 16,610.38 5.34 2,808.81 14,999.03 31,609.41
- 614.36 30,995.05
6. MTKA. COUNTRY CLUB 300 27.23 8,169.04 3.00 2,808.81 8,426.42 16,595.46
- 322.55 16,272.91
7. ICO 100 27.23 2,723.01 0.34 2,808.81 954.99 3,678.01 * 4,000.00
8. AMERICAN LEGION 195 27.23 5,309.88 1.12 2,808.81 3,145.86 8,455.74
C.,---(.- )(.- C'{.--'''''-'(- ". / ~-;e..A - 164.35 8,291. 39
9. TOM THUMB 150 27.23 4,084.52 0.70 2,808.81 1,966.17 6,050.68
- 117. 60 5,933.08
10. COMMERCIAL 230 27 .23 . 6,262.93 1.00 2,808.81 2,808.81 9,071.74
- 176.32 8.895.42
11. MINI-STORAGE 50 27.23 1,361. 51 5.00 2,808.81 14,044.04 15,405.55
- 299.42 15,106.13
12. OFFICES (BORCHERTS) 220 27.23 5,990.63 1.10 2,808.81 3,089.69 9,080.32
- 176.48 8,903.84
13. SHOREWOOD PLACE APTS. 220 27.23 5,990.63 2.40 2,808.81 6,741.14 12,731. 77
- 247.45 12,484.32
14. NSP 305 27.23 8,305.19 5.10 2,808.81 14,324.92 22,630.11
- 439.84 22,190.27
TOTALS 2,881 27.93 $156,900.00 $156,900.00
* Minimum Assessment $4,000.00
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CITY OF
SHOREWOOD
MAYOR
Robert Rascop
COUNCI L
Jan Haugen
Kristi Stover
Robert Gagne
Barb Brancel
ADMINISTRATOR
Daniel J. Vogt
5755 COUNTRY CLUB ROAD . SHOREWOOD, MINNESOTA 55331 . (612) 474-3236
MEMORANDUM
TO:
~~YOR AND CITY COUNCIL
FROM:
BRAD NIELSEN, DAN VOGT, JIM NORTON, GLENN FROBERG
DATE:
17 JULY 1987
RE:
WATER ASSESSMENT POLICY
Some time ago the City Council directed the City Engineer to prepare a
feasibility report for extending watermain from the Badger Well, up County Road
19 to Glen Road. An integral part of that report, or any feasibility report,
is a determination as to how the project is to be assessed. Having prepared
the cost estimates for the project, the Engineer then met several times with
the remainder of the staff to review alternative methods of assessing the
project. This is to bring you up-to-date with what has been done thus far, in
preparation for a work study session between the staff and City Council on
Monday night.
Early in our study sessions it was determined that the project would be very
difficult to assess. The project has much going against it, including the
following factors:
1. Most of the project is single-sided. That is, only property on one side
of the water line can be assessed. Approximately 1300 feet of the line
is bordered by property in Tonka Bay, which obviously can not be
assessed.
2. Nearly 750 feet of the line is bordered by City property.
3. The project is relatively small. In a larger project, the costs
associated with the two preceding factors can be spread against a greater
number of properties, mitigating the impact on individual sites.
It was immediately apparent that the assessments would be high when we simply
divided the estimated cost of the project ($167,500) by the number of
properties to be assessed (13). This is shown as Method No.; 3 in the
Engineer's Preliminary Report and Estimate of Cost. dated 22 June 1987 (see
Exhibit A. copied in yellow). The result of this method is an assessment of
A Residential Community on Lake Minnetonka's South Shore
Re: Water Assessment Policy
17 July 1987
$12.884.62 per property. This method was dismissed since it does not take into
consideration size or use of property. However. it demonstrates that a
relatively high assessment must be lowered for some (i.e. I.C.O. and Heiland
Automotive Sales). but the difference will have to be borne by other properties
(i.e. car wash. apartments. the City?).
One of the next methods (see Method No.1) considered was to try and compare
water assessments to Sewer Availability Charges (S.A.C.). It was assumed that
some relationship should exist between water used and sewer generated. Since
the S.A.C. system has been in place for a number of years. we assigned units to
various activities on the properties to be assessed and divided the cost of the
project by the total number of units. The S.A.C. system was modified slightly
by imposing a minimum charge of $4000 per property.
As can be seen in the Engineer's report. this method shifted the majority of
the assessments to the car wash. the Country Club and the proposed apartments.
Staff highly questions whether the Country Club or the car wash would increase
in value by the amount of the assessment. This will be discussed in more
detail further on in this report.
One of the reasons the S.A.C. system works for regional sewer charges but not
for local water assessments is that S.A.C. charges are collected after a
specific use has been proposed for a site. whereas the future use of several
properties along the watermain is subject to speculation. Also. S.A.C. charges
are distributed over an enormous number of properties within the regional
system. resulting in relatively low dollar amounts for individual properties.
Finally. S.A.C. charges are subject to increase or decrease depending on
changes in land use.
Having reviewed other methods. the staff arrived at an assessment method which
is somewhat commonly used by other cities (see Method No.2). wherein the
assessment is divided by area and front footage. In Method No.2. the trunk
charge was associated with acreage and the lateral charge was associated with
front footage. This method. while bringing the cost down for many. shifts much
of the burden to the City property.
This method was further refined (see Exhibit B) by dividing the trunk and
lateral charges more equally. This is based on the City's current policy of
allowing up to $2000 lateral credit against a $4000 connection charge. It
should be noted that the estimated cost of the project has been reduced by
eliminating lines Band C. A fourteenth property - the Legion Club - could be
brought into the assessment rolls if the City's current policy was changed to
include any commercial property within 200 feet of a watermain.
~
One final refinement which is proposed is that no property will be assessed
less than $4000. Consequently. the three proeprties which are currently less
than $4000 will be raised. and the others will be lowered proportionately.
The end result of all of this is that the project is only feasible if the City
is willing to assume its fair share of the cost. Anything else will result in
assessments which the staff feels will be easily and successfully challenged.
- 2 -
Re: Water Assessment Policy
17 July 1987
As the Administrator has stated in the past. the assessments can not exceed
what the property will increase in value. In this regard. the City Assessor
has been asked to comment on the proposed assessments shown in Exhibit B.
Hopefully. his input will be available for Monday night's meeting.
While it has been the intent of this memo to provide some background into the
staff's work to-date. it must be realized that it is very difficult to
consolidate the results of lengthy and numerous study sessions into one short
memo. If there are any questions relative to this report. please do not
hesitate to contact any of us prior to Monday night's study session.
Otherwise. the staff will be prepared to discuss it in more detail at that
meeting.
BJN:ph
cc: Dan Vogt
Glenn Froberg
Jim Norton
- 3 -
PRELIMINARY REPORT AND ESTIMATE OF COST
OF
BADGER PARK TO GLEN ROAD WATERMAIN
PROJECT 87-4
CITY OF SHOREWOOD, MINNESOTA
JUNE 22, 1987
I. TYPE OF WORK
This project covers the Installation of Watermain and Appurtenant Work.
I I . REASON FOR PROJECT
The purpose of this project is to serve the property abutting County Road No. 19
and Smithtown Road with watermain from the Badger Well site.
III. DESCRIPTION OF PROJECT
The proposed project extends watermain from the Badger Well site westerly through
the City Hall parking lot to Country Club Road and northerly along the west side
of Country Club Road and County Road No. 19 to Glen Road. Also, this report
covers the extension of watermain westerly along the north side of Smithtown Road
from County Road No. 19 approximately 450 feet.
IY. FEASIBILITY
From an engineering standpoint, the project is feasible and can be accomplished
as proposed and need not be in conjunction with any other project. From a
financial standpoint there are many questions about the project feasibility and
the method of assessment.
Y. The estimated cost to the City of Shorewood for the proposed project is as
foll ows:
LINE -A-
Estimated Construction Cost.
.$120,440.00
. .$ 36,460.00
+ 30% Indirect Cost. . . . . .
TOTAL PROJECT COST. . . . . . . . . . . . . $156,900.00
LINE -B-
Estimated Construction Cost.
.$ 19,880.00
+ 30% Indirect Cost. . . . . .
. . $ 5 ,920 . 00
TOTAL PROJECT COST . . . . . . . . . . . . . $ 25,800.00
- 1 -
~~h'l b.,t A
LINE .C.
Estimated Construction Cost. . .
. . . . .
. .$ 8,100.00
. .$ 2,500.00
. .$ 10,600.00
+ 30% Indirect Cost. . . . . . .
TOTAL PROJECT COST. . .
IV. PROPERTY TO BE ASSESSED
All that property Abutting County Road No. 19 lying within the northeast 1/4 of
Section 33, T.117, R.23 in the City of Shorewood and described as follows:
ON
FROM
TO
County Road No. 19
County Road No. 19
Smithtown Road
Country Club Road
Glen Road
700' East
All that property abutting Smithtown Road from County Road No. 19 to west 470
feet.
All that property abutting Country Club Road from Smithtown Road to south 350
feet.
VII. ESTIMATED ASSESSMENTS
Included in this report are three methods of Assessment. One is assessing on a
unit basis and one is a front footage method with an area trunk watermain charge
and the third method is just dividing the cost equally to the number of
properties being served. The true test of the assessment is whether the value of
the property is increased by at least the amount of the assessment.
METHOD NO.1
UNIT BASIS ASSESSMENT*
LINE .A. & .C. ($156,900 + $10,600 = $167,5001
1. Car Wash
3 Units/Stall; 4 Stalls
NO. OF UN ITS
12
11 @ $2,115.38 = $ 23,269.24
1 @ $4,000 = 4,000.00
ASSESSMENT
NAME
UNITS BY SAC CHARGE
$ 27,269.24
- 2 -
NAME UNITS BY SAC CHARGE NO. OF UNITS ASSESSMENT
2. Village Pump Major Auto Service with 2
2 Service Bays
~Uf~ 1 @ $2,115.38 = $ 2,115.38
1 @ $4,000.00 = 4,000.00
$ 6,115.38
3. Heilands Auto 2
Sales
1 @ $2,115.38 = $ 2,115.38
1 @ $4,000.00 = $ 4,000.00
$ 6,115.38
4. Minnetonka Trans. Major Service 1
(14 Employees or less)
1 @ $4,000.00 = $ 4,000.00
5. lCO Gas Pumping Only 1
1 @ $4,000.00 = $ 4,000.00
6. Tom Thumb Convenience Store 1
1 per 3,000 Sq. Ft.
1 @ $4,000.00 = $ 4,000.00
7. Mini Storage None, but living area 1
1 @ $4,000.00 = $ 4,000.00
8. Commercial Prop. 5 ,000 Sq. Ft. 2
1 @ $2,115.38 = $ 2 , 115 . 38
1 @ $4,000.00 = $ 4,000.00
$ 6,115.38
9. Offices 2
(Borchert's)
1 @ $ 2 , 115 . 38 = $ 2,115.38
"- I @ $4,000.00 = $ 4,000.00
$ 6,115.38
- 3 -
NAME
UNITS BY SAC CHARGE
10. Shorewood Place 80% of 18 Units
Apartments
11. Mtka. Country
Club
12. NSP
13. City Hall
18 Hole Golf Course
280 Cap./Day @
2.5 Gal/Cap f 274 =
Din.ling Room
30ci"cap. /Day @
9 Gal/Cap (Twice)
x 2 :- 274 =
Bar (23 People or less)
1 Per 2,400 Sq. Ft.
Assume 7,500 Sq. Ft.
Garage
Office
Maint. Garage
TOTALS
TOTAL PROJECT COST. .
13 Units @ $4,000/ea.
REMAINDER .
- 4 -
NO. OF UN ITS
14.4
ASSESSMENT
13.4 @ $2,115.38 = $28,346.16
1 @ $4,000.00 = $ 4,000.00
$32,346.16
2.5
1.5 @ $2,115.38 = $ 3,173.08
1 @ $4,000.00 = $ 4,000.00
19.7
1.0
20.7 @ $2,115.38 = $43,788.47
$50,961.55
3
2 @ $2,115.38 = $ 4,230.77
1 @ $4,000.00 = $ 4,000.00
1
1 @ $2,115.38 = $ 2,115.38
$10,346.15
67.6
$167,500.00
. $167,500.00
$ 52,000.00
. . $115,000. 00
COST/UNIT:
. TOTAL NO. OF UNITS.
1 Unit/Property .
REMAINING UNITS
. . . . . . . .
67.6
13.0
54.6
Assessments Per Unit = $155,500 f 54.6. . . $ 2,115.38
* A unit as defined as a SAC Unit in the Reserve Capacity Charge Manual prepared
by the M.W.C.C.
METHOD NO. 2
FRONT FOOTAGE AND AREA ASSESSMENT (LINES A & Cl
FRONT RATE/ FOOTAGE AREA RATE AREA
NAME FOOTAGE FEET CHARGE ~ AC. CHARGE ASSESSMENT
1. Car Wash
131 $48.72 6,382.42
2. Village Pump 330 48.72 16,077.85
3. Heilands 65 48.72 3,166.85
Auto Sales
4. Mtka. Trans. 65 48.72 3,166.85
5. ICO 100 48.72 4,872.08
6. Tom Thumb 150 48.72 7,308.12
7. Mini-Storage 50 48.72 2,436.04
8. Commercial 230 48.72 11,,205.78
Property
.45 $884.93
398.22 = $ 6,780.64
1.7
884.93 1,504.38 = 17,582.24
.34 884.93
300.88 =
3,467.73
.34 884.93
.34 884.93
.7 884.93
3,467.73
5,172.95
7 ,927 .57
300.88 =
300.88 =
619.45 =
5.0
1.0
884.93 4,424.65 =
6,860.69
884.93 884.93 = 12,090.71
1.1
884.93 973.42 = 11,691.99
9. Offices 220 48.72 10,718.57
(Borcherts)
10. Shorewood 220 48.72 10,718.57 2.4 884.93 2,123.83 = 12,842.40
Place Apts.
11. Mtka. 300 48.72 14,616.23 3.0 884.93 2,654.79 = 17,271.02
Coun~y Club
12. NSP 300 48.72 14,616.23 5.1 884.93 4,513.15 = 19,129.38
13. City 790 48.72 38,489.42 5.34 884.93 4,725.53 = 43,214.95
TOTALS
2,951 Ft
26.81 AC
$167,500.00
- 5 -
METHOD NO.3
EQUAL ASSESSMENT PER PROPERTY (LINES A I ct
PROJECT COST:
LINE "A". .
TOTAL COST.
. . . . . . .
. $156,900.00
10 ,600 .00
$167,500.00
LINE "C".
. . . .
Number of Properties 13
EQUAL ASSESSMENT PER PROPERTY:
$167,500 f 13 = $12,884.62
Line B Costs and Assessments could be included in the Project if the job were to
proceed.
I hereby certify that this plan, specification, or report
was prepared by me or under my direct supervision and that
I am a duly Registered Professional Engineer under the
laws of the State of Minnesota.
J6~ -P1j~
James P. Norton, P.E.
Date: June 22, 1987
Reg. No. 11606
.. 6 -
BADGER PARK TO GLEN ROAD
VATER MAIN
PROJECT 87-4
SHOREWOOD, MINNESOTA
LINE A
COST ESTIMATE
June 22, 1987
2520 L.F. 12" D.I.P. $ 20.00/L.F. $ 50.400.00
40 L. F. 8" D.I.P. $ 15.00/L.F. $ 600.00
110 L.F. 6" D.I.P. $ 14.00/L.F. $ 1.540.00
4 12" Butterfly Valves $ 800.00/Each $ 3.200.00
1 8" Gate Valves $ 450.00/Each $ 450.00
10 6" Gate Valves $ 400.00/Each $ 4.000.00
5 Hydrants $l,OOO.OO/Each $ 5.000.00
9 2" Corporation Cocks $ 100.00/Each $ 900.00
9 2" Curb Stops and Boxes $ 200.00/Each $ 1.800.00
130 L. F. 2" Copper $ 10.00/L.F. $ 1.300.00
150 S.Y. Street Replacement $ 12.00/S.Y. $ 1.800.00
250 S.Y. Driveway Replacement $ 8.00/S.Y. $ 2.000.00
3000 S.Y. Sod $ 2.00/S.Y. $ 6.000.00
1 Acre Seeding $3,00U.00/Acre $ 3.000.00
75 Tons Class 2 Gravel $ 10.00/Ton $ 750 . 00
3 Trees Removed $ 200.00/Each $ 600.00
40 L.F. Auger Casing Pipe for 6" D.I.P. $ 125.00/L.F. $ 5.000.00
5000 Lbs. Fittings $ 1. 20/Lb. $ 6.000.00
1300 L.F. Remove & Replace Bike Path $ 7.00/L.F. $ 9 .100 .00
1700 S.Y. Parking Lot Replacement $ 10.00/S.Y. $ 17.000.00
ESTIMATED CONSTRUCTION COST
+30% Indirect Cost
TOTAL PROJECT COST
$120.440.00
$ 36.460.00
$156.900.00
BADGER PARK TO &LEN ROAD
WATER MAIN
PROJECT 87-4
SHOREWOOD, MINNESOTA
LINE B
COST ESTIMATE June 22, 1987
460 L. F. 12" D.I.P. $ 20.00/L.F. $ 9.200.00
20 L.F. 6" D.I.P. $ 14 .OO/L. F. $ 280.00
2 12" Butterfly Valves $ 800.00/Each $ 1.600.00
2 0" Gate Valves $ 400.00/Each $ 800.00
2 Hydrants $1,OOO.OO/Each $ 2.000.00
2 2" Corporation Cocks $ lOO.OO/Each $ 200.00
2 2" Curb Stops and Boxes $ 200.00/Each $ 400.00
30 L. F. 2" Copper $ lO.OO/L.F. $ 300.00
150 S.Y. Driveway Replacement $ 8.00/S.Y. $ 1.200 .00
1200 S.Y. Sod $ 2.00/S.Y. $ 2.400.00
30 Tons Class 2 Gravel $ 1O.00/Ton $ 300.00
1000 lbs. Fittings $ lo20/lb. $ 1.200.00
ESTIMATED CONSTRUCTION COST $ 19.880.00
+30% Indirect Cost $ 5.920.00
TOTAL PROJECT COST $ 25.800.00
BADGER PARK TO GLEN ROAD
WATER MAIN
PROJECT 87-4
SHOREWOOD, MINNESOTA
LINE C
COST ESTIMATE
June 22, 1987
180 L. F. 12" D.I.P. $ 20 .OO/L. F. $ 3,600.00
10 L.F. 6" D.I.P. $ 14.00/L.F. $ 140.00
1 12" Butterfly Valve $ 800.00/Each $ 800.00
1 6" Gate Valve $ 400.00/Each $ 400.00
1 Hydrant $l,OOO.OO/Each $ 1,000.00
1 2" Corporation Cock $ 100.00/Each $ 100.00
1 2" Curb Stop and Box $ 200.00/Each $ 200.00
20 L.F. 2" Copper $ 10. OO/L. F . $ 200.00
280 S.Y. Driveway Replacement $ 3.00/S.Y. $ 840 .00
(50 Tons Class 5-100% crushed gravel)
200 S.Y. Sod $ 2.00/S.Y. $ 400.00
350 Lbs. Fittings $ 1. 20/Lb. $ 420.00
ESTIMATED CONSTRUCTION COST $ 8,100.00
+30% Indirect Cost $ 2,500.00
TOTAL PROJECT COST $ 10,600.00
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PROJECT 87-4
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FRONT FOOTAGE AND AREA ASSESSMENT
.
FR<<JtT RATE I FOOTAGE AREA RATEI AREA
NAME FOOTAGE FOOT CHARGE (AC. ) (AC. ) CHARGE ASSESSMENT
1. CAR WASH 131 $27.23 $3,567.15 0.45 $2,808.81 $1,263.96 $ 4,831.11
2. MTKA. TRANS. 65 27 .23 1,769.96 0.34 2,808.81 954.99 2,724.95
3. HE! LAND AUTO 65 27 .23 1,769.96 0.34 2,808.81 954.99 2,724.95
4. VILLAGE PUMP 240 27 .23 6,535.23 1.70 2,808.81 4,774.97 11,310.20
5. CITY 610 27.2 16,610.38 5.34 2,808.81 14,999.03 31,609.41
6. MTKA . COUNTRY CLUB 300 27 .23 8,169.04 3.00 2,808.81 8,426.42 16,595.46
7. ICO 100 27 . 23 2,723.01 0.34 2,808.81 954.99 3,678.01
8. AMERICAN LEGION 195 27 .23 5,309.88 1.12 2,808.81 3,145.86 8,455.74
9. TOM THUMB 150 27.23 4,084.52 0.70 2,808.81 1,966.17 6,050.68
~
10. COMMERCIAL 230 27 .23 6,262.93 1.00 2,808.81 2,808.81 9,071.74
11. MINI-STORAGE 50 27.23 1,361.51 5.00 2,808.81 14,044.04 15,405.55 ~.
--
rr: 12. OFFICES (BORCHERTS) 220 27 .23 5,990.63 1.10 2,808.81 3,089.69 9,080.32
- E-
-+ 13. SHOREWOOD PLACE APTS. 220 27.23 5,990.63 2.40 2,808.81 6,741.14 12,731.77
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14. NSP 305 27 .23 8,305.19 5.10 2,808.81 14,324.92 22,630.11 t 0
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TOTALS 2,881 27.93 $156,900.00
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