The URL can be used to link to this page

Home My WebLink AboutVIII-12 Accept Proposal and Authorize Work - 2026 - 2027 Neighborhood Infrastructure Improvements Special Benefit AnalysisCity Council Memorandum To: Mayor Fasbender & City Council Members From:Cody Mathisen –City Engineer Date:August 4, 2025 Item:Accept Proposal and Authorize Work –2026-2027 Neighborhood Infrastructure Improvements Special Benefit Analysis Council Action Requested: The Council is requested to authorize the Engineering Department to enter a contract with Valbridge Property Advisors for the purpose of completing a special benefit analysis for the prospective 2026 and 2027 Neighborhood Infrastructure Improvement Projects. Background Information: On June 16, 2025, the City Council authorized the Engineering Department to proceed with a special benefit analysis as part of the feasibility study for the prospective 2026 and 2027 Neighborhood Infrastructure Improvement Projects. This analysis is critical for determining appropriate special assessment amounts for properties abutting the proposed improvements. As noted at the June 16 meeting, both the scope and timing of the 2026 and 2027 projects may shift based on budget constraints and Council direction. Regardless of ultimate timing, these project areas are contiguous and therefore combining the analysis for both years offers notable cost efficiencies. Valbridge Property Advisors previously provided a special benefit analysis for the adjacent 2025 Neighborhood Infrastructure Project. Their familiarity with the area and ability to build on prior work makes them the most efficient and cost-effective choice for this assignment. Their proposal (attached) includes a total fee of $9,000 for both project areas. Compared to past project years, this amount for appraisal work is highly competitive due to the ability to reuse that market analysis. Financial Impact: The $9,000 cost is well within the anticipated administrative budget for the 2026 and 2027 projects. If the projects move forward to construction, funding will be sourced from bonded debt, enterprise funds, and special assessments. Attachments: •Map –Draft 2026 and 2027 Neighborhood Infrastructure Improvement Projects •Proposal -Valbridge Property Advisors Special Benefit Analysis –2026 and 2027 Neighborhood Projects VIII-12 VIII-12 N DRAFT 2026-2027 Neighborhood Infrastructure Improvements Project Area Map 2026 Project 2027 Project ^wHaStingS ★Note:Exact project limits and scope are subject to change m.nnesota Nathan Hansen, MAI, ASA Valbridge Property Advisors | Minneapolis-St. PaulSenior Managing Director 1515 Central Parkway, Suite 120Eagan, MN 55121651-370-1466nhansen@valbridge.com July 18, 2025 Cody Mathisen, P.E.City EngineerCity of Hastings Public Works1225 Progress DriveHastings, MN 55033 Re:Special Benefit AnalysisThe City of Hastings is requesting proposals to perform a special benefits appraisal for the City’s prospective 2026 and 2027 Neighborhood Infrastructure Improvements Project. The service being requested is an appraisal report that summarizes the special benefit to be derived from improvements planned with the project. It is requested that the report be based on market analysis of comparable improvements completed in the region for properties of similar use to those identified for analysis. To Cody Mathisen: Thank you for your interest in obtaining valuation services. This letter and the attached documents reflect our formal interest in the assignment. Report TypeWe will provide a Special Benefit Analysis. Instead of appraising individual properties or land parcels, we will quantify the probable special benefit (value added) resulting from the proposed project. This analysis will be applicable to properties within the project area. Purpose/Intended UseThe purpose of the analysis is to estimate the anticipated range of special benefits for properties affected by the street improvements in the project area. The intended use of this consultation is to guide the City of Hastings in analyzing the special benefits derived from completing the roadway improvement projects. Please refer to the attached exhibits provided by the client for project details. Intended UsersThe intended users of this report are the Client (City of Hastings) and no others. VIII-12 Scope of ReportIn estimating anticipated special benefit to properties in the project area, individual properties or land parcels will not specifically be appraised. Rather, this analysis attempts to quantify probable special benefit directly, which can then be applied to typical properties within the project area.Specific elements requested by the client with addressed within the report, as follows: 1.Descriptions of subject properties and neighborhood 2.Descriptions of proposed improvements 3.Market value analysis and sales comparison (before and after infrastructure improvements) data analysisfor properties of similar zoning and intended use within the local region (i.e. residential/institutional, single/multifamily) 4.Conclusions and recommendations of special benefit to be derived for the various property and improvement types on the project that can be applied within the state statute Chapter 429, Local Improvements, Special Assessments process. 5.Special benefit estimates in the analysis are requested to be presented on a per-lot basis for the various types of properties and varying levels of improvement (reclamation versus reconstruction). Due DateOctober 15, 2025 (Or sooner if possible) Report DeliveryOnePDF copy and one hard copy will be provided upon request. Benefits Analysis FeeThe total fee is not to exceed $9,000. •This project is very similar in scope to the 2024 assignment we previously completed for the City of Hastings. As this new request represents an extension of that earlier work, the quoted fee has been discounted accordingly to reflect the efficiencies and groundwork already established during the initial engagement. •The client named above is responsible for payment in a timely manner (30 days) and as the reports are completed and invoiced. •Any additional meetings, work, testimony or report revisions/updates/upgrades are extra and billed at $450 per hour. Information needed by the appraiser •Project area defined (maps and/or parcels exhibits)–already provided by client in RFP •Detailed description of the project –already provided by client in RFP •Project contact for additional questions Thank you for your consideration. We look forward to the opportunity to work with you on this important project. Sincerely, Nathan Hansen, MAI, ASAMN Certified General 20302614 Client Signature: _______________________________________ Client Name & Title: ___________________________________ Date:___________________________________ VIII-12 Competency Valbridge Property Advisors | Minneapolis-St. Paul has sufficient knowledge, experience, education, contacts and resources to competently complete this assignment. Neither the employment to make the appraisal, nor the compensation for it, is contingent upon the appraised value of the properties.A list of similar appraisal projects previously completed has been included below. Similar Projects Completed by Valbridge Property Advisors. The following is a list of recent special benefit analysis projects completed by Valbridge Property Advisors. •2025 –Before & after, property specific special benefit analysis of a single-family residence in Baxter regarding an assessed special assessment •2024 –Project-Wide Special Benefit Analysis for the City of St. Anthony inclusive of single family residential, multifamily residential, and commercial properties totaling 750 parcels •2024 –Project-Wide Special Benefit Analysis for the City of Hastings inclusive of single family residential, multifamily residential, commercial, institutional, and agricultural properties totaling 98 parcels •2024 –Before & After, property-specific special benefit analysis of a multi-tenant retail center in Baxter regarding an assessed special assessment VIII-12 VIII-12 LEADERSHIP TEAM JOSH FOLLAND,MAI,CCIM,AI-GRS SENIOR MANAGING DIRECTOR,SHAREHOLDER Josh Folland has boon active in the realestate industry since 2002.Before joining Valbridge he was a PrincipalatInsightRealtyAdvisors.In addition,he haswide ranging experience in the commercial real estate industry,including working in asset management as well as leading the property tax appeal function for a commercial real estate portfolio.Josh also led theReal Estate Due Diligence function at Anchor Bank,which involved performing appraisals,ordering and reviewing appraisals,and developing and implementing the bank's environmental policy.His experience includes completing assignmentsfor eminent domain,propertytax appeal,financing,and estate.Josh holds the MAI and CCIM designationsand is an active volunteer for the North Star Chapter of the Appraisal Institute, serving as Chapter Presidentin 2019 and asChapter Secretary in2021. RICHARD NORDQUIST,MAI SENIOR MANAGING DIRECTOR,SHAREHOLDER Rick Nordquisthas 18 years of real estate appraisal experience.He cofounded Insight RealtyAdvisorsin 2013,where heserved asa Principal before joining Valbridge.Prior to co founding Insight Rick worked as an Associate Director at the Minneapolisoffice of Cushman &Wakefield's Valuation&Advisory group.He is experienced invaluing a variety of property types throughout the Upper Midwest,specializing in valuation of auto dealerships,residential subdivisions,restaurants,and urban mixed use properties.Rick holds the Appraisal Institute's MAI designation. NATHAN HANSEN,MAI,ASA SENIOR MANAGING DIRECTOR,SHAREHOLDER Nathan Hansen has been active inthe teaIestate industry since 2002.Prior to joining Valbridge.he was a Principal at InsightRealty Advisors,a commercial realestate appraisal firm founded in 2013. Appraisal.valuation and consulting assignments includemortgage financing,condemnation, investment counseling,potential sale or purchase,lease and rental analysis.Propertytypes appraised include all typesof commercialreal estate,including industrial,retail,office,multifamily,hotel/motel, vacant land,and residential subdivisions.Specialty property typesinclude religiousfacilities,golf courses,resorts,restaurants,and self storage.Assignments also include eminent domain,rent comparability studies,and consulting assignments.Court experience involves testifying in real estate commissioner hearings.In addition to realestate.Nathan has appraised personal property and furniture,fixtures &equipment(FF&E).including restaurant equipment,grocery store equipment,trade fixtures,and breweries. JENNIFER DEWBERRY DIRECTOR OF CLIENT SERVICES Jennifer Dewberry'spassion and first priority is to ensure an exceptionalexperience for every Valbridgeclient.With 20+years of experience in client management and relationship development as well as significant commercial real estate experience.Jennifer leads initiatives designedtoprovide seamlessservice.As a member ofthe Leadership Team.Jennifer also plays an important role in operations,human resourcesmanagement and strategic planning. Prior to joining Valbridge Property Advisors in 2020,Jennifer worked in client relations for CoStat and in property management for Cushman &Wakefield.She began her career as an attorney working in a variety of settings from a Fortune 500 company to a boutique law firm to corporate counselto a small mortgage company. VIII-12 BRIAN AMBUEL SENIOR APPRAISER HEATHER DOCKTER ASSOCIATE APPRAISER KATE GILLETTE SENIOR APPRAISER KYLIE KLEHR (SKARE) SENIOR APPRAISER BLAZE MCCOY ASSOCIATE APPRAISER BEN MUNKELWITZ ASSOCIATE APPRAISER BRYCE NEUBERT ASSOCIATE APPRAISER TOM PETZOLD ASSOCIATE APPRAISER ADAM POCHARDT ASSOCIATE APPRAISER NATHAN SCHUMACHER ASSOCIATE APPRAISER MOLLY THOMPSON PRODUCTION MANAGER DEREK VERGIN ASSOCIATE APPRAISER Long-term Partnerships with Clients Wesetthestandardforinsightfulandreliablevaluationsand,asaresult,ourclientstrustusto providethemwithhigh-quality,on-timereports.We valuethelong-termrelationshipswehaveformedwith ourclients. Timely Communication Wecommunicatewithourclientsinatimelymannerthroughouttheprocess,fromansweringpreliminary questionsandprovidingquotestoschedulingpropertytoursandconsultingonpotentialchangesinscopedependingontheinformationwereceive. High Quality Data, Analyses, and Reports Weappraisethousandsofpropertiesperyear.Our appraisersverifyinformationandprepareclean,concise andcomprehensiveappraisalreports,alongsideanMAI-designatedappraiser,thatwillstanduptoreviewand scrutinyandcomplywithapplicableguidelinesandregulations. WhatSetsUsApart?Youronepointofcontactforcommercialrealestateappraisalsfromcoasttocoast. With75+officesand200+MAI-designatedappraisersacrossthe country,ValbridgePropertyAdvisorshasyoucovered.Weareyour singlepointofcontactforallyourappraisalneeds. OurOfficeLocations OtherValbridgeOffices/NationalCoverageArea NATIONALCOVERAGE.LOCAL KNOWLEDGE.TRUEVALUATION INDEPENDENCE. COMPREHENSIVEVALUATION&ADVISORY SERVICES NathanHansen,MAI,ASA651.370.1466 SeniorManagingDirector255EastKelloggBlvd,Suite102A St.Paul,MN55101 nhansen@valbridge.com CertifiedGeneralRealPropertyAppraiser LicensedinNorthDakota,SouthDakota, Minnesota(#20302614),Wisconsin&Iowa NathanHansen,MAI,ASA651.370.1466 SeniorManagingDirector1515CentralParkway,Suite120 Eagan,MN55121 nhansen@valbridge.com VALBRIDGEPROPERTYADVISORSMINNEAPOLIS-ST.PAUL|KANSASCITY|INDIANA|ST.LOUIS|FARGO|PORTLAND CertifiedGeneralRealPropertyAppraiser LicensedinNorthDakota,SouthDakota, Minnesota(#20302614),Wisconsin&Iowa VIII-12 Our Services All Property Types MULTIFAMILY • Apartments • Condominiums • Townhomes • Co-o ps • Mixed-u se • Mobile Home Parks • LIHTC • Build to Rent • Short-T erm Rentals • Student Housing • Fraternity/Sorority Houses • Senior Housing • Special Purpose MEDICAL • Hospitals • Medical Office Towers • Single-T enant Offices • Satellite Facilities • Outpatient Facilities • Specialty Facilities INDUSTRIAL • Manufacturing • Warehouse • Flex Space • Self Storage • Cold Storage • Research & Development • Power Generation OFFICE • Low-, Mid-, and High-R ise • Campus/Multi-B uilding • Single-T enant • Flex Space • Condominiums • Central Business District LAND • Agricultural • Subdivisions • Recreational • Development LODGING • Full-S ervice • Limited-S ervice • Budget • Resorts • Mixed-U se • Extended Stay • Convention Centers • RV Parks/Campgrounds RETAIL • Single-T enant • NNN • Multi-T enant • Mixed-U se • All Lease Types • Strip Centers • Power Centers • Lifestyle Centers • Convenience Stores • Auto Dealerships • Truck Dealerships SPECIALTY • Airplane Hangars • Bowling Alleys • Breweries/Distilleries • Car Washes • Entertainment Venues • Event Centers • Ferris Wheels • Funeral Home/Death Care • Garage Condos • Golf Courses • Gun Clubs/Gun Ranges • Hockey Rinks • Marinas • Museums • Parking Garages • Religious Facilities • Residential Treatment Centers • Restaurants • Rocket Facilities • Senior Living • Summer Camps • Sports Facilities • Theaters I N D E P E N D E N T V A L U A T I O N S F O R A V A R I A B L E W O R L D . RIGHT-OF-WAY • Easements • Eminent Domain • Before and After Valuations • Subsurface/Underground Interests • Mass Transit • Pipelines/Utilities • Conservation APPRAISAL REPORTS EVALUATIONS APPRAISAL REVIEWS MARKET RENT STUDIES TAX APPEALS TITLE DISPUTES EXPERT WITNESS TESTIMONY FAIR VALUE APPRAISALS • Purchase Accounting • Goodwill Accounting • Asset Impairment or Disposal • Investment Real Estate Purchase Accounting ESTATE • Business Interests • Real Property Interests • Fractional Interest • Multi-State Portfolios • Gifting FEASIBILITY STUDIES HIGHEST & BEST USE ANALYSIS VI I I - 1 2