A possible 40 percent reduction in the combined assessments for the proposed reconstruction of North Broadway Avenue could leave the Rochester City Council looking to fill a $1.2 million funding gap.

The project, which would stretch from Civic Center Drive to the bridge near Silver Lake, was put on hold in April after neighboring property owners balked over $3.17 million in planned assessments for the $19.2 million project.

"The proposed assessment to Great Harvest Bread alone is just short of $80,000," said Gary Mattison, who owns the lot the bakery occupies.

Mattison spoke recently during a gathering to discuss an unrelated study on Elton Hills Drive.

Funding for the potential Elton Hills Drive project is not expected to include property assessments, since it is not a planned reconstruction, but Mattison suggested the original Broadway assessments would affect more than the neighboring property owners.

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"It will put the person out of business," he said, indicating the majority of the assessments would be paid by the North Broadway businesses, meaning costs could be passed to customers or businesses could close.

Since then, Rochester City Engineer Dillon Dombrovski said Public Works staff has met with North Broadway property and business owners to discuss the findings of a benefit analysis conducted in recent months.

The study by Hosch Appraisal and Consulting indicates property owners can expect to reap benefits from the proposed reconstruction, which calls for maintaining two lanes of traffic in each direction and providing left-turn lanes, a one-way protected cycle track on each side of Broadway, sidewalks and in-lane bus stops.

While varying benefits were cited based on property type and use, the report indicates the $3.1 million in assessments proposed under current city practices exceed the potential benefits for property owners.

Individual property assessment impacts aren’t defined in the report, but it does note that charging up to 6 percent of the current value for commercial property on Broadway could be defended. For residential property, proposed assessments up to 4 percent of market value could be supported.

Using the revised system, proposed assessments dropped to a combined $1.9 million.

On Monday, the City Council will be asked whether it wants to fill the funding gap or change the scope of the project.

The council could tap additional state funds dedicated for Broadway Avenue projects, but Dombrovski has noted that would reduce available funding for future Broadway projects.

The initial proposal called for using $9.2 million from state Broadway funds, $4.4 million in Destination Medical Center funding and $2.1 million in sewer and water utility funds.

Another funding option could be using federal funds currently earmarked for work on Second Street Southwest.

The council could also reduce the construction costs by approximately $600,000 by removing the alleys from the project, but it would come with added design fees and push the project’s start to 2021, rather than next year as planned.

Dombrovski said he will ask the City Council for further direction during its informational meeting at 3:30 p.m. Monday in council chambers of the city-county Government Center.

Meetings during the week of Nov. 18 include:

Rochester

• Outside Agency Oversight Committee, 2 p.m. Monday in room 104 of City Hall, 201 Fourth St. SE.

• Park Board retreat, 3 p.m Monday in the cedar room of 125 Live, 125 Elton Hills Drive NW.

• City Council study session, 3:30 p.m. Monday in the council chambers of the city-county Government Center, 151 Fourth St. SE.

• City Council meeting, 7 p.m. Monday in the council chambers of the Government Center.

• Fire Civil Service Commission, 3:15 p.m. Tuesday in room 104 of City Hall.

• Heritage Preservation Commission special meeting, 4 p.m. Tuesday in meeting room B of the Rochester Public Library, 101 Second St. SE.

• Ethical Practices Board, 10 a.m. Wednesday in room 104 of City Hall.

• Library Board, 4:30 p.m. Wednesday in meeting room C of the Rochester Public Library.

• Committee on Urban Design and Environment, 11:30 a.m. Thursday in room 104 of City Hall.

• Citizens Advisory on Transit, 4:30 p.m. Thursday in room 104 of City Hall.

Olmsted County

• Health, Housing and Human Services Committee, 11 a.m. Tuesday in conference room 4 of the government center.

• Housing and Redevelopment Authority, 1 p.m. Tuesday in conference room 1 of the government center.

• Administrative Committee, 2 p.m. Tuesday in conference room 4 of the government center.

• Physical Development Committee, 2 p.m. Tuesday in conference room 2 of the government center.

• Board of County Commissioners, 3 p.m. Tuesday in the board chambers of the government center.

• Parks Commission, 5 p.m. Tuesday in the Public Works conference room at 2122 Campus Drive SE.

• Environmental Commission, 7:15 p.m. Wednesday in conference room A at 2122 Campus Drive SE.

• Soil and Water Conservation District Board, 8 a.m. Thursday in the Public Works conference room at 2122 Campus Drive SE.

• Human Rights Commission, 7 p.m. Thursday in conference room 4 of the Government Center..

• Planning Advisory Commission, 7 p.m. Thursday in the board chambers of the government center.