Homestead Sub-Division Board of Directors 0

Homestead Road Project Follow Up Petition II

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Purpose:

This follow up petition was created to collect required signatures in support of moving forward with a Road Improvement/Replacement Project for the Homestead Subdivision.

Van Buren Township has since come back indicating that any co-owner who signed the petition and has additional co-owners listed on the warranty deed must also have the additional co-owners of record sign as well. The unit will still count for a single vote. However, everyone listed on the warranty deed has to agree to the petition given the fact that they have ownership interest in the respective unit, and passing of the petition would directly impact all “owners” given the special assessment to the tax bill.

The petition is required because the road replacement costs will be allocated via a Special Assessment District (SAD) tax levied by Van Buren Township to each benefited parcel/unit within the subdivision. Benefited means an advantage gained from the improvement that is greater than that shared by the general public, such as improved road conditions, increased property value, community aesthetics, etc. A successful and valid petition requires that the owners of record in good financial standing relative to property taxes agree to share the cost of improvements.

Benefited property owners signify their approval of the project by signing the petition form. A threshold of 60% (160 unit’s signatures) was recommended to ensure that the petition is given serious consideration in the next phase of the project. The Homestead subdivision has 267 units. The signer must be an owner of record on the warranty deed. Otherwise, the signature will be discarded by the Township.

Background:

A typical road rehabilitation project (mill and fill), with adequate drainage, has a useful service life of 10 years. With a diligent maintenance program, this service life can be extended several additional years. The roads within The Homestead subdivision are 15+ years old, and the community has patched the roads periodically since the initial construction. Moreover, the annual assessment of $360-$375 per unit does not cover the current minimal cost of $1.575M for road overhaul or replacement. The plan moving forward is to build the reserve fund to avoid special assessments. However, our current financial status coupled with the scope of work required to improve/replace the roads requires us to seek financing from the Township.

Assessment:

All benefited parcels within the sub-division boundary will be charged an equal portion on a per parcel basis of the actual total costs for the improvement.

These costs may include, without limitation, design, engineering, administration costs, professional services, and financing costs and interest.

Owners of properties within the sub-division boundary, who oppose the project, should the proposal pass, will also be assessed as their parcels will still be benefited by the improvement.

The cost will be taxed as a special assessment district resulting in an annual property tax increase between $1,130 - $1,709 plus 1%-3% interest over 5 years.

In a Special Assessment District, a charge is assessed against real property, and as such, is enforceable through a foreclosure process in the same manner as for non-payment of property taxes, and are prior and paramount to all liens except municipal tax liens. The tax will remain on the parcel until the debt has been paid in full. Once the project has been completed, the actual cost of the public improvement will be assessed to each benefited parcel and payable in the manner provided by the ordinance levying the special assessment roll.

Scope of Work:

  • All roads, Sadie Lane, Anna Drive, Sophie Road, Maude Court, Rebecca Court, and Florence Lane
  • Milling and repaving (with 1.5” hot mix asphalt overlay thickness) the 2 lane, 24 feet roadway
  • Removing and replacing areas of broken curb and gutter
  • Repairing the roadway full depth at areas of apparent roadway subgrade failure
  • Removal of the asphalt pavement, aggregate base, and possible subgrade undercutting, subgrade stability verification, and new base in areas of severe alligator cracking and large pavement cracks
  • Spot removal and replacement of curbs and gutters (may result in turf restoration and mailbox relocation as needed)
  • Minor traffic control for work zone safety and traffic rerouting
  • Design and Construction services

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