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The project will extend South Street a couple hundred feet to the east and then build an intersecting street running north and south that will connect with Highway 23 on the east end of town. This new street is as yet unnamed.

The project is needed because South Street is scheduled to be part of the 2004 Street Project, which would strand residents along Morningside and Sunrise avenues if another exit isn't built.

"The project was initiated because we were looking for a second access to Highway 23," city engineer Pete Carlson told the city council on Wednesday, Feb. 13. Carlson presented the feasibility report for this project to the council that night, which approved it and directed him to make the plans and specifications for the project.

A public hearing on the project is scheduled for Wednesday, March 13, at 6:30 p.m.

The total cost of the project is estimated at $395,549. Carlson told the council he used the bids from the WilGlo Acres project and added three percent to estimate the costs.

The project will include a new development that will create 14 new lots in the city in the initial phase. The private development and the city street project were done together because it was the most cost efficient way to build the second access from the South Street area.

Normally, the city assesses the complete costs for the infrastructure that benefits a new development. In this project, though, the city will only be assessing 70 percent immediately to the new lots.

The city will pick up $42,780 for grading and storm sewer towards the creation of a new pond, between the current houses on the east side of Morningside Avenue and some of the new lots. This pond should help with the drainage of the existing South Street, so Carlson recommeded that the city pick up these costs.

Also, the sanitary sewer will use a 10" main instead of 8" to serve for later development, and Carlson recommended the city pay $1,830 for oversizing this pipe.

Likewise, a new lift station at the end of the as yet unnamed street will be able to handle a much larger capacity than the 14 new lots. Carlson estimated that the new lots will only comprise seven percent of the lift station's capacity and used that percentage to figure the assessments, with the city's remaining share being $72,013.

The city could assess some of this cost later on as more new developments utilized that lift station.

The city also plans to assess the new lots for a length of existing water main that will benefit the new lots. This water main was installed at city expense 10 years ago.

Assessing $2,872 for this water main yields more than the $395,549 total project cost. Here's a breakdown of the project costs:

Estimated Project Costs Grading - $63,893
(City Cost - $24,280)
Sanitary Sewer - $52,841
(City Cost - $1,830)
Lift Station - $84,721
(City Cost - $72,013)
Water Main - $23,209
(City Cost - $0)
Storm Sewer - $87,647
(City Cost - $18,500)
Streets - $83,238
(City Cost - $0)
TOTAL - $395,549
(City Cost - $116,623)
Assessments - $281,798

Carlson expects to assess each new lot a little less than $20,000 apiece for this infrastructure. The city has agreed to defer assessments on four of the 14 lots.

Construction could begin on this project this spring and the South Street extension could be completed by the time the county starts rebuilding Lake Avenue (Highway 124) later this summer.