Utility and street reconstruction public hearing

By Robert Williams

Editor

Preliminary assessments for the 2026 Utility and Street Reconstruction project were discussed during a public hearing Wednesday, Feb. 11 during the City Council meeting. Residents were very concerned about the amount of their assessments and addressed those concerns to the council and City Engineer Chris Thorson.

“The one thing to note about this project is this is the last big city project to replace all the old, cast iron and clay sewer pipes in the ground,” said Thorson.

The project is spread throughout town with all but one of the neighborhoods located on the north or east side of the railroad tracks. The areas specifically are: 

• Elm Avenue from 2nd Street NW to 5th Street NW

• Fir Avenue from 3rd Street NW to 5th Street NW

• 5th Street NW from Birch Avenue to Hickory Avenue

• Lift Station near Elementary School on Hickory Avenue

• 2nd Street NW from Ash Avenue to Elm Avenue

• Birch Avenue from 2nd Street NW to 3rd Street NW

• Ash Avenue from Lake Street to 2nd Street N

• Alley by Frazee Event Center from Lake Street to 2nd Street NE

• Birch Avenue from Lake Street to 2nd Street NE

• 2nd Street NE from Birch Avenue to Main Avenue East

• Parking Lots at the Event Center/Liquor Store

• Juniper Avenue East from Lake Street to 2nd Street SE

The project needs include segments of the city’s original sanitary system containing vitrified clay pipe that is more than a half-century old. The watermain has similar needs in replacing 50+ year old segments of the original water distribution system.

Street pavement is needed to alleviate general pavement stress and common problems like potholes and cracking that create increased maintenance efforts. 

An estimated total project cost is $3,720,000, with street reconstruction making up nearly $2 million of the estimated cost.

The project will be financed through a combination of city funds, Public Funding Authority (PFA) assistance and special assessments.

The proposed schedule has final plans and specs to be completed in March, then the bidding process through April with construction to be completed this fall.

Cara Frank was the first resident to discuss the preliminary assessments. She and her husband Michael live on the one part of the project west of the train tracks Juniper Avenue East from Lake Street to 2nd Street SE. The proposed costs have the Franks discussing leaving Frazee.

“I already feel like the city of Frazee’s taxes are high enough,” said Cara Frank. “We have been shopping to move out of the city. Which is terrible; I’m being completely transparent. The taxes that we are already paying on a 100×150 lot are kind of high. When I look at a 5-10 acre lot out of town. To see this number right here, honestly, I look around this community—this could bankrupt a lot of people and that’s what’s hard for me to look at as a homeowner.”

Thorson reiterated that these are early numbers and cited recent projects in the past two years where 60 percent of the funding was provided by grant monies. That level of funding is a big difference-maker in the amount that will be assessed to residents.

“This is a process; we’re starting at this point, hoping that with the bids these numbers are lower and with the grant funding and then it’s the city’s decision,” said Thorson. “It’s a scary number.”

Michael Frank, a school board member, discussed his worries of the effects of high costs like these on trying to grow enrollment at the school, while Cara acknowledged Thorson’s comments, but stood her ground on not being able to count on the unknown.

“Realistically, this is the number we’re looking at,” she said.

Council member Jim Rader responded on both the assessment numbers and the city’s taxes.

“This is just the cost of the project; this is not necessarily what your assessments are going to be,” Rader said. “We’ve done projects around the city for many, many years. Unfortunately, they are things that need to be done. I’m hopeful we’ll get some funding to offset this, and some quality funding, but we don’t know that at this point.”

Rader led the council’s efforts through the finance committee at the end of 2025 to find ways to cut the tax rates for residents this year as much as possible.

“I understand how you feel about your taxes,” he said. “I will also say our proposed tax increase this time around was one of the lowest in the entire county. If you’re going to live in a municipality, whether it’s here or Detroit Lakes, or any other municipality, your taxes are typically going to be a little bit higher than if you live out in the country.”

Other residents echoed both the high costs and desires to examine options for moving out of town, while others discussed issues specific to their property, like access during construction or if there is a need for the project on their street.

Mayor Mike Sharp asked Thorson if expected grant funding is lower than anticipated if there is a way to delay the project until a better grant package can be attained.

Some current assessment numbers are approximately $65,000 for a 100-foot lot.

“That’s going to be a hardship for a lot of folks,” Sharp said.

The city can reject all the bids and try to fund the project better the following year, Thorson stated. 

Sharp also questioned Thorson’s opinion on his perspective of funding at the federal level and if it was a possibility they would not reach an expected level or impact the city’s ability to acquire grant funding.

Thorson responded that it should not have an impact, at all.

Cara Frank, a professional banker, whipped out a calculator and deduced that paying these assessments at current numbers would be adding a second house payment to most people.

“The majority of our people are poverty-level,” she said. “There are three houses on our street that nobody is living in. When I don’t have neighbors my house value should be going down but instead it’s going up and I’m being taxed more. Yes, we are living in a municipality, but what are we getting besides this out of the municipality? We’re starting to see new businesses. I get that. It’s welcoming, but what are we doing about the people that are maybe bringing our town down. This isn’t going to help things, at all.”

Mayor Sharp admitted that the city must maintain infrastructure but not price people out of town.

“It’s a tough situation,” Sharp said. Former Mayor Mark Flemmer noted that the project could be examined to deduce if all of it needs to be done, citing a street near his home that he states is not in need of replacement. He asked that the city take a hard look at the project areas.

Council member Mark Kemper attempted to assuage the group by explaining a cost like the $65,000 is if the city gets no funding to help with the project.

“The odds of that are pretty slim,” he said.

“Everybody is struggling to make ends meet nowadays, with the cost of everything, so this is just kind of a tough pill to swallow at the moment,” Cara Frank said.

Rader reiterated, on behalf of the council, that they will do everything to mitigate and lower assessment costs for residents.

There will not be another public hearing on assessments until after bids are received, likely in April, according to Thorson. 

After closing the hearing, the council passed resolutions to prepare project plans, apply to Minnesota Public Facilities Authority for a clean water revolving fund loan estimated at $2,751,000 or the as-bid cost of the project and a second loan of $2,203,000 or the as-bid cost of the project.