Palmer LIDs pave way for capital projects

PALMER — Local improvement districts here have helped pave the way for capital improvements, and the city is examining its options for future projects.

An LID is a geographic area where residential or business property owners cooperate to fund renovations of roadways, sidewalks, water lines or street lamps. In these special assessment districts, a group of property owners essentially contract with the city to lay out and complete capital improvements. In exchange, property owners pay the city for part or all of the work.

“There are always potential candidates for LIDs,” Palmer City Councilman Brad Hanson said.

Ultimately, LIDs can save taxpayer dollars when the city doesn’t foot the bill alone for improvements some residents or business owners want made immediately but aren’t in the city’s budget, Hanson said.

“Some have been council-initiated and some have been citizen-initiated,” he said, adding the city also encourages LID improvements when significant other construction occurs.

The Lucas Area Project, a roughly $4.2 million project involving Cobb Street and Elmwood and Fireweed avenues, was an LID inspired by other construction, Hanson said. The special assessment district will fund 25 percent of the paving project, while city, state and federal dollars will account for the remaining expenses.

“We have ambitious desire to pave streets, but it requires lot of capital,” Hanson said. With LIDs, residents provide the financial backing and the city uses its resources for design and engineering. The city may also complete a project and incur lower expenses than residents could by paying a contractor. The Environmental Protection Agency, the Department of Commerce and Economic Development and the Mat-Su Borough all chipped in money for the Lucas Area Project.

When the city needed to replace 50-year-old leaky water mains, council suggested LIDs to make other improvements while the water main work was ongoing. By installing energy-efficient street lamps, adding pedestrian walkways and resurfacing the road at the same time, City of Palmer special assistant, Sara Jansen, said the city saved a bundle of money on future construction.

“This is the best time to pave the roads,” Jansen said.

When construction begins on the water main replacement in July, Hanson said the city has two years to wrap up the work. Past examples of LIDs include improvements on North Valley Way and upgrades near the Palmer Post Office on Cottonwood, Dogwood and Cedar avenues.

Critics argue that the process of finishing an LID takes longer than if the city were to complete a project from start to finish; however, Hanson said city residents are going to end up paying for the roads eventually anyway.

“One way or another, you’re paying for those improvements,” Hanson said. “It’s a benefit to the city, and a benefit to developers, to try to spread cost as evenly as possible.”

After construction of a project is complete, the city takes over the upkeep of the work and the cost for the work is paid back in installments to the city on a sliding scale based upon how much money each member of the LID owes.

Hanson said he is optimistic the council and residents can use LID projects to keep teaming up for capital improvements. “There are a lot of streets to be paved in the city.”

Contact Derek Casanovas at derek.casanovas@frontiersman.com or 352-2284.