Background Analysis

The project will reconstruct 38th Street East between Park Avenue and 10th Avenue South and Chicago Avenue between 37th Street East and 39th Street East.

The scope of work will include full reconstruction of the entire public right-of-way and will include new sidewalks, new ADA pedestrian ramps, boulevards with trees, green stormwater infrastructure, new all ages and abilities bikeways, traffic calming improvements, pavement, curb and gutter, pedestrian scale street lighting, and utility improvements.

Key elements include restoring transit service along Chicago Avenue with the METRO D Line and Route 5, including new stops south of 38th Street, while maintaining Route 23 service on 38th Street.

Schedule and Funding

The project is planned to be constructed beginning in the 2026 construction season. The 38th Street and Chicago Avenue construction cost estimate is $14,868,343. The City’s funding breakdown is estimated as follows:

$2,136,000 in Levy Funded Debt

$10,520,000 in General Funds Transfer

$1,000,000 in Municipal State Aid Funds

$636,447 in Special Assessment Bonds

$382,500 in Storm Funds

$151,000 in Sanitary Funds

$312,000 in Water Funds

Street Reconstruction Assessments

As provided in Article IX, Section 9.6(c) of the City Charter, a list of parcels with owner’s names, as nearly as can be readily ascertained, which would be benefited by the assessment for the project, is on file with the City Engineer’s Special Assessment Office. The proposed street reconstruction special assessments were determined by applying the 2026 Uniform Assessment Rates (UAR) to the land area of benefited parcels located within the street influence zone along the improved streets. The City uses a formula that combines influence area with an annually established UAR. This formula is carefully considered and applied by City staff, and it is intended to account for and reflect each project’s value to benefitted properties. The 2026 reconstruction rates are:

$3.20/ sq. ft. - Non-residential

$1.12/ sq. ft. - Residential

The proposed total assessment amount for the 38th Street and Chicago Avenue Reconstruction Project is $636,446.46. Individual assessments over $150 would begin collection on 2028 real estate tax statements with interest charged at a rate to be set by the Minneapolis Finance Department and assessments of $150 or less would be collected in their entirety on the 2028 real estate tax statements with interest charged at a rate to be set by the Minneapolis Finance Department. Information has been provided in the notices as to how persons may prepay the special assessments in full without interest if they so choose. City Council has passed resolutions whereby a deferment of special assessments may be obtained by showing hardship for any homestead property owned by a person 65 years of age or older, active military service, or retired by virtue of a permanent and total disability.

Abandonment and Removal of Conflicting Areaways

Section 95.140 of the Minneapolis Code of Ordinances provides a procedure for dealing with areaway encroachments that would interfere with public improvements being made in the public right-of-way such as street construction. Before the City may abandon and remove conflicting areaways (upon the failure of the abutting property owner to resolve or agree to resolve the conflict) and then later assess the costs, a public hearing must be held. Public Works recommends that this areaway public hearing be held in conjunction with the Project Approval and Public Hearing. A second Public Hearing will be held at a later date to consider the proposed special assessments against any affected properties for the cost of the areaway abandonment and removals.

A PDF of the RCA is available on this website, current as of 5/26/2026.