4.11.C. SR 12-05-2011r,t, °` REQUEST FOR ACTION
River
TO ITEM NUMBER
Ma ox and Ci Council 4.11. C
AGENDA SECTION MEETING DATE PREPARED BY
Consent December 5, 2011 Lori Stich, Accountant
ITEM DESCRIPTION REVIEWED By
Resolution Levying Special Assessment fox Demolition of Old Tim Simon, Finance Director
NAPA Building REVIEWED BY
Cal Poxtner, Ci Administrator
ACTION REQUESTED
The City Council is asked to adopt the attached Resolution Adopting and Levying Special Assessments
for the Demolition of the Old NAPA Building.
BACKGROUND/DISCUSSION
Section 46-38 of the city's ordinance authorizes the city to levy an assessment against property for any
costs the city incurs to abate a public nuisance. The owner of the property located at 824 Railroad Drive
NW has signed a Petition fox Consent to have the city remove the structure and levy an assessment for
the costs incurred. The total amount to be assessed is $23,430.66. The assessment will be repaid over
five years at an interest rate of 8%.
FINANCIAL IMPACT
None
ATTACHMENTS
Petition for Consent
Resolution Adopting and Levying Special Assessments for the Demolition of the Old NAPA
Building
Assessment Schedule (Exhibit A)
Action Motion by Second by Vote
Follow Up
P6•ERE~ 8'f
N:\Public Bodies\Ciry Council\Council RCA\Agenda Packet\12-05-2011\NAPA.docx ~~"
Petition for
Removal of Hazardous Building and Consent
To Assessment of the Costs Therefor
To: City Council
The City ofF,lk River (the "City")
E11c River Aerie #3264 maternal Order of i;agles (the "Owner") of the Property (the
"Property") legally described as follows:
East 33 feet of Lott, and all of Lot 3, Block 9, Ells River Village,
Parcel Number 75-405-0940,
petitions The City of Elk River to remove all shuctures located on the Property and to
charge the cost of doing so against the Property pursuant to Minn. Stat. § § 463.191 and
463.21, and consents to the levy of a special assessment against the Property,
pursuant to Minn. Stat. Ch 429, in the amount of the City's total cost to remove all
structures presently located on the Property, said assessment to be paid in five equal
annual installments against the Property with interest thereon a 8 percent per annum.
Owner represents and warrants that Owner is the sole fee owner of the Property,
that there are no occupying tenants on the Property, and that there are no lien holders of
record on the property.
Owner specifically waives any objection to the process by which the City
proceeds to remove the structures on the Property, to the costs assessed by the City for
the removal of the structures, and to the City's failure to strictly follow the notice and
other requirements of Mimi. Stat. Ch. 429 with respect to ordering the structures
removed.
Owner expressly waives objection to .any irregularity with regard to the
assessment of the Property for the City's cost to remove the structures, expressly waives
N:\Public Bodies\City Council\Coundl RCA\Agenda Packet\12-05-2011\NAPA.docx
any claim that the funount assessed is excessive, and expressly waives all rights of appeal,
includi~ig the rights under Minn. Stat. Ch. 429, from the assessment by the City for the
costs of removing the structures, aiid expressly agrees:
1. that the Owner will pay when due all assessments levied for the removal of
the structures;
2. that removal of the structures will increase the fair market value of the
Property by an amount equal to or in excess of the amount to be assessed
hereunder;
3. that such increase in such fair market value is a special benefit of the Property;
and
4. that the amount to be assessed hereunder is reasonable, fair, and equitable.
The City agrees to comply with all Petrofund and. Minnesota Pollution Control Agency
requirements, and agrees to bill the Eagles Chib for all costs so that the Eagles can apply
for reimbursement through the Minnesota Department of Commerce Petrofund.
Dated this 28°i day of March, 2011.
Owner:
1
By: '
Gre ry lson, Chairman of Trustee's
Elk River Aerie #3264 Fraternal Order of Eagles
2
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Fraternal Order of Eagles #3264
Section 89. ] Pg 68 of the Constitution of the Fraternal Order of Eagles calls for the
Trustee's to handle transactions involving Real Estate and authorizes the elected
chairman of the Board of Trvstee's to carry out actions of the Board after receiving
direction from the Board.
In June 2010, Greg Olson was voted in as Chairman of the Board of Trustee's.
On March 24`h the Trustee's and Officers voted to authorize the signing of the "Petition
for Removal of Hazardous Building and Consent to Assessment of the Costs Therefore"
with the City of Elk River, and approved Greg Olson to sign on behalf of the Eagles Club
on such Petition. The Petition was signed and delivered to City Hall on March 28, 2011.
On May 12, 2011 the Eagles passed a motion to approve Greg Olson as agent for the
Eagles on continuing matters involving the City of Elk River and the Petition for
Removal of the old NAPA building, even though Greg's term as trustee ends May 31$`
2011.
Witnessed and Approved by the following officers andQmembers:
Bernie Erie-President ~ ./t~.i'-~-•C Date: S l ~~•- l
Michelle Kliber-Vice President
Leon Potratz-Secretary
Greg Olson-Chairman of Trustee's
Tim Harvey-Trustee
Jill Berndt-Trustee
Date•
Date: s~ "/ ~'^//
Date:. -'~
Date: S'"f'~ ~/
Date: ~~
QS~hirley Whiting-Witness ~ Date: ~ - f 7 ' L'
,Ll~ r~v~w~ ~~-~; ~ ~,~,~,,,A 5 ' 18' ~I
N:\Public Bodies\City Council\Council RCA\Agenda Packet\12-05-2011\NAPA.docx
RESOLUTION 11-
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION ADOPTING AND LEVYING ASSESSMENTS
FOR REMOVAL OF HAZARDOUS BUILDING
WHEREAS, Minnesota Statutes Section 463.21 authorizes the city to levy an assessment
equal to the cost of abatement £or removal or correction of a hazardous
condition; and,
WHEREAS, the city's ordinance Section 46-38 authorizes the city to levy an assessment
against property for any costs the city incurs to abate a public nuisance; and,
WHEREAS, the property owner has signed a Petition for Consent to have the cost of the
building removal assessed to the property for repayment over five years at an
interest rate of 8.0%; and,
WHEREAS, State law does not require a public hearing or notice before levying such
assessments.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River that
the parcel and amount listed on Exhibit A attached hereto, are correct and made a part hereof, are to
be levied and are to be certified to the Sherburne County Auditor.
Passed and adopted by the City Council of the City of Elk River this 5`~ day of December, 2011.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
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EXHIBIT A
ASSESSMENT SCHEDULE
DECLINING BALANCE METHOD
S/A CODS: 20111
PROJECT: NAPA DEMO
0[NNER: ELK RIVER AERIE $3264 FOE
ADDRESS: 829 RAILROAD DR
ELK RIVER, MN 55330
REPAYMENT PERIOD; 5 Yeare
INTEREST RATE: 6.00000 ~
INTEREST START DATE: 12/01/2011
ASSESSMENT QUANTITY
1.00
PARCEL: 75-405-0940
LOT: 3
BLOCK: 9
ADDITION: VILLAGE
UNIT UNIT
MEASURE PRICE AMOUNT
BEN UNI'P 23430.66 23430,66
Annual Interest Principal Principal
Period Payment Payment
--- Payment
-------------------- Remaining
-------------
--------
2012 -----------------
6,716.79 -----------------
2,030.66 4,686.13 18,744.53
2013 6,185.69 1,499.56 4,686.13 14,058.40
2014 5,810.80 1,124.67 4,686.13 9,372.27
2015 5,435.91 749.78 - 4,686.13 4,686.14
2016 5,061.03 379.89 4,666.14 0.00
29,210.22 5,779.56 23,430.66
** THIS AMORTIZATION TABLE DISPLAYS A SCHEDULE OF PAYMENTS BASED ON THS NUMBER OF YEARS,
** STARTING YEAR, AND INTEREST RAPE OF SPECIAL ASSESSMENT DISTRICT 20111 (NAPA DEMO?.
** I'I' DOES NOT TAKE INTO CONSIDERATION PAYOFFS OR ADVANCE: PAYMENTS
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