8.3. SR 08-19-2013 City of
Elk - Request for Action
River O.
To Item Number
Mayor and City Council 8.3
Agenda Section Meeting Date Prepared by
General Business August 19, 2013 Jeremy Barnhart, CODD Deputy Director
Item Description Reviewed by
Petition from Mark Leadens for Payment of Cal Portner, City Administrator
SAC/WAC Amounts Paid as a Special Charge Reviewed by
Action Requested
Approve by motion the Petition,Waiver and Agreement for Payment of Water and Sewer Access
Charges and Assessment of Amounts Paid as a Special Charge under Minnesota Statutes, Section 429.101
Background/Discussion
Mark Leadens,representing Natures Dry Cleaning, has submitted a petition to have his SAC and WAC
charges assessed to the property taxes. Total charges are $120,530.19,including$50,216.89 to Elk River
Municipal Utilities.
Mr. Leadens petition requests payback over 7 years, at 2.9%interest per year. The seven years is
consistent with the city policy established last month, but the interest rate is below. To be consistent with
city policy, the interest should be at 3.5%.
Interest is determined by the rate established by the US Treasury rate plus an administrative fee of 1.5%.
Financial Impact
The difference between the 2.9% and the 3.5% over the seven years is $2,952.96.
Attachments
• Petition
• Payback schedules
P a w E A E U a r
NaA f RE]
PETITION, WAIVER AND AGREEMENT FOR PAYMENT OF
WATER AND SEWER ACCESS CHARGES AND ASSESSMENT OF
AMOUNTS PAID AS A SPECIAL CHARGE UNDER
MINNESOTA STATUTES, SECTION 429.101
TO: City Council of the City of Elk River
MPB LLC (the "Owner"), owner of the property located at 927 US Highway 10 and
legally described on Exhibit A attached hereto (the "Property"),
Petitions the City of Elk River (the "City") to pay the water and sewer access charges
applicable to convert the use of the Property to a dry cleaner/Laundromat, in the amount of
$120,530.19; and
To levy a special assessment against the Property (the "Special Assessment") as an
unpaid special charge pursuant to Minnesota Statutes, Section 429.101, in the amount of
$120,530.19.
Owner acknowledges and agrees that the City may accept or reject this Petition, Waiver
and Agreement in its sole discretion, for any reason, including, but not limited to, the availability
of City funds to pay the water and sewer access charges, and agrees, if the City accepts this
Petition, Waiver and Agreement: (1) that payment by the City of the water and sewer access
charges shall create an unpaid special charge against the Property; (2) that this unpaid special
charge shall be specially assessed against the Property by the City pursuant to Mimiesota
Statutes, Section 429.101; and (3) that the Special Assessment shall be payable in 7 equal annual
installments with interest accruing on unpaid installments at the rate of 2.9%.
Owner expressly waives the right to a hearing on assessments levied pursuant to this
petition; expressly waives objection to any irregularity with regard to the assessment of the
Property; expressly agrees that the amount assessed is reasonable; expressly waives any claim
that the amount assessed is excessive; expressly waives all rights of appeal, including any rights
under Chapter 429, Mimlesota Statutes, from the assessment; and expressly agrees to pay when
due all assessments levied pursuant to this Petition, Waiver and Agreement.
Owner represents and warrants that it is the sole fee owner of the Property; agrees to
make payment of all assessments levied pursuant to this Petition, Waiver and Agreement; agrees
that it shall be liable for payments not made; agrees that this Agreement shall be binding on
Owner and Owner's successors and assigns; agrees that all assessments levied pursuant to this
Petition shall be paid in full prior to or at the time of transfer of the Property to a subsequent
owner; and agrees that this Agreement may be recorded against the title to the Property.
Dated this day of , 2013.
OWNER
MPB LLC
By:
r
Y
Its:
For Office Use
Application Approved:
By:
Date:
Permit No(s):
Work completed on:
Approved for Final Payment:
By:
Date:
2
EXHIBIT A
Legal Description
That part of Lot 3, Block 23, Original Plat of the Village of Elk River, Sherburne
County, Minnesota, described as follows:
Beginning at the Northwest conger of the East 227 feet of the North Half(NI/2)
of said Lot 3 of said Block; thence South along the West line thereof a distance of
34.9 feet; thence East at right angles 1.4 feet; thence South 198 feet to a point 145
feet East of the East line of(Park Street) now Morton Avenue; thence Easterly to
a point 187.3 feet West of the East line of said Block 23 and 208.94 feet South of
the intersection of the East line of said East 227 feet of the North Half(Nl/2) of
said Lot 3 of said Block 23 and the Southerly right-of-way of U.S. Highway No.
10; thence Northerly to said point of intersection; thence Northwesterly along said
right-of-way to its intersection with the North line of said Block 23; thence West
along said North line to the point of beginning.
A-1
4193124.1-MAA
ASSESSMENT SCHEDULE
**7 year repayment term**
PROJECT: LOT:
PARCEL: BLOCK:
ADDITION:
OWNER:
REMAINING YEARS: 7 Years
INTEREST RATE: 2.90%
INTEREST START DATE:
ASSESSMENT AMOUNT
SAC/WAC fees $120,530.19
ANNUAL PRINCIPAL INTEREST PRINCIPAL
YEAR PAYMENT PAYMENT PAYMENT REMAINING
2013 120,530.19
2014 2105.26 17,218.60 3,786.66 103,311.59
2015 20,214.64 17,218.60 2,996.04 86,092.99
2016 19,715.30 17,218.60 2,496.70 68,874.39
2017 19,215.96 17,218.60 1,997.36 51,655.79
2018 18,716.62 17,218.60 1,498.02 34,437.19
2019 18,217.28 17,218.60 998.68 17,218.59
2020 17,717.93 17,218.59 499.34 0.00
$134,802.99 Total of Annual Payments
ASSESSMENT SCHEDULE
**7 year repayment term**
PROJECT: LOT:
PARCEL: BLOCK:
ADDITION:
OWNER:
REMAINING YEARS: 7 Years
INTEREST RATE: 3.50%
INTEREST START DATE:
ASSESSMENT AMOUNT
SAC/WAC fees $120,530.19
ANNUAL PRINCIPAL INTEREST PRINCIPAL
YEAR PAYMENT PAYMENT PAYMENT REMAINING
2013 $ 120,530.19
2014 21,788.70 17,218.60 4,570.10 103,311 .59
2015 20,834.51 17,218.60 3,615.91 86,092.99
2016 20,231.85 17,218.60 3,013.25 68,874.39
2017 19,629.20 17,218.60 2,410.60 51 ,655.79
2018 19,026.55 17,218.60 1,807.95 34,437.19
2019 18,423.90 17,218.60 1 ,205.30 17,218.59
2020 17,821 .24 17,218.59 602.65 0.00
$137,755.95 Total of Annual Payments