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5.3. SR 06-14-1999 rei --'\j ( ); ~l}{ Item #5.3. River MEMORANDUM TO: Mayor & City Council FROM: Pat Klaers, City Administqrtor 1\>Y June 14, 1999 /" DATE: SUBJECT: School Street Assessments The School District has appealed its School Street assessment and in early June served notice upon the city of this appeal (see attachment). At the May 24, 1999, City Council meeting, direction was given to ask the School Board for "a number" that they felt was a reasonable and fair assessment for School Street. Attached is a response from Superintendent David Flannery regarding the City Council request. . The city has a concern about deviating from its past motion on the assessment amount and approach for this project and it is recommended that no change take place with the $139,170 assessment that was levied against the School District on May 10, 1999, for the School Street improvement project. The School District has plans for an improvement to its existing parking lot and an expansion of its parking lot, which includes the removal of a baseball field. The 1999 project is the resurfacing (and fencing?) of the existing lot and a future phase in the next year or so is the expansion of the parking lot, including the removal of the baseball field. The school has implied that it would like a contribution from the city for this project, but no formal request has been received. The city has an easement over this parking lot for access and parking needs associated with the ice arena (see attachment). It is suggested that the City Council contribute $39,170 to the parking lot resurfacing and expansion project based on the usage associated with the ice arena. The city's contribution would be from its street reserve. This city contribution would be contingent upon the School District dropping its assessment appeal. . 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420. Fax: (612) 441-7425 . . . In Re: School Street Improvement of 1 999 NOTICE OF APPEAL Independent School District No. 728, Court File No. Petitioner/Appellant. TO: Stephanie Klinzing, Mayor, City of Elk River; Sandy Peine, Clerk, City of Elk River; and Sherburne County District Court Administrator: PL~ASE TAKE NOTICE that Appellant and Petitioner below, Independent School District No. 728, a party aggrieved by the actions of the City of Elk River in setting assessments in the above-entitled matter, hereby appeal to District Court pursuant to the provisions of Minn. Stat. ~429.081. The assessments appealed by Appellant result from actions and resolutions taken by the Elk River City Council at a public hearing dated May 10, 1999, wherein the City of Elk River adopted its resolution accepting the proposed assessments and levying the same in the above-entitled matter and certifying the same to the Sherburne County Auditor. That Appellant has appropriately filed written objection to the proposed assessments under the provisions of Minn. Stat. ~429.061, subd. 1 and subd. 2, and filed the same with the Clerk of the City of Elk River on May 10, 1999, prior to the adoption of the assessment against Appellant's parcels. Said objections include, but are not limited to, the following: 1 . That the proposed Project would not provide any special benefit to Petitioner's parcels. 2. That should the Project be completed, the proposed assessment will exceed any increase in the market value of Petitioner's property. 3. That the proposed assessment constitutes an unconstitutional taking of Petitioner's property without just compensation. 1 . 4. That the assessment procedure, as followed by the City of Elk River, violates Petitioner's rights of due process and equal protection. 5. That the proposed Project will not increase the market value of Petitioner's parcels. 6. That as currently apportioned, the proposed assessment does not fairly reflect any resulting benefits to Petitioner's parcels and other affected parcels, nor does the proposed assessment bear any reasonable relationship to the value of any claimed special benefits to Petitioner's parcels. 7. That the City of Elk River has not and cannot show that the fair market value of Petitioner's parcels will increase in an amount equal to the proposed assessment. . . 8. That any determination by the City of Elk River to defer the assessment upon Petitioner's property is speculative in nature and not subject to deferred assessment treatment. 9. That the City of Elk River acted arbitrarily, capriciously and unreasonably in apportioning the entire assessment against the Petitioner and apportioning none of the assessment against other properties which are affected by the Project. 10. That the City of Elk River has violated M.S.A. ~429.01, et seq., including M.S.A. ~429.051, in apportioning the entire assessment against the Petitioner and apportioning none of the assessment against other properties which are affected by the Project. 11 . That the City of Elk River followed no reasonable rule in apportioning the entire assessment against the Petitioner and apportioning none of the assessment against other properties which are affected by the Project. INDEPENDENT SCHOOL DISTRICT NO. 728 Dated: , 1999 u~FC Dr. David Flannery, Superi tendent By: 2 . . . Dated: 6,<6 misc\data \isd-appeal.ntc , 1999 By: im E. Bran ell, 10#133905 Attorney for Petitioner/Appellant 91 3 Main Street Elk River, MN 55330 612/441-7040 3 -- - - - Independent School District 728 ADMINISTRATION OFFICES 327 King Avenue DAVID M. FLANNERY Elk River, MN 55330 Superintendent of Schools (612) 241-3400 Fax (612) 241-3407 . . TO: Pat Klaers, City Administrator FROM: David Flannery, Superintendent DATE: May 26, 1999 SUBJECT: School Street Improvements The School Board and I appreciate the fact that the City Council and administration are willing to consider modifying the assessment for the improvements on School Street. In response to the question of what dollar amount the School Board would find acceptable as our assessment for the improvements, the School Board settled on $100,000. An effort on the City's part to share in the cost of the improvement for all taxpayers on School Street would be welcomed by the members of the School Board and would avoid a legal struggle. Since, as our attorneys always advise, time is of the essence, a prompt consideration of this suggested assessment modification will be appreciated. Approved for Release: t~, n:../'NY''''-''1 .-- ARTICLE 18. BINDING AGREEMENT This Agreement shall be binding upon and shall inure to the benefit of Seller and Buyer, and their respective successors, heirs, and assigns. ARTICLE 19. ADDITIONAL PROVISIONS . 19.1) Construction of Arena. Buyer shall construct an ice arena and parking lot generally as shown on the site plan (the ~Site Plan~) attached hereto as Exhibit B and made a part hereof, as well as related improvements and certain improvements to the existing parking lot south of the existing arena (also generally as shown on the Site Plan) (collectively, the -Improvements"). If construction of the Improvements has not commenced within eighteen (18) months after the Closing Date, Seller may, by delivery of not less than sixty (60) days written notice to Buyer and opportunity to cure, require Buyer to reconvey the Property to Seller. Seller shall cooperate in the construction of the arena by the adoption of a resolution approving the arena and its fInancing as required by Minnesota Statutes Section 475.58, subd. 3(a)(2). The adoption of the required resolution shall be Seller's only obligation with respect to the financing of the arena. 19.2) Reciorocal Easement and Access A~reement. At Closing, Buyer and Seller shall enter into a reciprocal easement and access agreement for joint use by employees, patrons, visitors and guests of the ice arena and employees, students and visitors of the high school, of the existing parking area to the south of the existing arena and the new parking area to the east of the new arena, with the exception of approximately twenty (20) spaces immediately adjacent to the east wall of the new arena, which shall be exclusively for arena use, all as shown generally on the Site Plan. Said reciprocal easement and access agreement shall also provide that Seller shall maintain the new ice arena parking areas as part of its maintenance of the existing parking lots for the high school. and shall further provide access to the Property over and across all driveway areas of Seller's adjacent and nearby property. The benefits and burdens of the reciprocal easement and access agreement shall be appurtenant to the respective parcels of property, shall be permanent, shall run with the land, and shall inure to the benefit of and be binding upon the owners of the property, their respective successors and assigns. The reciprocal easement and access agreement shall be consistent with this Section 19.2 and shall otherwise be in form and content reasonably acceptable to Buyer and Seller. . 19.3) Joint Powers A~reement. At or prior to closing, Buyer and Seller shall enter imo a Joint Powers Agreement as required by Minnesota Statutes, Section 497A.25, subd. 61 governing the ownership, operation and maintenance of the arena. This Agreement shall provide that Seller shall have no ownership of or any obligations with respect to the P'XB J(1:l303 8.