5.12. SR 07-17-1995~Ik Ri
ITEM *5.12
MEMORANDUM
ver
TO: Mayor & City Council
FROM: Lori Johnson, Assistant City Administrator
DATE: July 8,1995
SUBJECT: Two Year Interest on Tillable Green Acres
Property
The city recently received a request for a two year interest exemption on the assessments
levied as part of the 1994 Western Area Phase II improvement project. The property
owner requesting the exemption currently qualifies under the Green Acres statute and
considers his property to be tillable.
L~
When the Western Area Phase 1 assessment role was approved, the Council included a
provision in the resolution which stated that tillable Green Acres property would be
exempt from interest for two years. This provision was not included in the Western Area
Phase II Assessment Resolution. The minutes of the assessment and improvement
hearings for the Western Area Phase I and Phase II projects do not make reference as to
whether the exemption granted far the 1992 assessments was to apply for future phases of
the Western Area Improvement Project. I have attached Council minutes, resolutions and
staff memos for your review.
Staff would like clarification from the Council on whether or not this exemption was
intended to apply to just phase 1 of the Western Area improvements or to all phases. In
that regard, if this item is approved as part of the consent agenda, the two year interest
exemption will be applied to all phases of the Western Area improvements. If that is not
the intent of the City Council, this item should be removed from the consent agenda so the
record reflects the Council's interpretation of the two year interest exemption policy.
Attachment
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13065 Orono Parkway • P.O. Box 490 • Elk River, MN SS330 • (612) 441-7420 • Fax: (612) 441-7425
City Council Minutes Paqe 3
October 12, 1992
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• Another Statute, M.S. 429.051, allows the City to not assess certain
properties at this time. A third Statute, M.S. 429.061, allows cities
to defer assessments against unimproved property until a designated
future year, until the property is platted, or until improvements are
constructed on the property. Interest on the deferred assessments can
be made payable annually, can be added to the principal amount, or can
be forgiven.
Bud Houlton requested the Council to grant the large land owners the
same opportunities that was granted to the existing single family homes
that were excluded from the trunk assessments.
Councilmember Holmgren stated that he prefers Option #2 in the staff
memo to the Mayor and City Council dated October 8. Option #2 would
allow the City to assess the project to all benefitted property owners,
but allows the elimination of interest on the assessment to farm lands
for two years. Councilmember Holmgren requested the City Attorney to
pursue this alternative and to incorporate it into the Assessment
Manual. Bud Houlton stated that two years would not be enough time as
his intent is not to develop the farm land.
Councilmember Dietz stated that he would not be in favor of a general
levy to carry the debt that would be created by eliminating the
interest on the assessments for the farm lands.
• Councilmember Kropuenske stated that options #2 and #3 in the memo to
the Mayor and City Council dated October 8 would benefit the
Moldenhauer development; however, these options would not benefit the
Houlton or Kincanon farm property.
Gordon Moldenhauer stated that the City is forcing people to develop
their, land with the proposed assessments. He requested that the City
delete the interest on the Green Acre land. He stated that the taxes
from the developed lots would cover the cost of the interest.
Councilmember Schuldt stated his concern regarding a city-wide levy to
cover the deferred interest on the farm land. He stated he was opposed
to any type of levy for this purpose.
Mr. Kincanon stated that the assessments against his property were too
high. He stated that he has been offered $7,500 per acre for his
property and that he would not make a profit from the property due to
the high amount of the assessment.
There being no further comments, Mayor Tralle closed the public hearing.
COUNCILMEMBER HOLMGREN MOVED TO DIRECT THE CITY ATTORNEY TO PREPARE AN
AMENDMENT TO THE ASSESSMENT RESOLUTION CONSISTENT WITH OPTION #2 IN
THE MEMO TO THE MAYOR AND CITY COUNCIL DATED OCTOBER 8 WHICH DEFERS THE
ASSESSMENT FOR TWO YEARS ON TILLABLE, GREEN ACRE PROPERTY AND FORGIVES
• INTEREST FOR THE PERIOD OF DEFERRAL. COUNCILMEMBER SCHULDT SECONDED
THE MOTION.
City Council Minutes Page 4
G
October 12, 1992
• - Councilmember Kropuenske indicated that he was not comfortable with
this decision, but he was aware that there are not a lot of options
regarding this matter. He indicated his continued concern regarding
the farm properties that do not want to develop.
THE MOTION CARRIED 4-1. Councilmember Kropuenske opposed.
COUNCILMEMBER DIETZ MOVED TO DENY THE MOLDENHAUER OBJECTION AND REQUEST
TO EXCLUDE THE WESTERN PORTION OF THE MOLDENHAUER PROPERTY FROM THE
ASSESSMENT ROLL ON THE GROUNDS THAT THE PROPERTY WILL BE BENEFITTED IN
EXCESS OF THE AMOUNT OF THE ASSESSMENT. COUNCILMEMBER HOLMGREN
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
COUNCILMEMBER SCHULDT MOVED TO DENY THE RINCANON OBJECTION AND REQUEST
TO EXCLUDE THE KINCANON PROPERTY, PARCEL #75-005-2101, FROM THE
ASSESSMENT ROLL ON THE GROUNDS THAT THE PROPERTY WILL BE BENEFITTED IN
EXCESS OF THE AMOUNT OF THE ASSESSMENT. COUNCILMEMBER HOLMGREN
SECONDED THE MOTION. THE MOTION CARRIED 4-1. Councilmember Rropuenske
opposed.
COUNCILMEMBER HOLMGREN MOVED TO DENY THE HOULTON OBJECTION AND REQUEST
TO EXCLUDE THE HOULTON FARM PROPERTY FROM THE ASSESSMENT ROLL ON THE
GROUNDS THAT THE PROPERTY WILL BE BENEFITTED IN EXCESS OF THE AMOUNT
OF THE ASSESSMENT. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE
• MOTION CARRIED 4-1. Councilmember Kropuenske opposed.
Terry Maurer indicated that he has received a letter of written
objection from Jeff and Mary Lundeen to the assessment levied against
a portion of their property. He explained that Orono Road divides
their property and the back property which abuts the lake is a small
parcel that is unbuildable. He stated that the reason the property was
assessed for the street assessment was because the property adds value
to the entire parcel.
COUNCILMEMBER KROPUENSKE MOVED TO DENY THE OBJECTION MADE BY JEFF AND
MARY LUNDEEN FOR LOT 4, BLOCK 2, HEATH ADDITION BASED ON THE GROUNDS
THAT THE PARCEL BENEFITS THE LUNDEEN PROPERTY AND THE PROPERTY IS
BENEFITTED IN EXCESS OF THE AMOUNT OF THE ASSESSMENT. COUNCILMEMBER
DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0.
COUNCILMEMBER HOLMGREN MOVED TO ADJOURN THE ASSESSMENT HEARING UNTIL
MONDAY, OCTOBER 19 TO BE HELD AT THE ELK RIVER PUBLIC LIBRARY AT 7:00
P.M. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0.
6.1. Klein Easement Request
Terry Maurer indicated that staff has received a request from Mr. and
Mrs. Klein for reimbursement of $999 for the easement -they have given
to the City on the corner of their property, Lots 3, 4, and 5, Block 5,
• Orono Addition. Terry Maurer explained that although the City acquired
the easement, Mr. Klein was made aware of the fact that the City could
have completed the project without acquiring the easement as the.
project could be done through prescriptive rights. Terry Maurer also.
informed the Council that Mr. Klein stated that he was interested in
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ilk River
T TT.'M C, l
T0: MAYOR & CITY COUNCIL
FROM: PAT KLAERS, CITY ADMIN
DATE: OCTOBER 13, 1992
SUBJECT: WESTERN AREA PHASE I ASSESSMENT
ROLL
The assessments to benefitted property owners in regards to the
Western Area Phase I Improvement project has been discussed at
the September 28 and October 12 City Council meetings. At
these meetings the City Council has taken action to amend the
original assessment roll. Other than some more minor
adjustments, the most significant change in the assessment roll
related to the tillable Green Acres properties. This land has
received a deferment for two years per City Council action on
10/12/92 and this action is reflected in the attached
resolution.
Staff recommends approval of the attached resolution.
•
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720 Dodge Avenue N.W., EIk River, Minnesota 55330 {612) 441-7420
City Council Minutes
October 19, 1992
Page 2
• appropriate for staff to order the public improvement hearings because
there is not enough information submitted from the developer at this
time.
Terry Maurer updated the Council on the progress of the development as
outlined in his 10/15/92 memo. The update included information
regarding the EAW, traffic study, site plane, preliminary plat and
Indirect Source Permit, etc. Terry Maurer informed the Council that
there were a number of issues that were not discussed in the
feasibility study related to this development proposal and stated that
in order to proceed with the improvements, the Council should see the
overall improvement. Terry stated that the developers for the west
Highway 169 area should request a feasibility study specifically for
their proposal tying all aspects of it together. Terry Maurer informed
the Council that this was just an update and that no action was
necessary.
6.1. Adoption of Final Assessment Roll for Western Area Phase I
Improvements
COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 92-102, A RESOLUTION
-~ FOR THE CITY OF ELK RIVER ADOPTING THE FINAL ASSESSMENT ROLL FOR THE
WESTERN AREA PHASE I IMPROVEMENT PROJECT. COUNCILMEMBER DIETZ SECONDED
THE MOTION. THE MOTION CARRIED 4-1. Councilmember Kropuenske opposed.
. 6.2. Consider Pay Estimate #3/City Facility
COUNCILMEMBER KROPUENSKE MOVED TO APPROVE PAY ESTIMATE #3 TO BOR-SON IN
THE AMOUNT OF $209,027.55 FOR WORK COMPLETED ON THE CITY HALL/POLICE
FACILITY.. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED
5-0.
6.3. Consider Pay Estimate #5/Western Area
COUNCILMEMBER HOLMGREN MOVED TO APPROVE PAY ESTIMATE #5 TO ARCON
CONSTRUCTION COMPANY IN THE AMOUNT OF $207,974.82 FOR WORK COMPLETED ON
THE WESTERN AREA IMPROVEMENT. COUNCILMEMBER SCHULDT SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
6.4. Consider Pay Estimate #6/Westwood Area Improvements
COUNCILMEMBER KROPUENSKE MOVED TO APPROVE PAY ESTIMATE #6 TO NORTHDALE
CONSTRUCTION COMPANY IN THE AMOUNT OF $83,718.00 FOR WORK COMPLETED ON
THE WESTWOOD IMPROVEMENT PROJECT. COUNCILMEMBER SCHULDT SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
6.5. Consider Pay Estimate #3/Production Well
COUNCILMEMBER KROPUENSKE MOVED PAY ESTIMATE #3 TO BERGERSON CASWELL
• INC. FOR WORK ON THE WESTERN AREA PRODUCTION WELL IN THE. AMOUNT OF
$21,005.41. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
RESOLUTION 92 - 1.D2
• RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION ADOPTING FINAL ASSESSMENT ROLL
WHEREAS, Upon due notice properly made as required by law, the
Elk River City Council on September 28, October 12, and
October 19, 1992, held an assessment hearing on the
proposed assessments for the Western Area Phase 1
improvement projects; and,
WHEREAS, In the course of the assessment hearing the City
Council heard and passed upon all objections to the
proposed assessments, and determined the amount to be
assessed against each property; and,.
WHEREAS, The City Council's written record of the proceedings
at the assessment hearing and written findings as to the
amount to be assessed to individual properties are
contained in the City Council's official minutes of the
hearing.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Elk River, Minnesota:
1. The final assessment roll, as amended by the City Council
during the assessment hearing, a copy of which is attached
• hereto and incorporated herein by this reference, is
hereby accepted and adopted and shall constitute the
special assessment against the lands therein named. Each
such tract of land in the assessment roll is hereby found
to be benefitted by the improvement in an amount not less
than the amount of the assessment levied against it.
2. Such assessment shall be payable in equal annual
installments, including both principal and interest,
amortized in such amount annually as is required to pay
the principal with interest. at 7.5~ over a period of 3 -
20 years.
3. The owner of any property so assessed, may, at any time
prior to certification to the County Auditor of the
assessment or the first installment thereof, pay to the
City Treasurer the whole of the assessment on such
property, with interest accrued to the date of payment;
except that no interest shall be charged if the entire
assessment is paid within 30 days after the adoption of
this Resolution. Prepayment may also be made after the
certification of the assessment or first installment
thereof by paying to the City Treasurer/County Auditor the
entire amount of the assessment remaining unpaid with
interest. In the case of a payment made before November
15, interest will be calculated through December 31 of the
. year in which payment is made. If payment is made after
November 15, interest will be calculated through December
31 of the next succeeding year.
. 4. The assessments levied by this Resolution on tillable,
unimproved agricultural property which meets the
requirements set forth in Minnesota Statutes Section
273.111, Subd. 3, shall be deferred until 1994 and
interest for the years 1992, 1993, and 1994 shall be
forgiven. The first installment on assessments so
~~ deferred shall be payable in 1995 and said assessments
(including assessments deferred in future years under the
provisions of Minnesota Statutes Section 273.111, Subd.
1.1) shall bear interest at the rate set forth in this.
Resolution beginning on January 1, 1995..
5. The City Administrator shall transmit to the County
Auditor a certified duplicate of the attached assessment
roll to be extended on the property tax lists of the
County. Such assessment shall be collected and paid over
in the same manner as other municipal taxes.
Passed and adopted this 19th day
ATTEST:
Sandra A. Thackeray, City erk
•
of 0 tober, 1992.
James A. Tralle, Mayor
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