CC 08-29-1983 - Laserfiche WebLink

Home Browse Search

MAYOR WOODBURN: by essentially a six temporary. The money for this improvement is carried year bond - a three and a three - . MR. POPOVICH: This was part of the bond issue in 1982. We sold $3,355,000. At the end of three years, you either have to pay that off or have another three year bond issue or a definitive bond issue of ten or fifteen years. Here we thought - because of the developer approach and everything - that running it over six years, we could have the first three years and then the next three years. If it developed faster than that, you wouldn't have to have that next three years, but you have one isolated piece of property there that is obviously a little different category than the others because of the present use. Of course, we know that and whether or not you want to go along with a different period of time, that's a judgment call based on what you feel the Hansens ought to do. MAYOR WOODBURN: Are there any further questions from the audience? Six years is a little quick for private parties to payoff an assessment (inaudible). On the other hand, there's no question that somebody is going to make a handsome profit on this improvement on the back of that property some day. MAN IN AUDIENCE: t~y couldn't you just skip over that party and assess them in the event it was split at some time? MR. POPOVICH: That's an indirect question - should there be a deferment? As you know, this whole thing was considered to be 100% assessed. If you defer it - and that would mean $18,000 wouldn't come in on this particular bond issue - so somewhere you'd have to come up with $18,000 until that bond issue was paid off. It means you would have to get it out of other funds within the City or you'd have to spread $18,000 over the six year period as general taxes over the entire City. Tnen later on, if somebody hooked up ten years from now, then you could have that complete charge paid in full when somebody changed the utilization of the property. You'd get the $18,000, plus the interest that had accrued during that period of time and it would go into some fund. But meanwhile, you can't redistribute that back to the people in cash rebate checks. Somewhere that $18,000 has to be picked up between now and the time they pay, so defer- ments, while possible, are not really good for you over the long run. There will be a cash shortfall somewhere during the period of that bond issue. MAYOR WOODBURN: It appears that part of that answer is also the fact that we can't raise the assessment on any other lots, having given the maximum value - is that correct? . MR. POPOVICH: That's right. In other words, you'd have to have some pretty good evidence that the lots were benefitted -5-