06-11-07 Item 7B, Deferred Special Assessment Roll

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2007 PMP 6/6/2007 Page 2 When payment of assessments is deferred against unimproved property under Minnesota Statute S 429.61, subd. 2, the city must file with the county recorder a certificate containing the legal description of the affected property and the amount deferred. With reference to the interest to be charged on deferred installments, the council has three options: (1) it may require interest to be paid annually at the same times as the principal installments of the assessment would have been payable if not deferred. This means that interest would be collected each year, and the principal payment would be due upon sale or subdivision of the property. (2) it may add interest for this period to the principal amount of the assessment when it becomes payable. This means that interest would accrue for each year the assessment is deferred until the property is sold, subdivided or the length of the deferral, as set by the City Council, expires. Based on Chapter 429, the maximum length an assessment can be deferred is 30 years, which means in this case, interest could be collected for a period up to 30 years. (3) it may forgive interest to December 31 of the year before the first deferred installment is payable. This option would forgive interest until the property is sold or subdivided. Interest would then begin accruing as if the payment period for the assessment were just beginning. RECOMMENDED COUNCIL ACTION Staff recommends that the City Council approve Resolution 07-58: Resolution Adopting Deferred Special Assessment Roll for the 2007 PMP Improvements.