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ARDEN HILLS CITY COUNCIL - MAY 29, 2007 5 3-unit cost and noted only one parcel could be subdivided from the main unit and therefore they should be assessed for 2 units and not 3 units. He noted other cities charged less in interest and asked Council to look at this. He indicated the contractor had used Flaherty's property for staging their construction without specific permission to do this from the property owner. He stated this was a City improvement project and the City was the principle in getting the project done with the contractor being hired to do the work. Therefore he felt indemnification was not a dispute between the contractor and the property owner. He stated the City was in the middle of this. He recommended Council continue the discussion on the Flaherty's assessment. Mayor Harpstead closed the public hearing at 8:03 p.m. Mr. Fill~ reviewed the assessment appeal process. MOTION: Councilmember Grant moved and Councilmember Holden seconded a motion to accept the staff recommendation of 6.5 percent and the assessments be of equal annual installments. Councilmember Grant believed the interest rate of prime plus 2 percent was too high. He noted there was little risk the City would not collect on this. The motion carried unanimously (5-0). MOTION: Mayor Harpstead moved and Councilmember McClung seconded a motion to extend term of current assessment period from five (5) years to seven (7) years. Councilmember Holden asked if the City would recoup their costs over seven years. Ms. Iverson replied the City would recoup its costs. The motion carried unanimously (5-0). MOTION: Councilmember Grant moved and Councilmember Holden seconded a motion to allow 1465 Floral Drive assessment be deferred on the second parcel until the time the property is sold or subdivided. The motion carried unanimously (5-0). MOTION: Mayor Harpstead moved and Councilmember McClung seconded a motion to amend Motion 07-55 to add an "A" suffix to the Resolution and to amend this resolution reflecting the assessment be payable in seven (7) equal annual installments and bear an interest rate of 6.5 percent and that the assessment for the property at 1465 Floral Drive be deferred until the time the property is sold or subdivided. The motion carried unanimously (5-0).