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<br />ARDEN HILLS CITY COUNCIL - June 8, 2009 <br /> <br />7 <br /> <br />Councilmember Grant clarified that the options provided for the deferred <br />assessment were the only options available to the City. <br /> <br />Civil Engineer Giga stated that for the deferred interest rate the options provided <br />are the options that are listed in the state statutes. <br /> <br />Mayor Harpstead stated that there is a fourth issue in that the interest rate itself <br />needs to be set by the Council. He asked if this interest rate had to be equal to the <br />interest rate that was established for the 10-year assessment plan. <br /> <br />Civil Engineer Giga stated that the interest rates could be different. <br /> <br />Mayor Harpstead clarified that Staff was looking for direction regarding the <br />deferred assessment including interest, terms, and period. <br /> <br />Councilmember Holden stated that there are four properties in this project that <br />have been identified as 2 REUs. Even though there is no intention of subdividing <br />these properties at this time there have been situations in the past where a lot was <br />subsequently subdivided. She stated that she would be willing to forgive the loan <br />for the second REU but if the property were to be subdivided before the end of 30 <br />years then the full amount would have to be paid. <br /> <br />Councilmember Grant asked if Councilmember Holden was referring to forgiving <br />the principle and interest or just the interest. <br /> <br />Mayor Harpstead stated that the principle could not be forgiven. <br /> <br />City Attorney Filla stated that the Council could choose not to defer the <br />assessments and treat these four properties as 1 REU rather than two. If the Council <br />adopts a deferred assessment roll, it will become due and payable at some point. <br /> <br />Mayor Harpstead asked if Ms. Dachtera had any additional information that <br />compared the assessment rate with other cities. <br /> <br />Civil Engineer Giga stated that each city sets their assessment policy differently <br />depending on how they fund the remaining portion of their projects. It is difficult to <br />compare assessment policies between cities. <br /> <br />City Administrator Moorse stated that in Ms. Dachtera's example Oakdale <br />assesses 35% of the amount and Arden Hills assesses 50%, which results in a lower <br />assessment amount but not a lower cost in building the road. <br />