HomeMy WebLinkAbout82-046
r
.
.
,
~Y4 g7-- -'M
Extract of Minutes of Meeting
of City Council
City of Arden Hills
Ramsey County, Minnesota
August 23, 1982
Pursuant to due call and notice thereof, a special meeting
of the City Council of the City of Arden Hills, Minnesota, was duly
held in the City Hall in said City on Monday, August 23, 1982, at
7:30 o'clock p.m.
The following members were present: Mayor Woodburn and
Councilmen Johnson, McAllister and Mulcahy; and the following was
absent: Councilman Hicks.
Also in attendance were Charlotte McNiesh, City Clerk Admin-
istrator; Dorothy Zehm, Deputy Clerk Administrator; Donald G.
Christoffersen of Short-Elliott-Hendrickson, Consulting Engineers;
and Peter S. Popovich of Peterson, Popovich, Knutson & Flynn, City
Bond Consultant.
MAYOR WOODBURN: We'll open the public
No. ST-81-2, Lexington/694 storm drainage.
lished the appropriate documents.
hearing on rmprovement
The Clerk has pub-
MRS. McNIESH: Yes, I have an affidavit of publication saying
that the Notice of Hearing was published in the New Brighton
Bulletin on August 10 and I have a certificate of mailing indi-
cating that all the properties received notices, which were put
in the mail on August 6.
MAYOR WOODBURN: We'll go on then to Mr. Christoffersen who
will briefly explain the improvement involved.
MR. CHRISTOFFERSEN: Thank you your Honor. The first
improvement is the storm sewer improvement. It's referred to as
the Lexington/694 storm drainage improvement. The boundaries
of the improvement district - to get you oriented - the boundaries
for the drainage district - this is State Trunk Highway 51, Inter-
state 694, Lexington Avenue and County Road F. The drainage area
under consideration is outlined by this line. The improvement
included the construction of storm water detention basins, storm
sewers and outlet control facilities. To begin with, north of
694, an outlet control structure was constructed by the pond
near Fernwood and County Road F. The storm sewer went southerly
.
.
,
to an additional storm water detention basin and a storm water out-
let structure. Over on the east, near the Lino Lakes property,
another storm sewer was constructed southerly to a storm water
detention basin - the westerly half of the storm water detention
basin was previously constructed. The improvement also includes
the purchase of that storm water detention basin and a storm
sewer to the south.
It further includes storm sewer along the west side of
Lexington Avenue to Grey Fox Road, along Grey Fox Road westerly
and then northerly under Trunk Highway 51 and then to Bethel
Ditch. The improvement also includes costs that were not actually
part of Arden Hills' construction but part of the Minnesota
Department of Transportation's construction. They are constructing
a storm sewer pipe from Lexington Avenue westerly to a point where
it crosses Interstate 694 to a detention basin which they have
constructed.
MAYOR WOODBURN: How many governmental units are in this?
MR. CHRISTOFFERSEN: This includes Ramsey County, Minnesota
Department of Transportation, the City of Shoreview and the City
of Arden Hills.
MAYOR WOODBURN: We will have a time for questions later.
We'll ask Mr. Popovich, our fiscal consultant, for his statements.
MR. POPOVICH: Mayor and members of the Council, this is
the assessment hearing, as you know. When the original feasibility
hearing was had a year ago, the total estimated cost for the
Arden Hills' share of this five party joint powers approach, was
$945,527.00. The total cost, as it works out now, based on actual
construction costs, is $772,554.00 - nearly $200,000.00 less. At
the time we had our feasibility hearing, we projected an assess-
ment rate of $3,940.00 per acre if we went 100% assessed. The
recommendation is that $653,000 be raised by special assessments
and $119,000 by general taxes or other City funds. Because of
the reduced construction costs and total overall costs, there
are 178.63 acres that will be assessed at $2,750.00 per acre and
there are 72.59 acres that will be assessed at $2,233.26. The
reason for the difference in these two figures is that 72 acres
received an assessment in connection with County Road F when
that storm drainage was put in some time ago and they were
assessed $516.00 per acre - so they are getting credit, or the
benefit, of that previous assessment. That's why that's reduced
to $2,233.26.
We're recommending that the assessments be spread over a
period of 15 years in connection with this project and that
the interest carrying charge be at the rate of 10.01%. That's
one percent over what we sold the bonds for. I might say that
under the law you could go up to 12% or the current rate as
certified by the Commissioner of Finance, but in the judgment
of the City administrative staff and ourselves, we tried to stay
with past policy of having only a one percent override over what
2
.
.
r
we are paying on principal and interest and that one percent is
for administrative costs. So in this situation, people have the
right to pay the matter up in full within a 30 day period after
the assessment roll is adopted. If they don't, it will be certi-
fied to the County Auditor's office and be spread over the 15
years - 1/15 of the principal each year and 10.01% on the out-
standing balance and, of course, that declines over the 15 year
period and the public does have the right to prepay at anytime
during that 15 year period as well as during the immediate 30 days
after the adoption of the assessment roll.
MAYOR WOODBURN: Are there any written questions or objec-
tions?
MRS. McNIESH: Yes, I have a number of them. I have one
signed by Bruce Malkerson and James R. Steilen who are representing
Hunter Sales, A & D Development, R. L. Gould, Roberts Construction,
Christine Colestock and Starco Incorporated, d/b/a Scott Roberts
Development Company. They are objecting to the assessments.
Some of the reasons listed - the assessments exceed the special
benefits to the properties; the special assessments constitute a
taking of property without compensation in violation of state and
U. S. constitutions and 42 U.S.C. Sec. 1983; the City has not
followed the procedural requirements of Minnesota Statutes, Sec.
429.01; the assessment formula used by the City is arbitrary and
unreasonable, some land owners have previously been assessed for
storm drainage improvements and should not be assessed for new
improvements, the problem, if any, sought to be corrected is one
of a general nature and should be funded by general revenues:
certain areas have been excluded from assessment which should be
included; and because of previously existing storm sewer and
roads serving the properties were adequate, no special assessment
can now be made for new roads and storm sewer.
They continue on in the letter saying that they would like
to meet with staff and/or the Council members to review the
rolls, if the Council tables action on the proposed assessments.
They wish to work with the City in obtaining a satisfactory solu-
tion to the problems and objections. It goes on to say that if
they're adopted as proposed, they will undoubtedly file an appeal.
I think that sort of summarizes their main objections.
I have another letter from East Side Beverage Company
objecting to the assessments because the assessments exceed the
benefits, the formula is arbitrary and unreasonable, the City
didn't follow the procedure required by statute, the problem
solved by the project is of a general nature and the funds to
finance it should corne from general revenues, and previous
assessments have been made against the property for sewer
I have another letter from George Reiling. He objects to
the assessments levied against four different parcels. The
reason for the objection is that he fails to see any benefit
to the properties involved.
3
.
.
,.
I have another letter from Tri-State Land Company objecting
to the assessments because the storm sewer improvement does not
benefit Tri-State Land Company's property. The assessment
deprives the protestant of said property without due process of
law in violation of the U. S. constitution and constitution of
the state of Minnesota. The proposed method of spreading the
cost is arbitrary and capricious, unjust, discriminatory and in-
equitable. The assessment is not properly made under Minnesota
law and they request that all their property be excluded from any
assessment.
I have a letter from Mr. and Mrs. Kenneth Boss, who are
objecting to the assessment. They say it is for a new drainage
system of which they were never advised. They feel the property
has been damaged by the new drainage system rather than helped
and address - instead of a small drainage ditch at the edge of
their property it's been widened and deepened and some trees cut
down. They object to the holding pond at the back of their
property and comment on the proposed development of the site
which was before the Planning Commission and Council recently
for an office-warehouse. They think they are being treated very
badly by the City after being good citizens for 22 years.
I have an individual letter from A & D Development company
objecting to the assessment and again saying there was no benefit
conferred, speaking of the road. There is suitable access on
Red Fox Road. In the event there is a benefit, of which they
contend there is none, would be far less than the proposed assess-
ment.
We have a letter from Donald V. Roberts, President of Starco,
objecting to the assessments that affect 1120 and 1140 Red Fox
Road. They were charged for a storm sewer when Red Fox Road was
built and don't see why they are being charged again. They are
also against the storm sewer assessment.
We have a letter from Scott Roberts objecting to the assess-
ment at 3771-87 North Lexington. It states that the former
drainage ditch in front of the property adequately took care of
any storm water problems. Asked to be recorded as against the
impro ve men t.
Don Roberts of Roberts Construction feels the improvement
wasn't necessary and he shouldn't be assessed. He wants to be
recorded as against the assessment. R. L. Gould Company - we
feel the existing road and sewer were more than adequate for the
industrial park and see no need for a physical revision as
property owners along Grey Fox Road do not benefit from either
the new roadway or the storm sewer. No assessment should be made.
Hunter Sales, representinq Eugene Colestock, Christine
Colestock and Hunter Sales - should be no assessments made for
the roadway or sewer for anybody in the industrial park. Again,
the same thing - the existing road and sewer were adequate and
they object to any assessment. I think that's all.
4
.
.
"
MAYOR WOODBURN: Mr. popovich, these are written things -
do you want to comment later or now?
MR. POPOVICH: No, you should
any further matters that corne up.
to give written communications and
here.
take them in consideration with
They're required under the law
they've been properly summarized
MAYOR WOODBURN: The meeting is open for verbal comment -
I guess I don't have to say for or against. You will have to
identify yourself for the tape. We're required to make a verbatim
recording of the proceedings, so please identify yourself.
MR. JAMES STEILEN, Member of the Popham, Haik, Schnobrich,
Kaufman & Doty Law Firm, 4344 IDS Center, Minneapolis, Minnesota:
I'm here tonight on behalf Of corporate citizens of Arden Hills,
R. L. Gould, Hunter Sales and the Eugene Colestock family, Roberts
Construction, which also has a property owned by subsidiary Starco,
A & D Development. Some of these properties are owned by the
corporation, some by the individuals who own the corporation, but
basically all of these are good corporate citizens of the City of
Arden Hills - good taxpayers, good friends of the City. They
called because they are extremely concerned about the nature of
these assessments. These companies are located in the industrial
park south of the freeway.
We did try and meet with City staff today but we were
employed on short notice and were unable to schedule a meeting
with City staff. That's not a criticism of City staff because it
was extremely short notice for them. We did try to meet but
weren't able to do so. But based on our conversations with
these corporations and individuals who own and manage them, it
would appear that they have very strong bases for challenging
these assessments. The industrial park has not had a drainage
problem. The drainage problem - if it exists - exists north of
the freeway. It does not exist in the industrial park. The
industrial park does not have a roadway problem. until such time
as the City constructed the sewer and destroyed the road and,
therefore, had to rebuild the road, there really wasn't any neces-
sity for the owners in the industrial park to have new sewer and
to have new roads.
It follows from that that the value of their property has
not increased because of these projects. As far as we can tell,
they have enjoyed no increase in market value that would justify
these special assessments. There has, in fact, been no special
benefit to the industrial park as is required by law to justify
these assessments. When I look down our roll, Roberts Construc-
tion is looking at $154,000 - their property hasn't increased
that way. Hunter Sales' properties have been assessed in excess
of $35,000; R. L. Gould, $49,000; A & D Development, $47,000.
Their properties simply have not increased in those proportions
to market value and the assessments cannot be justified unless
those properties have received special benefit and that is -
unless those properties' market value has increased in that
fashion.
5
.
.
For those reasons we ask that the City hot adopt the assess-
ment rolls. In particular, it has not benefitted the properties
south of the freeway (inaudible) north of the freeway. We think
it inappropriate that the assessment be adopted because what will
happen is - we feel we are on very strong legal grounds, we will
file the appeal, and if we are correct, the City will end up paying
their attorney's fees and our attorney's fees. Because of new
developments under the law, it's not simply a matter of losing
the assessments - you end up having to pay much more these days
under United States Code Section 1983. We think that that is not
a step that the City ought to take if, in fact, we are right.
We are willing to talk to City staff and do want to talk to City
staff, but at this point it appears to be a very strong case.
So we ask that you not adopt the proposals, that you consider
spreading these costs across the City generally. Thank you.
MAYOR WOODBURN: I have a question but maybe I'll save it
for later. Mr. Popovich, do you want to make any comments now or
do you want to explain anything later?
MR. POPOVICH: Whatever the Mayor and Council prefer. It
would seem to me, though, that we ought to get all of the oral
objections.
MAYOR WOODBURN: The gist of the written information has
been expressed.
MR. GEORGE REILING, 661 Heinel Drive, Roseville, Minnesota:
I object to the assessments because we see no benefits derived
from our properties. We never were in trouble - the state was.
What's really happened, and I think the Village knows about it -
I'm sure Mr. Don Roberts knows - that when the highway was first
constructed, Mr. Daubney was able to get the state to put a
larger main down Grey Fox Road. Mr. Daubney is an attorney and
he wouldn't know what size that main should be. It later
developed that the main wasn't large enough. That's one reason
I think the state should pay for this project. The other is
that again, we're not in any trouble. Yes, 694 underpasses did
flood - but it didn't hurt our properties. So if it doesn't
flood anymore, we have no advantages (inaudible). Plus, again,
when Grey Fox Road was built, we paid for storm sewer. We
shouldn't be asked to pay again. I think also that the County
should pay - and I don't know what share they're paying, but
whatever it is I'm sure it's not enough - the County is taking
the drainage area away from Lexington Avenue and replacing it
with pipe - that's fine, I'm glad the County is building the
street - but we shouldn't have to pay for that street that the
County is building. We had a street there. If they had to pay
for it I don't think anybody would want the new street. That
street is also used by many other people than we ourselves -
people north of us and south of us and in Arden Hills and in
Shoreview. I strongly object to any assessments. In our par-
ticular case we feel there are no benefits to properties that
we represent. Thank you.
6
,
.
,
MR. CLIFFORD LUND, 2241 North Milton, Representing Roberts
Properties: We have already submitted a general denial of benefits.
However, there is one particular piece of property on the corner
of Grey Fox Road and Dunlap that it appears we should only be -
if we are assessed period - we should only be assessed for 116
feet of frontage rather than 300.4 and I wish to submit this
letter.
MAYOR WOODBURN: Would you point out which corner that is.
MR. LUND: It's on the northwest corner Grey Fox Road and
Dunlap. There's a piece of property that the state owns in
there. Our property doesn't corne up against the roadway that was
put in so we should not be assessed for the part that the state
still owns.
MAYOR WOODBURN: Is there anyone else?
MR. TIMOTHY TYSON, Representing A & D Development Company,
Which Leases Property to Tyson Warehouse Company at 1300 Grey Fox
Road: We do have a letter before the Council and our attorney
has explained most of our objections. We do not feel that it has
benefitted our property at all and so we would at this time like
to object. Thank you.
MR. KENNETH BOSS, 1315 Red Fox Road: I just want to say
that we're the only residents in the area. We think that the
assessment is pretty high for something that hurt our property
instead of helping it. I think they messed it up much more, as
far as we're concerned, and it's keeping us from selling our
property. We never had any trouble before.
MR. GORDON MILLER, 1974 North Lexington, Roseville, with
R. L. Gould Company: We had voiced our opinion in written form
and I would also like to vocally state our opposition to this
assessment.
MR. EUGENE COLESTOCK, President of Hunter Sales, 3737 North
Lexington Avenue: I might as well get my two bits worth in Mr.
Mayor. I was going to sit here and be quiet and not cause any
problems. I would like to say that some of the things that have
arisen - in the past - were readily predictable. This drainage
system corning from the north and coming down Lexington Avenue,
going westward on Grey Fox Road - has been purely a matter of
convenience as far as the engineering problems and the City of
Arden Hills are concerned. This could just as well have gone
along County Road E or along the highway or along half a dozen
different points and we wouldn't be quarreling about County
Road E or the assessments on it - either on an acreage basis
or a front footage basis. Further than that, I would like to re-
iterate a point that I made at the last Council meeting. Namely,
that as far as the roadway is concerned - Grey Fox Road - which
is now extended and goes on through to Highway 51 - that's the
last thing in the world that the industrial park needed. That
is going to serve as nothing more than as a traffic convenience
for the Village. It's not going to serve the industrial park
7
.
.
in any way, shape or manner because, as I have pointed out before,
there is no one in the industrial park in the retail business. We
are all in the wholesale business or the manufacturing business.
We do not have traffic, per se. Therefore, as I said in my letter
to you, there is no way that any part of the property in the
industrial park is benefitting materially or otherwise from the
addition of additional storm water sewer capacity or the roadway.
And I might say that the year before last, I tore up my own
boulevard, spent $1800 in having new grass and sod put in, and
this time the construction crew came along and tore it all up
with the roadway and put their own in. That's the kind of thing
that kind of irks you - because we have paid for utility of sewers
before and roadways before and all the rest of it before. I'm
sure that all these people here that are objecting are feeling
exactly the same way. A double burden is being thrown on them
that shouldn't be thrown on them. This project, as far as I can
see - and I'd be glad to be shown different - inures totally to
the benefit of the Village - no one else. It does nothing for
the industrial park. Thank you.
CAROL BASIL, Representing East Side Beverage Company, 1260
Grey Fox Road, Arden Hills: We have submitted our written objec-
tions to the assessment proposed and I would like to go on
record as verbally opposed. Our feeling is very much in line
with what has been said by our neighbors in the industrial park.
Thank you.
MAYOR WOODBURN: Is there anyone else? Any other points.?
Mr. Popovich, is there anything you would like to add?
MR. POPOVICH: Mayor and members of the Council, I don't
want to get into a debate with my colleague over there - Jim, who
is representing so many of the objectors - as a lawyer he ob-
viously has to indicate in writing how he feels. I might just
say this, and obviously members of the Council have heard me say
it before - all of our assessments are predicated on the benefits
to the property. We've given credits where there have been
previous assessments and obviously the City has taken up its
proportionate share of those that we consider to have general
benefit to the City as well. In this case there is a sizeable
portion of the cost that is. The total cost did come down con-
siderably less than originally estimated at the time of the
feasibility hearing.
As to the finding that the procedure was incorrect - I've
been handling these for so many years with the City - we haven't
goofed yet on the procedure as far as published notice. I'd
like to know what the detail is if they have a procedural com-
plaint. We're not taking property without due process of law.
That's not the legal test. The legal test is whether or not the
property has been benefitted. The allegation as to arbitrariness
and capriciousness is not one of the items in the appeal section
of the Local Improvement Code. It's a general benefit rather
than a specific benefit - based on the engineer's recommendations
and others, there is some specific benefit.
8
.
.
What it really boils down to - is the property benefitted to
the dollar figure that is proposed to be assessed? That's where
reasonable people can differ. They'll have their appraiser, I
suppose, if they appeal, and the City will have its appraiser
plus its own engineer. The practical problem as to a reference
to Section 1983 of the U. S. Code, there hasn't been an assessment
appeal in Minnesota yet that's been sustained on that basis.
Maybe Jim and his associates have got some new theory of law that
I haven't run into at all before, but that particular allegation
doesn't bother me at all. As I said, this is where reasonable
attorneys will differ on a particular approach.
The Council should be mindful of the fact that these projects
were included as part of the bond issue that was sold. We've
covenanted with the bond holders and people who purchased the
bonds that we would have a valid assessment proceeding. Obviously
you can't issue bonds unless a minimum of 20% is assessed. Here
the figures were a little higher than 20%, but there is a portion
on general taxes as well. I haven't heard anything from any of
the protestants as to what they think is reasonable. Some of
them just said there is no benefit at all. That's a wide differ-
ence. There's no area of getting together there and only the
courts can determine that. The popham firm, on the other hand,
has indicated some desire to meet with the City staff and the
Council and I presume that's in the nature of trying to determine
what percentage should be charged, so at least there is a tacit
admission that there is some benefit. If that is not the case
and I read you wrong, then you've got to tell us if there's no
benefit at all - not even 20% benefit - and then we can go from
there and it's just going to have to be fought in a court of law.
On the other hand, if he feels there is some benefit and the
difference is something between the 85% that we've assessed and
something over 20%, we should know that too. But there hasn't
been any indication from them as to what they consider to be
some benefit. Maybe, in wanting to sit down, some offer of
compromise might be made and I know they don't represent all of
the objectors but if there's a pattern to be set up, then it's
probably a pattern that would apply to all of those similarly
situated.
Other than those general comments, you may wish to hear
from the engineer as to how he arrived at the figures and where
he feels the benefits might be. This is really not an adversary
position - the purpose of the assessment hearing is to hear
their comments and then take them under advisement. The give
and take, or cross examination, or proof - that doesn't belong
at the assessment hearing at all. The Council could, if it
wishes, adopt the assessment roll tonight as is or we could move
to continue it and then set it for a date sure. The purpose of
that would be to do whatever further checking you may want to do.
The Council could do that. All I suggest is that if you decide
to take that approach and lay the matter over to a date certain,
that we do it so that there's sufficient time that once the
assessment roll is adopted, that 30 days will elapse for anybody
that wishes to prepay their assessments, because we must have
that 30 days elapse before October 10 or we can't certify to the
9
.
.
,"
County Auditor. The County Auditor requires all of these to be
in by October 10, back up 30 days from that and you're up into
the first week of September, so you've only got a week to play
with if you lay it over for further consideration. If you miss
that October 10th certification, the matter gets delayed for one
whole year - then we have to corne back next year and assess and
we have one more year of capitalized interest because we have to
add it to the cost of the improvement and assess that at the
interest rate - so it would increase everything proportionately
if it got stalled for one year. I hope the Popham firm repre-
sentatives are not interested in delaying it one year because I
know they represent some cities too and they've been on the
other side of the table from the side they're on tonight. We
just can't delay it so that a year goes by because the costs will
all go up 10% on the interest charge and we'll be right back a
year from now trying to make the assessments.
On the other hand, if the Council decides not to lay it over
and adopts the roll as it is tonight, they have the 20 days to
file notice with us and an additional ten days to file it in
district court and the matter will be put on and meanwhile we'll
be collecting assessments on the other properties not being
challenged and the interest will begin to run and the people who
have not objected can make prepayments. We just zero in then on
a specific number of properties rather than delay the whole
assessment roll. I would not want to see that happen. As in the
past, if during the course of appeal, there is anything that
objectors are able to show that would satisfy the City Attorney,
Mr. Lynden, and myself, and there's always a chance of compromise
at that particular point if, in fact, there's been something
presented to us that we haven't seen before. But I think in all
the years I've been out here, which goes back to the mid-50's,
we've only had one assessment appeal, which was compromised just
before trial - the water deal here a year or so ago. That's the
only one of all the assessments that I can recall, from the
hundreds and hundreds of assessments that have been made in the
City.
So I think we ought to find out from - particulary the
attorney here who threatens the litigation - whether they feel
there's any benefit. If they say there's no benefit at all,
then it's black and white - you might as well go ahead and let's
fight it out in another arena. On the other hand, if they feel
there is some benefit - it's a matter of degree - then they
should tell us. We say it's worth 85% of the total cost of the
improvement - if they say it's nothing, then you're miles apart.
On the other hand, if they say it's worth 50% or 60%, then we're
zoning in on a particular area. Whether they want to do that
tonight or do it - assuming you lay it over for one week, and
you'll have to check your own agendas - whether or not you can
schedule a reconvened meeting in time to get that 30 days
starting to run before October 10th.
MRS. McNIESH: We do have a meeting a week from tonight.
10
.
MR. POPOVICH: So you could lay it over one week. That is
done frequently and I see no objection to it if the Council wishes
to do it. On the other hand, just laying it over for the sake of
laying it over - if nothing can be accomplished during that one
week period, that doesn't particularly suit me personally. But I
trust that the Council can evaluate the comments that are made,
particularly of opposing counsel, and know that he is doing his
job and is giving you a litany of all possible objections. I've
done the same thing (inaudible). What it really boils down to -
forgetting about the procedure and all the others - we've been
along with this process all the way through and I see no irregu-
larities in the procedure, no taking of land, no violation of
Section 1983 - but one question that it zeroes down to is - is
there a benefit? The Council knows that I've always said that to
them and we've evaluated all of these proposals. So it's the
degree and the amount of the benefit, as the case law says, to
the increase in the market value.
MAYOR WOODBURN: Thank you Mr. Popovich. I'll ask a ques-
tion of Mr. Christoffersen at this time - are you aware of the
property in question that was perhaps over-assessed 100 some feet?
MR. CHRISTOFFERSEN: That question would
answered under the Grey Fox Road improvement.
it has any bearing on this one.
probably be best
I don't know that
MAYOR WOODBURN: I'll now pass this on to the Council for
any comments or questions or for their action.
COUNCILI1AN McALLISTER:
all or how much benefit.
(Inaudible) absolutely no benefit at
MR. POPOVICH:
that I've said? Dc
fit or no benefit?
focus.
Jim, could you address some of the things
you think there's any benefit, a partial bene-
Because we ought to get the parameters in
MR. STEILEN: A question has been raised that I'd like to
address first. I don't have the factual background, but the
question was raised as to whether the City of Shoreview has paid
the City of Arden Hills $470,000 on behalf of this project and
whether that has been deducted from the amount to be assessed
against those here tonight on the assessment roll.
.
MAYOR WOODBURN: Shoreview is assuming that large amount of
money - whether it's that exact amount - and it has been deducted.
MR. POPOVICH: Just so you know the facts - I'm looking at
our original feasibility hearing. The original estimated cost of
this project was roughly $1,500,000. Of that, Arden Hills' share
was estimated to be $945,000 and it worked out to the figure I
gave you earlier - $772,000. The Shoreview portion was $504,000
and it works out to about $400,000 now. They're assessing that
in their own city. What we're talking about tonight is the
$772,000 that we must raise within our own City, without any
11
contributions from anyone outside. They're handling their own
proportionate assessments.
.
MAYOR WOODBURN: Just to round out that answer - Ramsey
County is also contributing, according to their land, and the
State of Minnesota is contributing, according to their land.
MR. STEILEN: I might take a minute to address some of the
comments that Mr. Popovich has made. I've always heard that he's
one of the more eloquent and crafty speakers among City Councils
and as I was sitting there being soothed by his voice, leaning in
his direction, I have to admit that that's absolutely true.
MR. POPOVICH: Jim, you forget - I wrote this law when I was
in the legislature.
MR. STEILEN: Everything I've heard about you is true. How-
ever, I don't make any tacit admissions of benefits to my clients'
property. I do have great respect for your staff. I think it
would be valuable to sit and talk with the City engineer and who-
ever else is responsible for spreading the assessments to see if
there's room for reasonable men to corne to agreement, but I do
want to be on record of making no admissions - tacit or otherwise-
that our property - my clients' property - has been benefitted by
these improvements, because, to the best of our knowledge, it
hasn't. I haven't seen or heard any evidence to the contrary and
so I have no basis to make any kind of admission. I don't think
that meeting would be a waste of time and I think it would perhaps
be fruitful, but I'll leave that to the Council .and its advisors.
COUNCILMAN McALLISTER: You said that there's no benefit to
the property.
MR. STEILEN:
property. I have
Ci ty engineer.
As far as I know there is no benefit to the
not had the opportunity of talking with the
COUNCILMAN McALLISTER: If that's what you think, then why
bother meeting?
.
MR. POPOVICH: Mayor and members of the Council, I must
comment on what was just said. As your advisor, where there's
been no admission of a benefit - we're poles apart - and to sit
down and talk, all they want to do is to cross-examine your
staff and what have you, preparatory to their filing a lawsuit.
I think we ought to fight it in another arena. I would recommend
to the Council that you adopt the assessments.
MR. COLESTOCK: I would like to make a comment, enlarging
on the remarks made by both counsel. Actually, the occupants of
the industrial park are interested - because we're pragmatists
to begin with - in sitting down and seeing whether or not there
is what can be interpreted as "reasonable settlement" being made.
Let's face facts - it costs money to hire an attorney. It cost
you money to hire Pete and it cost us money to hire our attorney.
It takes a lot of time. We feel, as a group, that if we can sit
12
.
down and resolve the differences amicably that we in all probabil-
ity are willing to pay something as far as assessments are con-
cerned. We're not willing to pay on the basis on which we've
been assessed. That's the short and sweet of it. I don't think
that Pete is justified in saying that we're taking an adversary
position. We're taking a position where we hope we can compromise
something that you can go away, we can away, both having accom-
plished something that is constructive for the Village and for
the industrial park. I hope that this enlarges on the intent as
far as the people in the industrial park are concerned. We do
not take an arbitrary position as to how we will settle: we would
like to talk about it. There is no way that I know of that you
can arrive at a conclusion except by sitting down and talking.
Is that right? Do you agree?
MAYOR WOODBURN: That's what we're for.
MR. COLESTOCK: Alright. But the thing is - whether we go
to court and talk about it or whether we get together with your
people and talk about it - it doesn't make much difference -
we're going to have to do this somewhere along the line. That's
the key to the whole issue. Pardon me for disagreeing with you
Pete.
MR. POPOVICH: That's alright.
MAYOR WOODBURN: I suggest that the time to talk about it
may very well be tonight, on several bases, one of which is
that's why we set up the meeting tonight - to talk about it.
I'd like to say that I think you're overestimating the position
of the staff in this. This improvement and the possible benefits
has a 12 year history. For 12 years we've been looking at the
costs and wondering how they were going to be spread. I believe
I can say there is no cost in here that was developed solely -
and perhaps even at all - by the village staff. Other sources
outside advise us that these are appropriate. There is no cost
here that has not been looked at for the last year and a half
(inaudible). It's not the staff that has to be convinced at
this point at all.
.
MR. COLESTOCK: But we have to be convinced and this is the
thing about it - that the Council was made aware of our position
long ago. This is nothing new - nothing exciting about it. We
told you that we were unhappy with what was proposed, that we
were going to take issue with it, and that's what we have done.
We don't want to fight with the Village. As I've told you in
the past, we like to be good neighbors, we like to contribute to
the overall financial health, the social relationships, the whole
works - as far as the Village is concerned. But there comes a
time when we have to take a stand and that's what we've done.
MAYOR WOODBURN: Everything you say is true. Anything else
from the Council?
COUNCILMAN McALLISTER: Mr. Colestock, you feel there is
some benefit to your property from this improvement?
13
.
MR. COLESTOCK: Actually, if I laid it out before you and
said Ms. McAllister - here's my property or his property, whoever -
before and here is now - nothing has changed. We still go west
when we turn off Lexington Avenue to drive into the property,
the water still flows down and goes west to get through the storm
sewer, our customers still do all of the same things they did
before and they have no probleMs. So I have to say that the
essence of the thing is no - there has been no benefit. But, as
I said, we're pragmatists. We're not here to take a stand and
say what's right is right and what's wrong is wrong and we're not
going to let you get away with it. What we're saying to you is
that we think you're off-base as far as the assessment rate is
concerned. We are willing to consider paying a certain amount of
money, even though we don't think it's justified. So let's talk
about it, because it's going to cost us both a lot more to go to
court - in time, in money, in aggravation and maybe some friend-
ships. We still like to be good guys, you know, when it's all
said and done.
COUNCILMAN McALLISTER: Okay, do you have a number in mind?
MR. COLESTOCK: No, I don't. This is one of the reasons
why we asked to sit down with your Council and with your City
engineer and whoever else is concerned with how this assessment
was approached. I can't answer all of the questions for this
group, but in general I think you will find that they will back
up what I am saying and go along with any reasonable situation.
COUNCILMAN JOHNSON: I believe for the past year and a half
there have been times when the engineer, at some length,
described how the assessments were determined, the topography,
the direction of the flow, and what they expected. I don't know
if you were here. Would there be any advantage in having him
again describe briefly how they arrived at the flow, the direc-
tion, the design - which, of course, then established the result.
MR. GORDON MILLER: I see no reason that it would help. I
can't speak, again, for anyone else but our property - the R. L.
Gould property. We have one storm drain that takes water from
off of our property and it goes onto the old Lexington Avenue
system. Not anyplace on any of the new work that's been done.
You've put in curbs and gutters on Grey Fox, but nobody uses Grey
Fox as far as our customers are concerned. They're using our
parking lot. So if we don't use the street and we don't use the
storm sewer, how do we gain a benefit?
.
MAYOR WOODBURN: Where does your water go?
MR. MILLER: It stays right on the property. Where it
goes underground, I don't know. It doesn't drain off.
COUNCILMAN JOHNSON: You said you do not use Grey Fox?
MR. MILLER: For parking or anything. For driving on, yes.
But we had a street and there was a perfectly drive able street
there.
14
.
.
MR. COLESTOCK: Mr. Mayor, I would say that the general
opinion, as far as our group is concerned, is that we would like
to see this thing laid over. We would like to meet with your
legal counsel and your engineering people and sit down and trade
ideas about this. I can't contribute much more to it at the
present time. Mr. Johnson, I want to go back and try to answer
a question you raised. It's true, a year and a quarter, a year
and a half ago, is when this thing first came up. We made known
our opposition as far as assessments were concerned at that time.
We indicated to you at that time that we felt that this work was
being done to the benefit of the Village and we realized why it
was necessary. The thing, as far as we were concerned, was that
it did nothing for the industrial park. What it was doing was
going to drain the northern section - as shown on the map - of
Arden Hills and of Shoreview. That's what it was going to do.
Your prOblem from there was how to get rid of it after you cross
694. The way you got rid of it was by increasing the size of
the sewer going down Lexington and going down Grey Fox Road.
That's the short and sweet of it. As I said earlier, if another
location had been found for the sewer, there would have been no
question about you tearing up Grey Fox Road. You never would
have thought of it. It was a great idea once you decided that 's
where the sewer was going to go, but it certainly was not a
necessity.
COUNCILMAN JOHNSON: You are aware that probably the Minne-
sota Department of Transportation and Ramsey County use as much
of that buried sewer on the west side of Lexington as anybody.
MR. COLESTOCK: Yes I am.
COUNCILMAN JOHNSON: I think you're also aware that we
could not even have gone along or improved our portion of the
Lexington improvement unless that storm sewer had been placed
down below.
MR. COLESTOCK: I don't question it at all. I can see the
necessity for everything that's been done as far as that structure
is concerned. I understand the necessity for draining that land.
I understand that you have to find a way to get rid of it. What
we're really discussing today is who is responsible for it.
What we are saying is that this is a situation that is to the
benefit of the Village as a whole - not to the industrial park.
I said before and I'll say it again - we, as good citizens in the
industrial park, are willing to bear our share. We're not willing
to bear any more.
COUNCILMAN JOHNSON: We'll probably have to go back and see
if we can get the. State and the County to pay.
MR. COLESTOCK: Well, I think that's the responsibility of
the Village. The Village has put us in this position and I think
if we're going to settle it, the village is going to have to find
a way out of it.
15
.
MAYOR WOODBURN: Anything more from the "Council? There were'
a few things that I heard that may deserve some comment. Of
course, anytime we're talking about things, anyone thing that
somebody says may not be the prime interest in their mind, so it
may not have been important to the people that said them. I
think the statement was that it's the water from the north that
counts. It seems to me that the rains are about equal south and
north in how the water comes together and that's why this is one
whole area. It isn't for the north area. In fact, if it wasn't
for the south area, we wouldn't have to do this drainage or we
wouldn't have to contemplate it. The south area is very heavily
developed and to some degree is higher than (inaudible) and the
water running off is indeed corning from some of the properties
in question. I think nowadays some of those properties would be
required to be developed differently - some of those properties.
The statement was that this is a general village obligation.
I don't understand that because every drop of water in this area
comes from this area and nowhere else. It's caused by rainfall
on this area. It's not caused by any rain outside of this and,
therefore, it's not a general Village obligation for sewer.
Somebody said that if there's a benefit, it's a Village-wide
benefit, not a local benefit. That may indicate that there is
some benefit. But still the water comes from this area and has
to be taken care of in this area. If not for the industrial area,
there wouldn't be any project. The industrial area generates the
water run-off to a large extent, beyond what was there before,
just as it generates the traffic. If there was no industrial
area there would be no traffic - we wouldn't need the roads
(inaudible). Put that back in farms and you can realize that
we wouldn't need any roads there. There's quite .a bit of benefit
to many of you for crossing that road, but that's another subject.
MR. COLESTOCK: Mayor, may I have the floor for a moment?
.
MAYOR WOODBURN: No, you may not. I think I'd like to
reiterate that at this point it's pretty well up to the Council.
The Council has looked at these figures and now is the time for
them to find our what's wrong with them and now is the time for
them to change them if it appears (inaudible). These are not
at all new figures and they're not new to the Council. The
Council has had input on these figures and had adequate time to
talk about them. To lay it on the village staff at this point
I think is incorrect. If you can convince them that some of
their figures are wrong and the amount of run-off, footage -
what's needed in this area - that might be different. I think
the buck is stopping right here now. Let's not overemphasize
the amount that the Village employees contribute to this. We've
been through it. Now, anything from the Council?
COUNCILMAN JOHNSON: Do you want to look at a rearrangement
of the base cost between the state, county and municipal?
MAYOR WOODBURN: There is no possibility. The State and
County are contributing according to their land area at the same
16
.
ratio that the City is being asked to contribute. We have agree-
ments with them on a pro-rata basis, which is an equally divided
basis, as we have with Shoreview for their run-off. There's two
percentages (inaudible) that Shoreview is contributing to it
because of the expense of taking out their water - a total of
some hundreds of thousands of dollars. There's a cubic foot
run-off basis for each of the areas and agreements have already
been made.
COUNCILMAN McALLISTER: I would like to ask the attorney -
instead of $2750 per acre, do you have another number in mind?
If so, what?
MR. STEILEN: I do not have another number in mind because . . .
COUNCILMAN McALLISTER: Thank you.
MR. STEILEN: Can I finish?
COUNCILMAN McALLISTER: It seems to me that that's what we
want to do - consider another number - but if you don't have one
then
.
MR. STEILEN: Can I just ask one question, because one part
of our objection really hasn't been addressed and then we can end
it - that is the point that was made that the south end of the
park, south of the freeway, was already adequately drained. It
was the north part that was not adequately draining. So to say
that the south has contributed and caused the prOblems is a
mystery to us. An honest mystery. I'm not saying it isn't
adequate as much as someone trying to explain the position of
the landowners. We honestly believe that we had adequate drainage.
Our problems - if you call them that - our needs were serviced by
what we had. The sewer facility that we had only became inadequate
for purposes of draining the land north of the freeway. That's
why we have taken the position that our property hasn't changed.
The value hasn't changed. It was adequately drained before and
it's adequately drained now. That's the basic reason we're here
tonight. We feel that in order to serve the property north of
the freeway, we have ended up being assessed. It really doesn't
answer the question or address the issue to say that the rainfall
per square foot is the same - you're obviously right - it is the
same. The question we have is - we were adequately serviced
before, nothing's changed, from our standpoint - although the
north is better served now - we're not better served. We don't
believe, without reason, that our property values have increased
and, if our property values haven't increased, I don't believe
that the assessment is justifiable under law.
MAYOR WOODBURN: Mr. Christoffersen (inaudible).
MR. CHRISTOFFERSEN: There might be some benefit in reviewing
the presentation I made in the past on what happened. I might
add - this is Lexington Avenue and this is Shoreview. Previously,
all the drainage north of 694 found its way down, from both sides
of 694, to the Lexington/694 interchange and then drained southerly
17
.
along a ditch and in the culvert system and eventually out into
Bethel ditch. These systems were inadequate, primarily because of
all the development that has taken place in the whole area. At
one time it was 'probably adequate, certainly, but as the area
developed - not only north of 694, but south of 694 - it became
apparent that new drainage structures were going to be needed.
This is considering the whole drainage area as ultimately developed
and not as it is today - ultimately developed. There are a lot of
undeveloped pieces of property. By the way, they're treated
equally as the developed pieces.
The current plan calls for all of the drainage in Arden Hills
on the north side of 694 and a good majority of the drainage in
Shoreview, north of 694, to be routed to ponding in Arden Hills,
some ponding in Shoreview - it comes to north of 694 and is
carried westerly, which reverses the flow, into a new detention
basin that the state has under construction right now, and it dis-
charges through this detention basin and into this existing storm
sewer - no increase in the size of the pipe. In other words, all
of this flow, because of ponding, has been reduced. The storm
sewer you see on Lexington Avenue, south of 694, carries a portion
of the highway right-of-way and the remaining portion south of 694.
So the drainage that's occurring south of 694 is going into this
storm sewer. This storm sewer is designed for the ultimate develop-
ment of the whole area and everybody contributes water to this
storm sewer. You say it was adequate before - you'll recall we
placed along Grey Fox Road - there is an existing storm sewer pipe
in Grey Fox Road and we constructed another one parallel to it -
a larger size - so it carried all of this water. So if you're
saying that the water north of 694 is causing the problem down
here - that is not true. The water north of 694 now is carried
over to detention basins which ultimately discharge it into
existing culvert/ditch systems.
~~YOR WOODBURN: Anything further from the Council?
COu~CIL~~ MULCAHY: I have a question for Mr. Steilen. In
your letter - which I realize you wrote today, perhaps under short
notice - did you say on page 2 - I just want you to clarify what
you mean by the statement where you said yOU asked for a meeting
with the City staff to discuss the assessments and were denied. I
don't understand that.
.
MR. STEILEN: Councilman Mulcahy, I commented upon this.
Actually this letter was written by my partner Bruce, who met with
the landowners this morning and then tried to meet with the City.
That was my reference at the beginning of my comments - that we
tried to arrange a meeting with the City staff but it didn't work
out. I think I said that I wasn't meaning to criticize the City
staff because it's hard to work out a meeting on one day's notice
or two day's notice - whatever it was.
COu~CILMAN MULCAHY: That's what I thought you said. So
the statement about being denied a meeting is not really accurate.
18
MR. COLESTOCK: I tried to make that arrangement with
Charlotte and she was unable to get the people together on such
short notice.
.
COUNCILMAN MULCAHY: One further question for you Mr. Steilen.
You referred, and Mr. Popovich referred also to U. S. Code Section
1983. In dealing with less knowledgeable persons, would you mind
telling the less knowledgeable members of the Council what it is
we have to be concerned about in terms of U. S. Code Section 1983
so that we don't misstep?
MR. STEILEN: That code section, as Mr. Popovich correctly
said, doesn't deal specifically with special assessments and how
you assess them and what the correct procedures are. What it does
say is that if you deprive someone of their rights without due
process, then that person has the right to sue you for attorney's
fees, punitive damages and so on. It goes beyond the days of old
when city councils - their only risk was that if the assessment
was appealed that they might lose the assessment. It allows the
landowner to recover some of the investments that they make in
appealing an assessment.
MR. POPOVICH: May I comment on that section? There hasn't
been a case in the country where a special assessment has been
challenged under 1983, where attorney's fees have been granted
under that section. It's a new theory and I commend them because
that's what lawyers are supposed to do - figure out new material.
There are lots of tricks to theory and winning. The practical
problem is that Section 1983 has been on the law books for years
and years and years and it comes up in connection with discrimina-
tion cases - female sports and male sports, discrimination in
hiring and employment practices. That's where it has come up in
the last number of years. As you follow the interpretations of
1983 - in fact, many of the justices - it's a federal law - have
been wondering if the interpretations are far too broad and much
more than the original (inaudible) wanted it to be. It's a novel
theory and r compliment counsel for eoming up with it, but the
gist is - they're going to rise or fall on an appeal in Minnesota -
if they go to court - under our local improvement code and was
the property benfitted and to what extent. That's what it boils
down to.
.
14R. STEILEN: As Mr. Popovich said, we defend cities and
represent cities as well as landowners and currently we are -
insurance companies as well as representing cities - and we are
currently defending some 40 lawsuits using this exact theory.
Mr. Popovich is right - there is no decision right now because
the Supreme Court only came down with this theory a year and a
half ago. There will be plenty of opportunities for this theory
to be justified if any of these 40 cases are successful.
COUNCIL~~N MULCAHY: (Inaudible) were you on the other side,
would you be willing to have the following statement recited to
you - that any special assessment adopted in excess of the special
benefit constitutes a denial of constitutional rights?
19
MR. STEILEN: Yes, and we do advise our clients that. We
have developing cities - (inaudible), Minnetrista - and some re-
developing cities - St. Louis Park - and we are very careful about
those kinds of issues.
.
COUNCIL~Ulli MULCAHY: Would it be your position that if this
special assessment should be deemed to be in excess of the benefit
that you would, therefore, have the right to punitive damages
against the Council and the City?
MR. STEILEN: Under 1983, we would potentially have that
right. Whether we would choose to exercise it or not depends on
the wishes of my clients and I have not asked them since that is
so far off, if it's going to occur at all, and frankly we didn't
come into the meeting with the idea of threatening and waving
shotguns and so on. As Mr. Colestock said, we came to try and
work things out and arrange meetings and so on, but to very
firmly take our stand and it is not our intent to concentrate on
threats. It is our intention to try and work things out and if
we can't, we'll take our appeal and, as Mr. Popovich said, we'll
let the courts work it out.
MAYOR WOODBURN: (Inaudible) we're trying - with some back-
ground too - figure out what is equitable. I guess our point is
that equitability changes depending on where you are.
MRS. KENNETH BOSS, 1315 Red Fox Road: I would like to say -
Mr. Popovich said it depends on if the property is really aided
by this thing. Mr. Christoffersen showed that holding thing there
now that comes right down through our property, the same as it
always did, only that you dug it deeper and dug it wider and
didn't tell us you were going to do it. You said you were going
to remove the weeds from our little stream that went through our
property, so our property has been damaged by it. Nothing else
has changed - only they're (inaudible) back of us there and
draining it right all down through our property with no pipe.
It would come through this ditch that they dug later. We're not
industrial like they are.
MAYOR WOODBURN: I was wondering about that. Have they
widened that ditch or did they . . .
.
MRS. BOSS: They widened it, they knocked down some of our
trees. We asked them special and Mr. Townsend said no - we're
only going to take the leaves out. It's widened, it's deeper,
there are big banks on each side of it and some of our trees are
missing. Was everybody notified that this big thing was going to
be built back there? We've never had one bit of notice about it,
until we got the notice to come to this meeting. Mr. Townsend
said there was going to be no charge for taking these leaves out
of our stream. That's where we are and we have an assessment
for $4755 on our acre and a half.
MAYOR WOODBURN: You are the owners of your property -
it's in your name?
MRS. BOSS: Yes.
20
MR. POPOVICH: We had the feasibility hearings a year ago
and the same people got notices then as for tonight.
MAYOR WOODBURN: Is there any reason the Bosses (inaudible).
.
CHARLOTTE McNIESH: I would have to look back to see where
the notices were mailed. I believe they were mailed one. When
we mailed the notice for this hearing, the address on the County
rolls was their home address and we got the letter back saying it
wasn't deliverable. We happened to know that Mr. and Mrs. Boss
were living in Sutton Place so after we got it back - because it
wasn't forwarded - we sent another notice. But I don't believe
you were at Sutton Place a year ago, were you?
MRS. BOSS: We were in May.
MAYOR t..OODBURN:
your house.
(Inaudible) even though it was addressed to
MRS. McNIESH: I don't believe we got one back at the time
of the feasibility hearing. I'll have to check that.
MR. POPOVICH: Just so we don't get off on a tangent on the
notice - the law says you can just make a good faith effort on
sending the notice and whether notice is received or not - that
doesn't vitiate the proceedings. Obviously you hope everyone will
get it, but there is an exculpatory phrase as to the law.
MAYOR WOODBURN: All we can do is try, but it's still nice
to know that everybody got notice. (Inaudible) ask Mr. Colestock
to have the last word. Is there anything else the Council wants
to add? Mr. Colestock, you may have the last word.
MR. COLESTOCK: You caught me unprepared.
stand the situation from what the engineer just
plan, as far as the distribution of storm water
ongoing just parallel of 694. Is that right?
Well, as I under-
said, the original
is concerned, was
MR. CHRISTOFFERSEN:
694 on the north side -
Avenue. That's the way
The original drainage did not parallel
it flowed to the east and down Lexington
it was before the improvement.
.
MR. COLESTOCK: As that situation stands now, what I see
developing is - at least for the village - a claim is going to be
raised that with the development of new properties and building
of new buildings and new facilities in the industrial park - you
are contending that this system is going to be necessary to take
care of the drainage problems generated by 100% utilization of
the industrial park. Is that correct?
MR. CHRISTOFFERSEN: Are you talking just the industrial
park south of the freeway?
~ffi. COLESTOCK: Yes.
MR. CHRISTOFFERSEN: That's correct.
21
.
.
MR. COLESTOCK: One of the interesting things about this is
that Roberts properties, for one, we for another, I think Tyson
for another, have all been told that if we want to build new
buildings and pave new areas of the industrial park, we're going
to have to have holding ponds. As a matter of fact, I appeared
before the Council here a year ago to get a building permit and
we agreed to put a new holding pond in at substantial expense and
also at the expense of not being able to utilize more than 40% of
our land area for building. Now I find that apparently the
system was not adequate at that time. I find it hard to believe,
in view of the fact that when the open ditch existed there we,
nor no one else, ever had any problem with flooding. We did have
water rising in the ditch - that's true. We did have water
rising in holding ponds - that's true. But we never had any
problem with flooding. I don't see - although I have not made
any calculation as to the run-off requirement or the (inaudible)
required to take care of what run-off we generate in that area.
I doubt very much that we would have had any problem with what-
ever developed - even with 100% coverage of buildings. I still
feel that the problem that has developed here and the thing that
we're arguing about is the fact that the village has had to find
a way to take care of the run-off which is generated by the
northern development of Arden Hills and of Shoreview. I see
nothing more or less to it than that. The fact is that 20 years
ago, when we first started this park - when Roberts first started
in the park - none of us had any problems and none of us antici-
pated any problems. We paid for sewer and we paid for roadways
and we paid for all of the facilities. Up until the time this
sewer was built and this road was put in, we had no problems.
Now all of a sudden we're faced with problems which are going to
cost us a lot of money and which we really don't know whether we
have an answer to. I think that this is about the size of it.
I haven't said much for a last word, but that's our position.
As a group in the industrial park, we feel we are adequately
taken care of. We needed nothing further from the village. One
thing I want to remind you of, Mayor Woodburn, when you said that
this sewage system was developed primarily for the industrial
park - do you recall when the water system was put in the village?
Do you know that a representative of Roberts Construction and
myself and one or two others here were the movers and shakers
that got it going? That was spread on the whole village because
it benefitted the whole village. That's what's happening here.
I think a parallel case can be drawn and a parallel case can be
made for the benefit the village is receiving from having this
work done.
MAYOR WOODBURN: What is the Council's pleasure? Action
consisting of holding this over and modifying the outlined
assessment or approving it? What does the Council want to do?
COUNCILHAN JOHNSON: Your Honor, I guess counsel repre-
senting the assessed people here seems to feel (inaudible) and
apparently he's never talked to the engineer. I really got the
feeling he didn't know what the system is all about. If there is
any advantage in him learning a little bit more about the system
and reconsidering, then I'd say it's worth that time. (Inaudible).
22
.
MAYOR WOODBURN: (Inaudible) deal with this. We've dealt
with this for so long and so openly and so publicly and this
hearing has been set for long enough that to wait until today and
hold this item up - there was adequate notice - I don't if it's
fair to hold it up some more because they didn't have time
(inaudible) .
MRS. McNIESH: Notices were mailed on August 6.
MAYOR WOODBURN: So they got there maybe the 10th, two weeks
(inaudible), beyond the fact that everybody knew it was cominq UP.
Many people knew it was corning up. Mr. Colestock, I think, was
here, I believe, when we set the assessment time. One of the
difficulties we have up here - we've lived with these figures for
so long that there was no surprise to us. Anything else from the
Council? Action or inaction?
COUNCILMAN McALLISTER:
(Inaudible) make a motion.
COUNCILMAN MULCAHY: Your Honor, I'm prepared to move the
adoption of a resolution which adopts and confirms the assessment
roll for Improvement No. ST-81-2, covering the Lexington/694
storm drainage, and to adopt Resolution No. 82-46.
COUNCILMAN McALLISTER: I would like to add some reasons for
the motion. A lack of benefit to the properties has not been
offered and no alternative figures have been given to us. I
think we have to proceed this way.
MAYOR WOODBURN: I think that will be in the minutes. We
have looked at this in various ways and the figure is not out of
the blue. It has been looked into.
COUNCI~VU~ MULCAHY: I'd also like to say, particularly
since I'm the newest member of the Council here, I haven't had
the benefit of the earlier long discussions (inaudible) deciding
to go ahead. I, for one, very much appreciate the input that
we received tonight. I am a little disappointed, though, that
with the practical matter - adequate notice to the affected per-
sons and landowners, and in most cases a situation where we're
dealing with relatively sophisticated business people, people who
know I value their business as citizens of the village - it really
would have been a bigger help to us if you could have come in
strength a little sooner. Gene was here earlier and made some
of these comments at one meeting that I'm familiar with.
.
My regret in voting for this assessment, and I will, and
perhaps the following assessment, is that the citizens - particu-
larly the business community - let us know too late - or not
earlier enough anyway - about their feelings. I know that every
person sitting up here, Councilman Hicks included, would like to
hear from all of you. We're hearing mostly from the business
community tonight. You're valued members of the community and
we don't want to have a disagreement with you, least of all a
lawsuit. In my view, it would really help us a lot more if you
would get a lot more involved, serve on our committees, learn
23
.
,
about and speak to these issues sooner and eloquently and that
would help you and I think it would help us a great deal. I
realize that that sounds a little pious to you tonight - you have
to pay the bills and you think we don't care about them. We
certainly do. We have a lot of these issues before us and we're
trying the best we can. I would ask you - as I did myself - to
get involved in the village affairs and corne see us and serve on
our committees.
~1AYOR WOODBURN: Anything further from the Council? Hearing
nothing, I will close the hearing.
Councilman Mulcahy then introduced the following resolution
and moved its adoption:
Resolution No. 82-46
RESOLUTION ADOPTING AND CONFIRMING
ASSESSMENTS FOR IMPROVEMENT NO. ST-81-2
BE IT RESOLVED by the City Council of the City of Arden
Hills, Minnesota, as follows:
1. The amount proper and necessary to be specially assessed
~t this time for Improvement No. ST-81-2 against every assessable
l~J, piece or parcel of land affected thereby has been duly cal-
culated upon the basis of benefits, without regard to cash valua-
tion, in accordance with the provisions of Minnesota Statutes,
Chapter 429, as amended, and notice has been duly mailed and
published, as required by law, that this Council would meet to
hear, consider and pass upon all objections, if any, and said
proposed assessment has at all times since its filing been open
for public inspection, and an opportunity has been given to all
interested persons to present their objections, if any, to such
proposed assessments.
2. This Council, having heard and considered all objec-
tions so presented, and being fully advised in the premises, finds
that each of the lots, pieces and parcels of land enumerated in
the proposed assessment was and is specially benefited by the
construction of said improvement in not less than the amount of
the assessment set opposite the description of each such lot,
piece and parcel of land, respectively, and such amount so set
out is hereby levied against each of the respective lots, pieces
and parcels of land therein.
3. The proposed assessments are hereby adopted and con-
firmed as the proper special assessments for each of said lots,
pieces and parcels of land, respectively, and the assessment
against each parcel, together with interest at the rate of 10.01%
per annum accruing on the full amount thereof from time to time
unpaid, shall be a lien concurrent with general taxes upon such
parcel and all thereof. The total amount of each such assess-
ment shall be payable in equal annual principal installments
extending over a period of fifteen (15) years, the first of said
installments, together with interest on the entire assessment
24
.
,
from the date hereof to December 31, 1983, to be payable with
general taxes for the year 1982, collectible in 1983, and one of
each of the remaining installments, together with one year's
interest on that and all other unpaid installments, to be payable
with general taxes for each consecutive year thereafter until the
entire assessment is paid.
4. Prior to certification of the assessment to the County
Auditor, the owner of any lot, piece or parcel of land assessed
hereby may at any time pay the whole or at least 50% of such
assessment, with interest to the date of payment, to the City
Treasurer, but no interest shall be charged if such payment is
made within 30 days after the date of this resolution.
5. The City Clerk Administrator shall, as soon as may be,
prepare and transmit to the County Auditor a certified duplicate
of the assessment roll, with each installment and interest on
each unpaid assessment set forth separately, to be extended upon
the proper tax lists of the County, and the County Auditor shall
thereafter collect said assessments in the manner provided by law.
The motion for the adoption of the foregoing resolution was
duly seconded by Councilman Johnson and upon vote being taken
thereon, the following voted in favor thereof: All Present; and
the following voted against the same: None; whereupon said
resolution was declared duly passed and adopted.
25
.
,
STATE OF MINNESOTA
SS
COUNTY OF RAMSEY
I, the undersigned, being the duly qualified and acting
City Clerk Administrator of the City of Arden Hills, Ramsey County,
Minnesota, do hereby certify that I have carefully compared the
attached and foregoing extract cf minutes of a special meeting
of the Council of said City held on the 23rd day of August, 1982,
with the original thereof on file in my office, and the same is
a full, true and complete transcript therefrom insofar as the
same relates to Improvement No. ST-81-2.
WITNESS MY HAND and the seal of said City this~ay of
September, 1982.
~fl<<,~~
City Clerk Adm~n~strator
(SEAL)