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HomeMy WebLinkAbout06-11-07 Item 7B, Deferred Special Assessment Roll ~ ~HlLLS Request for Council Action Prepared By: Kristine Giga Dept.: Engineering Council Mtg. Date:------ -- --6hl~- Final Action Needed By: 6/11/07 Agenda Item: 78 Budgeted Amount: Actual Amount: Funding Source: _ ___ iCouncil Action. Request: ---:-~i ! Motion to Approve Resoluifon-Oi~58:- Resolution Adopting Deferred Special Assessment Roll for the 2007 PMP Improvements. iStaff Recommendation: iApprove Resolution-O'i=S8:-ResoiutTo"n Adopting Deferred Special Assessment Roll for the 2007 PMP Improvements. ~porti"-R D()~!:!I1l~ts:(attached) ! x Memo/Letter: , x !Resolution No.: 07-58 iOrdinance No.: ! Engineering Recommendation: L_J~!torney Recommendation: ! x iOther: From Civil Engineer Kristine Giga dated June 6, 2007 Letter from Ms. Evelyn Hansen, 1465 Floral Drive i Financiallmplications:'----,----.-~ IAdministratorIStaffC()mrr1~h!~~~.2..~~i ~ ~ EN HILLS MEMORANDUM DATE: June 6, 2007 AGENDA ITEM 7.B TO: Mayor and City Council Michelle Wolfe, City Adminis.~tra~lt~o Kristine Giga, Civil Engineer ry..-p FROM: SUBJECT: 2007 PMP Improvements- Deferred Assessment BACKGROUND On May 29,2007, the City Council adopted the special assessment roll for the 2007 PMP Improvement Project. The City Council moved to defer the assessment for 1465 Floral Drive. Following the opening of the assessment hearing on May 14,2007, staff contacted the property owner, Ms. Evelyn Hansen, informing her of the recommendation to defer the assessment per the Assessment Policy. She indicated that while she appreciated staffs efforts in this matter, she did not find the solution acceptable. Attached is a letter from Ms. Hansen dated June 4, 2007, stating her concerns. DISCUSSION According to Minnesota Statute Chapter 429, when payment is to be deferred against unimproved property, the resolution levying the assessment must specifY terms and conditions for the deferment as well as standards and criteria to be applied in administering the deferment policy. For example, if unimproved property is later platted or improved by the construction of substantial buildings as defmed in the resolution, payment of the assessment could be spread over a number of years commencing with the next tax levy following construction and ending a certain number of years from the date of the assessment (maximum length of time allowed is 30- years). If the property is neither platted nor improved within the determined number of years from the date of assessment, payment could be spread over a given number of years in annual installments. \\RVNAS 1 \AHdata$\PR&PW\Engineering\2007\Counci!_ Actions\6-11-07Memo2007PMP _ DeferredAssessment.doc 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. ~ ~HILLS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 07-58 RESOLUTION ADOPTING DEFERRED SPECIAL ASSESSMENT ROLL FOR THE 2007 PMP IMPROVEMENTS WHEREAS, pursuant to proper notice the Arden Hills City Council conducted a public hearing, received objections to the levy of Special Assessment and ruled on the objection to the levy of Special Assessment for the City of Arden Hills 2007 Pavement Management Program Improvements, which includes the maintenance of the streets by milling, paving, repair of concrete curb and gutter, repair of utilities and necessary appurtenances ofthe following street: Royal Lane WHEREAS, the following property abuts Royal Lane but has a postal address of 1465 Floral Drive: The East 250 Feet Of The South 350 Feet Of The North 1/2 Of The Southwest 1/4 Of The Southwest 1/4; Subject To Easements In Section 22 Township 30 Range 23 WHEREAS, according to current City Code, this property could be further subdivided, and WHEREAS, the Arden Hills City Council determined that the Special Assessment for the above property would be deferred until the sale or further subdivision of the property, or the expiration of _ years from the date of the adoption of this Deferred Special Assessment Roll, which ever event occurs first. NOW, THEREFORE, BE IT RESOLVED by the Mayor and the City Council that: I. Such deferred assessment roll, a copy of which is attached, is hereby accepted and shall constitute the deferred special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. \\Melro-inet.us\ardenhills\Admin\CounciIIResolutions\2007\07-58, Adopting Deferred Special Assessment Roll 2007 PMP.doc 2. Such deferred assessment shall be payable in full upon the sale of the property; further subdivision of such property; or the expiration of _ years, whichever event occurs first, and shall bear interest at the rate of _ percent per annum from the date ofthe adoption of this deferred assessment resolution. 3. If the adopted deferred assessment differs from the proposed assessment as to any particular lot, piece, or parcel of land, the City Administrator shall mail to the owner a notice stating the amount of the adopted assessment. The administrator must also notify affected owners of any changes adopted by the Council in interest rates or prepayment requirements from those contained in the notice of the proposed assessment. 4. The owner of any property so assessed may, at any time prior to certification of the assessment to the county auditor, pay the whole of the assessment on such property, to the City Administrator, no interest shall be charged ifthe entire assessment is paid within 30 days from the adoption of the assessment. The owner may at any time thereafter, pay to the County Auditor the entire amount of the assessment remaining unpaid, with interest accrued to December 3 I of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year. 5. The City Administrator shall forthwith prepare and transmit a certified duplicate of this deferred assessment to the County Auditor to be extended on the property tax lists of the county. Such deferred assessments shall be collected and paid over in the same manner as other municipal taxes. ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS TillS 11th DAY OF JUNE, 2007. Stanley D. Harpstead, MAYOR ATTEST: Michelle Wolfe, CITY ADMINISTRATOR \\Melro-inel.us\ardenhills\Admin\Council\Resolutlons\2007\07-S8, Adopting Deferred Special Assessment Roll 2007 PMP.doc ~udr 6t6wJ 9J2weJ7/ June 4, 2007 To: Mayor Stan Harpstead Members of Arden Hills City Council: David Grant Brenda Holden David McClung Fran Holmes Attention: Michelle Wolfe, City Administrator Re: Status of up corning City Council Agenda item concerning my objection to the tax assessment of two lot units ($6616.02) to Property ID: 223023330001, and your proposed resolution of my complaint In order to remove any ambiguity, and to facilitate your deliberations in this matter, I am filing this written response to your proposed resolution of my complaint, as conveyed to me by a phone call from Kristine Giga, prior to the recent meeting on Tuesday, May 29,2007, namely, that I be granted deferral of the assessment to such time as the property is subdivided or sold. I rejected the offer as an undesirable resolution, as, after a third of a century of unfettered ownership, acceptance of this offer would constitute a lien against my property. I asked her to advise you of my reply. To assure that you know, I am sending this memo today, to state my position clearly for the record, and to move this matter forward. What transpired at that meeting of May 29 - "democracy in action" -- went beyond your orderly agenda, and credit to you, you recognized it, and responded, as the priority before your eyes, there, in the emotional heat of the moment, and in the reflected rising heat of the room. Circumstances made it difficult to keep an orderly agenda from falling into disorder, and as a result, by the conclusion of the tax assessment item scheduled for the evening, some finer housekeeping formalities were left unattended. Among them, your proposal to me, and the reply that I had requested Ms Giga to transmit to you. On Friday, June I, therefore, in a series of phone conversations, with Ms Wolfe, I sought answers to some questions, as, for example, "Whither?, What is the status of my appeal? What is my next responsibility? She took care to clarify that this is a 3-stage process, to reiterate that my issue was not subsumed in your action of May 29as part of the representative appeal of the larger residential group, to note the ouly two stages that I had so far completed to that point, and to advise of the planned placement of my item on the agenda of the next meeting, scheduled for Tuesday, June 12. On her recommendation, and in preparation for that meeting, I am hereby notifYing you of my intent. ;.' -! , ." f J ~0t.'f~V ~~'iv'fV><~ Copy: Kristine Giga, P .E. II