HomeMy WebLinkAbout10-29-07 Item 4I, Forgiving Unpaid Penalties for PIN 3430230026
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~HlLLS
Request for Council Action
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Council Mtg. Oate:....-----C:fclobeiI9;i007
Final Action Needed By: ~j:~~~.~ibe.r.2~i. 2007
Agenda Item:
4.1.
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Actual Amount
Funding Source:
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located at 3200 Hamline Ave. N. in regard to the 2003 PMP Assessment.
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, Staff recommends approval of the resolution in order to file this with Ramsey County. The Council previously approved this action but!
without a Resolution.
x :;;;.. Sue Iverson, Request from little BrothersaFriends of the Elderly
X No.: 07-70 A Resolution Forgiving unpaid penalties, accrued interest and fees
No.:
Recommendation:
Recommendation:
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was
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k Counc^if' pre~i6U;IY appro;';crthi;"'action but wffhout a Resofutfon: This action""will provide the"-necessary'-paperwork to file with Ra'msey i
County.
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~~HILLS
MEMORANDUM
DATE:
October 22, 2007
Agenda Item 4.1.
TO: Honorable Mayor and City Council Members
FROM: Sue Iverson, Finance Director
SUBJECT: Request from Little Brothers - Friends of the Elderly
BACKGROUND
In 2003, the City did a PMP project that resulted in an Assessment of $59,364.00 to Little
Brothers - Friends of the Elderly for property they owned in the City of Arden Hills at 3200
Hamline Avenue N. In 2004, they received a tax statement from Ramsey County showing the
assessment which was to run for 10 years at an interest rate of 5.5%. On May 15, 2004 they paid
the first half tax statement amount of $5,936.40. On July 9, 2004, they paid $53,427.60 which
was the remaining balance due after the 2004 payments. Due to a misunderstanding or
misinterpretation between the organization and the county, the second half payment of$5,936.40
was never paid leaving a balance that continued to accrue interest and penalties.
On August 2, 2007, Ramsey County sent them a letter stating that they had an outstanding
balance of $7,920.38. This letter also stated that this property was subject to tax forfeit to the
State of Minnesota in 2008.
On August 16, 2007 staff received calls from Therese Cain of Little Brothers - Friends of the
Elderly and Mary from Ramsey County Property Tax departments regarding this matter. After
several phone calls and information gathering, all parties agree that there was a misunderstanding
on the part of Little Brothers - Friends of the Elderly on the assessment process, payment dates,
and actual amounts due. Little Brothers - Friends of the Elderly has made an additional payment
of $5,474.50 on August 23, 2007 which would be the outstanding principal balance leaving
$2,445.88 still due on the account ($766.43 penalty, $$1,667.45 interest, and $12.00 fees). This
is calculated through August 31, 2007.
We have received a letter from the organization dated August 27, 2007 asking the City Council
to forgive or write-off the remaining balance of penalties, interest, and fees (see attached).
Page 2 of2
DISCUSSION
According to State Statute, the only body with authority to honor this request is the City Council.
After researching this matter with the county and reviewing the records, staff has determined that
there was no intent to "not" pay the assessment, only confusion as to process and amounts.
At the September 10, 2007 Council meeting, the Council unanimously approved the request from
Little Brothers - Friends of the Elderly to Forgive Penalties, Interest and Fees on 3200 Hamline
Avenue N. in Regard to the 2003 PMP Assessment.
As a simple housekeeping item, a formal resolution needs to be approved in order to file this
with Ramsey County. The City Attorney has drafted the attached resolution.
RECOMMENDATION
Staff recommends approval of Resolution No. 07-70, a Resolution forgiving unpaid penalties,
accrued interest and fees on PIN No. 34-30-23-0026 located at 3200 Hamline Ave N. in regard to
the 2003 PMP Assessment.
CITY OF ARDEN HILLS
RAMSEY COUNTY, MINNESOTA
RESOLUTION NO. 07-70
A RESOLUTION FORGIVING UNPAID PENALTIES, ACCRUED
INTEREST AND FEES
WHEREAS, on April 28, 2003, the Arden Hills City Council adopted Resolution
No. 03-40 and thereby levied Special Assessments in the amount of $59, 364.00 on real
property identified by PIN No. 34-30-23-0026 and located at 3200 Hamline Avenue,
Arden Hills, Minnesota (the "Property").
WHEREAS, on May 15, 2004 the owner of the Property paid $5,936.40 to
Ramsey County which amount the owner of the Property believed to be one-half (\I,) of
the Special Assessment Installment due and payable in 2004; and
WHEREAS, on July 9, 2004, the owner of the Property paid $53,427.60 to
Ramsey County which the owner of the Property believed to be the remaining amount
due on the Special Assessments levied by Arden Hills Resolution No. 03-40 ; and
WHEREAS, on August 2, 2007, the owner of the Property was notified by
Ramsey County (Delinquent Notice) that $7,920.38 remained due and payable as a result
of the Special Assessment levied by the Arden Hills Resolution No. 03-40;
WHEREAS, the owner of the Property has paid $5,475.50 to Ramsey County
since receipt of the Delinquent Notice and has requested that the remaining amount of
$2,445.88 (consisting of penalties in the amount of $766.43; accrued interest in the
amount of$I,667.45; and fees in the amount of$12.00).
WHEREAS, the Arden Hills City Council has considered the circumstances
which led to the issuance of the Delinquent Notice and have concluded that the amounts
which remain due are the result of misunderstandings and reasonable errors.
NOW, THEREFORE, BE IT RESOLVED, that the Arden Hills City Council
hereby forgives the payment of $2,445.88 and any additional amounts which have
accrued since the last payment made by the owner of the Property to Ramsey County for
Special Assessments levied by Arden Hills Resolution 03-40 on the Property.
ADOPTED by the City Council this
day of
,2007.
DATED this
day of
,2007.
CITY OF ARDEN HILLS
Stan L. Harpstead
Its: Mayor
By:
ATTESTED BY:
Michelle Wolfe
Its: City Administrator
F:\users\Jessica\Jerry\Arden Hills\Resolution No.07-.doc