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City of Centerville February 27, 2002 Council Minutes would cost to develop the property both before and after water is aYailable and noted the City could hire an appraiser to determine that number. Council Member Nelson asked if someone cballenges the benefit to the property and the judge rnled that the benefit to the property was less than what the City was assessing does , the City pay for the remaining costs. City Attorney Hoeft indicated that, if no appeals were :filed, the City would be required to pay the remaining costs. Council Member Capra asked if: for instance, Mr. Rehbein does not agree to $60,000 and cballenges the assessment would the judge ever say he bad to pay no assessment. City Attorney Hoeft indicated that there is a benefit to the property and Mr. Rehbein understands that but the value of the benefit is in question. Council Member Capra asked whether the City would be able to use funds out of the water fund to cover any remaining costs resulting ftom a cballenged assessment. City Attorney Hoeft indicated. the City had options for where to recoup those dollars. City Attorney Hoeft indicated he was not an appraiser but said be feels $4000 as an assessed value to the properties could be sustained, if cballenged. He then said it may be possible for Mr. Rehbein to challenge a per lot cost of$10,OOO or more. He further stated that, at this point, it is a political decision for the City as to whether or not to proceed with the project. Council Member Travis asked how much money was in the Lakeland HilJs account paid by the developer for future water expansion. Ms. Moore-Sykes indicated there was $50,000 in the LakeJand Hills account. Mayor Swedberg said he thought the LakeJand Hills account was one of the accounts showing negative numbers. Ms. Moore-Sykes indicated she would look into the matter. Council Member Travis commented that he thinks the City should take advantage of getting water to the area by utilizing the developer and the funds in the LakeJand Hills account but he said he does not fuel the taxpayers of the City should have to pay if assessments are chaJlenged. Mr. Rehbein indicated he wants to work with the City to come up with numbers that make economic sense. Aves - 4~ Navs - USwedbel'2). MOtiOD carried. Mayor Swedberg noted the City would be expending dollars for plans and specifications on the project. City Attorney Hoeft indicated the plans and specifications would be prepared and the City Engineer would come back before Council with the plans before putting it out to bid. Page 11 of24