2009-06-10 CC - Approved - Laserfiche WebLink

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City of Centerville City Council Meeting June 10, 2009 City Engineer Statz replied that about 90% of the land can be covered with impervious surface. City Administrator Larson showed a slide with calculations of the special assessment, with all the requirements that were included and deducting the site-related costs and the cost from Lino Lakes. After the inclusions and deductions, he showed a total of: $1,488,953, which was broken into four assessment items: drainage, water main, sanitary sewer and paving. The first three are based on acreage and the fourth is based on the street frontage. He added that, because of these factors, the amount assessed to Sheehy was calculated at $466,000. The City had a appraisal done on the property to determine the increase in value resulting from the improvement. The appraisal increase was determined to be $400,000, which is the amount used as the proposed assessment for the Sheehy property. City Attorney Glaser stated that he had reviewed all the numbers with City Engineer Statz and City Administrator Larson, and conducted due diligence. He had also hired a professional appraiser. He stated there was one exception; a previous assessment to the property in approximately 1990. At that time, the entire parcel was owned by Sheehy, and they sold three-fourths to Lloyd Drilling. Later, the City purchased the Lloyd Drilling’s portion. The total assessment was $82,000. He suggested that the Council be conservative and credit Sheehy approximately one-fourth, or $20,500, which was paid on the old assessment. This would make Sheehy’s assessment approximately $380,000. Mayor Capra opened the Public Hearing at 6:42 p.m. Patrick Lee-O’Halloran, Sheehy’s attorney, stated that Sheehy’s objection is two-fold. 1.According to the Minnesota Supreme Court and the statutes, all you can assess is an increase in the property value from the improvements. $316,000 is the entire property value according to the County Assessor. 2. All benefiting properties should be assessed. In this case, no other property owners who benefited have been assessed. Mr. Lee-O’Halloran stated that when Sheehy owned the entire parcel, they were assessed and paid for the assessment. Therefore, they already paid for the same improvements and do not have to pay for them twice. He continued that the east side of property borders Lino Lakes, and Lino Lakes benefited as much as Sheehy. The total amount received from Lino Lakes was $150,000 for the same amount of frontage. Once again, Mr. Lee-O’Halloran stated that Sheehy’s past assessment was for the entire property. Mr. Lee-O’Halloran continued to compare assessments on other lots in the City and announced that Sheehy’s Vice President, Jim Schoenberger, and Project Manager, Blair Juliar, were also present for this Public Hearing. City Attorney Glaser stated that he respectfully disagreed. He stated that appraisers have to look at comparable lots – not just other lots in the City. He added that a corner lot is more expensive to improve. City Attorney Glaser stated that the earlier assessment numbers did not take into consideration the additional work that would need to be done to fully serve the property, that assessment was for water and sewer only and was constructed along 20th. This improvement includes additional water and sewer extensions as well as Page 2 of 10