2009-08-26 Handouts @ Mtg. - Laserfiche WebLink

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We reviewed City Council meeting minutes and a sununary of revenues and expenditures prepared by the City related to this project. The following is a summary of our findings regarding the property. 1. City Council Resolution #06-020, dated February 22, 2006, authorized the condemnation of private property for public utility and drainage easements (21st Avenue/Backage Road Improvements): The City Attorney was authorized to commence eminent domain proceedings pursuant to Minn. Stat. ch. 117 to acquire the real property interests. The City Council Resolution also stated that the City Council had determined that it was "necessary and for a public use and purpose to acquire easements over the property . . . for public utility and drainage easements and temporary construction purposes with 21st Avenue/Backage Road Improvements." Furthermore, the City of Centerville determined that the costs involved would not outweigh the benefit the affected citizens of Centerville would receive. 2. The City of Centerville incurred legal expenditures for this project related to the acquisition of property from Sheehy Construction, who had objected to the eminent domain proceedings. 3. In 2006, per City Council Resolution #06-038, the City of Centerville issued $2,700,000 in General Obligation Bonds, Series 2006A, to provide the majority of the funding for the Backage Road Proj ect as well as the Hunters Crossing III project. Use of Bond Proceeds The petitioners were concerned how proceeds from a bond issue to [mance the reconstruction of County Road 14 were used. There was a concern that the proceeds may have been used to assist private developers. We reviewed City Council meeting minutes, a bond indebtedness report prepared by the City, and expenditures funded with the bond proceeds. The following items were noted. 1. City Council Resolution #07-045 accepted the proposal on the sale of $2,600,000 General Obligation Improvements Bonds, Series 2007 A, which were issued to finance the Fairview Street Improvements project, the Old Mill Road Improvement project, and the CSAH 14 Improvements project. According to City personnel, the Old Mill Road and Hanzal Development represent the same project. 'This project was a petition by the property owner as a street and utility project (curb and gutter) that the City of Centerville accepted. 2. According to the Indebtedness Report at December 31, 2008, prepared by the City, the City of Centerville's scheduled principal and interest payments on these bonds were $2,600,000 and $910,428, respectively. The debt payments are scheduled to be fmanced with $2,499,000 of tax levies and $1,011,428 of certified special assessments. Page 9