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REQUEST FOR CODNCIL ACTI0N DATE: 3/8/93 ITEM K0; : I , T Department Approval: Manager Reviewed* Agenda Section: Reports and Recommendations item ascription: Amending assessment Droll for Terrace Drive improvement, for former Lincoln Development parcels, city project 92-04 Background: Last fall, the city council adopted an assessment roll for improvements to Terrace Drive from Lincoln Drive westerly to the cul -de- sac, connecting with.the existing Terrace Drive at the ditch. Assessments were levied against all benefiting properties consistent with past city assessment policy. Municipal State Aid funds were also available to supplement the project financings Prior to constructing the improvement, when the public improvement hearing phase was being considered by the council, I received a request from Lincoln Development for consideration for a possible assessment reduction. This was based on the fact that they previously constructed the segment of Terrace Drive from Lincoln westerly to provide access for the Edina Realty building and shopping center. Since this segment of road would have to be removed and reconstructed to facilitate the city project,-they felt they should receive gone credit for past construction. 1 agreed in concept with the request and agreed to reduce their assessment upon receipt of a written request at the time the project assessment hearing were held. Unfortunately, at the time- .the project was assessed last fall, owners of the Rosedale Square Forth Shopping Center property and office building were in bankruptcy proceedings. Since no written request came from the property owners at that time, we proceeded with an assessment against all parcels in the -full amount consistent with the city assessment policy* We have now received a letter from the bank that now owns title to the former Rosedale Square North property including the retail center and office building. The letter, a copy of which is attached, requests the reduction of the assessed amounts consistent with past agreements I had with the former owner. The request would be to reduce the assessments against the property by approximately 60% from $126,000 to 5 3, 5 0 0. Policy objectives* The-request from Norwest Bank is consistent with past written agreements between my office and the former shopping center ownerse Because the property was in bankruptcy proceeding, the request was not fo rm ally made in writing from the property owners. The assessment was levied as originally recommended. Had the request been made during the assessment proceedings, it would have been reasonable