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ks�bWSEN+EhE REQUEST FOR COUNCIL ACTION Date: 11/18/13 Item No.: 7.h Department Approval City Manager Approval Item Description: Consider Amendment to Settlement Agreement and Assessment Agreement with PIK Terminal Company and Adopt Assessments for PIK Terminal Company BACKGROUND On June 18, 2012, the City Council approved the Settlement agreement for the purchase of land from PIK Terminal Co. Limited Partnership. One of the terms of settlement included in this agreement was the City would undertake the demolition of the existing structures on the PIK parcels and PIK would be assessed all costs associated with the demolition (e.g. engineering 6 reports, city staff time, building removal, etc.). The terms of the assessment would include: 7 • A twelve year assessment with a two year repayment deferral with no interest accruing s and a ten -year repayment schedule; 9 • An interest rate of six percent • Full repayment of the assessment would be due upon sale of the PIK property. On January 28, 2013, the City Council awarded a contract for demolition of the buildings on the PIK Terminal Co. Limited Partnership property located at 2680/ 2690 Prior Avenue. The project was completed in accordance with the plans and specifications and final acceptance was 116 approved by the City Council on August 12, 2013. 15 There was a clerical error in the approved Assessment agreement; the parcel identification numbers listed do not reference the parcels on which the demolished buildings were located. The City Attorney recommends an amendment to the agreement be approved prior to adopting the '16 assessments, so that all documents and agreements accurately reflect the parcels to be assessed. 19 POLICY OBJECTIVE 20 Per the settlement agreement, the City will assess the property owner for the project costs. The 21 assessment roll has been prepared in accordance with the agreement, listing the correct parcel 22 identification numbers. d FINANCIAL IMPACTS 24 The cost of demolition of the PIK buildings totaled $39,571.00. Engineering, staff time, permit 25 fees, and environmental assessments totaled $16,442.18. The total assessment, $56,013.18, will 26 be divided between the two parcels based on the lot areas. The City paid for the initial demolition 27 through TIF District 17 funds. The TIF District will be paid back over a period of 12 years per 28 the assessment agreement. Page 1 of 2