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Home My WebLink About8A - Public Hearing Maple Glen Second Project Assessment Roll MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT APRIL 6, 2009 8A LARRY POPPLER, ASSISTANT CITY ENGINEER PUBLIC HEARING TO CONSIDER SPECIAL ASSESSMENT AND CONSIDER APPROVAL OF A RESOLUTION ADOPTING THE ASSESSMENT ROLL FOR THE MAPLE GLEN SECOND PROJECT. I ntrod uction The purpose of this agenda item is to adopt the assessment roll for the Maple Glen Second Project including Sunray Boulevard, Turner Drive, Thornton Drive, Grist Court, Reed Way, Maple Drive, and Sunray Court located within Section 10, Township 114, Range 22 West, Scott County, Minnesota. Historv On October 3, 2005, the City Council approved the Development Contact for Maple Glen 2nd Addition. Construction of Maple Glen 2nd Addition with the exception of final paving (wear course) and individual lot landscaping was completed in the fall of 2006. On October 16, 2007 the City notified Tollefson Development Inc. (Developer) that streets in certain areas of the plat had settled and needed to be repaired, but due to poor soil conditions the City would prefer the Developer wait to complete the final paving until 2008 when weather conditions permitted. On December 1, 2008 the City Council approved an amendment to the Development Contract for Maple Glen 2nd Addition. Due to problems with the Letter of Credit and the inability to secure additional funds, the Developer petitioned the City to complete the final wear course paving and landscaping and has agreed the cost will be specially assessed against the lots within the plat still owned by the Developer. The Developer waived their right to appeal the special assessments. At the January 20, 2009 Public Hearing, no one spoke opposing the completion of the project. At its regular meeting of March 2, 2009, the Council approved Resolution 09- 035, which declared the cost to be assessed, ordered the preparation of the assessment roll and established the date of the Assessment Hearing as April 6, 2009 for the Maple Glen Second Project. Current Circumstances All benefiting property owners have been mailed a Statement of Special Assessments, which included information pertinent to their property such as the total proposed assessment amount and the assessment rate. The Notice of the Special Assessment Hearing was published in the newspaper on March 14, March 21, March 28, and April 4, 2009. Under State Statute, the City may only assess a property up to the amount the www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 ISSUES: FINANCIAL IMPACT: property is specially benefited by the public improvement. Special benefit is defined as the difference between fair market value before and after the project. The Property owners who believe that the proposed assessment exceeds the special benefit have a right to appeal their assessments as per Minnesota Statutes Chapter 429. Written objections must be signed and filed with the City Manager prior to the Assessment Hearing or presented to the Council at the Hearing. Within 30 days of the hearing, the owner must also file the appeal in District Court. No appeals were received at the time this report was prepared. We have apprised each of the property owners of our Deferred Assessment Program. Imoact of Foreclosure on the Assessment Process The City has received information suggesting that the lots still owned by the Developer may now be in foreclosure. Foreclosure is a lengthy process and before the mortgage holder comes into ownership, the mortgagee has a period of time, prescribed by statute, to redeem the property. Neither a foreclosure nor a bankruptcy can wipe out property taxes or special assessments due and owing. Failure to pay property taxes or special assessments puts the property at risk of going into tax forfeiture. The Assessment Hearing Notice was mailed to both the Developer (Tollefson Development) and the Bank (M&I Bank) as well as the attorney representing the bank on the foreclosure process (Briggs and Morgan). ImDact of Tax Forfeiture on the Assessment Process Assuming the lots in Maple Glen 2nd Addition are foreclosed, in normal economic times, it would be unlikely that a bank would allow property it has recovered through foreclosure to go into tax forfeiture. These lots in Maple Glen 2nd Addition may be the only asset the bank has to recover the money loaned to the Developer. The lots will be more valuable when the streets and landscaping are improved. In the event of tax forfeiture, the State would take ownership of the property and direct the County on its behalf, to dispose of each parcel by auction, private sale or conveyance to a governmental body. The assessments on the property would still be valid however there could be a delay in payment of the assessment until the forfeiture process is complete and the property returns to private ownership. Assessment Review Committee The Assessment Review Committee met on March 23, 2009 to discuss the proposed assessment. The bids received on this project actually lowered the proposed assessment substantially. The Assessment Review Committee was comfortable with the revised assessment amount of $6,005.00 per unit for the 23 specified lots identified in the Assessment Hearing Notice. The City received bids from 12 construction companies on March 18, 2009. The low bid amount was received from Valley Paving in the amount of $122,500. Adding contingency and bonding costs bring the total project cost for the Maple Glen Second project to $138,115.00 This cost is proposed to be funded entirely through special assessment. These improvements will be financed through the issuance of $138,115.00 of general obligation bonds. The Council should open the public hearing, receive public input and then close the public hearing. If certain issues need additional study, those issues could be referred to the Assessment Review Committee for evaluation and recommendation; otherwise, it would be appropriate to approve the attached resolution. Statute requires that special assessments be certified to the County by November 30th. Since property owners must be allowed 30 days to payoff their assessments interest free, the assessment roll must be adopted prior to November 1, 2009. Since, property owners have 30 days after the adoption of the assessment roll to appeal the special assessment to the District Court, the award of the project will not occur until May 18th, 2009. ALTERNATIVES: The alternatives are as follows: 1. Approve a resolution adopting the assessment roll as submitted. 2. Approve a resolution subject to Council approved changes. 3. Close the hearing and direct the Special Assessment Review Committee to examine issues or concerns raised at the hearing and provide a recommendation for Council action at a future meeting. RECOMMENDED Alternative # 1 MOTION: ... ReVieW~:J Frank Boyles. C79 RESOLUTION ADOPTING ASSESSMENTS FOR THE MAPLE GLEN SECOND PROJECT Motion By: Second By: WHEREAS, Pursuant to proper notice duly given as required by law, the Council has met and heard and passed upon all objections to the proposed assessments for the Maple Glen Second Project NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. Such proposed assessment, a copy of which is attached hereto and made part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 3. Such assessments shall be payable on an equal principal method extending over a period of ten (10) years for paving. The first installment shall be the annual principal plus interest calculated from the Public Hearing date to the end of this year plus twelve months of the next year and shall bear interest at the rate of six (6) percent per annum from the date of adoption of this assessment resolution. To the first installment shall be added two hundred sixty-nine (269) days of interest on the entire assessment from the date this resolution is adopted to December 31,2009. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 4. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of the payment, except that no interest will be charged if the entire assessment is paid within thirty (30) days, and the individual may at any time thereafter, pay to the City's Finance Director the entire amount of the assessment remaining unpaid, excepting the installment portion appearing upon the current year's property tax statement. 5. The Finance Director shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of Scott County. Such assessments shall be collected and paid to the City in same manner as other municipal taxes. 6. The portion of the cost to be assessed against benefited property owners is declared to be $138,115.00. PASSED AND ADOPTED THIS 6th DAY OF APRIL, 2009. YES NO Haugen Erickson I Hedberg I leMair I Millar Haugen Erickson Hedberg leMair Millar Frank Boyles, City Manager www.cityofpriorlake.com R:\Council\2009 Agenda Reports\O.rb&l(Y9~4'G1eg~9 r/sJBrfoWb(jt~. 7.4245 DESCRIPTION: ASSESSMENT UNIT RATE (100%) ASSESSMENT CODE: INTEREST RATE: TERM: INITIAL YEAR: ADDITIONAL INTEREST: PAYMENT METHOD: PROJ. #05-101 MAPLE GLEN 2ND ADDITION $12.616.00 109 6% 10 YEARS 2009 269 DAYS EQUAL PRINCIPAL TOTAL NUMBER ASSESSMENT NO. LEGAL DESCRIPTIO~ PARCEL ADDRESS PARCEL NUMBER PROPERTY OWNER & ADDRESS OF UNITS AMOUNT TOLLEFSON DEVELOPMENT INC 20520 KEOKUK AVE L 1 B1 PLAT 25442 MAPLE GLEN 2ND 17537 SUNRAY BLVD SW 254420010 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 20520 KEOKUK AVE 2 L2 B1 PLAT 25442 MAPLE GLEN 2ND 17555 SUNRAY BLVD SW 254420020 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 17581 SUNRAY BLVD SW OR 20520 KEOKUK AVE 3 L3 B1 PLAT 25442 MAPLE GLEN 2ND 3372 TURNER DR SW 254420030 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 20520 KEOKUK AVE 4 L4 B1 PLAT 25442 MAPLE GLEN 2ND 3398 TURNER DR SW 254420040 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 20520 KEOKUK AVE 5 L 1 B2 PLAT 25442 MAPLE GLEN 2ND 3467 TURNER DR SW 254420060 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 20520 KEOKUK AVE 6 L3 B2 PLAT 25442 MAPLE GLEN 2ND 3431 TURNER DR SW 254420080 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 20520 KEOKUK AVE 7 L4 B2 PLAT 25442 MAPLE GLEN 2ND 3413 TURNER DR SW 254420090 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 20520 KEOKUK AVE 8 L5 B2 PLAT 25442 MAPLE GLEN 2ND 3395 TURNER DR SW 254420100 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 3373 TURNER DR SW OR 20520 KEOKUK AVE 9 L6 B2 PLAT 25442 MAPLE GLEN 2ND 17629 SUNRAY BLVD SW 254420110 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 3372 REED WAY SW OR 20520 KEOKUK AVE 10 L7 B2 PLAT 25442 MAPLE GLEN 2ND 17667 SUNRAY BLVD SW 254420120 LAKEVILLE MN 55044 $6,005.00 R\CouncH\2009 Agenda Reports\04 06 09\Maple Glen 2nd assessment database 3/30/20095:04 PM TOLLEFSON DEVELOPMENT INC 20520 KEOKUKAVE 11 L8 82 PLAT 25442 MAPLE GLEN 2ND 3392 REED WAY SW 254420130 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 20520 KEOKUKAVE 12 L 1082 PLAT 25442 MAPLE GLEN 2ND 3430 REED WAY SW 254420150 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 20520 KEOKUKAVE 13 L 1382 PLAT 25442 MAPLE GLEN 2ND 3435 REED WAY SW 254420180 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 3375 REED WAY SW OR 20520 KEOKUKAVE 14 L 1682 PLAT 25442 MAPLE GLEN 2ND 17713 SUNRAY 8LVD SW 254420210 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 17702 SUNRAY 8LVD SW OR 20520 KEOKUK AVE 15 L 1 83 PLAT 25442 MAPLE GLEN 2ND 3342 SUNRAY CT SW 254420220 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 20520 KEOKUK AVE 16 L 1 84 PLAT 25442 MAPLE GLEN 2ND 3224 MAPLE DR SW 254420250 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 20520 KEOKUK AVE 17 L 1 85 PLAT 25442 MAPLE GLEN 2ND 3177 MAPLE DR SW 254420260 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 20520 KEOKUK AVE 18 L2 85 PLAT 25442 MAPLE GLEN 2ND 3195 MAPLE DR SW 254420270 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 20520 KEOKUK AVE 19 L3 85 PLAT 25442 MAPLE GLEN 2ND 3213 MAPLE DR SW 254420280 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 3337 THORNTON DR SW OR 20520 KEOKUK AVE 20 L 1 86 PLAT 25442 MAPLE GLEN 2ND 17578 SUNRAY 8LVD SW 254420290 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 3297 THORNTON DR SW OR 20520 KEOKUK AVE 21 L3 86 PLAT 25442 MAPLE GLEN 2ND 17589 GRIST CT SW 254420310 LAKEVILLE MN 55044 $6,005.00 TOLLEFSON DEVELOPMENT INC 17592 GRIST CT SW OR 20520 KEOKUK AVE 22 L8 86 PLAT 25442 MAPLE GLEN 2ND 3269 THORNTON DR SW 254420360 LAKEVILLE MN 55044 $6,005.00 TOLLt:t-:::lUN DEVELOPMENT INC 20520 KEOKUK AVE 23 L 1086 PLAT 25442 MAPLE GLEN 2ND 3237 THORNTON DR SW 254420380 LAKEVILLE MN 55044 $6,005.00 TOTAL $138,115.00 R\Council\2009 Agenda Reports\04 06 09\Maple Glen 2nd assessment database 3/30/20095:04 PM