HomeMy WebLinkAbout7A - Assessment Hearing 2003
MEETING DATE:
AGENDA #:
PREPARED BY:
REVIEWED BY:
SUBJECT:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
OCTOBER 6, 2003
7A
LARRY POPPLER, ASSISTANT CITY ENGINEER
SUE MCDERMOTT, CITY ENGINEER
SPECIAL ASSESSMENT PUBLIC HEARING FOR 2003 IMPROVEMENT
PROJECT #03.11 CONDONS STREET, HOPE STREET, MITCHELL CIRCLE,
AND 150TH STREET IMPROVEMENTS AND CONSIDER APPROVAL OF A
RESOLUTION ADOPTING THE ASSESSMENT ROLL FOR THE PROJECT.
History
At its regular meeting of September 15, 2003, the Council approved Resolution 03-
153, which declared the cost to be assessed and ordered the preparation of the
assessment roll for Condons Street, Hope Street, Mitchell Circle and 150th Street
Improvements, Also Resolution 03-154 was approved establishing the date of the
Assessment Hearing as October 6, 2003.
CUffentCifcumsrnnces
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 September 20th and
September 27th, 2003.
The total project cost for the improvements is $2,386,342,92, It is proposed to be
funded through tax levy, trunk reserve funds, water quality funds, collector street
funds, enterprise funds and assessments. The Assessment Review Committee
recommends that $858,650,78 of the total project cost be paid though trunk reserve,
water quality, collector street and enterprise funds, The remaining project cost of
$1,527,692,14 would be paid for by tax levy $947,389.67 (60%) and special
assessments against benefiting property owners $580,302,47 (40%) in accordance
with the City's Special Assessment Policy. There are 95 benefiting properties in the
project. The project is being assessed on a unit basis.
The assessment term is ten (10) years for paving, Added to the first installment
(2003) will be an additional 86 days of interest, which accounts for the remainder of
2003 following the Assessment Hearing, An interest rate of 6% will be charged in
accordance with the City Assessment Policy,
162!~ffagle Creek Ave. S.E. Prior Lake. Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
Under state statute, the City may only assess a property up to the amount the
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.
Issues
The Assessment Review Committee has evaluated the proposed assessments and
proposes the following findings and recommendations to the City Council:
The Assessment Review Committee recommends that the Unit Assessment method
be used for the project. The method is appropriate because the lots in the area are
of similar size and/or value and all of the properties receive the same benefit.
15()1h Street: The proposed amount to be assessed against the benefiting properties
is $260,203.63, There are 41 benefiting units in the project area that are being
assessed at a 40% rate, Based on the foregoing, the proposed assessment is
$6,346.43/unit. This is $526,88 less than our earlier estimates.
Condons Street, Hope Street, and Mitchell Circle: The proposed amount to be
assessed against the benefiting properties is $320,098,84, There are 49 benefiting
units in the project area that are being assessed at a 40% rate, Based on the
foregoing, the proposed assessment is $5,204,86/unit. This is $4,21 less than
earlier estimates, There are 5 benefiting units in the project area that are being
assessed at a 100% rate, These five units are being assessed as first time
improvements, Based on the foregoing, the proposed assessment is $13,012,14,
This is $10,53 less than earlier estimates, The Mitchell Pond Homeowner's
Association respectfully asked that the assessment for their two parcels be
distributed to the 24 Mitchell Pond Homeowner's Association members, The
$10,409,72 assessment to the Mitchell Pond Homeowner's Association amounts to
a $433.74/unit increase in the assessment for the Mitchell Pond Homeowner's
Association members,
The Assessment Review Committee believes that the special benefit received by
each of the affected properties exceeds the proposed assessment.
Special benefit appraisals were performed by Nagell Appraisal & Consulting on six
selected properties within the two project neighborhoods, The selected properties
represent lakeshore owners and non-Iakeshore owners, The special benefit
appraisals show the amount of value the properties gain from the City
03IMPAH
improvements, Based on the appraisals, all six of the properties show a benefit
higher than the assessment amount. The attached table shows the increase in
appraisal values:
Property Estimated Appraised Proposed
Benefit due to Street Assessment
Reconstruction
5060 Hope Street $10,500 $5,204,86
5060 Con dons Street $10,300 $5,204,86
5212 Hope Street $15,600 $13,012,14
5220 Hope Street $17,300 $13,012,14
5917 150th Street $17,200 $6,346.43
6028 150th Street $12,500 $6,346.43
Summary
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, Statutes
require that special assessments must 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, 2003,
FINANCIAL IMPACT: The following is a summary of the financing of the improvements,
Funding Source Project #03.11
Assessments. $580,302.47
Tax Lew. $947,389.67
Trunk Reserve $77,108,76
Collector Street $100,611,10
Water Qualitv $80,000.00
Enterprise Funds $600,930.92
Proiect Total $2,386,342.92
* The numbers shown above include 26% indirect costs for engineering, administration, and
financing,
The focus of tonight's hearing is whether the affected properties have been specially
benefited equal to or greater than the amount of the proposed assessment for each
property, and whether the assessment has been calculated accurately and in
accordance with City Assessment Policy,
AL TERNA TIVES:
The alternatives are as follows:
1. Approve a resolution adopting the assessment roll as submitted,
2, Approve a resolution subject to Council approved changes,
03IMPAH
RECOMMENDED
MOTION:
03IMPAH
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 special meeting,
A motion and second to adopt a Resolution Adopting Assessment Rolls for Project
03-11 Con dons Street, Hope Street, Mitchell Circle, and 150th Street Improvements,
"it
REVIE
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
RESOLUTION 03.XX
RESOLUTION ADOPTING ASSESSMENTS FOR PROJECT #03.11 FOR
CON DONS STREET, HOPE STREET, MITCHELL CIRCLE, AND 150TH STREET IMPROVEMENTS
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 Project 03-11 Condons Street, Hope Street,
Mitchell Circle, and 150th Street Improvements.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA:
1, 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.
2. 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 eighty-six (86) days of interest on the entire assessment from the date this
resolution is adopted to December 31, 2003, To each subsequent installment when due shall be added
interest for one year on all unpaid installments,
3, The owner of any property so assessed may, at any time prior to certification of the assessment to the
County t\uditor, 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.
4, 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,
5, The final project cost apportionment has been determined to be $2,386,342,92 of which $947,389.67,
$77,108,76, $80,000.00, $100,611,10 and $600,930,92 shall be paid from Tax Levy, City's Trunk Reserve
Fund, Water Quality Fund, Collector Street, and Enterprise Fund, respectively, and $580,302.47 to be
www.cityofpriorlake.com
03IMPAHcondons
Phone 952,447,4230 / Fax 952.447.4245
assessed to the benefited property owners at the assessment rate of $6,346.43 per unit for properties on
150th Street, $5,204.86 per unit for properties on Condons Street, Hope Street, and Mitchell Circle, and
$13,012,14 per unit for properties on Hope Street assessed at the 100% rate, as per the attached
assessment roll.
Passed and adopted this 6th of October, 2003.
HauQen HauQen
BlomberQ Blombero
LeMair LeMair
Petersen Petersen
Zieska Zieska
YES
NO
{Seal}
Frank Boyles, City Manager
03IMPAHcondons
Akrl8le(2yOcud
PUBLIC HEARING
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Please register below if you wish to address the Council
as part of the following public meeting. THANK YOU!
SPECIAL ASSESSMENT HEARING
CONSIDER APPEALS OF SPECIAL ASSESSMENTS
FOR 2003 PUBLIC IMPROVEMENT PROJECT
***
OCTOBER 6, 2003 (7pm)
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PUBLIC HEARING
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Please register below if you wish to address the Council
as part of the following public meeting. THANK YOU!
SPECIAL ASSESSMENT HEARING
CONSIDER APPEALS OF SPECIAL ASSESSMENTS
FOR 2003 PUBLIC IMPROVEMENT PROJECT
***
OCTOBER 6, 2003 (7pm)
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Chronology of Hope Street (fonnerly Condons Street) in Prior Lake, MN from 1975 to 2003
In 1975, Dr. Mitchell Jurdy, who then resided at 5194 Hope Street, sold the large parcel of land
south of what was then called Condons Street to Frank Wicker and Emmet Knox associates.
Wicker/Knox then platted a number of lots to sell for houses on Hope Street and Mitchell Circle,
Subsequently, Dr, Jurdy wanted the road mover further south so that he could have more room.
He also got Lloyd Wagner (5178 Hope Street) to grant him an easement over his property so that
his road would have less of a grade.
WickerlKnox then proposed selling the property between the old road (Condons Street) to the
property owners who would benefit. My father, (Richard Leonard Sr.) 5220, and the owners of
5204 Hope Street, 5212 Hope Street, and myself 5230 agreed.
The road was then moved to its present location and the sewer and water were subsequently
installed around 1976.
The property owners of 5172 Hope Street (Leo Ament) and 5178 Hope Street (Lloyd Wagner)
also benefited, but they got their land between the old road and the new one for free.
The property owners of 5204,5212,5220 Hope Street and myself (5230) had to incur the
expense to buy the additional land, and we therefore feel that we really did subsidize the road for
the other property owners.
The only difference between those who paid and those who got the land free is those who paid
did not get pavement.
The city of Prior Lake is now proposing to assess us 100% for the new sewer and water, for
tearing up the old pavement, and for installing new pavement and gutters, but is only proposing
to assess the property owners 40%, that is, the owners who originallly paid for the land are
getting charged a premium.
In fairness, we feel that those who incurred a monetary expense to originally buy the road should
be assessed an amount that is approximately equal to what the other property owners are
paying, and we feel it is unfair that we are being charged a significant premium.
Furthermore, the city of Prior Lake is proposing to assess my property (5230 Hope Street) at a
rate of 200%, since it is their position that the land I bought from Wicker/Knox as an
"unbuildable" lot is now considered to be "buildable." I dispute this change in the status of the
land and I do not consider it to be a "buildable" lot,
If the city agrees to assess the lots of 5204,5212, and 5220 at the 40% discount rate, I would
agree to have my property at 5230 Hope Street assessed at twice the rate of those properties,
since I have more road.
Grant Leonard 5230 Hope St.
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October 6, 2003
Re: Proposed assessment of Parcel# 250310180
259250020
259250040
I, Helen Videen, owner of property 5754 Fairlawn Shores Trail SE.
do formally object to the proposed assessment of $6,346.43.
11t-~
Helen Videen
5754 Fairlawn Shores Trail S.E.
Prior Lake, MN 55372
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