HomeMy WebLinkAbout6A Prior South Street Improv
AGENDA #:
PREPARED BY:
SUBJECT:
DATE:
BACKGROUND:
DISCUSSION:
ISSUES:
ALTERNATIVES:
STAFF AGENDA REPORT
~~ANK BOYLES, CITY MANAGER 0x~
CONTINUATION OF COMBINED UBLlC HEARING AND
ASSESSMENT HEARING ON PRI OUTH STREET IMPROVEMENT
PROJECT 94-01 AND OTHER 1994 PROJECTS AND CONSIDER
APPROVAL OF RESOLUTION 94-29
JULY 18,1994
This report provides a second alternative for the City Council to consider
for special assessing benefitting properties in the Prior South area.
Attached for information is a copy of an approving resolution which would
authorize this assessment method rather than that which was contained
the agenda packet for the July 18 meeting, and an assessment roll
showing the assessments which would result from this method.
In my July 8 Update memorandum I identified two options which the City
Council could consider for the assessment of benefitting properties in
Prior South. One alternative has been reviewed as part of your original
agenda packet. This report describes another alternative.
Under this assessment proposal, front foot method would be used but the
the rate would be adjusted from $63.47 per front foot to $54.47 per front
foot for each single family unit. This front footage rate compares well with
the front footage to be assessed on Northwood Road. It also
corresponds with the appraisal conducted for the city earlier this year.
While that appraisal focused primarily on a per unit calculation, a similar
square footage figure is reached by dividing the unit number of $4860 by
the typical lot size of 90 feet.
The front footage for the multi family and commercial would remain at
$63.47 originally proposed. This is done in recognition that the multi
family units do contribute a comparatively larger degree of traffic intensity
to the roadway and the fact that the appraisal supported the assessment
amount for commercial and multi family.
This assessment method recognizes that there is a correlation between
benefit and parcel size. It is also somewhat more consistent with the
current ordinance in that it is based upon front footage. On the other
hand, the appraiser had a greater comfort level with the per unit
assessment.
The Council may elect to:
1. Adopt the original assessment roll from the July 5 meeting.
process.
2. Adopt the assessment roll and process contained in the
agenda packet for this meeting.
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4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNIlY EMPLOYER
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3. Adopt this assessment roll and process.
4. Disapprove the project.
RECOMMENDATION: Adopt one of the two alternate assessment methods and proceed with
project construction. In either case, the residents benefit significantly
through a reduced assessment, the assessments are defensible based
on our own appraisal and the project assures that some of the worst
roadways in Prior Lake are reconstructed and renewed.
ACTION REQUIRED: Motion and adoption of the appropriate Resolution and assessment roll.
AGNSUP,WRT
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DATE:
6A
BRUCE LONEY, ASSISTANT CITY ENGINEER
CONTINUATION OF COMBINED PUBLIC HEARING AND
ASSESSMENT HEARING ON PRIOR SOUTH STREET
IMPROVEMENT PROJECT #94-01, AND OTHER 1994
PROJECTS - AND CONSIDER APPROVAL OF RESOLUTION
94-29
JULY 18, 1994
AGENDA NUMBER:
PREPARED BY:
SUBJECT:
INTRODUCTION:
The purpose for this Agenda item is to conclude the Assessment
Hearing for Prior South Street Improvement Project 94-01, and for
adoption of the enclosed assessment roll by approving Resolution
94-29.
BACKGROUND:
At its regular meeting of May 2, 1994, the Council approved
Resolution 94-22 which declared the cost to be assessed, and
ordered the preparation of the assessment roll. Also Resolution
94-23 was approved establishing the date of the Assessment
Hearing for the Prior South street improvements. At the June 6,
1994, Council meeting the assessment healing for Plior South
so"eet improvements was opened. Written and oral comments were
received and entered into the record. The hearing was continued to
allow the City to conduct a new Public Hearing on the Prior South
project, including other 1994 projects in the bond issue.
On July 5, 1994, the Assessment Hearing was continued to
consider the assessments for the Prior South so"eet improvement
project and the deferment of Lot 5, Block 4, Prior South, per Prior
Lake City Code Chapter 1-13. At this meeting, several residents
presented a wlitten objection and a petition objecting to the
proposed assessments and, in particulal', the 60% assessed
proportion versus 40% general ad valorem tax levy split. Also, the
residents questioned the assessment rate method for commercial
and multi-family property being the same as single family
residential and whether the assessment policy is applicable when
the street is totally reconstructed.
At the July 5, 1994, meeting it was decided to continue the hea.J.ing
until J lily 18, 1994, and staff was directed to review the proposed
assessment roll for compliance of City assessment requirements
4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPt)RTUNllY EMPLOYER
" T
and if unique circumstances are affecting th assessments for this
project. A notice has been sent to all property owners within the
project as to the continuance of the Assessment Hearing to July 18,
1994.
DISCUSSION:
All property owners have been mailed a Statement of Special
Assessments which included all appropriate information pertinent
to their property based upon Prior Lake City Code Chapter 9-1-6.
This assessment policy was adopted on January 14, 1985, and was
the basis for the assessments on street improvement Projects 85-11
(Willow/Green Heights), 86-11 (Hidden Oaks/Oakwood Hills),
89-11 (Downtown area). This policy calls for assessments to be
based on a front footage method, to be current with no deferments
except those allowed by Prior Lake City Code Chapter 1-13, and
the assessment split to general ad valorem tax levy be 60% to 40%.
The Assessment Policy Ordinance does define street overlaying as;
"A street improvement project whereby a new bed of road material
such as bituminous is installed over an existing paved road to a
specified thickness". Using a strict interpretation of this definition,
a street reconstruction project such as Prior South could be
excluded from the requirements of the Prior Lake City Code per
Glenn Kessel, City Attorney. The previous street overlay projects
done in 1985, 1986 and 1989 had portions of streets that were
reconstructed and portions of street that were overlayed with
bituminous material. The ordinance was applied to these projects
in regards to assessments. The Prior South project as proposed is
reconstructing 100% of the streets within the project area. Based
on the rationale of a 100% street reconstruction project and a strict
interpretation of the Prior Lake City Code street overlaying
definition, the requirements of the City Code could be waived by
Council.
Staff was directed at the July 5, 1994, meeting to review the
proposed assessments for the Prior South project. An appraisal has
been completed for the project to determine the benefit to the
parcels being assessed. The appraisal supported $4,860.00 benefit
to a single family residential lot. Multi-family and commercial
property off of Brunswick Avenue had a benefit which was
appraised to $20,160.00 and $22,000.00 respectively.
The single family residents could be assessed on a front footage
basis with a cap of $4,860.00, and the multi-family and
commercial properties at the project rate of $63.47/FF, and sustain
benefit based upon an appraisal.
With the consideration that the "Overlay Ordinance" does not
strictly apply to street reconstruction projects, staff has three
alternatives for Council to consider for Prior South and are as
follows:
1. Assess the project on a front footage basis at $63.47/FF as
per the assessment role presented on June 6, 1994 and July
5, 1994.
2
Prior Lake Code Chapter 1-13 allows for the deferment of
assessment principal and interest if the following four criteria are
satisfied:
1. Applicant must be 65 years of age or older.
2. The qualifying property must be the homestead of the
applicant.
3. Annual gross income shall not exceed the income limits as
set forth by family size according to Attachment A of
Ordinance 86-03.
4. Total special assessments to be deferred must exceed
$1,000.00.
The City received one application for deferment of special
assessments associated with the Prior South street overlay
improvements.
Gerhard Zaudtke's submittal request (see attached copy) has been
reviewed by Staff and meets all the above referenced requirements.
Therefore, Staff would recommend Council deferment of special
assessments for Lot 5 Block 4 Prior South (PIN# 25 017 059 0) in
the amount of $5,077.60 subject to the annual review process and
approval of Resolution 94-29. In accordance with the policy,
interest continues to accrue on the llnpaid balance during the
deferral period.
RECOMl\tlENDATION: Depending upon the input received at the hearing, the Council can
determine whether adjustments to the proposed assessment roll
should be made. Staff would recommend alternative #3 which
reduces the assessments to single family residential property and is
defendable if the assessments appeals proceed to court. Also, it is
recommended to proceed with the Prior South project in order to
do the Sand Pointe parking lot paving project and bituminous
sealcoating and avoid the backlogging of public projects for future
years.
ALTERNATIVES: The alternatives are as follows:
1. Approve Resolution 94-29 adopting the assessment roll as
submitted.
2. Approve Resolution 94-29 subject to Council approved
changes.
3. Deny the project for future consideration this year.
BUDGET IMPACT:
There is no direct impact upon the annual operating budget as the
bond payments shall be dependent upon assessments and an annual
valorem tax levy. However, an estimated 1995 property tax.
increase of 2.5% is anticipated. The Storm Water Quality cost has
been budgeted in the 1994 budget.
4
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2. Deny the project.
3. Assess the single family resident on a front footage basis
with a cap of $4,860.00 and assess the multi-family and
commercial properties on a front footage basis at
$63.47/FF.
Alternative #1 is the same proposed assessment as presented
earlier in which several residents have objected in writing to their
assessments and may appeal to District Court.
Alternative #2 would delay this project and other 1994 City
projects such as Sand Pointe parking lot paving and bituminous
sealcoating of City streets.
.
Alternative #3 would reduce the 41 single family residential
properties to a $4,860.00 cap and would equalize the assessments
between these properties. The assessment of $4,860.00 would be
supported by the appraisal. Commercial and multi-family
properties would continue to be assessed on a front footage basis
at $63.47/FF as previously determined in the assessment roll.
A change in the assessment amounts require a mailed notice
subsequent to the assessment roll adoption.
All 41 single family residential parcels have their assessment
amount reduced with this alternative. The minimum single family
residential assessment amount under alternative #l was $4,950.66
with the maximum single family residential assessment being
$6,981.70. The larger lots would be receiving a greater reduction
than smaller lots, however, the improvement could be considered
to improve each single family residential parcel.
The preliminary assessment roll as authorized by the City Council
and presented at the July 5, 1994 Council meeting, amounted to a
total of $329,988.22. The enclosed assessment role for alternative
#3 has a proposed total assessment amount of $297,138.35 which
is $32,849.87, less than the original assessment roll. The project
financing for Prior South can be summarized as follows:
l)
2)
3)
FUNDING SOURCE
Assessments
Ad Valorem Tax
Storm Water Quality
AMOUNT
$297,138.35
$252,861.65
$ 15,000.00
TOTAL
$565,000.00
The assessment terms are to be for ten (10) years for paving, sewer
and water. Added to the first year installment (1994) will be an
additional 166 days of interest which account for the remaining
days of 1994 following the Public Hearing. The interest rate of 8%
is the minimum interest rate charged on all assessments as
approved by Council on March 7, 1994:
3
ACTION REQUIRED:
AG718.ENG
Motion to approve Resplution 94-29 and approve the deferment for
Ger~a.rd Zaud:f~e (P~ #25-017-059-0) contingent upon Council
amendment. \
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REVIEWED BY'
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RESOLUTION 94-29
RESOLUTION ADOPTING ASSESSMENT FOR
PRIOR SOUTH STREET IMPROVEMENTS
PROJECT 94-01
(ACTION ON THIS CONTINUED ON JULY 18,1994)
MOTION BY:
SECONDED 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 assessment
for the improvements of Project 94-01.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF PRIOR
LAKE, MINNESOTA:
1. Such proposed assessment, a copy of which is attached hereto and made a part
hereof, is hereby accepted and shall constitute the special assessment against the
lands named therein, and each o'act of land therein included is hereby found to be
benefitted by the proposed improvement in the amount of the assessment levied
against it.
2. Such assessment shall be payable on an equal principal method extending over a
period of .ill years. The fIrst installment shall be the annual principal plus interest
calculated from the Public Healing date to the end of this yeal' plus the twelve
months of the next year and shall bear interest at the rate of .8. percent per annum
from the date of the adoption of this assessment resolution. To the first
installment shall be added interest on the entire assessment from the date of this
resolution until December 31,.l225.. To each subsequent installment when due
shall be added interest for one yeal' on all unpaid installments.
3. The owner of any property so assessed may, at any time plior to celtifIcation of
the assessment to the County Auditor, pay the whole of the assessment on sllch
property, with interest accrued to the date of payment, except that no interest will
be charged if the entire assessment is paid within 30 days; and an 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 appealing upon
the cun-ent yeal"s property tax statement.
4. The City Manager 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.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNI1Y EMPLOYER
T
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5. The final project cost apportionment has been determined to be $565,000.00 of
which $252,861.65 and $15,000.00 shall be paid from the City's Ad Valorem Tax
Levy and the City's Storm Water Utility Fund, respectively, and $297,138.35 to
be assessed to the benefitted property owners as per attached assessment roll.
Passed and adopted this _th day of.
, 1994.
YES
NO
Andren
Greenfield
Kedrowski
Schenck
Scott
Andren
Greenfield
Kedrowski
Schenck
Scott
Frank Boyles
City Manager
City of Prior Lake
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