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CONSENT AGENDA #: 4 (c)
PREPARED BY: RALPH TESCHNER FINANCE DIRECTOR
SUBJECT: CONSIDER HARBOR PROPERTIES ASSESSMENT ABATEMENT
REQUEST
DATE: SEPTEMBER 6, 1994
INTRODUCTION:
BACKGROUND:
DISCUSSION:
Wes Green of Harbor Properties has requested the City Council to
consider an assessment abatement on a 14.08 acre parcel (PIN# 25 930
1160) located between CSAH 42 and Conroy Street in Section 30-115-21
(See attached location map). Specifically, he is asking for the Council to
write off the interest which has accrued over a period of 14 years on a
mutually agreed upon deferred assessment.
This property was served with water and sewer utilities in 1975 under
Project 75-2 and was originally assessed 1189.66' of frontage and 13.37
acres for trunk acreage charges. Due to a large wetland area located in the
western basin of the property, 330' of assessment frontage was later
removed by Council action on March 14, 1977. Subsequently all special
assessments were paid on 6/30/77 by Mrs. Anna Conroy.
In 1980 the City installed a 12" watermain pipe within the right of way of
CSAH 42 to provide an additional water loop in the the northeast quadrant
of the City. This installation was required to provide adequate water
pressure for the Harbor development and was installed by the City under a
developer's agreement petition for utility services.
Although, the 12" watermain constituted a trunk system expenditure, it
was also necessary for the Harbor development, therefore Mr. Green
agreed to share on a pro-rata basis the watermain line cost based upon the
pipe length extended beyond his property and the Conroy parcel (See
attached Memorandum dated September 29, 1980).
While the memo is brief, the purpose was to stipulate the City's intent to
also recover the portion of improvement costs attributed to the Conroy
parcel at some point in time subject to future development.
Since then, Mr. Green has purchased the aforementioned property and is
interested in selling the property which brings us up to the present. In
order for him to market the land, it is necessary for him to resolve the
pending assessment situation. Because the interest of $19,574.52
(calculated thru 12/31/94) now exceeds the principal amount of
$17,477.25. Mr. Green has requested that the interest basically be waived.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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ALTERNATIVES:
RECOMMENDATION:
ACTION REQUIRED:
REVIEWED BY:
A9412.WRT
His reasons are based upon the fact that the parcel is already served with
utilities in Conroy Street/Greenway Ave which have been assessed and
while he acknowledged the need for the 12" watermain as a system
requirement, he contends the parcel does not directly benefit due to the
fact of restricted access onto CSAH 42.
Because the amount in question actually does not represent an official
deferred assessment, Staff indicated to Mr. Green that the City may be
willing to accept payment of principal only if an easement description
were prepared by Harbor Properties granting the City an easement over
the entire wetland area that exists on the property. This would have to be
conveyed to the City prior to final sale along with payment in full of the
$17,477.25 at time of closing.
The following alternatives are available for Council consideration:
1. Approve the interest waiver in return for full payment in the
amount of $17,477.25 at time of sale and wetlands easement
conveyance.
2. Deny the stated request and require the entire interest and
principal to be paid.
3. Negotiate a middle ground settlement per Council direction
and consensus.
Both parties are in a win/win situation whereby the City will benefit by
gaining control of a large wetland and receive compensation for a project
that basically was granted an indefinite deferred status with respect to cost
reimbursement. Therefore, Staff would recommend Alternative #1 which
would remove all interest liability against the property in lieu of principal
payment of $17,477.25 and an underlying wetlands easement. The
proposed resolution is acceptable to Harbor Properties, Inc.
Motion by the Council as part of the consent agenda to waive the accruing
interest contingen~l upon the conveyance of a wetlands easement
satisfact~10 the City Engineer and payment in full to the City of the
inf I. prln . pal s I ~~17 ,477 .25 at time of closing.
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CITY OF PRIOR LAKE
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MEMORANDUM
To:
From:
Re:
Date:
Assessment File
Ralph Teschner
Deferred Assessments - Conroy Property
September 29, 1980
2,650 lineal feet of 12" watermain pipe was installed thru the
Harbor and Conroy property along County Rd. 42. West Green paid
$16,726.25 based upon the representative share of an equivalent 8"
pipe. The Conroy property is to be assessed similarly based upon
their proportionate share of pipe length as follows:
The Harbor
Conroy's
w. of Shady Beach Trail
Total
- 1225'
- 1280'
145'
2650'
$16,726.25
$17,477.25
1280/1225 = 1.0449 x $16,726.25 = $17,477.25
Total amount to be deferred until future development is $17,477.25
which is to accrue interest at 8% as of 1/1/81.
(612) 447.4230
4629 DAKOTA STREET S.E.
P.O. BOX 359
PRIOR LAKE. MINNESOTA 55372