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HomeMy WebLinkAbout12 13 1976It MINUTES f, the F oc Ingsi of the Village Council of the Village of Prior lake in the County of Scott and State of $ 1/ Minnesota, including all accounts audited by said Council. f' December 13, 1976 'i The Common`Council of the City of Prior Lake met in regular.,session on Qecember 13,, 1976, at 7.30 P in. -the City Council Chambers. Mayor Stock called the meeting to order. Present were Mayor Stock, Councilmen •' Bissonett, Busse, and Oakes, City Manager McGuire, Engineer Anderson, ° Finance, Director MacGiliivray, and Attorney Sullivan. Councilman Watkins a was absent. The- following corrections were made to the Minutes of December 6 1976.2 " Page two, paragraph twelve, should read "City Manager McGuire was directed to prepare a stntement,,regarding sewer and water rates - debt versus °'. collection, review entire ordinance, and make adjustments for summer months, and submit it to the Council fox review within the next two months and this, µ matter was tabled." ,Page two, paragraph fourteen was deleted. Pagei-thrtie, paragraph one;'should`r.eid "City Manager McGuire stated that ti 1 St Michael's is adding; on to the present building and their connection # ; fees ;for, sewer and water and park dedication is $4,400.00. They are requesting that the, Council consider waiving portion of these fees because of the type'of organization it is and the facility will serve as a meeting r 4room and much of the community will use it, and.�he recommended SO of the fees be waived, "' a Pa three��` � g ,,;paragraph two, ,should read ,'Motion. was made by:�Natki'ns that 50% 'of °the fees for sewer, water, ,and park dedication for St, Michael'.,., *, be r jived, seconded by Busse and upon a vote >�takrn it was dilly passed, 'Councilman Oakes abstained.' NhNIJtES ` _ ' Motion was ma d by Busse to approve; the. Minutes of December 6, 1976 .as t amended, seconded by. Bissonett and upon- vote taken it was . duly, - passed. • `. RON EOWARDS ffoti; was made by Oakes to approve the Ron Edgards Subdivision'Hard'shell =' ° sue: 'fo which the park dedication has been set but has not been received, v° 'Se eg ded by sae and u n a vote `taken it rims duly tva6 clirer p sled. at u lltlrtC .ray r�arte T� .4ect loo '-10 -sigr1`�3�ni- -�YJcY i1 t u nl i i -444- r t, e ea- ton t owed MAI PRACT 1 CE ' Fnance Dii�tsctAlacGi�l�i�%ray pres�en�t�d a mend dated Deceai�er `13, 1976 ,toe f PlfS,. FOR tl`e Mayor and City Council regarding.rescue , lsquad drivers and attendants RfiSC.UE ,PEOPLE. Malpractice insurance 'and presented ,the bids received and opened' at 16:'00 < x. `A;M. this morning. One bid was received froth the Insurance Center for Y ` c 540:50and Finance Director MacGillivray recommended awarding this policy to theT Insurance Center,, IT b 4 { .r , r 'Motion' was' -trade by Bissonetu,,to award the bid for rescue squad drivers and a � attett htsi-malpractice insurance to the Insurance Center for $54QR.,50_, , seconded by Stock and upon a vote taken it was 'duly passed. Councilman s� J Busse `voted against the motion, • H' •ELM DUTC Finance Director MacGillivray' presented a memo•,dated December 9,,1976 to ^' the -Mayor and City Councii regarding.dutch el*- diseased tree reuoval.,for tat Counc t review and discussion. Finance Director• to to work on a ; program for dutch ells diseased tree r`eboval and Ma'yor Stock accepted his report on>thC matter. TECH. Ir EM Engineer Akerson reviewed a ,memo ad December 9, 1976 from Yerlyn Raaen, IT I ASSFST'. AGllEE., 'Engineering kssistant to,,thi, Mayor and City Council regarding Technical avid 'Engineering, Assistance Agreement. Motion was made by Busse to authorize the Mayor and ,City Manager to' sign the Technical and Engineerir t g ,Assistance with the State of Minnesota, Department of Transportation, seconded by Bissonett and upon a vote taken it was duly passed: DEFERRED ,,Mayor Stock called the Deferred Assessment Public Hearing to order at $:00 'ASSESSMENT . P.M. NEARING Mayor Stock read °the Public Notice for the Deferred Assessment Public ' 'Hearing .. IWO MINUTES of the frocoedi np of the Vlllago Council of the Viliago of ►fief Lake in the County of Scott and Stab of Mianeseta, including ail accounts aud0*d by said Council. i DEFERRED Mayor Stock stated that before he opens the meeting to the ublic f ASSESSMENT questions, he would like to make a p or their HEARING of this hearin few brief statements about the purpose owners in the City of Pr or who haverdeferred asses pthese nts, - these. assessments were at the time of the public hearings for the projects and the assessments for that portion which ,was assessed against the property, if Your property was above and beyond the City' then there was an amount deferred and that amount deferred atcthat time that year of the project and that as hearing was five years that the Council would consider and at that time they would review their financial situation, such as,bond repayments, and then they would either move to call in that assessment or continue with the deferment if there are some special reasons for that deferment. After the Council, in the Past year, has.asked the City's Finance Director to review - the repayment ; i schedule for bond'issues and he has determined that there will be a short- age at the end ofthe period of the bond issue if the City would not,call hearing, but also that an additi the deferred: assessments which the City knew at the time of the-assessment o would have to be raised to nal cronies help repay these bond issues, By State Statute the r he unpaid de muni cipa ity has the = right to charge the 8% interest rate foferred assessment.. The Council has gone on record saying that anyone who wishes to f deferred assessment may =do so until June130, 1977 without charge This a y off interest charge ths't we,are talking aboii this evening, that is the question,.we are not talking about a,1,'vy of the deferred assessments or 4 certifying the deferred assessment =to the County Auditor ton will be another ight. This public hearing, there will be a continuation of this heari g r►g, so we are not talking about certifying the deferred: -o t hi s charge to the Auditor tonight; all we are here tonight for is to inform r everyone who has a deferred assessment that the Council intends to charge an 8� interest January 1., 1977_ ,An regarding the interest rate we will try to handle eeither by members, staff, or the city attorney; however, again the.assessment that would be levied and certified to the Auditor we are not talking about at, 'this 4 i particular meet ng, this will be schedule in about three -- m nths , for`the 1972 project and will continue there with the assessment hearings for each subs project subsequent p ro' after 1972. Mayor Stock asked anyone who has a question to „please come forward to the podium and state their record and their subject, name for the ' W. Larry Nickelson; Red Oaks: Does the interest compound, will the in est be added'to the balance and the next year wi the 8� be figured tar =, guyed on , that again and that added on or will it be on the first amount, Finance Director MdcGillivra . `} each ear -;on whatever y� The interest will'be a constant figure Y amount that was in the letter sent out. a' Mr. Nickelson” What will be a reasonable date'to assume that we will have to pay the balance of the deferred assessment other thar, the interest. t *yor Stock: Within five years of the date of the J . r mi., John Shuff 'represent in p 'j ec t , sity for`- assessi g "D'•- Olaf Lukk: Mayor Stock :aenticmed the neces- ng this interest was as a result of the fact that you determined that there is going to be a shortage in the "bond payment at the end- -of- _the; nd.,period - is that correct`, fi Finance Director MacGialivray: there is a scheduled bond Par of the tent of the bond payment, the first' n assessments: pay�nents covered by currently levied, That schedule' developed with a certain idea of when-these r �= art. ied'a Isessments would be converted to a: ;current assessatert;- the. latter part of t6; term thoser bond payments would be covered,.;th a certain perc!W.- e.,of.'the „deferred assessments: - Shuff ,. Does- thatnc ludo only bond or bond c��l`igatigns that are not outstanding, in other a words tit does nnot g� ... apply to any,_ future projects._ t, Finance Director ector MacCllivray: That,is_ correct' , Uh', Shuff: I am a little bit�at loss to understand how t at the outset oir if at :fact .t his wasn't was when the notion of char in znterest } was first raised or :oade =aware to, various members of the Council ti � Yam xt r � 3 , t � MINUTES of the p rocee d i , ,^ mianesoro Including ' . all accounts audited . by said Council _ DEFERRED ASSESSMENT Finance Director MacGill:ivrayr We came through a series of agended items HEARING " at Council meetings throughout this last c calendar year. Mr. Shuff: - the bond schedule repayment all of a sudden apparently doesn't look like there is enough money to keep up with the bond repayment program, Mayor Stock: First of all You understand the deferred assessments, which calculate into the1act that the end of the p period of five Y ears the - deferred assessments wou ld be called in. We also anticipate, a and five n what actually occurred, and it is s a that n \_ is going,to worsen b the fact that we are not going to achiev y e a high.class; river crossing for another; period of 10 to IS front end, I -am talki years and so we are concerned about it at the. ng about now rather t than at the end the bond period ;. and then getting concerned and that is the purpose that we,.hired a financial director here in t the City of Prior Lake is to help,,the City Council review this in depth and to give u us some guidance as to our financial picture over the period of the bond issue, Mr. Snuff: So what ` `.�. paid at the inception of the project have not born out; Mayor. Stock: That's true. Mr. Shoff: Who actually made those projections at the outset, is that the _ engineer that we have the p w with in the area, r, Nkyor Stock: I do not know if it was the e l fts'*f 1 h* Villave Council of the, vill h AUNUM it ' Iunty of Scott find Uo of r MIN"00010, inclualne all ec"Untsawditod by "14 Council. DEFERRED Shuff: was any mention of interest made at the ASSESSMENT assessments were originally deferred on behalf of the defe that the HEARING holders. rred assessment Mayor Stock: No there�was no' t. Mr. Shuff: Was any statement made one way or the other that time. about interest at Mayor Stock' No there was not. Ptr Shuff it Will'this interest charge as Proposed on the deforred assess- ments make up the deficit th t is Projected for the end Of �fie bond repay- a sent schedule. Finance/Director WcGillivray: For the most p realize�there is UwV�in the debt service, acertain amount of art. You connection fees, this are also anticipated togo a g a i n things like s t debt serviceand thatlas been Policy Sin the projects began. 7here are not on �i general_obligation bonds,. there are revenue bonds and things like this. Mr- Shuff: Is it a fair characterization thatythe interest,charge will, not be used for anythi other than the liquidation of the bon&indebtedness. ng Mayor Stock That I,*, correct. Mt Norbert TmXler ti;t Fish Point Road: Mr. Sullivan what is thecitation which You are assessing interest charges against the allegedly benefited property. Attorney Sullivan: 471.S6. b Mr. is ' it ition W charges charges ass os Sullivan, that 4iLS6 allows interest Ociat:d with benefited propert into the, - did', not go deeply Statute, but 'my brief - review of It did not'indicate. any expressed Sp( characterization 'whereby could be 'I A 'pa 11 rcels; based cally ed against UDOR any benefit to that properi, What I see we-have had Ii"a project that which'perfo-sed i b to enefit Property and there. ajreoitents�l and was­certain understandings and representation-whith -- low a! ed� those perty owners,to leep in some mannei, 0, r ' "method, extra tor C ',JO ictrward with' the onsent to p oject, whereby. the deferments wo on t uld be Oilowed. eracily recall five years &3 some people are quoti hifik, the condition r t _t t ght, bu &14 number on which deferment was made was one that there was no It JwoU I two,, at least"reprosented to so, by a usent ad '10-me" that d ie deforred'until such time it was subdivided.­1 letter doc tlwe are, looking.at is wha -deferments, which were ba sod on certain NY sPo6ifIc case r have a very4eird trian geowetri'C cbn the parcel, there were�large parcels, and,in viof of g lar,parcel and certainly it I' S M ftotk: - will exc, inutei I t 'You, usetme a a hink that W,v Matt or vihich,:w is another Id be ssed at the public hearing when thatpropert ; Y � ,Would VO; c.eitifted to the,,,A uditor, for the particular levy of thiV,deferred se3smont. a its I'think'"tha is tWparticular time that tit would discuss the �� that. you lust have referred.to. ler;'.J.,�did,n9t set' anyspedificT legislative aUthOlAty'to as ikorest on t SeS3 propez y on a proportional benefited baii;.�,.T question the� lei a on, a general Intir i or not It I t f surewhother 3 ­sUPPOsbdly based ona a ettremenvagainst this� obt r 'I wouldi Say the considel; ip projecl Secondly, _articular for the defe the basis ration. Or, thw'deferme�t '4S, use to 'extraCtL a d" consent, or a uP treatmini at the time the d6feri was e a, Itt lift ent nted in t the lialance of the atse$'Inent, was set. parti ­ I see thatthis Culki method by which we are approaching this I indirect "'fashion "that; whith is noi' s accomplishing an is. �legitlatively allowed directly. our tax I%ai increase is41mitid ano'People are-for the most par" On,9 t alarmed at 'the � I loW of , taxati '' which i,� opposed;­a ainst their real P ,BYa0J*oaching it 1p/the fashion 9 you are do accomplishi Ong you are nk indirectly inincrease in taxes,.that interest against% is,you a" assessing or ing a our Property which, erally ig inflat the ­S and It tax I evy is not exactly Proportionate according to -4- ��X 4" v' i d MINUTES of the rej of the YlllaN Council of the Vill oeo ef.prier take M the County of SeeM enr ftoN of , mono ' Includi > Mail accounts audited by ieid Cwneil. . DEFERRED benefiton the property: ASSESSMENT I would like to hear if 471.56 is the Statute proceedi ng under, i ° HEA4ING A l will check that aut, I would like to hear about this. j Attorney Sullivan: We are etti g ng 'the Statute Ary4x now. a Mr. Traxler: This hearing is whether or not secondly, ou will assess and v y, you will have a hearing when that assessment is relayed to the Auditor's Office for incorporation on the taxes. Mayor Stock: That is correct. Tonight's hearing is'on the 8% interest charge proposed, and a subsequent hearing will be on the levy of the deferred assessment and that period was five For years. example, for Project 72 -7 the Council has scheduled a will be for certification to the forlthat e deferment, er ~ Auditor is for January 10,. 1977 at 8:00 that is the first o • 7raxler: B±�t the tax hearing, the hearing we are having ° tonight is the Interest charge certified on the tax assessment roil.r ��;•,'� Mayor Stock: That Will not be certified until the time that the assessment is ` certified, -, A ' Finance Director MacGillivray: When the deferred assessment is certified to the;Caunty Auditor at that time the amount the of deferred assessment times the interest charge which has accumulated over the years, 4 'lraxler: Mr. I would like to receive notification iri time ex prior. to any appeal,a expiring .as to what the dec�iion will be pri affe m Y property- Manor Stock: You will be notified of your particular .hearing of that project that you were in, you will receive notice. ` ! Mr. lraxler: What was the interest, ` the actual Inter Gst on the bond premium at the time ' of the bonds we are talking about in this particular project. ' - t, Finance Director MacGillivray: I would have'to: check on therepayment schedule,. -we have 17 PaY�e� ,Issues. 4 . Mr. Tr+axler: It was less than 8% was it not.. a . Finance Director MicGillivray: The statutor l is y unit on Minnesota bonds 7 ;, the limit is specified in x .r r the W.S. 471: Statutes. � o �. `. Mr. Trailer: ".Doesn't it�see� 'a little bit inconsistent then we shou be asked t pay 8t on a 7 ` ` o a premium bond, ifthey are at that ` level Mr. Roger Break`, °Lakeside Manor: I'would like' "to know if the Councfl consider'erd e th impact on our r; community of the t forced by this type of taxation on large type that is land, ; that is a person. with a large body of laid gets a`large s ssesmt en�f he either has to s it or develop it to rover the cost of that tye p of assessment. Have you considered that type of iapact_._ Mayor Stock: Yes. Mr. Break: Would it be correct then to assume that you grant development in that manner. Mayor Stock Ne.anticipated that there' would the areas be.developtent in; that had sewer and water. ° Mr. Break: Is that what you wanted. ° Ccanc,ilman Oakes: If. the Council had wanted growth I think it: wou done what is usualsin ld communities 6' n the metropolitan area andFwould` have. assessed all parcels. The start of the :defe of an a rred as essments was the tteapt to fore ' stall premature dovelopmr& (; Mr. Break: Does that mean that your 't� inking has changed from then to now , that you are now considering .calling v i ,.. .. a r. ti I lima AIIINIRl1i of IM heeMdiap *#,A* Villas• Cwnsil of the Ville ma ef.�rier leka M 1M County of Sdtt'and Stota of Mia owte, inelwli►p all seceunts avdihd by eaia Council. DEFERRED Councilman Oakes: It really doesn't, it means a ASSESSMENT ha number of things, have NEARING ppens since that tia►e, the economy has Changed, the bridge situation has changed, how much each of these might bring to bear on -the issue, the point really remains based on the best information the Council has at that ,time, the growth curve actual did not match the growth curve estimated. Mr. Break: I don't think I quite understand the rela =tionship yet, but I will let i�tlsink in awhile. In that respect then I don't understand what change from the time the projects were started until now when the projects are being paid that would cause the need for Now I understand the mechanics of what you said in terms of you.didn "t get the anticipated development per lot, but I was of the understanding that the cost of,the project was based on the land that was going to be assissed� for the project not based on the development of that land: ti Councilman Oakes: Assessment was based on the whether or not there, was a substantial or significant benefit to the land,and not necessarily if there was a house thereon. That is solved in.a number of communities; by currently assessing the parcel in' question and then whether or not there is a building on th,e parcel is not a matter of interest indicated on the -bond ,issue. _. +' W. Break: If that is the case then why is it now that because there has i not been building it is used as a justification as an 8 tacked on. f Councilman,0akes: I guess at this oint I don' t understand your so I'll defer question to someone else on the Council or staff., � ' W. Break: 1-don't-understand what has changed from the time I was, . told' k we were going to get sewer and water and it was costing 7k to repay it or C� any percent bond issue whatever it was based on, the cost of putting in sewer and water. OK that is fine ' going to do this, now You made a projection, You said it 3s� you say it is not that-way, we need more money to ;j repay a bond is`s'ue that was an obligation that was incurred. X:nuiber of Years ago, whichever project you are'talking' about. , . Councilman pekes; „Let's just take two lots and we have :a $2,000.�oo improve_ < r <., ment project. One lot the fammily is living there, they do have a benefit' and they are repaying the benefit. The other lot that combines the govern- ing, body, there was an attempt made to defer that ­$I, as a re of it and the interest cost by having spent that money in an.effortpto forestall development. Knowing that that lot would develop in say two years, M in four years it -did not develop, so. }rou.have..r choice then it sells to me of asking, the first famil to j Is used. to serve the second family or what h ercacwunite have done, just- open'it up to the general levy and let everybody pay for it. What c we are really talking about is the carrying charge -on assessments abutting the property and so the additional „money, to the extent there was r.y add money, is that choice of saying there "has bean a facility put in past benefited property -and rather' than assessing, that pro rt interest s;`'beng charged to help arr that Y ' p y amount of money. Iac. Break Then I am,,at a -loss as to the rationale kor deferment ~, because,it was obvious at the time that you were not going to have enough money to pay for it. NnyorStockr I think ou,have Y to recall thedifferent things that would influence the bond schedule itself, we have h to help char es a portion of that is scheduled re p 8 x p pav the bond issue itself. Then we have the cy��trant assessments and the Council at 'the time of the sewer and water ” project, = whatever the year` it, might,. have been, established a policy that i a deferment would be'given for a period not to exceed five 'years, 'in some'` cases it was said buildable r whatever, but as we have reviewed our monies G. that have came in to the,City coffers by those people who have connected and versus the amounts ° de ferred and for the period of five years in that particular project we find that due to growth and,which is caused,by,the ' bridge, the number of hookups which would have came with new homes, did " not occur at, therate that we did anticipate. Ne felt that same of the +' 'property was going t0 be developed; which it has not. Fspecialiy larger tracts,'which we thought would be subdivided and sold off within a period of five years and this did not (Vcur and the Council has gone pretty much,, ha. WUiSM�LLyi x'i»xiNwM, III Ti z MINUM of the heeoodingi of the V11180 Cwnei1, of the Village of FdW Lake in the County of SeoM °and $toto of �t . Mianesote, im:Wding all eeeunb audited by •aid' Council. a , E� DEFERRED ;on record to the effect that these areas with sewer and water, and again as r' ASSESSMENT Jack referred to, ;the Metropolitan Council, the collections that, have been HEARING, made to them, they have told us that in order for the Interceptor to work, ' the purpose of it was to desewer the lake and I think we have accomplished or hopefully we are going to .accomplish that goal at the end of 1977 around' Prior Lake and so .there are many things that have transpired from the time that. we have started our first project back in 1972 and I think it is ;wise 5 that we review the situation now rather than at the end of_the 20 years and find that we are several dollars short and would have to levy that entire amount over the general levy of the City Of Prior Lake, I don't think thin would be fair. Mr. Break: If after the assessing of this 8% over the next period of two or three � years ou find that the land does develop and revenues are.there,,, ° what happens to the money that would be generated by that development. �I lyor,'Stock: We need the money in order for it to still make its way, t o lGouncilaan Oakes: I think what he is saying if something suddenly changes �,w t would we do about continuing to collect interest. Break• The go purpose of the interest was to meet an obligation you are a" no, of to be able to meet because there is not enough money coming in. ,. < -' Mayar Stock :. That is correct. , n � Mr- ,IiBreak: If the charges for the interest are paid as they a r re billed and we are otrx obligations and then as sane easonable time passes you find that develop in the area exceeds your expectatiiins and now you ` have additional revenues coming in that more than offse s the bond'` indebtedness, are we talk t/ ng about a general fund again coniescing into other facets. t z' AUyor. Stock: I would hope that would be true but frog% hat we have se t>4'e last five years and what we are forecasting for t e future it does n ot app. 4r to be that way,. As a matter of fact I think i ° is t4cre•wiil not be a bridge across the Minnesota River for armi imualperiodt of eight years and I guess the bridge issue is another situation, but IU think«it is a stro ' ng possibility that we will lose population or residential homeowners rather than gaining` then in the nekt three c lh. Break: I Mould str ong 1 be wath that projection action on the basis % . y g to differ : of one correlation. -`I fly for a living in very noisey airplanes, I fly n nd:out of a lot of airports and 'I could direct, 2 quote ci t. ' � Y q e you probably 15 ° ties that • have development after development made in areas that are rq.W „directly under approach paths for one sole purpose, that. is cheap land. that budge does not o'throu h� g through, property values go down, I can assure E YOU You are going to get development because the land will go down. M yor Stock: Then you are, working on the. law of supply and demand and if you have the de>,and L don't think we have the supply and I don't think the � [values are going to go down. deferred as would in 1Mr. Break: Interest paid by those with 1 effect cause a t greater burden on those people than on those people who are ]not paying It.,, interest on the levied asses smants.- Mayor Stock, They are paying int inter crest, they are paying their fair share of est at the time their assessment was levied: .free. Nobody gets money for t Mr. Loren'Gross,repre senting.Scharf Trucking: I just, .I understand how this works since it l want to make sure that ooks lik e I am going to be> at a hearing on January .10th with regard to Mh 'special assessments, at you did At you deferred part of the special assessments on Mr, Scharf's property; Is that right for,five years and at the time that mention the interest but now." You didit you did not you are talking about adding, interest. The notice that we have shows a very specific figure for interest and this specific figure is based on A of the total deferred assessment. But t deferred assessment J no yet certain is that right.. The amount of de-' ferred assessment is stil ;hearing coming up l subject, to challenge isn't that right because there ii a - A t Ni1Nt11JLKief the'roeeedi , wNt of the Yilhpe Ceundl of Mi vilhroi.ef Lake in'thi County ef,,Seott ae l State of Minnefeta . + ( , Including all ec!oUeb by wW �enMCA. 1 . INN, 7 DEFERRED, ' (, Mayor Stock: Thaty assessment hearing, that amount .`'that was deferred` ivas ASSESSMENT at that assessment hearing. HEARING \ 1, �� Attorney Sullivan: ulli The amoutht' was determined butt h 4 k Ir i sn't, been levied Mr. Gross: I" it f hasn't been t cant be contes 1d levied i' yet can it, �Ma or Stock. You had your iri ht to contest that 30' days +�� ter the �; ' h earing. Our rolls show th9 assessment amount that was show h�isusheet�, h �sb een deferred. t` "' �. i; Mr. Gross: 'That is what I'am trying to figure out if it has i�'� a levied has t t h sn t been levi t, \' j 1\ er► deferred '{ Attorny Sulliva ,, n: It ha �,n t been certified on the assessment rods. Ali �� Mr.,,'tros�• If it, is\not �n the as'sessrient,rolls it 'hasn't be !' to being,ontested in the' courts because it doesn't happen until Stets ,. levied dock it there orci, 'that an ount i s still uncertain °isn t' =fit. r' Attorney Sul \.t hat r sense I guess it is.. In `t ` . Mr. Gross: ' Are r you ult',uaaly going to charge.interest on the amount tit ,7 is finely certr ied as ,�the'�proper amount of the assessae��� I 1 Y ng guess what�I " i, as a looks,,like to ae hike you sty',haye the carts ;1_3ttle bi " before the horso(;. orney sulliv \ *,at we, are talkie 8 about here now is i amount on the ; that has been talked °about a bein g deferred wh , be certified, that t`i ich ultimately wall O interest is on that amount I, 1 1 a contest and its`prcl " that wha we proposed to. def would have er not suppcise if co here rrect is interest �:o� be adjusted at that time because Chit also willbe the , �� on the assessment.' T % .+ Gros s• When we.rget F inished assessment rolls, t t interest rillhbe based .the al teal ount �. assesssent,r Atto Y Sullivan: ,,It woul have to be. Mr. Gross: °According in to the i,�tatute that I have just read the r' cart be charged annually on a deferred assessment is that correct. erest -� .,Attorney Sullivan: Yes'. ` 11 , r Mr. Gross: Hut Lhat isn't' it. deferred assessment is really an estimated amount S' Attorney Sullivan: 'I don',"t thi we ",should call it-an estimated aaount, 1 i ' nk I think it is an° amount that has be determined will be the �mtless something else 'happen assessment sta� it,. tiiayo* Stock: AUrk. ►could you like to clarify, in. answer to I &. TSraxler's °{7 9 iostion the Statutes. Ft �i Attorney Sullivan: I "have written the Cit n r „ Statute a to it which does pernnit thechargeoofwintt3restpnot en to F4 }a` z exceed'St on deferred assessmts. �. ! , Trailer: T do have a co py of the sets' notice th ion law relating "to this. I ere is,a second part that, Jibe• Sullivan which has been under � lamed by 1 guess your and it ,says that all assessi�ents�ahali bear interest in such rate as the resolution terms not exceed ng,�8% except that the rate in any event °ma te average i est on bonds issued. I guess the quest ra ion is how weinterpretthstt `but I would say that puts a limit on'it also and if we are talking about1� bonds being sold at rates that a i r are talking ab eady tha wou be the limit that t`ld' ` we Attorney !Sullivan: Do I understand from this then ° that you now agree that ve are justified in interest and we are of we are entitled to another it. g � to stalk about whether o � i.'il ♦ •"?t"�} , v9..� ° _" t :���" .. vyi .. `S Y}"ky5µ k s1. =i6.. E'>i a t A 4 ( �uNUtES of the pre c" of the Village Council of the Village of Prior Lake in the Countlr of Scott and: Stall of '.. )f Mianewto, including all accounts audited ky - .said Council tG ;.��' OEF;ERRED \ ' _ AvSlSSMENT Mr, i� No this time. sir, I am not considering that at . I am considering that there is ?, n HEAR',�..NG \ g somet'.tn with respect to interest and if that interest is on a deferred }" assessment that it can be set at a maximum 8% if we put in an or, equal,Jy to the bond rate interest. ' Attorney Sullivan: if we follow that line there would be no point in saying more than 7% of the Statute, • we couldn't charge more than, the boydl.. issue because that is the maximum that the City can pay for its money and I think the rationale behind that 1$, one point difference is that =there is an administrative expense and cost to the City in issue, I think carrying,.hat bond `. that is the reason behind it. Mr. Traxler: I guess , that'is a question that has to be determined other than discussion back and forth �i on. It would be m Y' position, • OK, if we Pay interest for some deferred assessments at 8% or have a chance to bring. down the inevitable at 5 =1 /2t and before r " you appraise to that situation the time that we have an option of an assessment or deferment.it.makes only economics sense to accept 5 -1/2$ or 6% and pay that rather than say we are going to defer this and pay 8 %. k�. Finance Director McGillivray: The inevitable, could you explain. N Mr, Traxler: Well we are talking about the inevitable saying here is ' going 'to be a maximum of five g 1 y .- that -we discussed our l.otsand he benefit and the � was said that we will defer everything except for the 1S0 feet until such time as subdivision occurs. Now, $ -: and I notice the language of`your le al say -for a, maximum of five years, that was 1972Por73 not talked about in it was talked'abOut in 1976, but at the time we were�discussing'the deferments associated with the assessments it was deferred until -sub - division occurred, there was no five year Ha your f t. Let's say we go back to ve year li imit here and which not talking '76, �` T dk - about knowing that in five years we ;are going to -have to pay'this deferred amount, The bonds that were being ,sold at 6% , . ft and in five years we are going to have.to come back, the whole thing, it will no 1 onger``'be deferred we will be° paying on the principal " amount. It'does not make economic sense'to: a 8% on a deferred amount when if p Y` you call it down'directly you -are onl 5 -1/2 or my example 6t,` You can Y Paying PaY 6t over Deferred not add up. and pay 8� i�does Finance Director 1kcGillivra /�� Y: The only problem with on'the + ' that%is" the a�uo,u�t last projects for the current 8t assessment that YOU aid to Scott;, at County is or •7t `in some of the earlier projects Mr. /_. Traxler• Specifically, as Mr. Sullivan commented, we are limited to 7�k .on municp�ilities. �-' , Finance Director MacGillivra�� ^' y That is the bond y issue, but the Statute regarding collectin the- 9 Interest we charge in terms of once they are certified and that has an 8% ceiling as well. Attorney Suril"n: The 'City doesn't charge only the cost of the 'bond issue they charge an extra point or,so ,. to collect that money they have out on the bond issues, whether it is deferred or not. . W. Traxler:, You are speaking of Jh e County. '' Attorne Sul ivan: Y,. No, the money comes to the City. Traxler:,'But I an saying that they an can charge 8% on deferred amounts s assume that the 'they ar actual cost the of bands are in excess of, wha aree-sold for by some percentage ° point: \; -. �\ Attorney Sullivan:` You are confusing what we appears', on the tax. rolls for the money . We charge Pay gef for the money with what 8 or the e assessments nondeferred � m ar financial handling of these funds, s Mr. Traxl er: ' So you are saying that 'but not to exceed or as it is 8%. above n'that now sc8t not deferred those current assessments, Finance Director Ma „ . y cGillivray: On all outstanding deferred assessments. 8$, A i MIN .9SOf lho proceedings of the Village Council of the Village of Prior, Loke in the County, 04 Scott and State - of., Mtenesota, Including all accounts audited by said Council. - � EFEkRED ,` Mr Traxler: But those nondeferred assessments, what rate are they going ' to ASSESSMENT , be. HEARING Finance Director MacGllivra y:, Eight percent,, the current assessment they are being charged 3t on the amount of the unpaid balance. Mr. Traxler ,, So what you are saying, the proposal is going to be equal to that Finanai Director MacGillivray: It is 8$ and 8$ on the current." Aorney Sullivan: There is no difference in what you would pay on the 'deferred assessment from what you would pay if it had been assessed, the interest rate is the same. Mr..Traxler: When this is going to be assessed, the interest on the y� deferr --ed amount whatever, I would just appreciate notice on that ,,//' yam' Mr. Frank Muelken: From what I have heard here this evening I think what,'_ - -' I was going to say will be 'reserved until the January 10th hearing: - AL i would like .to note my appearance with, respect to the Johr_A, thy's, r' James Cates', Paul Reinboldt's, the William Simnkiats''' state properties, and also with respect to the Earl'Catgs >! property on which the four -plex ' is located. I would ask r;rni I be noticed on any hearings with respect to any of those pieces; -of property. / �Z 0 N ickelson:' ,Assuming a ° figure of eight orj�n years of substantially lower F growth rate if all -.of the assessments a,re called down, is there going f to be enough money, are. we going to make it/ / or are we just going to fall flat, .and are they going to have to reassess. Fifiance �Director� MacGillivray: Based upon the reviewal of these next series of hearings, where they go throug"nd actually examine eich property and "determine if and. when it will bpi converted to 1 current %assessment, we should'be in pretty good shapR ;with connections and ,other things that are included in that, your sewec�/and water revenues, part of these bonds - are re ,,enue bonds, .so all thingstaken together it should work out, it will take r Pi a%ber of years, but ` r't will work _out, Mr. Nickelson: �I/ ould also like to repeat: what the other gentleman said, _ in the earlier 'hearings that had on this issue there was no one year; two „year three year, or five year figure mentioned' it was implied that° ;these deform- nts,,were until ;propert, was either sold or subdivided. A given yearfigur, -' 'a' was never mentioned, *ever, to any of us. I am sure if you would p :l the people"here that�ere in these early hearings they would 6 ,Concur "with what I said and what he said, we'were led, to believe or we ass d through anything ta'the contrary,.that was the case. �Mr. Denny Fitzgerald: , /I-keep hearing tonight about -a bridge and I am as :atich a proponent to,the; bridge across the river as anybody elsebut what has the bridge got to do with charging us 8'interest on our deferred property that we`were promised two or three years ago that we would not hav6; any charges on until such time as,we subdivided' it. People on this S806 Council told me that I could live there for the rest of my life and o ;ncsver -have any, charge on that deferred property. What has the bridge -got__ _ to do .with our property. Ma�ror Stock I' 'think all of',it goes to the forecast of growth,'and this n %certai1 } y s going to be%letr- imental, in 'my opinion, to growth for our f °community. `,Me anticipated bond repayment on factors, the variables, but at'sotae point in time'I think we have to review them, which we are doing,. and I feel it is our obligation to do it on the onset rather than waiting t to the period in'time that they are actually due and then we have no funds to pay for it. L: think that is our obligation. Mr. Fitzgerald: I think we could take that as, then.you are saying that we should pay for the new people that are going to move into Prior 'Lake, by f investing in a bridge..` Mayor Stock: I did not say that. �. ._.,, -10- � „ MINUTES of the Proceedings of the vilits Council of the Village of Prior Lake in 'the County of Scott and StoN`of - Mlenesote, including all accounts audited by said Council; DEFERRED ASSESSMENT Mr. Fitzgerald: That is the way'it sounds when you say that there will be. an interest HEARING charge being levied on our property which we were told would not be, for some reason connected to a bridge. ' j Mayor Stock: No, I'm sorry f I" led Y you<;to believe that alone was the ,primary factor, I.think we indicated that there are variables in the method that we used when we calculated our assessments and we used the deferred assessment basis_on ro erties such as you that have more front p P' } if Al footage and so on however, it was also anticipated that some point in time that this land would be subdivided._ � . Mr. Fitzgerald: Yes, but that is up to, I would say, to my personal choice, because that is what'was told to me at the hearing. "If I would have assumed anything different at the time, I think I would have immediately subdivided and •sold that property, but I like it there, and I like the land, and when I was told that I live ; ,there forever and never be charged any amount of money other than my 150 feet °that I was assessed on 'I assumed that was correct. I will have to go ` "along,with Norb and this other gentleman; who said that weDwere not informed of any time element on this - deferred property, other than subdivision or selling. ' Mayor Stock:" That would be the purpose of the hearing or that ' Project, your that you just. made. 8 Particular W. Jim Simon representing Mr. Bob Kahler of'Candy Cove Trail: He is being assessed for paving frontage, 'I guess my question is why wasn't this , put on his tax roll right away rather °than having a deferment. He is assessed for 22 feet, this is deferment a payment of 22 feet, why was not this put on his tax roll right away. ke (\ Mayor Stock: I think - °• that this question again would be pertinent to the future public hearing. Mr. Simon: Public hearing on what though, I think I am probably in order here to get my question answered, G # you see he may now know about this and he is being assessed this and he has.no reason for being assessed for that. ,. Mayor Stock: This is not to file this with the County Auditor tonight. Mr. Simon: Then why were we sent this notice. * ` Mayor Stock: We are talking about the 8% interest that is to be charged effective January 1, 1977, M ir ` a,j + that is what we are talking about tonight, we are nottalking about certifying the deferred assessment, that will be a: subsequent hearing. �. Mr. Simon: Do you have any idea when. r. " ' 'Wyo,r Stock: Probably in about two or three months. { Mr. Simon: Will I be notified personally, can I be on-record as being notified personally. Mayor Stock: Can we that`'made a matter of record to notify Mr. James Simon, S383 Flagstaff Circle in regards to Mr. Robert Kahler's deferred assessments.:. y Mr. Simon: I guess,;my question is why wasn't the whole thing put on right away . Mayor Stock: Because it was based on our policy that we -do not assess beyond ISO feet unless it was a corner lot then we a4led 10 feet around the corner and the remainder was deferred. 0 A Simon: What was the purpose_of the deferment if you know You are going to be charged. it anyway.. s City Manager McGuire: The purpose for the:defernert >was to not force= subdivision immediately,or to allow the people some tine before they would' • start PaY g in on the entire amount. It is a little bit 'different situation with being 22 feet deferred, quite often it is considerably u more. do <` t` a , /IAINllffs of Ile" h"e"ed' of !b" V ap item" "`Ceuneil of tee" Ville" of hie" Lake in Nee,Coue�t7.of ScoM•aad State ef` 'INieeee"11e/a, including all ecceunis audited by said Ca aeii. �' R � Mr. Simon: I guess my question is people that are in this situation are � ASSESSMENT the under the im P ressic'that the y will be charged for 150 feet and that f,'ARING is it, they will never be charged anything extra, and in this case it is an obvious example of when you say w y' e are going to defer something and the had no idea tit there was deferment: a there at all. The cost was 15U feet and that was the impression eve P everybody had on that street. ' and they would not be charged: for, more than ISO feet and now you say that there has been some- thing deferred,: I think that was covered up, Council. ya Oakes: g As I recall when the meeting was talon place that the' person v °a�ak�tig the statement may have cha anged:since - that time, the statement was made ;thap' the assessment was, a. > 150 feet front footage plus 10 feet if it,,�ras a corner lot; with the remainder`deferred. Mr. Simon: Well that is not the ;impression that. I had or he had. Mr. Shuff: We remain confused about these projections..that were made at 4 ' the outset of ro) ect a P I ust wonder the 'nd what form those. p ro3 ections 7 ,. ; take, in .. other words are they in written form and if so are copies of those projections available; Mayor Stock: We have a five year CIP (Capital Improvement Plan), I don't remember what the first year was when we initiated that .. . , Mr. Shoff: But is that the projection that you are referring to that the bond issues were based upon'; 'Mayor Stock: Yes; I think there were others too, that may not�all be in that book. . ' Mr. Shuff: Other CIP's. s - 'Mayor Stock: They weren't complete as the CIP's that we are u now. I as talking about the '72 project, one of `the ,first projects we' e did have 4 a' "CIPat that time. not `s Mr. Shuff: Would the 1 74 project be encompassed within one Capital Lprovements, Project - ph amplet or booklet whatever they -are. Mayor Stock: It would "been. t Mr. Shuff: Are those available' Mayor Stock:, For a fee : they a: a available. Mr. Shuff: Are they public record to look at.. Mayor Stock: Yes they pare.' Mr. Shuff: Where are she. files maintained:,- Mayor Stock: City Hall. ' Mr. Shoff: I an not sure that the question was answered earlier as just -what will happen if your'current growth projections which now down r _ aganas I understand it, also erroneous, and if you have an unprecedented t ra r� growth and all of'a sudden find yourself with more money than you anticipated. I know that. may be tilting at•wndmills but the possibility does. -exist 'and if so what happens , 'to the 8% interest. Attorney Sullivan: Let's say that we have five year deferred assessments and we are going to be collecting 8% every on that year assessment. �* W. Snuff:,:, Let's. make it eveh - simpler and say that it is a S1,000.00 and you-are going�to be collecting $80.00 � U _ per -.year: Y I � w r -12 0 r Nino e1 "M Pfeeeidines of the Yii � � Y le a Council of Mtn Yi�144 of hies. Loh* in the County of Seo» ona .State of a, x ; k l Mianewfs i6clud #n i k t �# ' Y 4 st accounts aud% 11 ` GYAIii V' ` . '' DEFERRED ASSESSMENT. Attorney Sullivan; Let's say aYong about the, third year our figures are HEAR INq� ; wrong, somebody wants to develop that pxoperty,, you have paid for two' ears interest on money that the City has spent. to put this improvement'in. y 3 Along at the third year ;when. the, , is going to be developed, at this nt Point, the'"assessme is.Goa!ng e to.;611ve to be levied and it is going to be assessed and then s' ju st a matter ofpayinginterest on a current assessment. , Mr- "Shuff: You are talki ng about one Ind! vidual with deferred as said Parcel, assessment. As 11 understand it the P that you haven't had anywhere near the total grovrthlthatresult of 'the fact that the deferred assessments as anentire package that you expected and,, would i�ecome currentized i£ you did not bear fruit a` you anticipated' happens i nd m question PP £ a bunch of,them do become current and e e lion ey what it possible that you are to have extra moneyu have xtra_ mon, is ,i Attorney Sullivan- _Y I don 1 t'think there is going ta.be any extra money because: it is costing the City now 7% to carry that project. Mr, Shoff: But you knew it wisgoing to cost.the 7% when the project was first proposed, correct., < Attorney y Sullivan: I u „ gue that s. true. :. Councilman Oakes: Some of the original decisions were :made based on rapid �. growth and thisPhas -.not occurred. k. ,Y Mr. Shuff: I -guess you are saying that we are in a no win situation, we can't catch up because we did not have the growth at the beginning Councilman'Oakes: I am not saying that yet.•' ' Attorney Sullivan: That's antici not quite it the problem is that it was pated that there would be more event where there has been greater cont, ributyions toehookupsbtontheICitylsh funds in'that fashion, to the levyingtor getting on the assessment rolls, these deferred assessments which would be getting some of this money back. ' that development has not occurred for'aany reasons, housin slump, and 'I think that,this bridge is going to be.a factor in development � thi 'area, If you drive the freeway everyday as in this a problem it is as I do. :It certainly isn't going ~ to must what values is this,: area and it isn't going,' to h growth which we have had, we haven't had an, h growth, and without continu k developments, but is has been.a very ' uge Vern Donny. type, but that has kind of to ry gradual steady growth in this area, tapered off lately and that is hurting this thing and ;k,4 somebody has to a s y y and these „projections haven't materialied, thereforee xe have free lunch, these funds,, e. to raise Mr, Shuff: Can someone explain just exactly how these original projecti "ons were made and you can take one specific project if ? you will., in terms of how the deferred arse ssmen is e wr e c om uted into the issue and how those deferred.assessments were the bo pictureb Attorne y'Sullivan: I can't answer that completely for you, but we do the Capital Improvement Plan which projects each , h ave d in the City. We have,meetings on. that Capital Improvement Plan. eve year f and this year we had.one every year person at that meeting and this's We the meeting where the whole future of the City is decided for th e xt N ne had one person in the audience that night, but always have lot ofence. ` people when somebody wants to criticize, but we would like to have attendance at that meeting.'There are other things such as the Gam rehensive Sewer Plan, the Com < Comp prehensive.Mater Plan, which have been talked about 4 � F3 extensively over the years., All of these things go on to' determine what's City. In inputs, to the Planning t Commrss: ionand addition man 'that h otherareasthat to what the City fe gre Metro Council e y all contribute els should be done. - " , j� MINt"" Of the PrOC* ol"the Village Council of the Village o f Prior Lake In the County of Scott end St o f Nonesota, Indudin 0 all accounts audited by sold Council. OEFERR ' ED Mr. Shuff: It is obvious that people are going to respond when their ox is ASSESSMENT being gored and we would all like to tlae participation in these things,,,but HEARING the fact remains that now the question is being asked how were the deferred assessments includedin the original computation of the amount of the bond issue. Mayor Stock. If you would like that information stop up at Cit H f rom 9:00 to S:00 and staff would be more than happy to let You review the Comprehensive Water and Sewer Plan and the CIP. Mr. Shuff: Do they agree to explain it to me too. Mayor Stock: "They will oven spend. some time explaining :Lt. Mr. Shuff: Can' you tell me which figures a person is supposed to accept the ones that they received on their assessment notice in 1974 or the one that they received on the notice in 1976, in other words can a fellow the 1974 assessment and be clean. pay Mayor Stock: Is that thecurrent assessment that,you have there, the one sheet. Mr. Shuff: This ,is the that told us about the meeting and this isthe one that was received in 1 74 saying if you want to pa your assessment here is the amount, pay�it or pay 8% on it. Mayor Stock: The deferred assessments cannot be levied or we would have been collecting them. 'You were given notice of the curr �sment ent.asse i ferred. not the amcdr646 Mr. Shuff: Have people ever been notified of how much yasdeferred. City Manager McGuire- At the assessment hearings the deferred, as well as the actual assessment or the current assessment was available. j in the later proj�ects I believe the 1 7S maybe 1 74 there an actual card handed out with the deferred amount and the curre amount.written out., Mr. Shuff: Was that handed out at the meetings or wa s it mailed. City Manager McGuire: It was,,,,at the meeting itself. Mks wilis Bluedorn: GA ur p deferred, ' roject, no, there was nothing about the assessment. Councilman Oakes: There certainly was, because we deferred about IL $ of assessm;Tnts on your Mother's propert and you were party to'the y wh6le thing. Mrs. Bluedorn: No, you didn't hand that out at the meeting,,, I came up J;: and asked for it afterwards. v Councilman Oakes: 7bat matt of neg6 er which' --riarted attha't' meetin 9 i&ich resulted in that f b igure eing,�deferred. Mrs., Bluedorn:, NO.J am speaking of any�assessments throughout the whole area. s nd i n COUT1cilm in Oake In responding you said you did not know 'about it a int Of fact you did. po 1110edorn. -At ofthe sheets that were there were 'on the addessments that were haTided down rather.than deferred asse.ssments' �Mkyor Stock: The deferred assessments w e ere availabi at that public hearing Mrs. Bluedorn: They were available but they were not handed but.,, -14- MINUUS of the MeesdMgs of 1M Vft" Cooneil,.ef the Village of PdW Lake in, tM CovMy of SeN 'sad oa1e of "@ MiaMrete, IM10411"l all semak 6WI%d by bald Council. DEFERRED ASSESSMENT' Mayor Stock: . As a matter of fact I.helieve that was held up at the Prior Lake Junior High School and we had the HEARING records there and each one of us handled people as they came forward told and them what there assessment ' was and'the deferred assessment. Mrs. Bluedorn: Yes it was available there but it was not sent out like Mr. Shuff was asking. City Manager McGuire: No it was not sent out. 4 Mr, Shuff: In other words this one that was sent out in 1974 is only for the 150 feet of any of these parcels that was infant assessed at that tine. 'S Stock: r1 Mayor I would say that is correct, yes. Mr. Shuff: Is your opinion also available a�co py of your opinion, Mark.. Attorney Sullivan: Yes. ax Mr. Lawrence Schweich: I don't: fully understand Why we are here tonight. If you have interest assessed now against the property and a ¢ you get letter. saying it is going to be and you want to discuss it do we have to discuss it here tonight, is there another time, if you don't discuss it tonight is it going to goon automatically: Mayor Stock: The 8% is the question tonight. Mr. Schweich: "Do you have to,--voice your opinion, air your business in public. 3 Mayor Stock: You are either for it or against it or mute at this time as far as the 8% is concerned., Mr. Schweich: Is there going to be any, consideration for larger groups of property.where. there has been possible contract agreements or is this going to be 8%, interest. Mayor Stock: The talking about every deferment, now as to when than deferment is levied I guess that is another matter and will be discussed at a future meeting. That interest is not levied until the assessment is levied. Ne talking basically tonight, by>Statute, h, we were to notify all people if the Council so desired °nor if the need was appropriate for " the City in order to help repay its bond payments and again this is what we hired a;Financial Director for, ' to review this for us, to help us keep'," out of trouble. It is his opinion to us that this method of charging 8% on the deferred assessments would help in our bond repayment. n W. Schweich: I appreciate all that, I don't want anybody to get the impression,I'm here to make,a lot of noise or anything, I'm a businessman � and I want; to stay in business and the last thing the Council I•'m sure j wants to do is to put be or. anybody out of business. I guess what I's asking is there room to discuss this yet, has;it already been decided that you are going to''go, forward and .just see how much, is there any alternate plans to discuss or anything else we can do. Mayor Stock: I will only speak from m y point of vi ew. I believe that we have reviewed•the alternatives and there are vary few, because the Statutes for bond repayment, now maybe we were incorrect in - having any deferments. Maybe we shouldn't have done that,: but "that's hindsight,and we felt we were doing the best for our constituents at the time that.we held each one of tl►ese hearings and hoping that by giving a period of five years or in " some cases I recall,that we said until the time that you build -on. the lot or °until the time that you subdivided, I` remember those I statements, won't deny them, and those statements we will have to deal °With; But in the later v . hearings it was , maximus of five years that we were g of and I'think we have, to look at it in fairness :to everyone concerned in all the projects and. 1W each: "t •the bond repayment. has the- -same problem_ and it is'all because of the deferments.' Fran my point of view this is the method' and I. would have to say, this as if I was an individual that just had one lot and was currently assessed, 'I paid my 8% interest ,from ° the date that ` 'the assessment was levied and so rather than at some point down the road or ' 'I i MIIDtl1lt of tM hoeeedlap of the Villas* Coundl.of the,.,Vill of p►iot We in, , the County of Scott end State of Miaa•sote, iaeludias all aatiounh audited by said Council. DEFERRED in later years, the,fifteenth, seventeenth, or eighteenth year,' ASSESSMENT repayment to have the Council come ' of bond o se and say we're short X amount of HEARING dollars, therefore, we are going to;have a general Levey of five sills', or whatever the magic number might be, �I think then I would be upset. Mr. Schweich: I think.I have a little bit different situation. I as'ain the business of developing property and right now'I'm in cospettion with myself. I have a piece of property that, several pieces of o rt that I have just developed, lots for sale, and these lots; I have committed myself on these lots, there is no stopping on them;' I have do this ;with looking at what information I had.on otheryproperties.that I owned and decided which properties I would go ahead with and, d'' be the first one to agree evelop. I will that if I just had a lot here that you have to pay for it, But When you have Gre an there I know en Acres and °stuff like this it is going to be tough., Mayor Stock; That was the period of five, years that we were talking about t that was the -whole purpose of the five years is to help to develop the stage type of development. Hopefully w ann think both the Planning Coiwission and the Council both viewed it from the standpoint , that we are urging development in the areas where we have. sewer and water U and not out where vie don't have sewer and water As a setter of fact our Zoning Ordinance says s is no sewer and water available. b Solthe n five years there is different agreement I don t think *'ould change but that is the hearing a , g r the ,project when the project as�to be levied. If you were in the '72 ti :project this is going to be cominglup in January. { � V Mr. Schweich: If we are: starting tc► charge interest, if the assessments are not going to be called in but th`e interest,is, ' large :conies, it is the sale differe%ce. I hate t a yo a an,thing, b ing about Y y ut fi I'm a businessman, I have to. I have z "piece of property, like'Prior, 's South now, I would not have went ahead on 'that, there is no xa I would' Vend to develop ?I7 lets if I have other properties that I am going to i s have to start g k payin` interest on before;.that property is ready, but if I M a good businessman. and I can get sewer and water put in and not pay interest on it, and the cost of that sewitr and water is ` day and ,1 develop the other property ` \first, but now goi iv every ,1 assurance that I's not going to have to with''having the ; ^ = all�of a sudden I'have this o rt I as �ev�elop ng1 ser, then i Pr Pe y going f. "-ward and I have the sewer and water in it and I have the billy for chat and; also have to pay for what has been'deferred, it gets prett 1 ticklish. y Wyor Stock: I fully understand that I think each one of the Council welrbers do likewise, however, the samW token I ',think we are planed =in` i .the saw* Position that we. have to to the end this bond e ' guide the City and ice look repayment and we bette` face at before the: end. Schweich: I as not t tying to fight Cit y Hall, I as just wondering` if possibly this isn't more of a moral thing that , we are talking about. What's sorally'right than ghat is legally right, what can be done and what can't be done. It really gives me a gut feeling to what's happen' n I just wonder,' f there isn't any room for review or open discussion about�� ways to get money other than calk trunk line went;. ug ng in Green, Acres or `stuff �whexea thro h t' r4iddle of a farm and there was no•.xnaed for it it really is bad news. If I had one, two or three parcels or - ,ten o I wouldn't even o ts en be here, but it is a matter of talking thousands an thousands' of dollars and I'have to doe somthing I have to have a re 1 . %% / h guess I'm just wondering if we are going to jet as such money -In. 'by calling in stuff that is deferred, if we are:not going to stop deve`opsent It we�have been doi n�a.� , development :: You`might get a backlash here,l think g pretty fair job where we put in sewer and,.+ater and stuff, it has been going pretty forward and I honestly feel t}at people t aren't going to be able to stand this amount. of dollars :the. we are talking about and I think there is going to be quite a backlash. I ism �` 94 . MINLfTlf ef, the heeeadiegm sf the VM"o Council- *I the Village e!f Fier Leke•in the County of Scott and State of 3t � . Mianeselr, isdudi ag ell eoaeunb, au dited by qW :Cwneil: DEFERRED; Attorney Sullivan: There three things that can be done if the City ASSESSMENT • needs additional.funds. Number one,they; can do what has been proposed HEARING here and that is to collect interest on that deferred assessment < two, they . can assess the deferred 'assessments -so you will 'be paying both interest and principal on,-,,deferred assessments, or three, we can go along as we are and 'p ay ' then let all of the to ers in the Ci P Cit for those assessments or the interest o and the cost from carrying',those things Those.are the three things that can be:done and I guess the question is who is going to pay for the assessment on your property. Mr. Schweich:: It is not reallyithat simple, the one piece of property I at � talking about, you wanted to go through the property with your trunk line to ;. serve my neighbors, so I was a good "Joe" and said go ahead, but T said who is,going to pay for the trunk line. When I said this, Mr: Israelson said it will "be deferred and I said for how long. He said until; it is.developed and no less than five years, so I, said OK fine get me that in writing, and he said OK I I „ will. said you stop your machines and you don't go on my property until you do,, i said you cannot do this I want it In writing. ,. W, Id brought it, he had it signed. , It,was an agreement that there wouldn't be any charges towards this property. T said Harold this is no goad with your isle on it, I want's o_:e ia3s to have their names on it, 21 you.might.begone tomorrow. I got the first letter from Harold with his ..'- 4: 0\ name on it, I have the second one with some of the Council and Mayor on it. After o 'A this was done I said OK you can go ahead,,,give neighbors ewer and % .; water, I'm here now and I don't wani to be, 'but lla, here trying to defend by business because I'a not talking about $1,000,1 = $2,000.00. I'm talking about dots of money that it is going,to cost me that I'm throwing down the- x " hole because I've developed other property. which' I would have 'never done y ; if. I didn't Nava, that iece of p' paper. Now. I'm finding; out, that this piece ` Eh ' of�paper is no, good, is what it amounts to and I cannot stay in business that xay, I don't,,know where to turn, come here to fight anybody "1 I just came Lo say tha t I want to stay in business, because I want to own the property I don't want the ro rt to own pe,. }�- p y me; Mayor Stock: I think we understand your opposition is +,,to the 8 %. W. Schweich: Yes,'I think 8% in this case is very serious..' :Mrs. Mt►lis Bluedorn representng her Mother: Lawrence is talking about a5 i ' piece of P14 compared to what "m talking,�about. You people cape to me and rt asked,to put s ewer across our property to save the City many, many hundreds of thousands of to get to a. certain { ,dollars project. .Is that project paying any,4.e£erred assessments in helping to pay to get it there. Are they paying' any1:hing to get it to` their place, no they are paying the exact amount that f k, everybody else is. G City Manager McGuire: I'w`not sure that I understand your question,. Mrs. Bluedorn: You came and asked us to go across our property to get to fi another property because you couldn't go the normal road route,because it f f „I xa3 impossible to get through a mountain. So we allowed you tai go across there and you 'said that it would cost us nothing,for any period of time, ' and now you are tacking on 8% on that trunk line. Even if I didn't object to -you going along the road I don't see how you..can go on to something you ? protiiised there wouldn't be any,charge on, ,until such= time as our land is developed °because we had no need for it. Attorney Sullivan: I think we are getting ahead of things here Marlis, we went, th ough condemnation to get the eight to cross_ your property., 0 ° Mrs. Bluedorn: No you did not go through condemnation, I signed,, willing- " ” ly because I was promised that it would cost nothing until such time as)we developed and now look at this figure.., } Attorney Sullivan: The questiow. then is whether or not�theie is a benefit to your property. Mrs. Blued`ornr Theme is'no benefit to my property until such time as .it is developed and,here-is 8% an on this big amount. { i 17- h 1 MINUTli of 1M �� rweoedhW of 1Uo "W90 ;Ceueeil of *0 VIIk V* of I'dorAsko in the County of SeeN ood Slate of Mioneseft ineluaiea all eeeeunts auditod by eeid Cov I. DEFERRED', Attorney Sullivan: Then that is something you should take up when'the. ASSESSMENT assessment hearing comes along, if you claim there is HEARING ' no benef it; Mrs ;' No, I'm talking about the 8%, I'm objecting to the 8� tonight and onithat basis which I'm ng goi to have to I have letters that say it will never be charged until deielopr you are ar coming up with an 8% ,which I think is contrary to what you have said. Aren't these letters worth ' the here on in T paper they are,,written on, from Suess we will. trust will nothing that the Council says, sure we Put it in writing but,i.f we just change our mind in two years we will do something else, to I You, would= like'to sell this property =now and " what chance :do;youthink I've y t got to sell it when You are tackipg on this 8% interest., °Anybody who wants to co me in and develop it can't develop it > overnight. ght. The economics as possibly you keep saynyg, has • gone haywire and certainly has gone haywire in this; a g case, 'because had I known this you would have went thro h and you would have paid damages `before you would hive crossed _:.�. this property and then I would have that money in damages to pay what you a re asking for ;now, `I Will talk to any - body in this room "right " n now if th e figures, I don't care to air Y would like to abet it in specific` business publicly, but y Have to, b I ecause you are talking guess I will about 'is + something that _ Mother out, if any of going wipe my. , you can sleep overnight when she has nothi to live on, the Lord protect you. ng } 1!h'. Nickelson: Did I understand 'f complaints that we feel is you to say you have any specific not fair, not just, 5k+ or not the to do that would be at the certification hearing, 1t that What is that ri ht you g o said, „ ~ Attorney Sullivan; If there is some question about the amount of the "assessment that is when you would Ji raise that. .: Mr. Nickelson In other cords the 8t` will be done, there is nothing, can do about that, except say what we think about it, in other wor there is nothing ire can legally do to prevent that from ha eni ally pp ng, , ;nothing at Mayor Stock: The r Council still has to act on the question and they have not acted. '� I guess I an assuming that you are going to act on that regardless of what'we think or say, we k now ss, and I,can see ° this!I Sue rte` why it has to be, I'm not °saying ' thats unfair, I say that this is *►hat.is going`to happen; -•is that a reasonable assumption, Mayor Stock: We will have - to wait and see. ` Mr.� Nickelson: = I am like to know god to assume it personally. Another th!ng I would e i , i o the (me that belongs t t s behind where I ih 'live, that is Drivein in the hole -down there`. I was,down there tilkiillLOf the grading g ding contractor.a few weeks,,a month ago, and'I assume same of these figures are maybe, wrong, based figures. <on that they, are ballpark iginally we were told there would, er be 90 to 9s;townhousea in there, the last thing that I heard was that. fli a �readences �r in there and would be 25 single family walking I assiae that there is about a guesstimate 0 r` 1 Ofeerun of tk Iii don't know how' "AY fire hydrants and lines that were t go to these townhouses that are all abandoned. This s what the grading contractor told me, he said they sure buried a lot of stuff in there`that will never to pick up`the' tab, this t _ would hava been cranked into this man 's fig going guru OR the original, estimates for front footage figures to finance the Who is going to, "there �assuwing project. is a thousand feet there that isiabandofied, who, is going to pay for that �- T j thousand feet and who is going to pay for the fifteen or thousand feet it is going to take to r � � F service the houses that are going to be`where they weren't going to be before, ss I C J Mayor Stock: The developer.,. t i 1k ' , ( e` iep ef' fM Vq MINIIfEf at the hreNd lep Gveeil of flai Villeee offdw Lake In the Guetl► of feN/ and fteM of MIQeNMa iaeludiej all ae6orelt eudiNd by aid GwedG , DEFERRED~ ASSESSMENT Mr, Don Williams: 'I would like to speak far the single•family residence of the City, HEARING myself included, who are now paying 8% or 7k on the money now, As .you know the vast majority of the property owners of thelCity were .fully assessed or near fully assessed, we are paying our interest. I'can under- stand these people that, there is a lot of them that have large properties, that it is almost impossible do develop in a hurry, there are also a great - number of them who,have large lots or holding; ° who are two and three lots. that they like to live on because it looks nice.:, You should consider } probably something for the Bluedorn type property and Schweich type property as a staged thin y , g g Possibl For the people with - 'one or two lots that are holding because they like the large lot -. or a ,large lot that can be sub- divided and they like it that way, I'think that they havejo be afforded e the opportunity to decide whether they ate going to divide it or keep It and Pay for;it. The 8% interest has to be paid by somebody. The people ,who are now paying 8% inter.;est 6-not' want to, I think I an speaking for 100% of ; them, pay for the deferment °charges of these people. " I Mayor, Stock: I'll accept your statement, also I would like to ask Mark' if he has any opinion on staged for large growth properties' that, relates to the Statutes. , Attorney Sullivan: I don't think you can do it, it would have xorbe an equal uniform,application'to the law for any deferred assessments:` I v* '1 Fi have been looking through here to see`what rights there m ht be if g g , you don'.t like this,,1t don't see anything in this particular section, normally you have a 20 ►ay period to ,appeal to an assessment hearing. �. - Mt �, rckelson; I see your rationale for'doi � ng ' it, I do concur, I guess that�[it is probably the least � ` painful, alternative,' I. just wanted to know, howjiver - , if' there was anything that could be done by someone-who didn't agree`; personal. ?y I see that it is inevitable and it is,samething that. is ' going to have to be done: v , Mr. Francis Snell: Would. you check my lot for the assessments. Igor Stock: Couldyoustop up`and see Mr.McGuire.� }r� City Manager INCGuire: I informed Mr. the next meeting. Snell that we would take, up at it .} Snell: Will I' be notified then. "Mayor'-Stock: Yes. ! ' i ra t ' Mr., Harley Swenson:` I am wondering about the 8% on an additional $16,000.00 been „I've assessed,on eight acres of landcand I do not know where the money is to come from. . ,going Mr. Lan Grassini, Shady Beach Trail: I have one particular pa parcel, that i7 fronts on Bayview Crest is which the road into the subdivision and -it also ' ha some;, frontage on County Road 42 and the 4ef 'reed assessment �. was on County Road 42 and it doesn't benefit this piece of property all and • it *3 quite.a few dollars and I was wondering., it,is - 8, a large parcel of something over - acre, an and I was wondering if- .itwould possible to subdivide this lot,,in order to take advantage of the frontage = n . on County' Road. 42 as well as get some benefit out of the assessment. Mayor Stock:' That would be another item that would'be given consideration " at the time of the hearing,for_ that specific project;'however, I also urge YOU to contact Mr. McGuire and review that with him,'and it will be taken cinder advisement at this time as well. Councilman Oakes: Does it have improvement on both sides or on one side.' Mr. Grassini:• That is why ; I on,a little bit concerned, it has an improve- sent on both sides of` the � lots , and it benefits from'one side and from the back side it just ,• 1 ` goes west. I,don't know why it. mould be assessed on both sides of the 1pece of property. ,. d f s Mif+>llTtt of f6e MeekdiR jm of Nye YlNeai Ceuneil N fhe Vil ti iooe of Frior ;eke in Nhe county of Scof and StoN of Wannele,_including all eccwnh audNed by seid Ceendl: a DEFERRED Mayor'stock: Does anyone else want to speak at, this time, if not I'll ' ASSESSMENT° this .portion; of the hear close ng to the public and then'ask for Co 7 u ; HEMMIG disc>f'ssion _on the question of charging 1 uncil 8� interest effective January 1 1 1977: Mark is it _appr o p riate ro riate at this time to adopt this or not adopt it, ;> and then the second p,�rt is to continue assessments. . this\�;hearing,.so that they move hand sm assessments. with the hearing for the levy the actual deferred - Mark: That is correct. Mayor Stock: 'Then at this g rticular time I' entertain on % interest charge effective January 1, 1977 on �d.eferred c assessments. ; Ill, I �• 'I Councilman Oakes I do,1't know that I can comment on the 8%, toni }'Atirk unless you help me;;,because that would presuppose the "action later - on. This meeting toni ght 'd e ails"with the question of 8% interest to'be considered for application •to the deferred considered, to be ,dealt with on January loth Mayor Stock: For one projFCt'Jack, that is just one, the rest will follow. o � Council Busse: I guess I rave about the same: with such properties as Mr. Grassini. has which is one 1 t we both sidesand we he isffassessed for 8% on b / oth sides ti. can justif xy serving w ( one lot ithout it being ut;divdedt see that y �.. L Mayor Stock: That would be a matter to be taken under the night of the assessment levy itself. We will have a number of these consideration Properties that`we °are going to have to deal with where raeents have `= \been `reached for passing through their property with trunk a g lines and 'this type' of thing.} �- o \ G Councilman Bissonett: M J have a ma of fisc al, e . staring us right in the��face, we have an obligation r tha we have contracted for: Our financial advisors have advised us: that the onlyiway to meet this 4: a tOrneyslha a told * th "s legal on the way we can dUaite "ia Our l 11 that- there ate, several parcels that I think are in questi a, Mrs. B agree , ' the gone she ra:isdd a, que on Mr. Schweich's,:possibl Mr and am sure ?sre many, many more there are questions on, but $ t MY"understanding therreason we are going to try to reach see decision l tonight is not to arrive at specifics and say 8%J3 not good`on P where it i`s goad on somebody el ses your , it i's to try to decide' whether 1 1 ' should assess that`'86 as a Matter of policy on =its, 'overall these deferred assess , °then deal with thatcorrect, specifics at each individual hearing, is' q fr= 1►hyor Stack: Thavis `correct. ;. Councihman Oakes: Looking back to the beginning of sewer and water in , the cow unity and recognizing w the change in growth-,that has occurred. may reneshe s r t1i?: front page of the Minneapoli headlines which'said in the You ' even coon / ty area there will be 4, by the year 2000; that is na+�wn 2 8million, 'I don't know what' happened tothedther 1 `w There was an att Mpt from the beginning to minimize inpoct`i;n iynd :.2`million. Pro Toped f ?'tYx I think the S is a r eve oc think it is still an honest attempt to lainimie the in, gri�,�lrth. I prb'kerty. impact one undeveloped ff l Motion was made by Bissonett to adopt a resolu'' tion to authorize the !City ST.aff to levy an 86 interest charge � on deferirei3 ssessments a�'rrecomnended b staf seconded by Oa vote taken it was dul f, kes and upon a ; ., Mayor Stock "entered into the record two letters L-'Sandburg dated received, o from Euge,e +December 4, 1976 and one from Leonard, St eet; °and �IDenard representing Dr., Frank Anderson` dated D.cember 13, 976. _ ��� *a�,�a,. '�: •,,,rte ,:aca . ter» , ;, i i4 K MINLRES of NN INN 1 ' of � VH f< . n!� 690 Ceuaeil of the Villqgo o f trier Lake i the CwMp of Scott and tlah if � ` 10 118869000, including all nerouaft audited by .aW Council. s DEFERRED Mayor stock stated there will be subsequent hearings held for each project ASSESSMENT area, at that time the Council HEARING will consider the property in question for 4 each deferred assessment and if you feel you have an unique situation I urge you to contact the City Staff,prior;'Ito that Public Hearing and that the Council has an opportunity to know the problem that you, have and we will try to deal with ahem in the best j that we can. The only hearing we have established is for Projei`t 72 -7 and that is January 10,' 1977, the other ones are yet to be set. ��hose that are in Project 72 -7 will receive =a mailed notice, a written notice, and it will also .be .published in the Prior Lake American. Engineer Anderson stated that the notices would be mailed according to ,the legal description given at Scott County, we try to send a notice, to every - one, 'however, there has been some incorrec addresses in the past., Councilman Bissonett stated that if anyone is in doubt where they will be _ at that time please contact the City and let the know where they can .; send out a notice so you don't come back later ajd say we did not get on Councilman ?Oakes stated he`has asked the City Manager for those of you who do contact the staff to try to put down a fairly short statement of what' your stand is and that be made available to the Council prior to the public ° hearing o n8 give the Council, the Mayor, and the staff an opportunity to have some time to research your particular ; There are a °< number of instances where it would pay to know ahead of time so that we can go back - to our old records and refresh our memory.' ; Mayor Stock stated they would``also have the right to sen&lthis in, in written form to the 'City Council or the City Manager and that will also bring it to their attentions. Mr. Nickelson: These hearings that you are talking about, the'frst one being January 10th, are these the ones to take place at tie end of five you are talking about t}iat are going ° = year periods. � Mayor Stock: That is correct. Motion was made by Bssonett�to adjourn the Public Hearing, seconded by iJakes and upon a vote taken it was duly passed. Mayox Stock called the regular council meeting back to. order,` 6- 7he,Council discussed the Metropolitan Development !'NVESTMENT� deals with the iriv' %estment framework and the mater was FRAMEWORK METRO ,DEV. '' week for, a recomm �idation'by the City Manager. I►aton was Wade by ssonett to authorize the City-Manager and Mayor to e` "with Mr. Alvin Abel on price area,, etc., for recreational�,land , PROOPERITTYEL for `hi negotiat d 6 nsity reZ;r\1at and ,report back ,'o the Council their findings, seconded. by Oakes and upon a Vote taken -it vds duly passed. PLAN., C U OMH. SAV/1GEG MITN Councilma�� „Busse report` \,on t'he Planning' Conmiisson Meeting with Savage. Meyox Stock scheduled the Island View Subdivision on the "agenda for next �15LAND V IED week" for action \by the Co�acil. SUB,., �, z �. AD- HOCK mayor Stock reported on `1 Ad -Hoc committee meeting on the Minnesota "* 'River bridge crossing ;held `on Decemoer 7, 1976. They adopted, eyeral Cam Q ' recommendations that wer RIVER BbtIDGE e made to them by their advisory ,Department of committee. The -., first resolution was that tl a ,d -Hoc comirittee support the ° CROSBY! NG ii TYanspbrtation pars- t -ansit r',ograw.' The next two items deal with this U w perm- transit and which the cties or, municipalities affected should adopt , and `send resolutions forward, number two then a continuation of one;Hthat the Ad -Hoc committee encoura a local,units'of government most affected by the P closing of i Mi a ota:iver bridge e should re nest the' "MTC to '� q w � im lament its -� city T ransit plans. The third that„the project ° a develop report process cooCoinate'd with the implementation'that` the g the long L; Metropoli Land Planning Act be used as a means of addiessin - 1 11 ' term issues identified. I C q -2 ; if {) MINUM of tho P,06i oedhW of tho Vilhne Council of tho Vilhpo of #dw lake in the County ef; —_J �YR�Atatiaf4 !A' Ar Minnowte id , nudi n� all aceeunh audiNd' by said Council. I ";MX TRANSIT PLANS FOR Motion was made by Oakes to adopt a re tion to submit to the M'hC requesting ` `� MN RIVER them to ,implement its n� transit 'plans for all those concerned in with the Minnesota JCROSS1NG River crossing, seconded by Busse and upon a vote taken P { c,. it was duly passed. Councilman Bissonett abstained. Y: Motion was made by Oakes to adjourn, by t seconded Bissonett and upon a vote taken — this meeng. was by r at 10;43 F.M.` A Michael A.NcGuire, City Manager M r t4 ll t i fV I 13 r l t II "f � rte) ,. ♦�� a , lie k :1 'J k { 1 i , ro n