HomeMy WebLinkAbout7B - 2004 Improv Proj Assmt Hea
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
MEETING DATE:
AGENDA #:
PREPARED BY:
REVIEWED BY:
SUBJECT:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
OCTOBER 4, 2004
7B
LARRY POPPLER, ASSISTANT CITY ENGINEER
STEVE ALBRECHT, CITY ENGINEER
SPECIAL ASSESSMENT PUBLIC HEARING FOR 2004 IMPROVEMENT
PROJECT #04.11 RUTLEDGE STREET, RED OAKS ROAD, BREEZY POINT
ROAD, ADRIAN CIRCLE, STEFAN CIRCLE, BIANCA CIRCLE AND LAKEVIEW
CIRCLE STREET IMPROVEMENTS AND CONSIDER APPROVAL OF A
RESOLUTION ADOPTING THE ASSESSMENT ROLL FOR THE PROJECT.
Historv
At its regular meeting of September 7, 2004, the Council approved Resolution 04-
137, which declared the cost to be assessed, ordered the preparation of the
assessment roll and established the date of the Assessment Hearing as October 4,
2004 for Rutledge Street, Red Oaks Road, Breezy Point Road, Adrian Circle, Stefan
Circle, Bianca Circle and Lakeview Circle (Project #04-11).
Current Circumstances
All benefiting property owners have been mailed a Statement of Special
Assessments, which included information pertinent to their property such as the total
proposed assessment amount and the assessment rate. The Notice of the Special
Assessment Hearing was published in the newspaper on September 18th and
September 25th, 2004.
The total project cost for the improvements is $2,690,248.00. It is proposed to be
funded through tax levy, trunk reserve funds, water quality funds, collector street
funds, enterprise funds and assessments. The Assessment Review Committee
recommends that $645,181.00 of the total project cost be paid though water quality
and enterprise funds. The remaining project cost of $2,045,067.00 would be paid
for by tax levy $1,226,999.00 (60%) and special assessments against benefiting
property owners $818,068.00 (40%) in accordance with the City's Special
Assessment Policy. There are 111 benefiting properties in the project. The project is
being assessed on a unit basis.
The assessment term is ten (10) years for paving. Added to the first installment
(2004) will be an additional 88 days of interest, which accounts for the remainder of
2004 following the Assessment Hearing. An interest rate of 6% will be charged in
accordance with the City Assessment Policy.
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(i'\Agrnlb\Agpnrbn.:1\O.4IMPA g nnr
Phone 952.447.4230 / Fax 952.447.4245
Under state statute, the City may only assess a property up to the amount the
property is specially benefited by the public improvement. Special benefit is defined
as the difference between fair market value before and after the project.
The Property owners who believe that the proposed assessment exceeds the
special benefit have a right to appeal their assessments as per Minnesota Statutes
Chapter 429. Written objections must be signed and filed with the City Manager prior
to the Assessment Hearing or presented to the Council at the Hearing. Within 30
days of the hearing, the owner must also file the appeal in District Court. No appeals
were received at the time this report was prepared. We have apprised each of the
property owners of our Deferred Assessment Program.
Conclusion
The Council should open the public hearing, receive public input and then close the
public hearing. If certain issues need additional study, those issues could be
referred to the Assessment Review Committee for evaluation and recommendation;
otherwise, it would be appropriate to approve the attached resolution. Statutes
require that special assessments must be certified to the County by November 30th.
Since property owners must be allowed 30 days to payoff their assessments
interest free, the assessment roll must be adopted prior to November 1, 2004.
Issues
The Special Assessment Review Committee has evaluated the proposed
assessments and proposes the following findings and recommendations to the City
Council:
The Special Assessment Review Committee recommends that the Unit Assessment
method be used for the project. The method is appropriate because the lots in the
area are of similar size and/or value and all of the properties receive the same
benefit.
The proposed amount to be assessed against the benefiting properties is
$818,068.00. There are 111 benefiting units in the project area that are being
assessed at a 40% rate. Based on the foregoing, the proposed assessment is
$7,370.00/unit. This is $908.00 less than earlier estimates. The Gateway Shores
Homeowner's Association respectfully asked that the assessment for their parcel be
distributed to the 12 Gateway Shores Homeowner's Association members. The
$7,984.00 assessment to the Gateway Shores Homeowner's Association amounts
to a $614.17/unit increase in the assessment for the Gateway Shores Homeowner's
Association members.
The Special Assessment Review Committee believes that the special benefit
received by each of the affected properties exceeds the proposed assessment.
G:lAgendalAgenda04\04IMP AH.DOC
-----~--_.~..~._-_..,..._---_.._."_....._-_.__._~._-,-----_._..~--_._,-,_._._- --- .. ..'.-....-..----.. ....--.-..--...--
Special benefit appraisals were performed by Nagell Appraisal & Consulting on five
selected properties within the project neighborhood. The selected properties
represent lakeshore owners and non-Iakeshore owners. The special benefit
appraisals show the amount of value the properties gain from the City
improvements. Based on the appraisals, all five of the properties show a special
benefit higher than the assessment amount. The attached table shows the increase
in appraisal values:
Property Estimated Appraised Proposed
Benefit due to Street Assessment
Reconstruction
15494 Red Oaks Road $11,350 $7,370.00
15491 Stefan Circle $15,800 $7,370.00
4806 Rutledae Street $15,750 $7,370.00
15546 Lakeview Circle $16,700 $7,370.00
15357 Breezv Point Road $13,200 $7,370.00
FINANCIAL IMPACT: The following is a summary of the financing of the improvements.
Fundina Source Project #04.11
Assessments. $818,068.00
Tax Levv. $1,226,999.00
Water Qualitv $60,408.00
Enterorise Funds $584,773.00
Proiect Total $2,690,248.00
. The numbers shown above include 26% indirect costs for engineering, administration, and
financing.
The focus of tonight's hearing is whether the affected properties have been specially
benefited equal to or greater than the amount of the proposed assessment for each
property, and whether the assessment has been calculated accurately and in
accordance with City Assessment Policy.
ALTERNATIVES:
The alternatives are as follows:
1. Approve a resolution adopting the assessment roll as submitted.
2. Approve a resolution subject to Council approved changes.
3. Close the hearing and direct the Special Assessment Review Committee to examine
issues or concerns raised at the hearing and provide a recommendation for Council
action at a special meeting.
G:lAgendalAgenda04\04IMP AH.DOC
RECOMMENDED
MOTION:
A motion and second to adopt a Resolution Adopting Assessment Rolls for Project
04-11 Rutledge Street, Red Oaks Road, Breezy Point Road, Adrian Circle, Stefan
Circle, Bianca Circle and Lakeview Circle Street Improvements.
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REVIEWED BY
G:lAgendalAgenda04\04IMP AH.DOC
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
RESOLUTION 04-XX
RESOLUTION ADOPTING ASSESSMENTS FOR PROJECT #04-11 FOR
RUTLEDGE STREET, RED OAKS ROAD, BREEZY POINT ROAD, ADRIAN CIRCLE, STEFAN CIRCLE,
BIANCA CIRCLE AND LAKEVIEW CIRCLE STREET IMPROVEMENTS
MOTION BY:
SECOND BY:
WHEREAS, pursuant to proper notice duly given as required by law, the Council has met and heard and passed
upon all objections to the proposed assessments for Project 04-11 Rutledge Street, Red Oaks Road,
Breezy Point Road, Adrian Circle, Stefan Circle, Bianca Circle and Lakeview Circle Street
Improvements.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA:
1. Such proposed assessment, a copy of which is attached hereto and made part hereof, is hereby accepted
and shall constitute the special assessment against the lands named therein, and each tract of land
therein included is hereby found to be benefited by the proposed improvement in the amount of the
assessment levied against it.
2. Such assessments shall be payable on an equal principal method extending over a period of ten (10)
years for paving. The first installment shall be the annual principal plus interest calculated from the Public
Hearing date to the end of this year plus twelve months of the next year and shall bear interest at the rate
of six (6) percent per annum from the date of adoption of this assessment resolution. To the first
installment shall be added eighty-six (88) days of interest on the entire assessment from the date this
resolution is adopted to December 31, 2004. To each subsequent installment when due shall be added
interest for one year on all unpaid installments.
3. The owner of any property so assessed may, at any time prior to certification of the assessment to the
County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of the
payment, except that no interest will be charged if the entire assessment is paid within thirty (30) days, and
the individual may at any time thereafter, pay to the City's Finance Director the entire amount of the
assessment remaining unpaid, excepting the installment portion appearing upon the current year's
property tax statement.
4. The Finance Director shall forthwith transmit a certified duplicate of this assessment to the County Auditor
to be extended on the property tax lists of Scott County. Such assessments shall be collected and paid to
the City in same manner as other municipal taxes.
5. The final project cost apportionment has been determined to be $2,690,248 of which $1,226,999, $60,408,
and $584,773 shall be paid from Tax Levy, Water Quality Fund and Enterprise Fund, respectively, and
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Phone 952.447.4230 / Fax 952.447.4245
$818,068 to be assessed to the benefited property owners at the assessment rate of $7,370 per unit as
per the attached assessment roll.
Passed and adopted this 4th of October, 2004.
YES
NO
HauQen HauQen
Blomberg Blomberg
LeMair LeMair
Petersen Petersen
Zieska Zieska
{Seal}
Frank Boyles, City Manager
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