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HomeMy WebLinkAbout4D - Scherer AssessmentsCONSENT AGENDA #: PREPARED BY: SUBJECT: DATE: 4 (d) RALPH TESCHNER FINANCE DIRECTOR CONSIDER APPROVAL RESOLUTION ADOPTING FINDINGS OF FACT AND APPROVING AN AGREEMENT FOR REFUND OF CERTAIN ASSESSMENTS TO DANIEL AND BETTY SCHERER FEBRUARY 6, 1995 INTRODUCTION: The purpose of this agenda item is for the City Council to consider the adoption of Findings of Fact that would establish the basis for consideration of a special assessment refund for Daniel and Betty Scherer. Also, authorization is requested for the City to enter into a formal Refund Agreement stipulating that the current property owner as well as all future purchasers, transferees, successors and assignees are responsible for a connection fee at time of issuance of either a building permit or connection permit to the municipal system for the purpose of utilizing water and sewer service. BACKGROUND: The City Council approved the assessment refund at a meeting on January 3, 1995 conditioned upon the approval of a Findings of Fact relative to this particular situation and the drafting of a Refund Agreement establishing certain conditions to be fulfilled prior to the refund payment. DISCUSSION: The Findings of Fact (see attached document) identify ten (10) specific facts that are associated with this special assessment refund and are intended to narrow the scope of consideration so as to avoid a general pattern of precedence with respect to such refunds. The Refund Agreement itself (see attached document) requires that the Scherers comply with the following conditions: 1. Obtain consent to refund from O'Keefe and Mortgagee. . Obtain consent from O'Keefe and Mortgagee that-they will be subject to a future connection fee if the property connects to the municipal sewer and water system. o Scherers pay all costs associated with this petition, including attorney and recording fees, incurred by the City of Prior Lake prior to the issuance of a refund check. RECOMMENDATION: Enclosed is a Resolution Adopting Findings of Fact and Approving an Agreement for a Refund of Certain Assessments to Daniel B. Scherer and Betty Jean Scherer. The Resolution authorizes the Mayor and City Manager to enter into the Refund Agreement. The amount of the special assessment refund is $2,896.34 and shall be paid subject to full remittance 16200 Eagle Creek Ave., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER by the Scherers to Lommen Nelson Law Firm for reimbursement of the City's legal costs related to this matter. ACTION REQUIRED: REVIEWED BY: A motion to approve Resolution 95-x Adopting Findings of Fact and For A Refund of Certain Assessments to Daniel Scherer as part of the consent-agenda would be Approving An .B. Scher~'~d A9501.WRT RESOLUTION 95- $o MOTION BY: WHEREAS, WHEREAS, ADOPTING FINDINGS OF FACT AND APPROVING AN AGREEMENT FOR A REFUND OF CERTAIN ASSESSMENTS TO DANIEL B. SCHERER AND BE'I'FY JEAN SCHERER SECONDED BY: Daniel B. Scherer and Betty Jean Scherer petitioned the City for a refund of certain special assessments levied by the City against Lot 19, Green heights 1st Addition, Scott County, Minnesota, located within the City of Prior Lake; and this matter was considered and preliminarily approved by the Council at a meeting on January 3, 1995, with said approval conditioned upon adoption of Findings of Fact by the City Council and the drafting and approval by the City Council of a Refund Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA,that: 1. The attached Findings of FAct concerning this matter are hereby approved and adopted. . The Mayor and City Manager are hereby authorized to enter into the attached Refund Agreement with Daniel B. Scherer and Betty Jean Scherer, Daniel E. O'Keefe and Cynthia D. O'Keefe and New Market Bank. , Upon recording of the fully executed Refund Agreement with the Scott County Recorder's Office, the City Finance Director is authorized to refund to the Scherers the sum of $2896.34 less the attorneys' fees and costs incurred by the City in drafting and recording of the Refund Agreement with the Scott County Recorder's office. Passed and adopted this 6th day of February, 1995. YES NO Andren Andren Greenfield Greenfield Kedrowski Kedrowski Scott Scott Schenck Schenck {Seal} RSXXX.WRT Frank Boyles City Manager City of Prior Lake 16200 Eagle Creek Ave., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER FINDINGS OF FACT Special Assessment Refund Consideration (Lot 19 Green Heights Addition) (P.I.D. # 25 102 021 0) February 6, 1995 Daniel B. Scherer and Betty Jean Scherer petitioned the City Council to consider a refund for special assessments in the amount of $2,896.34, which includes interest paid, pertaining to water and sewer assessed against Lot 19 Green Heights 1st Addition. The City Council, after considering this matter as Agenda Item No. 7C at the City Council meeting on January 3, 1995, hereby adopts the following Findings of Fact: 1. All special assessments outstanding against said property be paid in full prior to placing the reimbursement petition on the City Council agenda. 2. Approximately .75 % of the parcel currently lies within the flood plain. 3. The depth of the lot is extremely shallow which restricts the building envelope to a substandard size. 4. The lot is currently unbuildable and therefore denied building permit consideration by the City. 5. Due to the low elevation at the time of assessment, the lot should not have been originally assessed a frontage charge for water and sewer improvements. 6. The existing special assessment balance was paid in full by the Scherers at time of sale of the property to Daniel and Cynthia O'Keefe. 7. The current property owner, mortgagee, or any transferee will be subject to payment of a connection fee, to be determined at time of connection to the municipal system, in consideration of this special assessment refund, in the event the property is made or subsequently becomes buildable. 8. The City of Prior Lake acknowledges no precedence as a result of these actions due to the aforementioned conditions associated with this parcel. 9. The current owner and mortgagee consent to the refund being paid to Scherers and waive any claims to it. 10. Any costs incurred by the City for the preparation of these Findings, the Refund Agreement, and the recording of the Refund Agreement are to be paid by the Scherers prior to the issuance of the refund. REFUND AGREEMENT THIS AGREEMENT entered into as of this day of February, 1995, by and among The City of Prior Lake, a Minnesota municipal corporation (hereinafter "City"), Daniel B. Scherer and Betty Jean Scherer (hereinafter "Scherer"), Daniel E. O'Keefe and Cynthia D. O'Keefe (hereinafter "O'Keefe") and New Market Bank (hereinafter "Mortgagee") RECITALS WHEREAS, Scherer petitioned the City for a refund of certain special assessments levied by the City against Lot 19, Green Heights First Addition, Scott County, Minnesota, located within the City (hereinafter the "Property"), and WHEREAS, the City required Scherer to pay off the balance of the special assessments prior to considering Scherer's refund petition, and WHEREAS, Scherer subsequently sold the Property to O'Keefe who placed a mortgage with Mortgagee on the Property, and WHEREAS, as a condition for the City to approve Scherer's petition for a refund, City required that Scherer and Mortgagee execute this Agreement for recording with the Scott County Recorder's Office. NOW, THEREFORE, in consideration of the grant of Scherer's petition by cancellation of and refund of certain amounts paid by Scherer upon certain special assessments levied by the City against Lot 19, Green Heights First Addition, Scott County, Minnesota with a determination that said lot is unbuildable and based upon certain findings adopted by the City Council of the City approving Scherer's petition, and other good and valuable consideration, the sufficiency of which is agreed to by the parties, the parties agree as follows: 1. O'Keefe and Mortgagee consent to the assessment refund being paid to Scherer by City and waive any and all claims to it. 2. O'Keefe and Mortgagee and any and all purchasers, transferees, successors, assignees and subsequent mortgagees as record owners and holders of mortgagees upon the above-described Property, agree in the event that the Property is subsequently made or determined to be buildable, the City may impose connection or other fees in lieu of assessments as a condition to issuance of a building permit or to the connection of the Property to the municipal water and sanitary sewer systems. 3. The City shall cause this Agreement to be recorded with the Scott County Recorder's Office and the recording costs shall be the responsibility of Scherer. 4. All costs associated with the grant of Scherer's petition, including the attorney's fees incurred by City in drafting this Agreement and recording costs, shall be the responsibility of $cherer and shall be paid by Scherer prior to the refund payment by the City. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written. Daniel E. O'Keefe Cynthia D. O'Keefe Donald B. Scherer Betty Jean Scherer THE CITY OF PRIOR LAKE NEW MARKET BANK By. By Its Mayor Its BY Its City Manager STATE OF MINNESOTA COUNTY OF ) ) ss. ) The foregoing instrument was acknowledged before me this 1995, by Daniel E. O'Keefe and Cynthia D. O'Keefe, husband and wife. day of February, STATE OF MINNESOTA COUNTY OF ) ) ss. ) Notary Public The foregoing insmmaent was acknowledged before me this 1995, by Donald B. Scherer and Betty Jean Scherer, husband and wife. day of February, STATE OF MINNESOTA COUNTY OF ) ) ss. ) Notary Public The foregoing instrument was acknowledged before me this 1995, by , the Market Bank, a Minnesota corporation, on behalf of said corporation. day of February, of New STATE OF MINNESOTA COUNTY OF SCOTT ) ) ss. ) Notary Public The foregoing instrument was acknowledged before me this day of February, 1995, by Lee Andren and Frank Boyles, the Mayor and City Manager of City of Prior Lake, a Minnesota municipal corporation, on behalf of said municipal corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Lommen, Nelson, Cole & Stageberg, P.A. 1800 IDS Center (GRK) 80 South 8th Street Minneapolis, MN 55402 (612) 339-8131 $ :~SHDATA\ 16772G\GRK~SCHERER.AGT