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Home My WebLink About7D Reassessing Real Property for Welcome Ave Industrial Park Improvements Report C. PRI% 4646 Dakota Street SE Prior Lake,MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: October 26, 2015 AGENDA#: 7D PREPARED BY: KATY GEHLER, PUBLIC WORKS & NATURAL RESOURCES DIRECTOR PRESENTED BY: KATY GEHLER AGENDA ITEM: PUBLIC HEARING TO CONSIDER APPROVAL OF A RESOLUTION REASSESSING REAL PROPERTY FOR THE WELCOME AVENUE INDUSTRIAL PARK IMPROVEMENTS DISCUSSION: Introduction The purpose of this agenda item is to hold a public hearing pursuant to Minn. Stat. § 429.071 and consider a resolution reassessing the real property at 6000 Credit River Road SE for the Welcome Industrial Park Improvements. History On May 28, 2013 the City Council adopted the assessment roll for the Welcome Industrial Park Improvements. The City received two objections to the assessments which were later filed with the Scott County District Court. These objections included real property located at 6000 Credit River Road SE, also known as the Prior Lake Mini Storage and 16801 Industrial Circle SE, also known as Prior Lake Machine. On August 22, 2014 the Court issued an order in the case of Archie J Pavek, Trustee for the Archie J. Pavek Revocable Trust v. City of Prior Lake, which required that the original assessment against 16801 Industrial Circle SE in the amount of$76,479 be withdrawn, and that the City reassess this parcel in the amount of$24,829 pursuant to Minn. Stat. §429.071. The City of Prior Lake brought a motion for a new trial, which was denied on December 16, 2014. The City of Prior Lake has now appealed that decision, and the matter is before the Minnesota Court of Appeals. Current Circumstances Although the case is still pending, the City Attorney has recommended that the City complete the reassessment as ordered by the District Court. The reassessment must comply with the State's assessment process detailed in State Statute 429. As such an assessment hearing must be held prior to the City Council adopting the new assessment amount. Notification was mailed to the property owner and a notice was published in the Prior Lake American at least fourteen days in advance of the hearing. Conclusion Phone 952.447.9800 / Fax 952.447.4245/www.cityofpriorlake.com It is recommended that the City Council hold the assessment Hearing and adopt the new assessment in the amount of$24,829 pursuant to the District Count order. Should the City be successful in the State Court of Appeals, the Council may consider reassessment of the parcel at that time. ISSUES: Although the City is still pursuing appeal of the Scott County District Court decision, to be compliant with the court order and to start clarify assessments for 2016 the City Attorney is recommending completing the reassessment process. FINANCIAL There will be a financial impact to the project budget pending the final IMPACT: decision of the appellate court. The City has not been assigned a date for the appeal proceedings which is anticipated to be held in 2015. Staff will prepare a report to bring to the City Council on the project costs at a subsequent council meeting. ALTERNATIVES: 1. Hold a public hearing and approval a resolution reassessing real property at 16801 Industrial Circle SE for the Welcome Industrial Improvements. 2. Deny this agenda item for a specific reason and provide staff with direction. 3. Table this item to a certain date in the future. RECOMMENDED Alternative #1 MOTION: O� PRio ti 4646 Dakota Street SE `tf%rESO . Prior Lake, MN 55372 RESOLUTION 15-xxx A RESOLUTION ADOPTING A REASSESSMENT ROLL FOR CERTAIN REAL PROPERTY BENEFITTED BY THE WELCOME INDUSTRIAL PARK IMPROVEMENTS, PROJECT 12-012 Motion By: Second By: WHEREAS, On August 22,2014,the Scott County District Court issued an order in the case of Archie J. Pavek, Trustee for the Archie J. Pavek Revocable Trust v. City of Prior Lake, District Court File No. 70- CV-13-12697, which required that an assessment approved in Resolution 13-066 against real property situated in the City of Prior Lake, County of Scott, Parcel ID 259010160, and owned by Archie J. Pavek,Trustee for the Archie J. Pavek Revocable Trust, be withdrawn, and that the City reassess pursuant to Minn. Stat. §429.071; and WHEREAS, The City of Prior Lake has appealed said court order dated August 22, 2014, and subsequent order dated December 16, 2014, and such matter is pending before the Minnesota Court of Appeals,Appellate Court File No.A15-0366; and 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 reassessment for Improvement No. 12-012, the Welcome Avenue Industrial Park Improvements. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. Such proposed reassessment, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract therein included is hereby found to be benefited by the proposed improvement(at a minimum) in the amount of the assessment levied against it. 3. Such reassessment shall be payable in equal annual installments extending over a period of 8 years, the first of the installments to be payable on or before the first Monday in January 2016, and will bear interest at the rate of 4.25 percent per annum from the date of the adoption of the reassessment resolution. To the first installment shall be added interest on the entire reassessment from the date of this resolution until December 31, 2016. To each subsequent installment, when due,shall be added interest for one year on all unpaid installments. 4. The owner of any property so reassessed may, at any time prior to certification of the reassessment to the county auditor, pay the whole of the reassessment on such property, with interest accrued to the date of payment, to the city treasurer, except that no interest shall be charged if the entire reassessment is paid within 30 days from the adoption of this resolution; and he/she may, at any time hereafter, pay to the city treasurer the entire amount of the reassessment remaining unpaid; with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. 5. The clerk shall forthwith transmit a certified duplicate of this reassessment to the county auditor to be extended on the property tax lists of the county. Such reassessments shall be collected and paid over in the same manner as other municipal taxes. 6. The City of Prior Lake reserves the right to reassess against the lands identified in the reassessment attached hereto subsequent to any final decision of an appellate court concerning Archie J. Pavek, Trustee for the Archie J. Pavek Revocable Trust v. City of Prior Lake, District Court File No. 70-CV-13- 12697,Appellate Court File No. A15-0366. PASSED AND ADOPTED THIS 26th DAY OF OCTOBER 2015. VOTE Hedberg Keeney McGuire Morton Thompson Aye ❑ ❑ E ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager http://splash/teams/am/October 4 2010/10 26 2015/Welcome Ave Reassessment RES.docx 2 Assessment Roll Welcome Avenue Industrial Park Assessment Hearing:October 26,2015 16801 Industrial Circle Reassessment Property Information: Parcel ID:259010160 Taxpayer Name:Source Properties,LLC Property Address: 16801 Industrial Circle SE, Prior Lake, MN 55372 PRIOR LAKE,MN 55372 Water and Regional Street Sewer Stormwater Total Comments ORIGINAL ASSESSMENT $52,328 NA $24,151 $76,479 Assessment per Prior Lake City Council Resolution 13-066 adopted May 28,2013 PROPOSED REASSESSMENT $16,988 NA $7,841 $24,829 Proposed reassessment per Scott County Court Order 2014-0822 Notice of Entry