HomeMy WebLinkAbout5H Settlement Smith and Reko Report
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: MARCH 19, 2018
AGENDA #: 5H
PREPARED BY: SARAH SCHWARZHOFF, CITY ATTORNEY
PRESENTED BY: SARAH SCHWARZHOFF
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING SETTLEMENT OF
SPECIAL ASSESSMENT APPEALS AND ADOPTING REASSESSMENTS FOR
3380 AND 3385 SYCAMORE TRAIL SW
DISCUSSION: Introduction
The purpose of this agenda item is to consider settlement of the special
assessment appeals filed by Scott J. Smith and Robert Reko relating to the City’s
2017 Sycamore Trail SW Area Improvement Project, City Project TRN#17-000005
(“Project”).
History
The City Council adopted assessments for the Project by Resolution No. 17-174
on October 16, 2017. The City Council assessed each property in the project area
in the amount of $9,142.22. Smith and Reko each filed the required written
objection at the assessment hearing and served and filed the notice of appeal.
Current Circumstances
Staff reviewed the appeals and determined that because the properties in question
did have existing curb and gutter at the time of the Project and because the curve
in Sycamore Trail SW was softened for public safety and traffic flow reasons, it
was reasonable to reduce the special assessments on the properties to $6,000
each.
Smith and Reko have each accepted this offer, but the offer is subject to City
Council approval.
ISSUES: Generally, the City does not reduce special assessments in appeals because it
simply encourages more appeals in the future. However, due to the unique
circumstances of the two properties that are the subjects of the appeals, staff
believes it is reasonable to reduce the special assessments to $6,000 respectively.
This settlement will save the City the costs of having to defend the appeal in court.
The settlement agreement includes Smith and Reko waiving any right to appeal
and any objection to the procedure or amount of the reassessment.
FINANCIAL
IMPACT:
If the City Council approves the settlement, the total reduction in funding for the
project will be $6,284.44. This amount will be funded from the tax levy.
ALTERNATIVES: 1. Motion and second as part of the consent agenda to adopt a resolution
approving settlement relating to special assessment appeals and adopting
reassessments for 3380 and 3385 Sycamore Trail SW .
2. Motion and second to remove this item from the consent agenda for additional
discussion.
RECOMMENDED
MOTION:
Alternative #1
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 18-___
A RESOLUTION APPROVING SETTLMENT OF SPECIAL ASSESSMENT APPEALS
AND ADOPTIONG REASSESSMENTS FOR 3380 AND 3385 SYCAMORE TRAIL SW
Motion By: Second By:
WHEREAS, the City of Prior Lake (“City”) imposed special assessments pursuant to
Minn. Stat. Chap. 429 in connection with the City’s 2017 Sycamore Trail SW Area Improvement
Project, City Project TRN#17-000005 (“Project”). The City adopted Resolution No. 17-174 on
October 16, 2017 imposing a special assessment in the amount of $9,142.22 against each property
in the project area.
WHEREAS, Scott J. Smith filed a special assessment appeal regarding the property located
at 3385 Sycamore Trail SW, Prior Lake, MN 55372 and Robert Reko filed a special assessment
appeal regarding the property located at 3380 Sycamore Trail SW, Prior Lake, MN 55372.
WHEREAS, the City has reached an agreement with Smith and Reko to settle the special
assessment appeals and dismiss the litigation with prejudice.
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. In consideration for the execution of the attached Settlement Agreement and Stipulation for
Dismissal with Prejudice, the City adopts the following reassessments for the Project
(“Reassessment”):
3380 Sycamore Trail SW $6,000
3385 Sycamore Trail SW $6,000
3. The Reassessment shall be payable in equal annual installments extending over a period of
10 years. The Reassessment shall bear interest at the rate of 3.80% per annum from October
16, 2017, the date of adoption of the original assessment resolution. To the first installment
of the Reassessment shall be added interest on the entire Reassessment from October 16,
2017 until December 31, 2018. To each subsequent installment when due shall be added
interest for one year on all unpaid installments.
4. The entire Reassessment may be paid at any time with interest accrued to December 31 of the
year in which the payment is made. Such payment must be made by November 15 or interest
will be charged through December 31 of the succeeding year.
5. The City Attorney shall execute and file the attached Settlement Agreement and Stipulation
for Dismissal with Prejudice.
6. This Resolution shall become effective as of the dismissal by the Court of Court File No. 70-
CV-17-20738 and Court File No. 70-CV-17-20739 and at that time the Reassessment shall be
certified to the County Auditor.
Passed and adopted by the Prior Lake City Council this 19th day of March 2018.
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager
STATE OF MINNESOTA
COUNTY OF SCOTT
DISTRICT COURT
FIRST JUDICIAL DISTRICT
Scott J. Smith,
Plaintiff,
v.
City of Prior Lake,
Defendants,
Case Type: Assessment Appeal
Court File No: 70-CV-17-20738
SETTLEMENT AGREEMENT AND
STIPULATION FOR DISMISSAL
WITH PREJUDICE
SETTLEMENT AGREEMENT
Defendant City of Prior Lake (“City”) imposed special assessments pursuant to Minn. Stat.
Chap. 429 in connection with the City’s 2017 Sycamore Trail SW Area Improvement Project, City
Project TRN#17-000005. The City adopted Resolution No. 17-174 on October 16, 2017 imposing
a special assessment in the amount of $9,142.22 against each property in the project area.
Plaintiff Scott J. Smith (“Smith”) filed this special assessment appeal regarding the
property located at 3385 Sycamore Trail SW, Prior Lake, MN 55372 (“Property”).
City and Smith have reached agreement and desire to settle this special assessment appeal
and dismiss this litigation with prejudice.
City, by its attorney, and Smith agree as follows:
1. In consideration of Smith’s execution of this Settlement Agreement and Stipulation for
Dismissal with Prejudice, City will adopt a resolution reassessing the Property in the
amount of $6,000 (“Reassessment”) and shall certify the Reassessment to the County
Auditor upon dismissal of this lawsuit.
2. Smith consents to the levying of the Reassessment against the Property in the amount of
$6,000. The Reassessment shall be payable in equal annual installments extending over a
period of 10 years. The Reassessment shall bear interest at the rate of 3.80% per annum
from October 16, 2017, the date of adoption of the original assessment resolution. To the
first installment of the Reassessment shall be added interest on the entire Reassessment
from October 16, 2017 until December 31, 2018. To each subsequent installment when due
shall be added interest for one year on all unpaid installments.
3. Smith may at any time pay the entire Reassessment with interest accrued to December 31
of the year in which the payment is made. Such payment must be made by November 15
or interest will be charged through December 31 of the succeeding year.
4. Smith acknowledges that the Property has received a special benefit in an amount in excess
of the Reassessment and that the Reassessment is reasonable, just and equitable. Smith
consents to the levying of the Reassessment against the Property in the amount set forth
above and waives any objection to the validity or amount of the Reassessment. Smith
waives notice requirements of any kind, including notice of any hearing or proceeding at
which the Reassessment is to be considered. Smith waives all rights to require City to
conduct any feasibility study, hold a public hearing, or conduct any further procedure.
Smith waives any objection to irregularity of the procedure of the Reassessment and any
and all appeal rights to the Reassessment. Said waiver is a waiver of any and all rights of
appeal of any nature and a specific waiver of appeal rights under Minn. Stat. 429.081, any
other statute, common law, Constitutional provision, or any other applicable law.
5. In addition, Smith specifically waives all notice and hearing requirements set forth in Minn.
Stat. § 429.071, Subd. 2 relating to reassessments.
6. City and Smith agree that this litigation shall be dismissed with prejudice.
STIPULATION FOR DISMISSAL WITH PREJUDICE
In consideration of the Settlement Agreement set forth above, City and Smith hereby
stipulate and agree that this litigation shall be dismissed with prejudice and on the merits, without
costs to either party, and that there being no further just cause for delay, a judgment of dismissal
with prejudice and on the merits may be entered without further notice.
PLAINTIFF SCOTT J. SMITH DEFENDANT CITY OF PRIOR LAKE
___________________________ ______________________________
Scott J. Smith Sarah E. Schwarzhoff, #0388908
Hoff Barry, P.A.
775 Prairie Center Drive, Suite 160
Eden Prairie, MN 55344
(952) 746-2713
Attorney for Defendant City of Prior Lake
Dated: __________________, 2018 Dated: ________________, 2018
STATE OF MINNESOTA
COUNTY OF SCOTT
DISTRICT COURT
FIRST JUDICIAL DISTRICT
Scott J. Smith,
Plaintiff,
v.
City of Prior Lake,
Defendants,
Case Type: Assessment Appeal
Court File No: 70-CV-17-20738
ORDER FOR DISMISSAL
WITH PREJUDICE
UPON THE FOREGOING STIPULATION,
IT IS HEREBY ORDERED that all claims asserted by Plaintiff be dismissed with prejudice
and on the merits, without costs to any party, and that there being no just cause for further delay
let judgment be entered accordingly.
BY THE COURT:
Dated: ______________, 2018 ____________________________________
Judge of District Court
STATE OF MINNESOTA
COUNTY OF SCOTT
DISTRICT COURT
FIRST JUDICIAL DISTRICT
Robert Reko,
Plaintiff,
v.
City of Prior Lake,
Defendants,
Case Type: Assessment Appeal
Court File No: 70-CV-17-20739
SETTLEMENT AGREEMENT AND
STIPULATION FOR DISMISSAL
WITH PREJUDICE
SETTLEMENT AGREEMENT
Defendant City of Prior Lake (“City”) imposed special assessments pursuant to Minn. Stat.
Chap. 429 in connection with the City’s 2017 Sycamore Trail SW Area Improvement Project, City
Project TRN#17-000005. The City adopted Resolution No. 17-174 on October 16, 2017 imposing
a special assessment in the amount of $9,142.22 against each property in the project area.
Plaintiff Robert Reko (“Reko”) filed this special assessment appeal regarding the property
located at 3380 Sycamore Trail SW, Prior Lake, MN 55372 (“Property”).
City and Reko have reached agreement and desire to settle this special assessment appeal
and dismiss this litigation with prejudice.
City, by its attorney, and Reko agree as follows:
1. In consideration of Reko’s execution of this Settlement Agreement and Stipulation for
Dismissal with Prejudice, City will adopt a resolution reassessing the Property in the
amount of $6,000 (“Reassessment”) and shall certify the Reassessment to the County
Auditor upon dismissal of this lawsuit.
2. Reko consents to the levying of the Reassessment against the Property in the amount of
$6,000. The Reassessment shall be payable in equal annual installments extending over a
period of 10 years. The Reassessment shall bear interest at the rate of 3.80% per annum
from October 16, 2017, the date of adoption of the original assessment resolution. To the
first installment of the Reassessment shall be added interest on the entire Reassessment
from October 16, 2017 until December 31, 2018. To each subsequent installment when due
shall be added interest for one year on all unpaid installments.
3. Reko may at any time pay the entire Reassessment with interest accrued to December 31
of the year in which the payment is made. Such payment must be made by November 15
or interest will be charged through December 31 of the succeeding year.
4. Reko acknowledges that the Property has received a special benefit in an amount in excess
of the Reassessment and that the Reassessment is reasonable, just and equitable. Reko
consents to the levying of the Reassessment against the Property in the amount set forth
above and waives any objection to the validity or amount of the Reassessment. Reko
waives notice requirements of any kind, including notice of any hearing or proceeding at
which the Reassessment is to be considered. Reko waives all rights to require City to
conduct any feasibility study, hold a public hearing, or conduct any further procedure. Reko
waives any objection to irregularity of the procedure of the Reassessment and any and all
appeal rights to the Reassessment. Said waiver is a waiver of any and all rights of appeal
of any nature and a specific waiver of appeal rights under Minn. Stat. 429.081, any other
statute, common law, Constitutional provision, or any other applicable law.
5. In addition, Reko specifically waives all notice and hearing requirements set forth in Minn.
Stat. § 429.071, Subd. 2 relating to reassessments.
6. City and Reko agree that this litigation shall be dismissed with prejudice.
STIPULATION FOR DISMISSAL WITH PREJUDICE
In consideration of the Settlement Agreement set forth above, City and Reko hereby
stipulate and agree that this litigation shall be dismissed with prejudice and on the merits, without
costs to either party, and that there being no further just cause for delay, a judgment of dismissal
with prejudice and on the merits may be entered without further notice.
PLAINTIFF ROBERT REKO DEFENDANT CITY OF PRIOR LAKE
___________________________ ______________________________
Robert Reko Sarah E. Schwarzhoff, #0388908
Hoff Barry, P.A.
775 Prairie Center Drive, Suite 160
Eden Prairie, MN 55344
(952) 746-2713
Attorney for Defendant City of Prior Lake
Dated: __________________, 2018 Dated: ________________, 2018
STATE OF MINNESOTA
COUNTY OF SCOTT
DISTRICT COURT
FIRST JUDICIAL DISTRICT
Robert Reko,
Plaintiff,
v.
City of Prior Lake,
Defendants,
Case Type: Assessment Appeal
Court File No: 70-CV-17-20739
ORDER FOR DISMISSAL
WITH PREJUDICE
UPON THE FOREGOING STIPULATION,
IT IS HEREBY ORDERED that all claims asserted by Plaintiff be dismissed with prejudice
and on the merits, without costs to any party, and that there being no just cause for further delay
let judgment be entered accordingly.
BY THE COURT:
Dated: ______________, 2018 ____________________________________
Judge of District Court