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HomeMy WebLinkAbout6A - Assessment Rolls Projects 95-07 and 97-17 STAFF AGENDA REPORT DATE: 6A GREG ILKKA, PUBLIC WORKS DIRECTOR/CITY ENGINEER CONDUCT ASSESSMENT HEARING FOR 1997 IMPROVEMENT PROJECTS #95-07 MUSHTOWN ROAD AND #97-17 PIKE LAKE TRAIL, AND CONSIDER APPROVAL OF RESOLUTION 97 -xx ADOPTING THE ASSESSMENT ROLL FOR THESE PROJECTS. NOVEMBER 3,1997 AGENDA #: PREPARED BY: SUBJECT: INTRODUCTION: The purpose of this agenda item is to conduct the Assessment Hearing and consider adoption of Resolution 97-x:t.., approving the assessment roll, for projects 95-07 Mushtown Road and 97- 17 Pike Lake Trail. BACKGROUND: At its regular meeting of October 6, 1997, the Council approved Resolution 97-87 which declared the cost to be assessed and ordered the preparation of the assessment roll. Also Resolution 97 -88 was approved establishing the date of the Assessment Hearing as November 3, 1997, for the Mushtown Road and Pike Lake Trail improvement projects. DISCUSSION: All benefiting property owners have been mailed a Statement of Special Assessments which included information pertinent to their property such as the total assessment amount and the assessment rate. A Public Hearing notice has been mailed to each property owner indicating time and place of the Assessment Hearing. The Public Hearing Notice has also been published in the newspaper for two weeks. As of this writing staff has not heard anything from the property owners. The assessment rates were calculated per the City's Assessment Policy based upon 100% of the assessable project cost for street, sewer, and water improvements assessed to the benefiting properties. The Assessment Review Committee met to evaluate the proposed assessments and made the following findings and recommendations to the City Council: 16200 E~~!(ff~ek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER 1) In accordance with the policy, some costs are not assessed. For example, the extra cost to construct the streets to a 9 ton design is not assessed because a typical residential street is designed to a 7 ton standard. Also, in accordance with the policy, the sidewalk portion of these projects is not included in the assessments to the benefiting properties. Further, oversizing of the storm sewer on Pike Lake Trail, in accordance with the policy is not included in the assessments to the properties. Therefore, the cost for sidewalk, upgrading the roadway from 7 ton to 9 ton, and oversizing the storm sewer on Pike Lake Trail was subtracted from the total project costs to calculate the assessments. 2) The Assessment Review Committee recommended that the Front Footage Assessment method be used for both projects. For the Mushtown Road project the recommended front footage rate of assessment for street/storm sewer is $67.50/FF (per front foot). For the Pike Lake Trail project the recommended front footage rate of assessment for street/storm sewer is $151.30/FF; for sanitary sewer, $7.71/FF; and for watermain, $25.68/FF. 3) Mushtown Road has a total project cost of $387,642.36. It is proposed to be funded through tax levy and assessments. There are 14 benefiting properties in the project area. Thirteen properties are within the Woodridge Estates 3rd Addition and one property is in the Windstar Addition. As part of the developer's agreement for the Wood ridge Estates 3rd Addition, the developer pledged $85,177.00 towards the project to pay the assessments on the 13 lots in Wood ridge Estates. The City has a Letter of Credit from the developer for this amount. It is recommended that $292,340.36 be paid through tax levy and $95,302.00 be assessed against the benefiting properties. A copy of the assessment role is attached showing the proposed assessments per parcel. 4) Pike Lake Trail has a total project cost of $520,709.10. It is proposed to be funded through tax levy, municipal state-aid funds, trunk reserve, and assessments. There are 5 benefiting properties in the project area, which include Holy Cross Lutheran Church, two parcels owned by Herb Wensmann, one parcel owned by Ed Vierling, and one lot in the Maple Hill plat owned by Dave Triebel. It is recommended that $160,144.30 be paid through tax levy, municipal state-aid funds, and trunk reserve; and $360,564.80 be assessed against the benefiting properties. A copy of the assessment role is attached showing the proposed assessments per parcel. 97IMPAH.DOC Each assessable frontage was determined per the City's Assessment Policy utilizing the existing plat drawings on file for these areas. In the event that a property owner provides a surveyor justification that the frontage for a parcel is incorrect, the City Council can adjust the frontage for the parcel and the resulting assessment. The assessment terms are to be for ten (10) years for paving, and twenty (20) years for sewer and water. Added to the first installment (1998) will be an additional 58 days of interest which accounts for the remainder of 1997 following the Assessment Hearing. An interest rate of 8% will be charged in accordance with City Assessment Policy. Prior Lake Code, Chapter 1-13 allows for the deferment of assessment principal and interest if the following four criteria are satisfied: 1. Applicant must be 65 years of age or older. 2. The qualifying property must be the homestead of the applicant. 3. Annual gross income shall not exceed the income limits as set forth by family size according to Attachment "A" of Ordinance 86-3. 4. Total special assessment to be deferred must exceed $1000.00. The property owners 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. The following is a summary of the financing of the improvements. Funding Mushtown Pike Lake Totals Road Trail Assessments $95,302.00 $360,564.80 $455,866.80 Tax Levy $292,340.36 $0 $292,340.36 MSA Funds $0 $127,325.60 $127,325.60 Trunk Reserve $0 $32,818.70 $32,818.70 Project Totals $387,642.36 $520,709.10 $908,351.46 97IMPAH.DOC ISSUES: ALTERNATIVES: RECOMMENDATION: FINANCIAL IMPACT: ACTION REQUIRED: 97IMPAH.DOC Resolution 97-87 declared the amount to be assessed on these projects as $455,850.65. While preparing the Notices to the property owners it was discovered that there was a $16.15 total shortage error in the declared amount to be assessed. The correct amount should have been $455,866.80. The preliminary assessment rolls were correct as to the assessments to each parcel, however the math was in error when the total to be assessed was calculated for the resolution. We determined there was a $0.60 mathematical error on the Mushtown Road project and a $15.55 mathematical error on the Pike Lake Trail project. The notices of the amount to be assessed on each property sent to the property owners were correct. The focus of tonight's hearing is whether the properties have benefited because of this project, and whether the assessment has been calculated accurately and in accordance with city policy. The alternatives are as follows: 1. Approve Resolution 97 -x:t.. adopting the assessment roll as submitted. 2. Approve Resolution 97-x:t.. subject to Council approved changes. 3. Continue the hearing for a specific reason. Alternative No.1, adopting the assessment roll. The project costs will be recovered from the Trunk Reserve Fund, Ad Valorem Tax Levy, Municipal State-Aid, and Special Assessments. 1. Conduct the Assessment Hear'ng. 2. RESOLUTION 97-XX RESOLUTION ADOPTING ASSESSMENTS FOR PROJECTS 95-07 MUSHTOWN ROAD IMPROVEMENTS, AND 97-17 PIKE LAKE TRAIL 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 projects 95-07 Mushtown Road improvements, and 97-17 Pike Lake Trail improvements, and has amended such proposed assessment as it deems just. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA: 1. Such proposed assessment as amended, 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, and a period of twenty (20) years for sanitary sewer and water. 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 eight (8) percent per annum from the date of adoption of this assessment resolution. To the first installment shall be added fifty-eight (58) days of interest on the entire assessment from the date of this resolution until December 31, 1997 . To each subsequentinstallment 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, 971MPAH.DOC excepting the installment portion appearing upon the current year's property tax statement. 4. The City Manager 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 $908,351.46 of which $292,340.96, $127,325.00, and $32,818.70 shall be paid from Tax Levy, Municipal State Aid, and the City's Trunk Reserve Fund, respectively, and $455,866.80 to be assessed to the benefited property owners as per the attached assessment roll. Passed and adopted this 3rd day of November, 1997 YES NO Andren Kedrowski Mader Robbins Schenck Andren Kedrowski Mader Robbins Schenck {Seal} Frank Boyles City Manager City of Prior Lake 97IMPAH.DOC DESCRIPTION: ASSESSMENT HEARING DATE: ASSESSMENT RATE: ASSESSMENT RATE: ASSESSMENT RATE: ASSESSMENT CODE: ASSESSMENT CODE: ASSESSMENT CODE: INTEREST RATE: SPREAD: SPREAD: SPREAD: INITIAL YEAR: ADDITIONAL INTEREST: PAYMENT METHOD: PROJEGT#97-17,PIKE LAKETRAIL .. STREETIMPROVEMENT NOVEMBER 3,1997 PROPOSED $151.30/FF PAVING PROPOSED $7.71/FF SAN. SEWER PROPOSED $25.68/FF W A TERMAIN PAVING - 92 SEWER - 93 WATER-93 8.0% PAVING - 10 YEARS SAN. SEWER - 20 YEARS W A TERMAIN - 20 YEARS 1998 58 DAYS EQUAL PRINCIPAL LEGAL DESCRIPTION PROPERTY OWNER PAVING SEWER WATER & & CURRENT ASSESSMENT ASSESSMENT ASSESSMENT PARCEL NUMBER ADDRESS FRONTAGE AMOUNT AMOUNT AMOUNT (Code 92) (Code 93) (Code 93) Sec. 26, TI15, R22 25 Herbert & Elaine Wensmann 770' $116.501.00 $5,936.70 $19,773.60 S 25 A of NEil. NW'/. 3312 West 151st Street 25-926-006-0 Rosemount, MN 55068 Sec. 26, TI15, R22 8.23 Holy Cross Lutheran Church 565' $85.484.50 Q $14.509.20 N 640' ofW 560' ofN'h NEil. P.O. Box 177 25-926-003-0 14085 NE Pike Lake Trail Sec. 26, TI15, R22 15 Herbert & Elaine Wensmann 470' $71,111.00 $3,623.70 $12,069.60 N 552' ofE 1183.7' of NEil. NW'/. 3312 West 15 1st Street 25-926-002-0 Rosemount, MN 55068 Sec. 25, TI15, R22 2.5AC Ed Vierling 150' $22,695.00 $1,156.50 $3,852.00 E 250' ofN 435.60 of SEll. NW'/. 14310 Pike Lake Trail 25-926-001-1 Prior Lake, MN 55372 Lot 8 Block 1 David & Nancy Triebel 150' Q Q $3,852.00 Maple Hill Addition 14264 Mitoka Circle NE 25-082-008-0 Prior Lake, MN 55372 TOTALS $295,791.50 $10,716.90 $54,056.40 ASROLL.DOC f)ES<:::IURTION:< ... ASSESSMENT HEARING DATE: ASSESSMENT RATE: ASSESSMENT RATE: ASSESSMENT RATE: ASSESSMENT CODE: ASSESSMENT CODE: ASSESSMENT CODE: INTEREST RATE: SPREAD: SPREAD: SPREAD: INITIAL YEAR: ADDITIONAL INTEREST: PAYMENT METHOD: ..... ......1'J{()JEq'1'#97-1'7,J?IKEI..A.l{El'ItAII.,S'I'}"{~~'I'IJ\1l>J{OVJi:l\1EN'l'......... NOVEMBER 3, 1997 PROPOSED $151.30/FF PAVING PROPOSED $7.71/FF SAN. SEWER PROPOSED $25.68/FF W A TERMAIN PAVING - 92 SEWER - 93 WATER-93 8.0% PAVING - 10 YEARS SAN. SEWER - 20 YEARS W A TERMAIN - 20 YEARS 1998 58 DAYS EQUAL PRINCIPAL LEGAL DESCRIPTION PROPERTY OWNER PAVING SEWER WATER & & CURRENT ASSESSMENT ASSESSMENT ASSESSMENT PARCEL NUMBER ADDRESS FRONTAGE AMOUNT AMOUNT AMOUNT (Code 92) (Code 93) (Code 93) Sec. 26, TI15, R22 25 Herbert & Elaine Wensmann 770' $116.501.00 $5.936.70 $19.773.60 S 25 A ofNE'I. NW'/. 3312 West 151st Street 25-926-006-0 Rosemount, MN 55068 Sec. 26, TI15, R22 8.23 Holy Cross Lutheran Church 565' $85.484.50 Q $14.509.20 N 640' ofW 560' ofN'/2 NEIl. P.O. Box 177 25-926-003-0 14085 NE Pike Lake Trail Sec. 26, TI15, R22 15 Herbert & Elaine Wensmann 470' $71.111.00 $3.623.70 $12.069.60 N 552' ofE 1I83.7' ofNE'I. NW'/. 3312 West 151st Street 25-926-002-0 Rosemount, MN 55068 Sec. 25, TI15, R22 2.5AC Ed Vierling 150' $22.695.00 $I.I56.50 $3.852.00 E 250' ofN 435.60 of SEll. NW'/. 14310 Pike Lake Trail 25-926-00 I-I Prior Lake, MN 55372 Lot 8 Block I David & Nancy Triebel 150' Q Q $3.852.00 Maple Hill Addition 14264 Mitoka Circle NE 25-082-008-0 Prior Lake, MN 55372 TOTALS $295,791.50 $10,716.90 $54,056.40 ASROLL.DOC