05-25-2016 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL MAY 25, 2016 assessment on his unit at Canabury Square in order to make it easier to sell. He explained the improvements that occurred at Canabury Square were on private property, therefore had a taxable status which resulted in higher interest costs for the City to borrow the money. He stated that a condition the City made at that time was that no prepayments of the levied HIA assessments could be made early given the City could not earn as high an interest return as was being paid on the bonds. He explained that Mr. Hamper still wanted to pursue an early payoff because it would be easier to sell if the buyer did not have to assume the assessment, which is what occurs in other transactions. The only way to do this and protect the City is to receive all future payments, principal and interest at the time of payoff. The City Administrator stated that he had conversations with the City's Finance Director and financial consultant, and it seemed reasonable to discount the assessment by what the City can safely earn as interest on the payoff amount over the remaining term of the bond, and they agreed on a 0.5% rate of return. He explained how the recommended payoff amount was determined and that it would need to be paid by November 15`x' to avoid interest accrual for 2017, and stated that Mr. Hamper has agreed to this. He noted that this payoff would be conditioned on the owner's ability to sell the unit. Montour introduced the following resolution and moved its adoption: RESOLUTIONNO. 2016-5-91 ALLOWING THE EARLYPAYOFF OF THE HIA ASSESSMENT FOR UNIT #223 AT CANABURY SQUARE IN THE AMOUNT OF $21,947.68 TO BE PAID BY NOVEMBER 15, 2016 WITH THE CONDITION THAT THIS CAN OCCUR ONL YIN CONJUNCTION WITH THE SALE OF THIS UNIT, AS PRESENTED BY THE CITYADMINISTRA TOR. The foregoing resolution was duly seconded by Keis. Ayes (4). Nays (0). Abstain (1). Torkelson. Resolution adopted. NUISANCE The City Administrator stated that the two grass abatements at 145 Lake ABATEMENTS Street East and 2936 and 2944 Rice Street had been resolved, but debris clean-up at 64 County Road C West had not occurred. He stated that staff had contacted the bank who owns the property, but they consider the property occupied and they couldn't do anything until they had full control of the property. He explained that the property seems to be vacant and the abatement to clean up the yard is scheduled for May 26t1i. Montour asked if Staff had notified the owner of the cost to clean it up. The City Administrator stated that the costs aren't known until after the cleanup has 3