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STAFF REPORT <br />TO:Mayor Keis and Members of City Council <br />FROM:Heidi Heller, City Clerk <br />DATE:December 18, 2019 <br />RE:Recertification of Deferred HIA Fee – Canabury Square <br />132 Demont Ave. E., Unit 139 <br />ACTION TO BE CONSIDERED: <br />Motion to approve Resolution 2019-12-151, Re-assessing the deferred Canabury Square <br />Condominium Association Housing Improvement Area fee balance of $25,953.97 to 132 <br />Demont Avenue East, Unit 139 on the property taxes beginning in payable 2020 through 2024. <br />BACKGROUND: <br />The above property at Canabury Square Condominiums has a deferred assessment relative to the <br />Housing Improvement Area (HIA) fee that was assessed in 2009. Deferrals were granted by the <br />City based on hardships that existed for the property owners at the time of the original <br />assessment. Staff was contacted last month by a party stating that this unit was in foreclosure <br />and they would be purchasing the unit during the redemption period. The deferred HIA <br />assessments become due when a unit is sold. This party has now submitted a Certificate of <br />Redemption dated December 9, 2019 that was issued from the Ramsey County Sheriff’s <br />Department. The City was informed that the buyer has agreed to assume the assessment (usually <br />in a foreclosure situation the bank will pay off assessments) and has requested that the balance be <br />reassessed to the property taxes beginning in 2020. <br />The assessment balance of $25,953.97 (original amount plus interest) is proposed to be <br />reassessed for the balance of the assessment term through 2024 (5 years). The interest rate <br />proposed is the original interest rate at the time of the HIA assessment – 5.75%. <br />RECOMMENDATION: <br />Staff recommends reassessment of the above assessment balance based on the request of the <br />buyer, Dave Zins with Minnesota Premier Properties, LLC.