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MINUTEB <br />CITY COUNCIL <br />OECEMBER 3~ 1996 <br />assessed on that basis. However, the property owner <br />has two alternatives to consider. One would be to <br />request a development deferral. The assessment would <br />then be deferred, with interest accruing, for the <br />subdividable lot until such time as it is divided. The <br />other alternative would be to say that the property <br />would never be subdivided, and a deed restriction <br />recorded against the property. In that case there <br />would be no assessment for the subdividable lot. <br />A resident asked how the assessment would be paid. <br />The City Administrator reported that property owners <br />can pay the assessment in full, or make a partial <br />payment, within 30 days after it is levied, with no <br />interest. After 30 days, the City would certify the <br />assessment to property taxes. It would be spread over <br />a 10 year period in equal principle amounts with <br />declining interest. Estimated interest rate would be 7 <br />to 7 1/2 percent. Given that assessments are not tax <br />deductible, some property owners have chosen to pay <br />their assessment with a home equity loan. That <br />provides the ability of deducting interest. <br />The City was asked if assessments had to be paid in <br />full at the time a house was sold. <br />The City Administrator reported that the City has no <br />such requirement, although lending programs may. <br />Linder pointed out that the City is proposing to assess <br />$354,000 against 46 property owners along Arcade Street <br />over a ten year period. The first year's interest <br />alone would be over $100,000. <br />Fahey pointed out the City's assessment policy, and the <br />fact that the City must apply that policy consistently <br />throughout the City. <br />Oscar Lane reported that he has a lot behind his home <br />that only has 20 feet of frontage. The City is <br />proposing to assess him for 75 feet. <br />Fahey suggested that specific questions about <br />assessments for specific parcels be directed to the <br />City Engineer after the hearing. <br />One resident asked if the City will obtain bids for the <br />improvement work. <br />Fahey replied that the City will advertise for bids. <br />11 <br />