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515 Little Canada Road, Little Canada, MN 551171600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 <br />www. ei.l i 1,1le -ca nada. ni n.1.1 s <br />MEMORANDUM <br />TO: Mayor Blesener and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: June 18, 2010 <br />RE: Canabury Square 1-IIA Deferred Fee Pay -Off Policy <br />MAYOR <br />13111 13lesencr <br />COUNCIL <br />Rich Montour <br />John Keis <br />Michael McGraw <br />Shelly I3oss <br />ADMINISTRATOR <br />.Joel R. Hanson <br />As the Council is aware, the FIIA Fees for several units at Canabury Square were deferred <br />($854,956.66 in total), and these HIA fees were financed through an Interfund Loan at an interest <br />rate of 6.4% (rather than in the debt service supporting bond payments). <br />One sale of a Canabury Square unit that has a deferred HIA fee has occurred and another sale is <br />pending. The deferred HIA fee was not collected at the time that the sale occurred, and the new <br />property owner is requesting that the 1 -IIA fee be spread over the remaining 14 years of the <br />assessment period. A letter is pending from this property owner. Relative to the pending sale, <br />the property owner and the buyer have been informed that the HIA fee must be collected and <br />paid as part of the closing. <br />It should be noted that the deferred HIA fees for Canabury Condominiums and Fleur Royale <br />become payable when the following occurs, as is true with any deferred assessment: <br />a. Death of the owner (provided that surviving spouse, if any, is not eligible for <br />deferment); <br />b. Sale, transfer, or subdivision of the subject property; <br />c. Loss of homestead status of subject property; <br />d. Change of circumstances of owner resulting in there no longer being a hardship. <br />It would be staff's recommendation that the above hold true for the Canabury Square HIA fee <br />deferments, except for the one unit in which the sale has already occurred. Staff would <br />recommend allowing the spread of that 1 -IIA fee over the remaining 14 year period in that ease. <br />Staff would also recommend that should collection of the HIA fee at time of one of the above <br />events prove to be a hardship, that the Council would consider the spread of the HIA fee over a <br />period of time to be determined on a case -by -case basis. <br />2 <br />