Laserfiche WebLink
legal interest, any amount assessed against your property so that the property owner would not <br />have to pay any costs out of pocket at this time. Assessments would become due at the time the <br />property is subdivided and /or sold. <br />The advantage this option has is low costs for City and property owner. <br />Another advantage may exist from an income tax standpoint in that the value of the land <br />donated may generate a tax deduction. (This will depend on individual <br />circumstances and a tax advisor should be consulted to determine the <br />applicability.) <br />Another advantage is the ability to develop the property in the future given the existence <br />of utilities. <br />A possible disadvantage is the property owner receives no compensation for the <br />property donated to the City. (If the property owner plans to develop, this <br />disadvantage may disappear.) <br />Another disadvantage is the value of the improvements assessed, while deferred, will <br />accrue interest. <br />2. City purchases property from landowner at fair market rate. Fair market value would be <br />determined by a city appraisal or other agreed upon suitable value estimate. City would pay <br />costs of city appraisal, survey of the needed property, document preparation, recording fees, etc. <br />An advantage to this approach would be the property owner is compensated for the <br />property. <br />Another advantage is the ability to develop the property in the future given the existence <br />of utilities. <br />A disadvantage is the City will include the land acquisition cost in the total project costs <br />for utilities and assess it against benefitted property owners. <br />Another disadvantage is the value of the improvements assessed, while deferred, will <br />accrue interest. <br />3. Property owner does not want to sell the property and the City acquires via eminent domain. <br />PLEASE NOTE THAT NO SUCH DECISION HAS BEEN MADE AND THIS <br />STATEMENT DOES NOT CONSTITUTE A "THREAT" OF EMINENT DOMAIN. <br />SHOULD THE CITY CHOOSE TO PURSUE THIS OPTION OUT OF NECESSITY AT <br />SOME POINT IN THE FUTURE, ANY AFFECTED PROPERTY OWNER WILL BE <br />AFFORDED ALL RIGHTS PROVIDED PURSUANT TO MINNESOTA STATUTES. <br />An advantage to this approach would be the property owner is compensated for the <br />property. <br />Another advantage is the ability to develop the property in the future given the existence <br />of utilities. <br />A disadvantage is the City will include this in the project costs and assess it against <br />benefitted property owners. <br />Another disadvantage are the extra costs incurred to follow this process that will be paid <br />to third parties. <br />The City would like to work with you to arrive at some mutually beneficial relationship that <br />enables us to install these critical utility lines while providing you with opportunity for future <br />development. We are proposing to do so without burdening you with out of pocket costs at this <br />time nor would we force you to develop the property before you are ready to do so. In the event <br />21 <br />