05-15-2013 Council Minutes-Special Meeting I

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MINUTES CITY COUNCIL MAY 15, 2013 be realigned, assessable costs have decreased. The Engineer then reviewed the assessment roll. He noted that given the varying frontages along Spruce Street, staff is recommending a per unit assessment at $46,793.03. The Engineer reviewed assessment payment methods, noting that once the assessment is adopted, property owners will have 30 days to pay the assessment in full or part at the City with no interest. After 30 days, the City will certify the assessment to the County for collection with property taxes to be paid over 10 years at 4.5% interest. Once certified, property owners can pay the assessment off in full any time during the 10- year period. The Engineer noted that if a property owner desires to pay the assessment off after certification, that payment should be paid prior to November 15111 in any given year to avoid the next year's interest. At this point the public hearing was opened to comments from the general public. Samir Mehta, 3180 Spruce Street, stated that he would like to see the project postponed. He reported that since 2008 there has been a downturn in his business and it is now just getting back to profitability. Mehta stated that the assessment will be a hardship for his business. He also pointed out that the per unit assessment at $46,793.03 results in a higher assessment than utilizing a front footage assessment. A front footage assessment would be $41,744.34. Blesener noted that the City does not propose street improvements unless they are necessary and pointed out that delaying the project would result in increased costs. The City Administrator noted that property owners have the right to file an objection to the assessment and must do so in writing this evening. Filing an objection preserves the property owners right to appeal the assessment to district court. The Administrator indicated that the basis for filing an objection would be that the property owner feels that the proposed assessment does not meet the benefits received test. The City Engineer explained the City's Assessment Policy, noting that the Policy establishes a cap for assessments. The cap for commercial properties is twice the residential property assessment rate, or $130.50 per front foot. The Engineer noted that if the total assessable costs for this project were based on front footages, the per foot assessment would be approximately $115 per front foot. The Engineer indicated that given the amount of front footage owned by St. Paul Water and the Railroad, City staff felt the per unit assessment was most equitable. The Engineer noted that the per unit assessment did result in a higher proposed assessment for 3180 Spruce Street. 2