03/03/2008 Council Packet - Laserfiche WebLink

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Gordon Heitke February 29, 2008 Page 3 of 3 The problem is language indicating that all public improvements be "primarily designed to give a direct benefit to property currently occupied by residents or businesses in the City" (emphasis added). This language is difficult to interpret, but could give the owners of unoccupied property the right to avoid assessments in some circumstances. Depending on the facts, the result could be different rights regarding assessments for occupied and unoccupied property, which might violate the federal equal basis requirement described above. Citizen Proposal: Same as Charter Commission Proposal. Mayor Bergeson also asked how the proposed Charter amendments could be altered to correct the problem that requires issuance of taxable bonds. The only way to avoid the private loan problem for all improvement bonds issued by the City is to remove the three "special areas" from the existing Charter. That option might make sense if. the Charter is modified in a way that balances the City's various concerns, and avoids the need for special rules in particular geographic areas. The Task Force Proposal corrects the problem for improvements located entirely within the special areas; the only remaining problem is the financing of improvements that "straddle the boundary" of one or more of the special areas. Again, the Council might consider whether the special areas are still needed in light of the other changes in the Task Force Proposal. In the Charter Commission Proposal, the first sentence of Section 8.01, subdivision 2 would also need to be removed or revised to clarify that unoccupied property is subject to assessments on the same basis as all other property. If you or Council members have further questions on this matter, please let me know. Very truly yours, Step J. Bubul SJB 329677v1 SJB LN140 -86