2011-108 Council Resolution - Laserfiche WebLink

Home Search

• AGENDA ITEM 6B STAFF ORIGINATOR: Michael Grochala CITY COUNCIL MEETING DATE: October 24, 2011 TOPIC: Consideration of Resolution No. 11 -108 Adopting Assessment - I35E /CSAH 14 Interchange ACTION REQUIRED: 3/5 Vote BACKGROUND On September 26, 2011 the City Council approved Resolution No. 11 -97 calling the hearing on the proposed assessment for the for the I35E /CSAH 14 Interchange improvement project. The total cost of the project was $19,817,833. The total proposed to be assessed is $4,206,010. This is approximately $1,300,000 below the original assessment amount proposed at the July 2009 public hearing on improvements. The assessment was distributed over approximately 930 acres encompassing 55 properties. The property assessment rate was determined by evaluating several factors • including proposed land use, existing land use and public utility staging in accordance with the City's Comprehensive Plan. The applicable square foot rate was then applied to the developable acreage of each parcel to determine the assessment amount. The City initially worked with an appraisal firm to review the assessment methodology and develop the assessment formula. Following completion of the improvements, an appraisal firm was also used to review the assessment rates and specifically the relationships between the individual assessment rate classes. In general, the relationships between similar property types and their proximity to the improvements as well as the relationship between property classes were consistent with ratios typically found in the market for land values. The proposed assessments will be spread over 15 years with an interest rate of 5 %. However, state law does provide the city council with the authority to defer special assessments for unplatted /undeveloped land. While not required to do so, the council previously evaluated this option as part of the financial considerations for the project. Accordingly, a provision for the deferral of unplatted /undeveloped land has been incorporated into the resolution adopting the assessment. The resolution also identifies all parcels for which the assessments are proposed to be deferred. The deferral will terminate upon the platting of the property, or development of the buildings on the site consistent with the proposed land use. Although the principal assessment is deferred, interest will accrue. While the council has the option to delay accrual of interest, the City's financial pro forma for the project does not accommodate that option.