06/17/1969 Council Minutes - Laserfiche WebLink

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1 S9 Harold Lehman retorted that nobody would want his property if it costs $60,000 to put in sewer on 40 acres. He asked what it would cost the homeowners for sewer. Mr. Locher said we have no way of knowing as it depends on the cost of the unit which covers the main pipe, labor, engineer, legal, bonds, interest, hookup to laterals and hookup to the home. There is a Green Acres Ordinance whereby those who make their living off the acreage could be deferred, but he knows of only one person in Anoka County who has qualified under this ordinance. He said there are a dozen methods of figuring assessments. One could be per acre plus front footage and hookup; another could be a connection charge laid to taxes. Mr. L'Allier repeated that under the franchise only the benefiting property owners would be assessed. Mr. Bohjanen stated that no one could count on deferrment under the Green Acres Ordinance and Mr. Locher stated that this is only a deferrment and ultimately it must be paid with interest piling up from the date of installa- tion. Loyola Thiltgen stated that the Village should put pressure on the PCA with publicity as a decision has to be reached. She also stated the Village should integrate the benefits of a Professional Planner and use the booklet put out last year, "Planning District 2 ". Glenn Rehbein inquired how the buy -back feature was set up. Mr. L'Allier replied it would be the market value at the time of purchase with no set amount of dollars. They would not purchase the plant only the laterals and the cost would be assessed back to the owners. Glenn Rehbein thought the water franchise could be added into the selling price of the home and the Company could turn over the water system to the Village for one dollar. Mr. Busch did not agree with this but stated in figuring the buy- back price if there was a disagreement on the fair value the price would be determined by three appraisers, one appointed by the Council, one by the Company, and one by these two. (Part 9, page 7 of the agreement). The appraisers would be disinterested individuals who would reach a fair value. Value fluctuations vary from 10 -20 per cent but not more than that, a fair value of the system will rise when money rises. Mr. Rehbein again mentioned the $1 but Mr. Busch insisted this was not feasible because a municipality can sell bonds but an individual company cannot, and for 300 houses he estimated it would cost about $250 - $350,000 to put in water. Bill Houle thought that if people could afford a $60,000 house they should have sewer and water in the original payment. He suggested the Mayor form a committee to study the issue and to meet with the PCA. Mr. L'Allier replied that the Council has studied the franchise for two months already and it is the Council's responsibility, but thanked Mr. Houle for his observations. Mr. Bohjanen wondered what sewer and water would add to the price per home on a $60,000 house if it actually would price it out of the market. Mr. Busch answered that it is unwise to add the sewer and water to the selling price of the home. Marketing people had advised them to keep the price as low as possible. Funds must be available from ordinary allocations and the cost of the whole unit cannot be added to the first house you sell. The company does not want any complications and intends to make it very clear to the buyers that the systems are not munici- pally owned and when they are sold to the Village they will be assessed for same. Mr. Busch stated the builder is not financially able to include the sewer in the purchase price.