12/16/1996 Council Minutes - Laserfiche WebLink

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• • • COUNCIL MINUTES DECEMBER 16, 1996 will be ordered. However, under Chapter 429 provisions, no waiting period is required. If the City Council determines that the project is appropriate and time is of the essence, the project could be ordered immediately. Plans and specifications would be ordered, bids would be advertised and awarded, and the costs assessed to benefiting properties. Mr. Hawkins reminded the group that the City Engineer prepared a method for assessing the costs with respect to this project, keeping in mind that the market value of each benefited property must increase at least the amount of the assessment. This becomes an appraisal issue. Mr. Schumacher questioned prior reference to an unlawful process. Mr. Hawkins stated that the process is dictated by State Statute 429, adding that the public hearing being held this evening is part of that process. Mr. Schumacher also asked if the City is following its standard assessment policy, and whether or not the subject assessments are unusual. Mr. Ahrens responded that the process for this project is the standard adopted by the City, and that the numbers are typical of those for such improvements. Council Member Neal asked Mr. Powell if the proposed businesses could be constructed with the road going out to Main Street. Mr. Powell explained that currently there is no sanitary sewer or watermain service to that area, and that the proposed realigned Otter Lake Road would include those services. Council Member Neal asked why the subject property owners could not connect to services at Main Street. Mr. Powell explained that stubs have been provided along the realigned Otter Lake Road; however, the extension of these services will only provide lateral services to the area. Council Member Neal asked Mr. Scherier about his plans for development of his property. Mr. Scherier stated therein lies the problem. He is facing a $382,000 assessment which he must absorb until such time as a commercial user expresses interest in that site. He added that he currently has adequate access and utility service, reiterating Mr. Olson's statement that if the City gives access from Main Street to the corner lot it should also be given to Mr. Scherier. Mr. Wessel explained that part of the decision for the proposed realignment is need for the loop coming back around to service the old Otter Lake Road, making that connection, and giving access to the properties along that line. He added that this has been part of the plan since its inception, and that the City agreed to assume responsibility for the road realignment. Mr. Powell added that the plan assumes that the current access to Main Street from the old Otter Lake Road will be disconnected. Mr. Wessel stated that this is why Anoka County is agreeable to the proposed layout. It wants to see the current exit and entrance to old Otter Lake Road removed for safety reasons and the interchange moved to the east, as planned. Mr. Wessel added that the service road will have to be built fairly soon, as Anoka County plans to close off the old portion of Otter Lake Road and remove the intersection at Otter Lake Road and Main Street creating the need for the service road loop. Mr. Wessel also pointed out that the subject area would become the only commercial quadrant in the City set to be developed. Council Member Neal asked how much time Mr. Scherier would be given to pay the assessment. Mr. Ahrens explained that typically assessments are paid over 15 years at 2% over bonding rate. Pursuant to Mr. Powell's schedule, the assessment hearing would be held in October of 1997, at which time appeals from landowners could be heard. Following that hearing, the City would adopt the assessment rolls and the first payment would become due with property taxes payable in 1998. Mr. Scherier asked why the assessment for the service road is $222 per front foot when the assessment for the realigned Otter Lake Road is only $100 per front foot. Council Member Neal echoed Mr. Scherier's question. Mr. Powell explained that the Otter Lake Road