10/28/2002 Council Minutes - Laserfiche WebLink

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• • COUNCIL MINUTES OCTOBER 28, 2002 No one else appeared to address this item. Councilmember Dahl moved to close the public hearing at 9:38 p.m. Councilmember Carlson seconded the motion. Motion carried unanimously. Councilmember Reinert moved to adopt Resolution No. 02-154, Authorizing the Preparation of Plans and Specifications, Elm Street Reconstruction of Street and Storm Sewer Project. Councilmember Dahl seconded the motion. Councilmember Carlson asked if the street reconstruction and stormwater improvements cost is $1,336,000 and the amount to be assessed is $84,200 or $3,000 per lot. She stated she has no problem with that but is concerned about the amount of $19,000 since there are many modest homes on that street. She read language from the League of Minnesota Cities regarding the level of assessment that can be levied. She stated it is the duty of the City to assure they do not exceed the value of the property and she believes the reports from the League support that. Councilmember Carlson read additional language from the ague relating to the City's duty at the special assessment hearing and asked if the City has assured that the proposed assessment does not exceed the added value to the property. Community Development Director Grochala explained that has not been done at this point in time and more detail is needed before incurnn that cost. He stated that there is some right-of-way that will need to be acquired and an appraiserill need to be hired to determine the benefit to the property owners. He stated that the question=;wathat the residents may not support the level of assessment but if the appraisal indicans the benefit is only $10,000 then staff would probably recommend not proceeding th that part of the improvement since the City does not have a fund to absorb that type of cost. Councilmember Carlson suggested the City look at a way to fund the difference between what the property increases in value and the project costs. She noted the Council approved a change in the policy at the last meeting where an individual would have been assessed $95,000 but half was forgiven since it was not charged for surface water management. Community Development Director Grochala clarified that it was not forgiven, but only deferred and will have to be paid in the future. Councilmember Carlson stated staff has talked about buying right-of-way but if there is a mortgage on the home the money paid for the right-of-way may go to the mortgage company rather than the individual. City Attorney Sullivan stated his opinion that would vary depending on who has property rights. 27