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HomeMy WebLinkAbout#07 - Special Assessment for 9240 31st St. N.STAFF REPORT DATE: November 4, 2020 REGULAR AGENDA ITEM: Collection of Certain Costs by Special Assessment-Public Hearing SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: In June 2017 the city council approved a resolution ordering the abatement of a hazardous building at 9240 31st N. The issue went to through the district court and in summer 2019, the hazardous conditions were removed from the property according to a court order. The city incurred $34,198.00 in costs to abate the property. Earlier this year we went back to the district court to ask for permission to specially assess those costs to the property along with $26,451.84 in legal costs. That request was recently granted. At the October 6, 2020 meeting the Council called for a public hearing for November 4th in order to assess these charges to the property. ISSUE BEFORE COUNCIL: Should the Council approve the resolution to specially assess the costs related to abatement of hazardous conditions at 9240 31st N? PROPOSAL: Included in your packet is a resolution to specially assess the costs related to the abatement to the property record of 9240 31st N. The costs are due in 2021 with an 8% interest rate. The total costs to be assessed are $60,649.84, including related legal fees. FISCAL IMPACT: This process allows the city to recover $34,198 in abatement costs. The legal costs have already been approved to be assessed to the property but are included here to illustrate the total assessment to the property for the abatement action. OPTIONS: 1) Approve Resolution No 2020-092 2) Amend and then Approve Resolution No 2020-092 3) Do not approve the resolution RECOMMENDATION: “Motion to approve Resolution No 2020-092 A Resolution Adopting Assessment relating to the Removal and Correction of Hazardous Conditions on the Property located at : 9240 31st St Street North, Lake Elmo, MN 55042.” ATTACHMENTS: • Resolution No 2020-092 1 CITY OF LAKE ELMO, MINNESOTA RESOLUTION 2020-092 RESOLUTION ADOPTING ASSESSMENT RELATING TO THE REMOVAL AND CORRECTION OF HAZARDOUS CONDITIONS ON THE PROPERTY LOCATED AT: 9240 31ST STREET NORTH, LAKE ELMO, MINNESOTA 55042 WHEREAS, on June 20, 2017, the Lake Elmo City Council adopted Resolution 2017-066 Ordering the Abatement of Conditions Creating a Nuisance and a Hazardous Property (the “Order for Abatement”) at 9224 and 9240 31st Street North in the city of Lake Elmo; and WHEREAS, by Order dated December 18, 2018, the District Court sustained the Order for Abatement (the “Court Order”) as to 9240 31st Street North (the “Property”); and WHEREAS, in the Court Order, the Court further held that if the hazardous conditions on the Property were not removed or corrected by May 31, 2019, the City may enter the Property and cause the hazardous conditions to be removed by razing the buildings and that the City’s costs to abate the hazardous conditions may be recovered by the City in accordance with Minnesota Statutes Section 463.21 upon motion and approval of the District Court; and WHEREAS, the hazardous conditions on the Property were not removed or corrected by May 31, 2019, and the District Court entered an order on July 26, 2019 allowing the City to enter the Property to enforce the Order and abate the conditions found to be hazardous; and WHEREAS, the City proceeded to abate the hazardous conditions on the Property and has incurred various costs in connection with the abatement; and WHEREAS, the City was granted authority by the District Court to proceed with the special assessment process by order dated September 24, 2020; and WHEREAS, Minnesota Statutes Sections 463.161 and 463.21 authorize the City to recover those costs by means of a special assessment against the Property in the manner provided by Minnesota Statutes Section 429.061 to 429.081 and the Act; and WHEREAS, pursuant to proper notice given as required by law and in accordance with Minnesota Statutes Chapters 429 and 463, the City Council has conducted a public hearing on the proposed special assessment against the Property; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAKE ELMO, MINNESOTA AS FOLLOWS: 1. The proposed assessment roll, a copy of which is attached hereto as Exhibit A and made a part hereof, is hereby accepted and constitutes the special assessment against the Property. 2 2. The assessment shall be payable in a single installment, payable on or before the first Monday in January 2021, and shall bear interest at the rate of eight percent per annum from the date of the adoption of this Resolution. 3. The owner of the Property may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment with interest accrued to the date of payment, to the City Clerk, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of this Resolution; and the owner may, at any time thereafter, pay to the City Clerk the entire amount of the assessment remaining unpaid, with interest accrued to December 31st of the year in which the payment is made. The payment must be made before November 15th or interest will be charged through December 31st of the next succeeding year. 4. The City Clerk is directed to transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County. The assessment is to be collected and paid over in the same manner as other municipal taxes. Approved by the City Council of the City of Lake Elmo this _______ day of _____________, 2020. CITY OF LAKE ELMO, MINNESOTA ____________________________________ Mayor Attest: _____________________________ City Clerk 3 EXHIBIT A Assessment Roll for Securing of Property Located at: 9240 31st Street North, Lake Elmo, MN Abatement of Hazardous Buildings $34,198.00 Legal Fees $26,451.84 Total $60,649.84