HomeMy WebLinkAboutCC MINUTES 10041977 Meeting Sheet
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Folder: CC MINUTES AND AGENDAS 1977
Document: CC CC MINUTES 10041977
•
CITY OF ST. ANTHONY
SPECIAL COUNCIL MEETING MINUTES
October 4 , 1977
The executive session of the City Council was called to order at
6: 21 p.m. by Mayor Miedtke to discuss a matter with legal counsel con-
cerning unpaid special assessments.
Present: Duane Miedtke, Donna Stauffer and Bill Sauer
Also present: Jim Fornell, City Manager
John Drawz, Special Counsel
Councilman Sundland arrived at 6: 22 p.m. , Councilman Haik arrived at
6 : 25 p.m.
The Council discussed only the details of the proposed reassessment arid
apportionment action on properties located in the Apache Plaza and
• Diamond 8 Apartments areas.
The session was ordered closed by Mayor Miedtke at 6 : 50 p.m.
At 7:02 p.m. Mayor Miedtke reconvened the hearing on Resolution 77-049
which had been continued from the September 27, 1977 Council meeting.
Attorney Bruce Odlaug said he was representing the owners of Diamond
8 Apartments when he once again protested the reassessment for improve-
ments made to his client' s property 11 years ago for which the City
had made the mistake of not collecting from the original owner. He
felt the City was making another mistake trying to collect these past
due amounts from the present owner who had done everything "a reasonable
man could do" to search the title to the property before purchasing it.
He felt Council minutes of the past indicated "the public 's interest
was ignored in the attempts to collect the assessments for the property
improvements" and contended "the City is now trying to have an innocent
party pay for the City' s mistakes of 11 years ago as well as to bear
the legal costs of a court battle to find out who is right" . He re-
iterated his point that his client had paid the full purchase price for
the property believing all assessments against it had been paid. The
Mayor thanked Mr. Odlaug for the letter he had submitted providing the
Council with the attorney's contentions regarding the assessments .
Loren Gross, another attorney repeated the claim made during the first
hearing that his clients, Mr. and Mrs. Edwin Beutz, had made a good
faith purchase of their property with no knowledge of these assessments .
He said only Apache might have known about them and frequent changes
in the personnel of that organization might have prevented them from
having such knowledge when they sold the property to the Beutzes .
Mr. Gross insisted he, as a representative for Mr. and Mrs . Beutz, "did
everything reasonable to assure the title to the land was clear before
they purchased it" . He questioned the City' s right to reassess the
property by citing the case of Rose Realty versus City of Roseville
which he said had established the fact that "A good faith purchaser
can't be held responsible for the assessments they are not aware of" .
He agreed with Mr. Odlaug that "because some City employees had failed
to follow through on the collection of the assessments, the City was
trying to shift the problem to the innocent Beutzes who did all they
reasonably could do--ato search the title to the property before they
bought and who will now have to incur substantial legal expenses, even
if vindicated" . Mr. Gross further contended an Attorney General 's
opinion of 1949 had established that "unless a village attorney de-
termines an assessment is invalid, the City does not have the power
to assess" . He concluded by saying "this steamroller attempt to
collect now is not 'Hoyle ' from the standpoint of the law" .
• When the question was raised regarding which specific Apache corporation
held title to the Beutz property when they bought it, Mr. Gross said
an agreement had been reached with the City Attorney to accept the
Apache Realty Company as owner of record for purposes of transferring
the property although there was no conclusive evidence that such was the
case.
Councilman Stauffer said she nevertheless felt that whichever "Apache
Corporation" owned the property when the improvements were made also
would have had knowledge of the assessments .
Mayor Miedtke pointed out that the City had the option of either not
spreading the assessments to the properties which enjoyed the improve-
ments or approving the resolution which would reassess and reapportion
the costs of the those improvements . He felt the latter course should
be followed in justice to the other property owners who had paid their
fair share of the improvements costs and were under the impression that
others whose property was enhanced by the same improvements had also
paid their share of the costs .
Motion by Councilman Stauffer and seconded by Councilman Haik to adopt
Resolution 77-049 as well as the assessment rolls it establishes and
set a rate of 8% interest to be reapplied to the unpaid balance as well
as a repayment period of 10 years.
(2)
RESOLUTION 77-049
A RESOLUTION APPROVING THE 1977 TAX LEVY,
COLLECTIBLE IN 1978
Motion carried unanimously.
The hearing was closed at 7 :15 p.m. and following a recess the Council
continued the Budget hearing.
Helen Crowe
Secretary
x
Mayor
•
ATTEST:
City Clerk
(3)
CORRECTED
CITY OF ST. ANTHONY
SPECIAL COUNCIL MEETING MINUTES
October 4 , 1977
The executive session of the City Council was called to order at
6: 21 p.m. by Mayor Miedtke to discuss a matter with legal counsel con-
cerning unpaid special assessments.
Present: Duane Miedtke, Donna Stauffer and Bill Sauer
Also present: Jim Fornell, City Manager
John Drawz, Special Counsel
Councilman Sundland arrived at 6: 22 p.m. , Councilman Haik arrived at
6 : 25 p.m.
The Council discussed only the details of the proposed reassessment and
apportionment action on properties located in the Apache Plaza and
Diamond 8 Apartments areas.
The session was ordered closed by Mayor Miedtke at 6 : 50 p.m.
At 7: 02 p.m. Mayor Miedtke reconvened the hearing on Resolution 77-048
which had been continued from the September 27, 1977 Council meeting.
Attorney Bruce Odlaug said he was representing the owners of Diamond
8 Apartments when he once again protested the reassessment for improve-
ments made to his client' s property 11 years ago for which the City
had made the mistake of not collecting from the original owner. He
felt the City was making another mistake trying to collect these past
due amounts from the present owner who had done everything "a reasonable
man could do" to search the title to the property before purchasing it.
He felt Council minutes of the past indicated "the public 's interest
was ignored in the attempts to collect the assessments for the property
improvements" and contended "the City is now trying to have an innocent
party pay for the City' s mistakes of 11 years ago as well as to bear
the legal costs of a court battle to find out who is right" . He re-
iterated his point that his client had paid the full purchase price for
the property believing all assessments against it had been paid. The
Mayor thanked Mr. Odlaug for the letter he had submitted providing the
Council with the attorney 's contentions regarding the assessments.
Loren Gross, another attorney repeated the claim made during the first
hearing that his clients, Mr. and Mrs. Edwin Beutz , had made a good
® faith purchase of their property with no knowledge of these assessments .
•
He said only Apache might have known about them and frequent changes
in-the personnel of that organization might have prevented them from
having such knowledge when they sold the property to the Beutzes.
Mr. Gross insisted he, as a representative for Mr. and Mrs. Beutz, "did
everything reasonable to assure the title to the land was clear before
they purchased it" . He questioned the City' s right to reassess the
property by citing the case of Rose Realty versus City of Roseville
which he said had established the fact that "A good faith purchaser
can' t be held responsible for the assessments they are not aware of" .
He agreed with Mr. Odlaug that "because some City employees had failed
to follow through on the collection of the assessments, the City was
trying to shift the problem to the innocent Beutzes who did all they
reasonably could do .to search the title to the property before they
bought and who will now have to incur substantial legal expenses, even
if vindicated" . Mr. Gross further contended an Attorney General 's
opinion of 1949 had established that "unless a village attorney de-
termines an assessment is invalid, the City does not have the power
to assess" . He concluded by saying "this steamroller attempt to
collect now is not 'Hoyle ' from the standpoint of the law" .
• When the question was raised regarding which specific Apache corporation
held title to the Beutz property when they bought it, Mr. Gross said
an agreement had been reached with the City Attorney to accept the
Apache Realty Company as owner of record for purposes of transferring
the property although there was no conclusive evidence that such was the
case.
Councilman Stauffer said she nevertheless felt that whichever "Apache
Corporation" owned the property when the improvements were made also
would have had knowledge of the assessments .
Mayor Miedtke pointed out that the City had the option of either not
spreading the assessments to the properties which enjoyed the improve-
ments or approving the resolution which would reassess and reapportion
the costs of the those improvements . He felt the latter course should
be followed in justice to the other property owners who had paid their
fair share of the improvements costs and were under the impression that
others whose property was enhanced by the same improvements had also
paid their share of the costs .
Motion by Councilman Stauffer and seconded by Councilman Haik to adopt
Resolution 77-048 as well as the assessment rolls it establishes and
set a rate of 8% interest to be .applied to the unpaid balance as well
as a repayment period of 10 years.
(2)
•
RESOLUTION 77-048
A RESOLUTION ADOPTING THE ASSESSMENT ROLL
FOR THE REASSESSMENT-AND APPORTIONMENT
OF MISCELLANEOUS IMPROVEMENT PROJECTS
Motion carried unanimously.
The hearing was closed at 7 :15 p.m. and following a recess the Council
continued the Budget hearing.
Helen Crowe
Secretary
A
Mayor
ATTEST:
City Clerk
(3)