2013.05.20 CC Minutes - Laserfiche WebLink

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Hugo City Council Meeting Minutes for May 20, 2013 Page 6 of 8 Discussion on Revised Assessment Policy At its Tuesday, April 9, 2013 workshop, Council discussed the Assessment Policy and proposed changes to include assistance in developer -driven roadway and associated improvements. Council had directed this to be brought to the Planning Commission for a public hearing and to the EDA. City Administrator Bryan Bear updated the Council on these meetings and presented the revised assessment policy for approval. Bryan explained the assessment policy discussion began when the City approved a site plan application for Christ Lutheran Church, which is part of the Frenchman Place development. A condition in the Development Agreement requires Rosemary Way be constructed. Tighter lending regulations are making it difficult for the developer to get the financing. Developer Len Pratt submitted a petition requesting the City build the street and assess the cost back to the property owned by him. Bryan discussed with council the benefits and consequences of financing developer driven road projects. He presented the proposed Exhibit A to the Council that contains items to minimum the risk to the City, which include a 60% Letter of Credit, no deferred assessments, and mortgage consent. The Planning Commission discussed the proposed policy at their April 25th and May 9th meetings and recommended approval. The EDA discussed this at their May 13th meeting and questioned whether it should be more aggressive by including the extensions of public utilities. The Council discussed this and concluded to not be more aggressive at this time. Klein made motion, Petryk seconded, to approve Exhibit A to the Assessment Policy. All Ayes. Motion carried. Staff will make the necessary changes to the policy and present a resolution adopting the revised policy for Council approval at their next meeting. Discussion on Purchase Agreement for Former Carpenters Property The City Council has considered the purchase of the former Carpenters property, 14559 and 14583 Forest Boulevard North, on several occasions, and the property will now be facing tax forfeiture in June, 2013. The City had just received a purchase agreement signed by owner Cathy Anderson on this day, and City Administrator Bryan Bear added it to the agenda for Council to consider. Bryan explained there are five parcels totaling 1.34 acres. The maximum purchase price is $285,000 which includes back taxes, assessments, mortgages, and other encumbrances. With the purchase of the property, $47,000 of the assessments would be returned to the City and 1/3 of the back taxes. Staff will negotiate with Washington County the amount of interest and penalties that will need to be paid to them on the taxes. If the City chooses not to buy it, it will be tax forfeited and the DNR could take ownership, or the County could sell it at fair market value. Purchase of the property would allow it to be developed along with existing City owned land to the north. Staff has found there are title issues on the south parcels of the Carpenter property. Closing will take place on the north parcels first, followed by closing on the southern parcels once issues have been resolved.