Loading...
HomeMy WebLinkAbout[06a] Deferred Assessments Council Agenda Item 6a MEETING DATE: December 18, 2017 AGENDA ITEM: Administrator Reports – Deferred Assessments SUBMITTED BY: Administration/Engineering BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: The City Council adopted the final assessment for the 2016 Field Street Improvement on October 24, 2017. Included on the assessment roll was future assessments for property located in St. Joseph Township BACKGROUND INFORMATION: Over the past couple of months staff has been working with property owners with future assessments for the Field Street Improvement. Through this process staff has been able to come to agreement with two of the property owners as the terms and conditions for the future assessment. The only difference between the deferred agreement amounts the amounts listed on the final assessment roll is the acreage for calculating the water and sewer for Amy Kluenser. The area was reviewed and the reduction to 18 acres was reasonable. BUDGET/FISCAL IMPACT: Memorializes for the future the terms and conditions of a future assessment ATTACHMENTS: Deferred Agreement – Kluesner Deferred Agreement - Heymans REQUESTED COUNCIL ACTION: Authorize the Mayor and Administrator to execute the deferred agreements between Amy Kluesner and the City of St. Joseph; and Tim and Ann Heymans and the City of St. Joseph for the 2016 Field Street Improvements. AGREEMENT TO DEFER ASSESSMENT This agreement is entered into this day of , 2017, by and between Amy Kluesner Owner of the below described property, (herein after referred to as the “Property Owner”) and the City of St. Joseph, a Minnesota political subdivision (herein referred to as the “City”): Whereas, the Property Owner owns property legally described as: Lot 1, Block 1, Grace Acres, Stearns County, Minnesota. TOGETHER with a perpetual non-exclusive easement for the purpose of ingress and egress to be used in common with the grantors, their heirs and assigns and others having a like right over and across that part of the Northeast Quarter of the Northeast Quarter, Section 15, Township 124 North, Range 29 West, lying west of a line drawn from the point on the north line of said Northeast Quarter of the Northeast Quarter, distant 66 feet East of the northwest corner of the Northeast Quarter of the Northeast Quarter to a point on the south line of said Northeast Quarter of the Northeast Quarter distant 66 feet East of the southwest corner of said Northeast Quarter of the Northeast Quarter. AND TOGETHER with a non-exclusive easement described as: Beginning at the southeast corner of the Northwest Quarter of the Northeast Quarter in said Section 15, thence North along the east line of said Northwest Quarter of the Northeast Quarter (said line also being the west line of the Northeast Quarter of the Northeast Quarter in said Section 15), a distance of 66 feet; thence West parallel to the south line of said Northwest Quarter of the Northeast Quarter a distance of 99 feet; thence South parallel to the east line of said Northwest Quarter a distance of 66 feet to the point of intersection with the south line of said Northwest Quarter of the Northeast Quarter; thence East along the south line of said Northwest Quarter of the Northeast Quarter a distance of 99 feet to the point of beginning and there terminating. A.P.N 31-21302-0150 Whereas, the property owned by The Property Owner lies but within an area governed by an Orderly Annexation Agreement (OAA); and Whereas, the City‘s comprehensive transportation plan provides for the construction of an east/west community collector street known as Field Street; and Whereas, a community collector provides for access to and from neighborhoods, to business centers, and to the arterial system with moderate emphasis on both access and mobility. Therefore, direct driveway access will be discouraged; and Whereas, the City ordered the improvement, solicited bids, and constructed the first phase of th Field Street between College Avenue (CR 121) and 7 Avenue SE; and Whereas, The City has issued debt to pay for the 2016 Field Street Improvements which include an average annual coupon rate of 2.1807% and will levy special assessments that will bear an interest rate of 4.25% for those benefitting Property Owners opting to extend their special assessment payment over a fifteen year period; and Whereas, the City has adopted a special assessment policy which provides for special assessing benefitting Property Owners a proportionate share of the cost of the improvement; and Whereas, the City Council on October 24, 2017, adopted the final special assessment roll, assessing benefitting properties a proportionate share of the collector street improvement costs based on the typical costs of a local residential street, 32 feet in width; and Whereas, as the Property Owner will not be connecting to municipal utility services at the time of this agreement. Therefore, in consideration of the actions of the parties and the mutual promises contained herein, the parties hereby agree as follows: 1. The Property Owner agrees to the following final special assessment: a. Street $ 178,132.39 b. Storm Sewer $ 30,435.14 Total Special Assessment $ 208,567.53 2. The City agrees that any special assessments levied will be deferred pursuant to the following terms and conditions: a. For the years 2018 through December 31, 2037, interest shall not be applied and the Property Owner, at their discretion, shall be allowed to make payments on the special assessment, without changing the terms of this agreement. b. Beginning January 1, 2038, the deferred special assessment, $ 208,567.53, less any payments received towards the principal, will become payable. The total of the unpaid special assessment will be assessed for a term of ten years with an interest rate of 2%. Beginning January 1, 2038, the special assessment (interest and principal) will be divided into ten equal installments collected with the real estate taxes ending in 2048 3. When the property is developed, all applicable trunk utility fees in force at the time, shall be applied to the property. The trunk utility fees that shall apply will be based on the infrastructure used to service the property. If the property were serviced at the time of execution of this agreement, the following trunk utility fees would apply: a. 2005 Trunk Water Fee $ 777.25/Acre b. 2005 Trunk Sewer Fee $ 1,878.00/Acre c. 2016 Field Street Trunk Water Main $ 1,085.23/Acre d. 2016 Field Street Trunk Sanitary Sewer $ 1,543.52/Acre The total of the 2016 Field Street Trunk Fees for the property are as follows (based on 18 Acres of developable property): a. 2016 Field Street Trunk Water Main $ 19,534.14 b. 2016 Field Street Trunk Sanitary Sewer $ 27,783.36 4. The City agrees that the Property Owner shall be allowed to subdivide and construct one additional single family dwelling unit without the deferred special assessments becoming due and payable subject to the following: a. The single family dwelling unit will only be allowed initially for a member of the Property Owner’s immediate family. b. The new dwelling unit constructed must connect to the municipal water and sanitary sewer system and the Property Owner will be responsible for paying the following trunk utility fees based on the fees in section 3 of this agreement (See attached trunk service maps): i. 2005 Trunk Water Fee ii. 2005 Trunk Sewer Fee iii. 2016 Field Street Trunk Water Fee iv. 2016 Field Street Trunk Sewer Fee The Property Owner will also be responsible for paying the water and sewer utility access fees (WAC/SAC) that are applicable at the time of construction and any other fees associated with a constructing a single family residential home. c. Direct driveway access to Field Street will not be allowed; however, a street special assessment at the rate of $ 142.06 per lineal foot of benefitting property as determined by the City, for access to Field Street will be charged at the time of building and collected with the building permit. The special assessment amount as identified in 1a above will be reduced equivalently. 5. The deferred special assessments shall not become due and payable solely as a result of the sale of the property to a third party, but instead shall require development of the property by subdividing for additional residential units beyond those existing and the exemption described in paragraph 4 of this Agreement. The addition of accessory structures (accessory to the existing residential structures) shall not be considered “development” under this Agreement. 6. This agreement contains the parties’ entire understanding with respect to the subject matter contained herein and shall only be modified in writing signed by the party to be bound. Dated this day of , 2017. PROPERTY OWNER CITY OF ST. JOSEPH Amy Kluesner Rick Schultz, Mayor Kevin Kluesner Judy Weyrens, Administrator Drafted by: City of St. Joseph 75 Callaway St E St. Joseph MN 56374 320-363-7201 AGREEMENT TO DEFER ASSESSMENT This agreement is entered into this day of , 2017, by and between Timothy P.H. Heymans and Ann M.H. Heymans, husband and wife, Owner of the below described property, (herein after referred to as the “Property Owner”) and the City of St. Joseph, a Minnesota political subdivision (herein referred to as the “City”) Whereas, the Property Owner owns property legally described as: That part of Lot 2, Block 1, Grace Acres, Stearns County, Minnesota, lying northerly of the following described line: Commencing at the northeast corner of Lot 1, Block 1, said plat; thence on an assigned bearing of South 01 degrees 00 minutes 13 seconds East, along the west line of said Lot 2, a distance of 515.17 feet to the point of beginning of the line to be herein described; thence southeasterly 92.71 feet along a non-tangential curve concave to the northeast, with a radius of 1148.00 feet and a central angle of 04 degrees 37 minutes 38 seconds, the chord of said curve bears South 46 degrees 22 minutes 58 seconds East 92.69 feet, to the east line of said Lot 2, and said line there terminating. Containing 35,646 square feet, more or less. Whereas, the property owned by Heyman’s lies within the Town of St. Joseph, but within an area governed by an Orderly Annexation Agreement (OAA); and Whereas, the City‘s comprehensive transportation plan provides for the construction of an east/west community collector street known as Field Street; and Whereas, a community collector provides for access to and from neighborhoods, to business centers, and to the arterial system with moderate emphasis on both access and mobility. Therefore, direct driveway access will be discouraged; and Whereas, the City ordered the improvement, solicited bids, and constructed the first phase of th Field Street between College Avenue (CR 121) and 7 Avenue SE; and Whereas, The City has issued debt to pay for the 2016 Field Street Improvements which include an average annual coupon rate of 2.1807% and will levy special assessments that will bear an interest rate of 4.25% for those benefitting Property Owners opting to extend their special assessment payment over a fifteen year period; and Whereas, the City has adopted a special assessment policy which provides for special assessing benefitting Property Owners a proportionate share of the cost of the improvement; and Whereas, the City Council on October 24, 2017, adopted the final special assessment roll, assessing benefitting properties a proportionate share of the collector street improvement costs based on the typical costs of a local residential street, 32 feet in width; and Whereas, as the Property Owner will not be connecting to municipal utility services at the time of this agreement. Therefore, in consideration of the actions of the parties and the mutual promises contained herein, the parties hereby agree as follows: 1. The Property Owner agrees to the following final assessment: a. Street $ 9,375.76 b. Storm Sewer $ 201.21 Total Assessment $ 9,576.98 2. The City agrees that any special assessments levied will be deferred pursuant to the following terms and conditions: a. For the years 2018 through December 31, 2037, interest shall not be applied and the Property Owner, at their discretion, shall be allowed to make payments on the special assessment, without changing the terms of this agreement. b. Beginning January 1, 2038, the deferred special assessment, $ 9,576.98, less any payments received towards the principal, will become payable. The total of the unpaid special assessment will be assessed for a term of ten years with an interest rate of 2%. Beginning January 1, 2038, the special assessment (interest and principal) will be divided into ten equal installments collected with the real estate taxes ending in 2048 3. When the property is developed, all applicable trunk utility fees shall be applied to the property. The trunk utility fees that shall apply will be based on the infrastructure used to service the property. If the property were serviced at the time of execution of this agreement, the following trunk fees would apply: a. 2005 Trunk Water Fee $ 777.25/Acre b. 2005 Trunk Sewer Fee $ 1,878.00/Acre c. 2016 Field Street Trunk Water Main $ 1,085.23/Acre d. 2016 Field Street Trunk Sanitary Sewer $ 1,543.52/Acre The total of the 2016 Field Street Trunk Fees for the property are as follows (based on 4.12 Acres of developable property): a. 2016 Field Street Trunk Water Main $ 4,471.16 b. 2016 Field Street Trunk Sanitary Sewer $ 6,359.29 4. The City agrees that the Property Owner shall be allowed to subdivide and construct one additional single family dwelling unit without the deferred special assessments becoming due and payable subject to the following: a. The single family dwelling unit will only be allowed initially for a member of the Property Owner’s immediate family. b. The new dwelling unit constructed must connect to the municipal water and sanitary sewer system, and the Property Owner will be responsible for paying the following trunk utility fees based on the fees in section 3 of this agreement (See attached trunk service maps): i. 2005 Trunk Water Fee ii. 2005 Trunk Sewer Fee iii. 2016 Field Street Trunk Water Fee iv. 2016 Field Street Trunk Sewer Fee The Property Owner will also be responsible for paying the water and sewer utility access fees (WAC/SAC) that are applicable at the time of construction and any other fees associated with a constructing a single family residential home. c. Direct driveway access to Field Street will not be allowed; however, a street special assessment at the rate of $ 142.06 per lineal foot of benefitting property as determined by the City, for access to Field Street will be charged at the time of building and collected with the building permit. The special assessment amount as identified in 1a above will be reduced equivalently. 5. The deferred special assessments shall not become due and payable solely as a result of the sale of the property to a third party, but instead shall require development of the property by subdividing for additional residential units beyond those existing and the exemption described in paragraph 4 of this Agreement. The addition of accessory structures (accessory to the existing residential structures) shall not be considered “development” under this Agreement. 6. This agreement contains the parties’ entire understanding with respect to the subject matter contained herein and shall only be modified in writing signed by the party to be bound. Dated this day of , 2017. PROPERTY OWNER CITY OF ST. JOSEPH Timothy P.H. Heymans Rick Schultz, Mayor Ann M.H. Heymans Judy Weyrens, Administrator Drafted by: City of St. Joseph 75 Callaway St E St. Joseph MN 56374 320-363-7201