HomeMy WebLinkAbout[04e] Deferred Assessment crry OF ST.JCP54011 .. Council Agenda Item 4[e]
MEETING DATE: January 7,2019
AGENDA ITEM: Deferred Assessment—Requested Action: Authorize the Mayor and
Administrator to execute the Agreement between Richard Vos and the
City of St.Joseph deferring the Field Street Assessment.
SUBMITTED BY: Administration
BOARD/COMMISSION/COMMITTEE RECOMMENDATION: N/A
PREVIOUS COUNCIL ACTION: None
BACKGROUND INFORMATION: During the Field Street project city staff had worked with
properties abutting Field Street where an assessment was calculated and the property was still in St.
Joseph Township. The properties had impacts for water, sewer and streets. The City has already
executed an agreement with two of the property owners(Kluesner/Heymans)and the terms are consistent.
BUDGET/FISCAL IMPACT:
ATTACHMENTS: Deferred Assessment-Vos
REQUESTED COUNCIL ACTION: Authorize the Mayor and Administrator to execute the deferred
agreement between the City of St.Joseph and Richard Vos
AGREEMENT TO DEFER ASSESSMENT
This agreement is entered into this day of ,201 ,by and between
Richard J.Vos 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,Richard J.Vos owns property legally described as:
The North 336.00 feet of the West 650.00 feet of the Southeast Quarter of the Northeast Quarter,
as measured along the North and West lines thereof, Section 15,Township 124,Range 29,
Stearns County Minnesota. Together with an easement and right of way to pass and repass along,
over and across the Southerly 1 rod of the Northeast Quarter of the Northwest Quarter and the
Northwest Quarter of the Northeast Quarter, all in section 15,Township 124,Ange 29, Stearns
County Minnesota
Whereas,the property owned by Richard J.Vos 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
Field Street between College Avenue(CR 121) to 7th Avenue SE and the extension of 7th Ave SE to Field
Street from Graceview Estates 5; 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, is considering adoption of 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 $ 0.00
b. Storm Sewer $ 0.00
c. Water Main $ 11,221.70
d. Sewer Main $ 9,807.19
Total Special Assessment$21,028.89
2. The City agrees that that the Property Owner will not be required to connect to the City water
and sewer system until one of the following events occur:
a. The existing septic system fails or is no longer compliant as determined by Stearns
County Environmental Services.
b. The property is sold
c. The property is subdivided
3. The City agrees that any special assessments levied will be deferred pursuant to the following
terms and conditions:
a. The special assessment will not become payable until one of the events identified in
section 2 of the Agreement occur or 2038; whichever comes first.
b. At the time the special assessment becomes payable the total of the assessment will be
assessed for a term of ten years with an interest rate of 2%. The assessment(principal
and interest)will be divided into ten equal installments to be collected with the real estate
taxes.
4. When the Property Owner connects to the municipal water and sewer system,the following
charges shall apply and are in addition to the special assessment:
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 Utility Fees for the property are as follows(based on
2.55 Acres of developable property):
a. 2016 Field Street Trunk Water Main $ 2,767.34
b. 2016 Field Street Trunk Sanitary Sewer $ 3,935.97
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.
5. Nothing in this agreement shall preclude the Property Owner in the future from subdividing
the property. Applicable fees shall be applied to future lots.
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 , 2018.
PROPETY OWNER CITY OF ST. JOSEPH
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R chard J.Vos Rick Schultz,Mayor
Judy Weyrens,Administrator