HomeMy WebLinkAbout[04f] Industrial Park Assessments
Council Agenda Item 4f
MEETING DATE: January 6, 2020
AGENDA ITEM: Industrial Park Assessments
SUBMITTED BY: Finance
BOARD/COMMISSION/COMMITTEE RECOMMENDATION: None
PREVIOUS COUNCIL ACTION: Council approved Resolution 2019-067 Adopting the Industrial
Park assessment roll.
BACKGROUND INFORMATION: This council action is to correct the construction costs to be
assessed. Resolution 2019-067 had the incorrect amount. Resolution 2020-002 corrects the amount to be
assessed. The terms are not changed, 10 year, 1.8226475% in the amount of $2,415,000. The first
payment is due January 1, 2021. Interest will begin to accrue in 2021.
BUDGET/FISCAL IMPACT: $2,415,000
ATTACHMENTS: Request for Council Action – Industrial Park Assessments
Resolution 2020-002 Adopting Final Assessment Roll
Final Assessment Roll
REQUESTED COUNCIL ACTION: Consider adopting Resolution 2020-002 Adopting the Final
Assessment Roll for the 2019 Industrial Park project.
RESOLUTION 2020-002
Adopting Final Assessment Roll
2019 Industrial Park Improvement
WHEREAS, on July 25, 2019 the City of St. Joseph entered into a Development Agreement with CLC
Partners, LLC to develop shovel ready industrial lots in a plat entitled Northland Business Center; and;
WHEREAS, the Development Agreement identifies the terms and conditions of the development,
including the financing and reimbursing for all city costs; and
WHEREAS, section 4.4 the agreement states: The City will levy special assessments against the Property
or development pursuant to the provisions of Minnesota Statutes Chapter 429.
I. The Developer and Owners hereby waive their rights to the Assessment Hearing
normally held in accordance with said Chapter 429. The Developer and Owners hereby
waive their right to appeal said special assessment to the District Court pursuant to
Minnesota Statutes § 429.081.
II. The Developer agrees to pay for all costs of the improvements through special
assessments levied against the property.
III. The City will assess the property on a per acre basis for all costs not covered through the
grant proceeds
WHEREAS, the City issued debt in the amount of $ 2,415,000 for the public improvement costs which is
the responsibility of the developer and will be collected as a special assessment over a 10-year period.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH,
MINNESOTA:
1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is
hereby accepted and shall constitute the special assessment against the lands named therein, and each tract
of land therein included is hereby found to be benefited by the proposed improvement in the amount of
the assessment levied against it.
2. Such assessment shall be payable in equal annual installments extending over a period of 10
years, the first of the installments to be payable on or before the first Monday in January 2021, and shall
bear an interest rate of 1.8226475% average bond rate of the debt issued. To the first installment shall be
added interest on the entire assessment amount from the date of this resolution until December 31, 2019.
To each subsequent installment when due shall be added interest for one year on all unpaid installments.
3. The owner of any property so assessed may, at any time prior to certification of the
assessment to the county auditor, pay the whole of the assessment on such property, with interest accrued
to the date of payment, to the city treasurer, except that no interest shall be charged if the entire
assessment is paid within 30 days from the adoption of this resolution; and the property owner may at any
time thereafter, pay to the city treasurer the entire amount of the assessment remaining unpaid, with
interest accrued to December 31 of the year in which such payment is made. Such payment must be made
before November 15 or interest will be charged through December 31 of the succeeding year.
4. The clerk shall forthwith transmit a certified duplicate of this assessment to the county auditor
to be extended on the property tax lists of the county. Such assessments shall be collected and paid over in
the same manner as other municipal taxes
Adopted this ________ day of ____________________. 2020
ATTEST
________________________________
Rick Schultz, Mayor
________________________________
Kris Ambuehl, Administrator