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HomeMy WebLinkAbout6.i. Approve Special Assessment AgreementG:\ENGPROJ\387\Council Items\20150407 CC Approve Special Assessment Agreement.docx EXECUTIVE SUMMARY City Council Regular Meeting: April 7, 2015 AGENDA ITEM: Approve Special Assessment Agreement AGENDA SECTION: Consent PREPARED BY: Andrew J. Brotzler, P.E. Director of Public Works/City Engineer AGENDA NO. ATTACHMENTS: Resolution, Petition and Waiver Agreement, Sundae Request APPROVED BY: RECOMMENDED ACTION: 1) Motion to authorize the execution of a Petition and Waiver Agreement; and 2) Motion to adopt a resolution adopting a special assessment for 2635 132nd Court West. ISSUE Laxman Sundae has requested that for the property located at 2635 132nd Court West that his Supplemental Water and Sanitary Sewer Connection Charges association with the Old County Road 38 project, as set forth in the current Schedule of Rates and Fees, be placed on his property taxes. BACKGROUND When the Old County Road 38 project including the extension of sewer and water to properties along 132nd Court was completed, the City Council implemented special connection charges in-lieu of special assessments to the properties associated with the sewer and water project cost. These special connection charges are listed in the Schedule of Rates and Fees and are due at the time a property connects to the sewer and water system. The City has previously considered when requested the assessment of these special connection charges to facilitate the connection to city sewer and water. There is no new City capital outlay associated with special assessment. Funds collected as either special connection charges, or special assessments is revenue to the City sewer and water utility funds that originally funded the project cost. The supplemental connection charge amount to be levied as a special assessment will be set according to the 2015 rates, in the amount of $12,811.23. At such time that the City sewer and water service is connected, the typical water access charges (WAC) and sewer access charges (SAC) will apply at the rates current at the time of connection and will be due prior to permit issuance by the Building Department. SUMMARY Staff is recommending the following: 1) The City Council authorize the execution of an agreement with Laxman and Alexie Sundae to specially assess the special connection charges in the amount of $12,811.23. 2) The City Council adopt a resolution adopting a special assessment for 2635 132nd Court West. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2015- A RESOLUTION ADOPTING A SPECIAL ASSESSMENT FOR 2635 132ND COURT WEST WHEREAS, the City Schedule of Rates and Fees includes a Special connection Charge for the connection to city sewer and water for the property at 2635 132nd Court West that is due at the time of connection; and WHEREAS, the property owner has submitted a written request for the special assessment of said connection charges; and WHEREAS, the City Council has authorized the execution of a Petition and Waiver agreement with the property owner. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Rosemount, Minnesota, as follows: (1) Such proposed assessment in the amount of $12,811.23, to 2635 132nd Court West (PID 34-44300- 01-070) is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein is hereby found to be benefited by the proposed improvement. (2) Such assessments shall be as follows: a. The assessments shall be payable in equal annual installments extending over a period of ten (10) years, the first of said installments to be payable with general taxes for the year 2015, collectible with such taxes during the year 2016. b. To the first installment shall be added interest on the entire principal amount of the assessment from April 7, 2015 until December 31 of the year in which such installment is payable. The interest rate shall be set at either 5% per annum or 2 points above the City’s bond rate at the time the assessments are certified to Dakota County Property Taxation & Records, whichever is less. To each subsequent installment, when due there shall be added interest for one year at said rate on the unpaid principal amount of the assessment. c. The owner of any property so assessed may at any time prior to the certification of the assessment or the first installment thereof to Dakota County Property Taxation & Records, pay the whole of the principal amount 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 date hereof; and such property owner may at any time prior to December 31 of any year pay to Dakota County Property Taxation & Records the entire principal amount of the assessment remaining due with interest accrued to December 31 of the year in which said payment is made. Payment must be received and posted at the County by December 31; postmarks will not be accepted. (3) The City Clerk shall forthwith transmit a certified duplicate copy of this assessment roll to the County Auditor to be extended on the tax list of the County. ADOPTED this 7th day of April, 2015. William H. Droste, Mayor ATTEST: Clarissa Hadler, City Clerk PETITION AND WAIVER AGREEMENT This Agreement made this ___ day of _________, 2015, by and between the City of Rosemount, a Minnesota municipal corporation (“City”), and Laxman S. Sundae and Alexie C. Sundae, (collectively referred to as “Owner”). WITNESSETH: WHEREAS, the Owner is the fee owner of certain real property (the “Subject Property”) located at 2635 – 132nd Court West in the City of Rosemount; and WHEREAS, special connection charges that were fixed by reference to the portion of the cost of municipal sewer and water service that was paid by special assessment levied against the Subject Property will be due at the time of connection of the Subject Property to the municipal sewer and water systems; and WHEREAS, such special connection charges are currently set $12,811.23; and WHEREAS, the Owner desires to have such connection charges levied against the Subject Property as special assessments; and WHEREAS, the Owner wishes the City to levy such special assessments without notice of hearing or hearing on the special assessments, in the amount of $12,811.23, against the Subject Property in lieu of collection of such charges as connection charges; and WHEREAS, the City is willing to levy such special assessments in accordance with the request of the Owner and without such notice or hearing, provided the assurances and covenants hereinafter stated are made by the Owner to ensure that the City will have valid and collectable special assessments as they relate to the Subject Property; and WHEREAS, were it not for the assurances and covenants hereinafter provided, the City would not levy such special assessments without such notice and hearing. NOW, THEREFORE, ON THE BASIS OF THE MUTUAL COVENANTS AND AGREEMENTS HEREINAFTER PROVIDED, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS: 1. The Owner represents and warrants that he is the owner of 100 percent of the Subject Property, that he has full legal power and authority to encumber the Subject Property as herein provided, and that as of the date hereof, he has fee simple absolute title in the Subject Property, which is not subject to any liens, interests or encumbrances, except as listed on the attached Exhibit A. 2. The Owner requests that $12,811.23 be assessed against the Subject Property in lieu of special connection charges. Owner understands that he will be required to pay normal and typical connection charges at the time of connection to the municipal sewer and water systems. 3. The Owner waives notice of hearing and hearing on the special assessments levied pursuant to Minn. Stat. Section 429.061, and specifically request that special assessments be levied against the Subject Property without hearings. 4. The Owner waives the right to appeal the levy of the special assessments in accordance with this Agreement pursuant to Minn. Stat. Section 429.081, or reapportionment thereof upon land division pursuant to Minn. Stat. Section 429.071, Subd. 3, or otherwise, and further specifically agrees with respect to such special assessments against the Subject Property or reapportionment that: a. Any requirement of Minn. Stat., Chapter 429 with which the City does not comply are hereby waived by the Owner; b. The increase in fair market value of the Subject Property resulting from construction of the Improvement Project for which the special connection charges were set will be at least equal to $12,811.23, and that such increase in fair market value is a special benefit to the Subject Property; c. Assessment of $12,811.23 of the cost of the Improvement Project against the Subject Property is reasonable, fair and equitable; and d. The Owner further specifically waives notice and right to appeal reapportionment of such special assessments upon land division pursuant to Minn. Stat., Section 429.071, Subd. 3. 5. Owner represents and warrants that the Subject Property is not so classified for tax purposes as to result in deferral of the obligation to pay special assessments; and Owner agrees that he will take no action to secure such tax status for the Subject Property during the term of this Agreement. 6. The covenants, waivers and agreements contained in this Agreement shall bind the successors and assigns of the Owner and shall run with the Subject Property and bind all successors in interest thereof. It is the intent of the parties hereto that this Agreement be in a form that is recordable among the land records of Dakota County, Minnesota; and they agree to make any changes in the Agreement that may be necessary to effect the recording and filing of this Agreement against the title of the Subject Property. 7. This Agreement shall terminate upon the final payment of all special assessments levied against the Subject Property under this Agreement, and the City shall thereupon execute and deliver such documents, in recordable form, as are necessary to extinguish its rights hereunder. 8. Assessments levied pursuant to this Agreement will be spread over a ten-year period with interest at a rate determined by the City Council in accordance with its normal and customary procedures. IN WITNESS WHEREOF, the parties have set their hands the day and year first written above. CITY OF ROSEMOUNT OWNER By: ____________________________ ________________________________ William H. Droste, Mayor Laxman S. Sundae By: ___________________________ ________________________________ Clarissa Hadler, City Clerk Alexie C. Sundae STATE OF MINNESOTA ) ) ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ____day of ________, 2015, by William H. Droste and Clarissa Hadler, the Mayor and City Clerk of the City of Rosemount, Minnesota, a municipal corporation under the laws of the State of Minnesota, on behalf of the City. __________________________________________ Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ____day of ________, 2015, by Laxman S. Sundae and Alexie C. Sundae. __________________________________________ Notary Public