The URL can be used to link to this page

Home My WebLink About7.i. Donal & Mary Carroll Assessment Appeal Y S CITY OF ROSEMOUNT EXECUTIVE SUNIl+�ARY FOR ACTION CITY COUNCIL MEETING DATE: July 20, 1993 ' AGENDA ITEMs Donal and Mary Carroll � AGENDA SECTION: Assessment Appeal 1�pS� c�$S1� New Business PREPARED BY: Bud Osmundson AGENDA }�'�'C � City �ngineer/Assistant Public Works Director � i G� �j � ATTACFIIrIENTS: Attorney' s letter, assessment APPROVED BY: calculations, possible replat Attached is a letter from Donal and Mary Carrolls' attorney, Mr. Bradley Smith, of the firm Severson, Wilcox & Sheldon, P.A. The letter summarizes the Carrolls' position on the assessments which were levied against 0utlot A of the Carrollton Addition. This is the property located at the corner of Chili Avenue and 145th Street. The total assessments discussed in the letter consist of two separate assessments. The first assessment was for storm sewer improvements levied in 1976 which totaled to $3491. 81. The second assessment was for the Carrollton Addition street and utility improvements which totaled to $22, 851.96 and was levied in 1979 . Both of these special assessments had interest rates of 8%. The storm assessment had a twenty year time schedule of payments and the Carrollton Addition assessments had a three year payback of assessmen�s. As discussed in the letter, the Carrolls had their assessments deferred utilizing the Green Acres assessment law. The Green Acres law lets a property owner defer special assessments with interest compounded annually. The total amounts of assessments, interest and penalties are as described in the third paragraph of the Bradley Smith letter. The Carrolls are proposing assessments, interest and penalties be modified so that the total of the assessments is $56, 705 .71 compared to the total of $83, 573 . 66 which is due and payable as of March 31, 1993 . The $56, 705 .71 is arrived at as shown on the attached worksheet. Staff feels that the proposal as offered can be a viable alternative for the Carroll green acre assessments with modifications as follows. We ask that the Carrolls agree to waive their right of appeal for the proposed assessments for the 145th Street/Chile Avenue project, City Project # 235 . The Project 23S assessment can be combined with the Green Acres assessments into one agreement. The assessments for Project 235 would include any new services added to serve the replatted 0utlot A, plus any new street assessments required per the assessment policy. What this may amount to is two or three water and sanitary sewer service assessments and street assessments for one lot within the replatted Outlot A given the most likely plat arrangement. Staff recommends that an agreement as discussed above be approyed by City Council at the next meeting pending the assembling of an agreement by the City Attorney and the Carrolls' attorney. RECOI�Il+SENDED ACTION: MOTION TO HAVE THE CITY ATTORNEY DRAFT AN AGREEMENT FOR THE CARROLLS' ASSESSMENTS FOR OUTLOT A TO BE BROU�HT BACK TO THE NEXT MEETING. COUNCIL ACTION: Z0 � � �E1T BY� b-3u-�i ; 17�17 ;5tvtx5v:� n i�wx �r-�cl.� 1�1�Y�o�� ,� �, u _ SEYFRSUN, �VILCt)X S� S�LDt}N� P.A. , n rxc��esstoNA�.Assoctn•rFc�N xra�t�►t�►K.unia I.ARRY`.�G�E}ttiON ATTOKNGYS AT i.AW SCUTI'I).JnilNS"n)H JAMI•:S F.SN�.t..11ON Lt�RFN M.St�t,I�EST !,p�TRICK Wii.t:t)X ANNF1'I'ti M.M�KGA�tt'i' MiC.iIAEI.�+•UOI:GHt;RTY' 6(�A1IUWAY NA'110NA1.HANK BL'tLl)tNt; �pqr��;K,IIOLMF� pii�'HALL B.M()LL'\1�A �:�(�WEST 14T1I1 STIZEE�' pR/�1)I.t.Y S`vIfTH A1'Pi.i:VALI.EY,M1RNL•SOTA SSl2•1 I�tiNtL•:L A9.CHkEtti)AN {612)4:12-313fi SII,�Rt>N K IIN.t ti June 3�, i993 ��ec.EFnx�u�iBEKa��.:;•�� c�r•c�u►�s�a.: 101lN K.VlI1:LLiC�t Mr. J. Michacl Miles Attorney at Law yl�, TBL$COPIER 1303 South Frontage Road (�i2 438-9?75 Has�ings, Minnesota 55033 Rc: Donal and Mary Carroll Our file #181-11473 Dear Mr. Miles: 2*his lEtter i.s to follow up on our recent conversations with respect to special assessments against the property owned by Donal and Mary CarroJ.l in Rosemou.nt at the northwest corner of 145th Street West and Chili Avenue. Before going further, a brief history of the assessroents may he appropriate. In 1967 when the Green Acres Law, Minnesota Statutes Section 273 .111 was passed, allowing the deferral of taxes and specia3 assessments for certa�.n homestead agricultural real property, Mr. and Mrs. Carroll had their spccial assessments deferred pursuant to statute, When Carrolton Addition was platted in about 1979, the Green Acres classif ication was removed, except as ta Outlot A. However, the Carrolls remained living on Outl�t A and continued to use the buildings locat�d there for agzicultural gurposes, and continued to graw crops on Outlot A. A few years ago, Mr. and Mrs. Carrol.l moved ta Hastings, and homesteaded their new home. One of their sons remained ].iving on Outlot A, and another of their sans continued to use the buildings as a center for a farming opezation which primarily uses nearby acreage which is leased for growing crops. Grops cantinue to be grown on Outivt A, as well. Howe�ver, because Mr. and M=s. Carroll were no longer ahle to hamestEad Outlot A, they last thei.r Green Acres classification. In 1991, the previously deferred assessments bEcame payable with the taxes payable in 1992. The amaunt of assessments originally deferred under the Green Acres Law included �22,g51.?b in assessments relating to the develapment of Carrr�lton Addition. In addition, there were $3r499.81 in assessments for starm sewcr relating to Broback Tenth, Eleventh and Z�,�elfth Additions. Al1 af the assessments acerued interest at 8�. What started out as $26,351.77 in assessrnents in 1979 grew to $65,155.88 in assessments as of 1991. Since that time, penal.ties of $9,121.82, and interest of 59 ,285.96 and costs of $10.Q4 accrucd with respect to the taxes payable in 1992 . Thus as of March 31, 1993 , the total amount due was �83 ,573.56. I am enclvsing a copy ot •�•C�wi�;�.�:.i!1'pR]CP.Yti nl_l'i1 Lk:EP:tif`t)tV 1UWA WI"J.YWtit\.(:.W'Q�:y�a c�<v;:u�:�iKA , , �t�i �y : b-�u-y� ; �7�1� ;5tvtx�� tLc�x srirl.� iail��y7��:� �� b P.age Two June 30, 1993 Mr. J.Michael Miles a Notification from the Dakata Caunty Auditcr's Office shawin$ this f i9ure. Earlier this month, I was informed by the Dakota County Property In€ormation Office that the taxEs payable in 1993. wi11 accrue similar penalties and interest, such that by the end of 1993, the tatal amount due will be apprvximately $105,00a.4Q. At the time the assessments were originally deferred under the Grecn Acres Law, the Carrolls, of course, knew that when they lost the determent� they wauld need to pay the assessments. Hawever, there was no discussion af interest accruing at that time, and when the Carro3.ls received a tax bill of $65,OQO.dO in the end of 1991, they we=e, needless to say, shocked and overwhelmed. They do not have the ability to pay $65,040.40 in assessmeats at this tune, Ist alone $$5,040.00 or $105,OOQ.00. I might add that it is my experience that in the 1g60' s and 197Q's, it was not uncommon for speeial. assessments to be deferred without interest unti�. prop�rty developed, such that when development did occur, assessments were levied at the rates then in effect. This was cammc�n practice in a number af municipalities in Dakata County at that time. Thus, it may have been expected by the Car=olls that the assessments would be levied when they developed at rates in effect at the time of development. This abviously was an incorrect assumption given the actual status af thc asscssments, but based upon practices at that time, it was not an unreasonable one. Regardless of how ma:tters were handled in the 19b0' s and 1970's, the Carrolls are now faced with an assessment which could be financially crippling tfl thein. They recognize that they have an obligation to pay for improv�ments which were install.ed and benefa.ted their property. For those reasons, we would lzke to make a proposal which we lielieve would fully compensate the City of Rosemount for the improvements benefiting the Carralls' property while at the same time, removinq penalties, and interest an interest, and pzovidinq a m�thod of payment that the Carrolls can handle. Our proposal is as follows: l. Z'he assessments cur=ently payable with the real estate taxes woula be recomputea to eliminate penaity, and �d include only the interest that woul.d have continue to accrue on the assessments at 8$ had they continued to be deferred rathEr than included for payment with the real estate taxes. , ��T BY� G—�iU—�� ; 1l�ly •JLr[.tcJv,� n��VA Jcu�i..-' 1V1L'ivVJ� � � •� � u Fage Three June 30 , 1993 Mr. �.Micha�l Miles ` 2. The Carrolls would be r�q�-r�� to .inencdiately p=Qae� to plat Outlot A as szngle family propert� throuc�h the normal City planning process, with ths buildings currently an the properGy to be remo�ed. 3 . The platting of the property would have to be completed within one year af approval b� the City of this proposal, and at that time, the deferred assessments would be split among the platted lots and would become payable with the real estate taxes payable with respect to each of those Zots in thc ncxt tax year. This proposal would provide the City of Rosernount with all principal and all normally accrued i.nterest with respect to the assessments, it would provide for the imauediate singl� family developrncnt ot an agricultural parcei which is now surrounded by residential prvperty, and it would not set a qeneral precedent with respect to pzoperties subject to Green Acres deferments. ThE reason it would not set a general precedent for other Green Acres property it that the Carralls' situation is uniquc, and unlikely to be duplicated wa.th other Green Acres properties. Most Green Acre property comes off of Greeri Acres at the time the property is developed. That is not the case here, as there has been a twa to three year delay between the termi.nation af Green Acres status and the development of the prQperty. During that time, the - property stayed in the fami.ly and continued to be used £or agricultural purposes, but for technical reasons, it iost its Green Acres defertnent. The Green Acres t,aw prvvides that 3.t is to be broadly construed to achieve its purpose. In effect, wc are askwith the Cit�r af Rosemount to make an exception which is in keeging the intent of the Green Acres Law, even thouqh the property may not technically qualify. Any approval of our proposal would, af caurse, be subject to the conditions above, and the resolution approving such a proposal would undoubtedly spccify that the continued deferral af gayment of the assessments is being approved onl.y because {1} the assessments were previously subject t4 Green Acres deferment, (2} the praperty continued in agricultural use within tihe immediatc fami.ly af the owners, and t3 ) the property cantinued to be occupied by members of the immediate family of the owners. Further, the resolution could specify that appraval of the continued deferment was made oaly because the �.mmeciiate development of the property is being planned and, in fact, requized by the City, It zs extreinely unlikely that a11 of the conditians specified above wauld be common with property laosing its Green Acres status. Jt\� jsl : � G'JU�iIJ � 11 •liJ +JLYL1�Jv.\ H1LLvn .h+Lt� +va:.zvvv� � . •� .+• v page Four June 30, 1993 Mr. J.Michael Miles For all of these reasons, we believe that this proposal is appropriate. We believe that it is a "win-win" solution for bath the Carrolls and the City of Rosemount. The Carrolls assessments wilT elirainatE penalties and interest on interest; the Gity will recei.ve full payment �or the assessments, together: with interest; the Ci�y will be assured that th� property will develop within the next year; the City will be assured that the assessments will be payable with the taxes payable in I995 at the latest. We would xequest that this matter be submitted to the City Council for approval. at the next avail.able apportunity. Tf it is too •late to have this matter discussed at the Jul�r 6, 1993 City Council meeting and, if that is not possible, we would request that it be heard on July 20. I wauld be grateful if you eouJ.d please let me know when it might be possible to h�ve the City Council. review this proposal. Thank you very much for yaux attention tr� this matter. Very truly yours, SEVERS.C,}N, WILCOX & SHELDC�N'; P.A. / �. .: / • r �--- • �'� . ' l :C_,C, '�'ri'�.-L---`_.1 i;'� �,`'' " �7 �� Bradlcy Smithr , BS/P7k cc: Dan and Mary Carrol� Don Carrall � � �� gy: 6-30-93 � 17�20 �SE�'ERSOti k t ICOX Sf�iEL� 1612�389777:T 61 6 DAKOTA COUNTY D1IKOTA GDWNTY G011ERN�11T CE?IT'ER 1560 H�lY 55-HASTIHC5.N2MESOTA 55d33 NOR�iA 8. MARStf � JIUDITOR (612� 438-43T5 Dear: DONAL � & MARY ti CARROLL As stated on the anclosed �lotice of Delinquent Tezes, 8 list of re�l p�oparty in B$ko�a Countp oA s�hicb delinguant taxas and penalt�as are due has been filed with the �district ccyurt administrator of Dakota Couaty, Tha parcel of property which is dascribed below and in which you have a l�gal intares� is incl��ded in tt�at �lelin�,�s^!: *a� list. Please xead the enclosgd ?�otic� of Delinquent Taxes so that you will understand what pou dust do in order to avoid losing your legsl interest in the proPBrtY because of the delinquent t8.xas. If q�u have noC paid the total an�ount shoWn below by March 31, glease csll the Cour►ty Auditor's office for correct figures (438-4375} . � � Please make chacks paysble to the DaScota Cau�ty Txeasuter. Papaent should be � sent to the Dakota County Auditor. Please return this }.etter wit� your p�yment, If pav bave any questions about these proceedings or need help in detiermining the tatal amount due to pag the delinquent teaas in full, please contact the Dakota Caunty Auditvr's of£ice. xespectfully, Norms B. �Sarsh De�k4te� County Auditor �Er�e,Fie�r�k,�r�tinF fri��s^��cs�4't�klr �'E'k' .Y�r;il 1QA �c3�� Ilt@�Pfi� �QBt O � 1991 65,155.88 9,�2I.82 4,285.96 i0.04 83,573.6b 83,573.56 Tatal Amaunt Figured Through: 03/31j93 rAx Descrintion Proparty II}¢� 34-16400�010-00 CARRflI,ZTON OUTI,OT A DONAL J & H�,RY ti CABgOLL 2440 SOUTHYIE�t CT HASTINGS MN 55033-3411 . . CARRCILL ASSESSMENT CALCULATIONS - JULY 16, 1993 OUTLOT A, CARROLLTON ADDITIGIN C1TY OF ROSEMOUNT 1. Special Assessment No. 62 Storm Sewer Improvements originai assessment amount: 53499.81 interest rate: 8% assessment payback: 20 years assessment adopted: 1976 proposed calculations: 53499.81 x 0.08 = 5279.98/year simple interest 5279.98 x 17 years (93-76? = S4,759.74 54759.74 + $3499.81 = 58259.55 Due in 1993 2. Special Assessment No. 70 Carrollton Street & Utility Improvements original assessment amount: $22,851 .96 interest rate: 8% assessment payback: 3 years assessment adopted: 1979 proposed calculations: 522,851 x 0.08 = 51828.16fyear simple interest 51828.16 x 14 years (93-79) _ $25,594.20 525,594.20 + 522,851 .00 = �48,446.16 A��- /-^-'� �`��3 Total Summation of 1 + 2 = $56,705.71 �; : "� � i� C� a F- ?r �� .+�s i r �� _.,,:---, � o, U.�� • � , . .. ... . - � � � � o � M � � � �pO.�U�� pp.�, �� 3 N1� � ( � /� o N o M t� ' . Q N N � * �►�t1y � � .r- 'J �,,.. -� t'.�7e�b�a6� ;N N ►n 2"'i' N N �5 � ... ~ � � " • � a I ,J �—"{12.02 ��p0.� ,�E 4 �N d J��! � !n Z3 �n a �79t7 � o� "'�7y.rq �� JO)0 N .! � � ( x 8`� 6.0�''1 �N7T°Z�a6 3 . 4r t- �' �7ris ' � n I N • � ; X � J �- �10 •9 , _,_, t-'0 5�qg"E t j �` �c Ki a.. ,� I Z a•10°03 33 .1 �_ .J � L_ J L oz �op0 N77�' � ; a� � � J3. = �" 0 3`��J �-�oo.oa- �oo.so- 1 1 0.0 0= — 6 5.0 0-- T. o p��,� , 7oZ�� 1 .t r�s . 1 =� , r , o '� R,''�.�i,1 x p:9 �0 � �5 00 — �.00 — r"�' , ��E N7 a � �c o . 1�-eo• M aaoo—:; _ �t��T�-1 , „� �� ; , 2� �, � N ,�22 �;� ,Z�� _. , _ �oo.00 �Sa9°24b9��E_1 f S�D'2400 E NTT � � a r G' „ .. � - n - 'd d' a di d1 +V3�47• Z B -''� S89°24'09 E ,.� d I .I ' � I ; ' �,� � . �o� , Q� �.�\5 ,yiie �,-y'j9.55 M � 'aa.00_:'... � :`li��7 � �6 0 � �� M I ��7 �.t n i�l ° �1 °^ .� , �,g6�� , .,E \C r'J� g T6 - r�--8�.41- --� � �'aaJs � � �+.741r M � "`a617 � � Z 1 `',�' �0� 9o3y y� � � G -�"�8._-- s� .. •`._ � � . , � g � • � � � ", �eu ,,6 � , � � ,� � „ � �- ,- , �--- w � � �_ J i_ j �I n►�8��9�ia'� �0'85 fl�� 2q450 �,,. � i- -:::.,�-�_.�: :_�I'`., � , , 95.00— 95.00-- — 3{ -T4.00 � � � �'"�-� Z '�e � • � ` 3 +'� �� o� D�Z�e C�'��y / �' '"/�, � �jf�/l.J ; , � � � J� 9°24�09°E._ _.•--_•- �=" .^" 18T7St, R.6 9.b5 " i'. �/ t� Z 7 � — , - �' „�-' � '" OU I..QT�.,-,4...� t__�� {, o 1 4 4 T H Dsy ,o e -- y� 3sd� ;��. � �w v, ioaoo- ioaoo- 4=e°asn�" r ,w.a � ,.:.�.:.. ' �,� � —1 r 1 ( ,� ai1.f1� ( � �. .�-- . ' � ,�no Z � _ 1 J' N \q� r�: � , � � I I I � i .� i w � � 89°24%9� -' � ,W I � � w �7 � , ; g � g n �,n U T � � " 9 0.0 2 '', � W N ",� � �: � �9 g ' zo � � z i . . . so � t0 e o Z W o °r �'�i3'l I � �'J0l'V 1 �x �.7s1G � x � O� O �Q � t .:: � � � o o , — --� �— -- —� t_.L _I � � i p-M 0. - 1 �1,,�,t / �� _ ioo�oo ioo.00 ioo.00 t.__ _�. _,z .oa--- ---- - � n o v p'� ,'. iis,o -- -- - -- -- s . T -� - J � C0. a �x " , R D. � � ��s x , � N 0. 3 ----� -� ' 9o.oz ' .-fils:o ... is5.o7 -� ' . _ • .� � S 6�i°24 0� E i�t5T1-1 51'�r[:1' Wc S� � S89°24t19 � ► S89°5303 E `0 I �- UNE S;E. 1/4 4F N.E.I/4 SEG i0 �j � /S.E. COR. OF S.E. 1�4 OF N.E.1/4 `; ( DAK. C0. MONUMENT) (�t.t'�LOT /� D F C.A RR-O LL"T'O N Iq C.��1�TI o M 5(-1'0 W t t�1 Co " i:i a 8 �o� GoN s�STF..�'7 w iTt► R- i ST�ty oPs Ri�S � NOT -� c�GA,I� ,I prs oF �F-('S2�c.�� I'I q 3 �' ss� N o t�7'N , . , . , � e' y�U� �� SETTLEMENT AGREEMENT � This Agreement is by and between �he C�.ty of Rosemaunt, Minnesota (the "City" ) and Donal J. and Mary Margaret Carroll, 2440 Southview Court, Hastings, Minnesota 55033 ' (the "Carrfllls" ) . RECiTALS • The City is undertak.inc� the realignment Qf Chili Avenue, a street within the municipai borders of the City. • The realignment of Chili Avenue requires the acquisitian and use of certain property currently owned by the Carrolls . A description of the real estate which must be acquired (the "Property" ) is attached and incorporated by reference as Exhibit A. � In order ta facilitate acquisition of the Property, the City commenced condemnation groceedings regarding same on June 1$ , 1993 . • The City and the Carrolls are desirous of resolving the condemnation action through the provisions of this Settlement Agreememt. - N�W THEREFORE, the City and the Carrolls agree as f�l.laws : 1 . CONVEYANCE OF PROPERTY. On or before Ju1y 30, 1993, the Carrolls shall cause to be delivered in a form satisfactory ta the City, a Warranty Deed conveying to the City, fee title to the Property. 2 . CONVEYANCE OF PROPERTY, As consideration for the Carrolls' canveyance of the Property to the City, tY�e City shall fulfill the fallowing conditions : Y ` 1 A. On such date as the Carrolls provide the City with a satisfactory Warranty Deed as described in Section 1, above, the City shall pay to the Carrolls, the sum of $30 ,000 far the Property. B. If, during the course of its construction activities regarding the realignment of Chili Avenue, the- City excavates black dirt on the Property for whieh it has no use, the City shall provide this material to the Carrolls at a mutually agreed site on the adjacent Carro].l property (Outlot A) , provided that the amount of black dirt so supplied by the City shall not exceed 100 cubic yards . C . In recognition of the fact that the Carrr�lls plan ta develop the real estate adjacent to the Property, the City shall work closely with the Carrolls in the placement of water and sewer stubs to the satisfaction of both the City and the Carrolls . D. In order to facilitate effective access to the rzal estate adjacent to the Property, the City . will caoperate with �he Carrolls in establishing appropriate access pointslcurb cuts from the realigned Chili Avenue to the Carrolls ' real estate. - 2 3 . ADMINISTRATIVE �ROVISIONS . A. Entire Agreement/Amendments . This Agreement constitutes the full and complete ' understanding of the City and the Carrolls regarding the. subjec� matter thereof . Any amendments to this Agreement must be in writing and must be executed by 'the parties to this Agreement or their successors in interest . B. Survival of Cavenants . The promises made in this Agreement shall remain in effeet until all sueh promises have been fulfilled. C . DefaultlRemedies . The failure of a party to fulfill all of the terms and conditions of this Agreement shall constitute an event of default by that party and, upan such occurrence, shall entitle the other party to seek specific performance of the provisions of this Agreement and recover any easts ineurred in obtaining that remedy, including reasonable attorney' s fees . D. Governing Law. This Agreement shall be governed by the laws of the State of Minnesota . 3 � IN WITNESS WHEREOF, the City and the Carrolls have executed this Agreement intending to be bound thereby. Dated: �Lt I �D , 1993 . ' Donal . Carroll Dated: � �- O , 1993. ary Marg ret Carroll STATE OF MINNES(?TA ) ) ss . COUNTY OF DAKOTA } The f e oing instrument was acknowledged before me this 4� day of , 1993, by Donal J . Carroll and Mary Margaret Carroll, usba and wife . . ' .�� Pt�nus�.xtFiN�� ta ry Pu i c aaTna�r aveuc—►�eaar� DAKOTA GOUN'TY � � �.�;: N.Y COMA41S31C'�EXP1R£S t0-2�4t� . . � .. � � ,� � Dated : CITY OF ROSEMOUNT By: Its : By: Its, STATE OF MINNESOTA ) ) ss . COUNTY OF DAK{)TA ) The foregoing instrument was aeknowledged befare me this day of , 1993, by . Cityrose\Chili\Sertlemer.t Ndtary PL1b1.1C 4