HomeMy WebLinkAbout07E Hadley Avenue and 95th Street Project Assessments
To: Mayor and City Council Members
Charlene Stevens, City Administrator
From: Robin Roland, Finance Director
Date: October 18, 2016
Subject: Declare costs and adopt assessments for the Hadley & 95 th Street
Introduction
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Phase one of the Hadley Avenue and 95 Street construction project is substantially complete.
Costs for these improvements are available to be assessed against the benefiting properties as
described and agreed to in the Summers Landing development agreement.
Discussion
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Summergate Development agreed to the construction of the Hadley and 95 “off-site
improvements” in their Development Agreement which was approved on May 4, 2016.
Summergate waived their assessment appeal rights pursuant to Minnesota Statutes, Chapter
429 in return for the City’s efforts to facilitate the collection of funding for these petitioned items
which benefit all 383 lots in the plat.
In accordance with the developer agreement, the $1,447,902 of project costs are to be assessed
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against the 383 lots. The assessment will be levied against the 55 lots in the 1 Addition for a
period of ten years at 3.07% interest. The balance of the assessments will be deferred until
development of the remaining property and levied against individual lots as they are platted.
Action Requested
Adopt resolution declaring costs and levying the assessments.
RESOLUTION NO. 2016-166
RESOLUTION DECLARING COSTS TO BE ASSESSED AND ADOPTING ASSESSMENTS FOR
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HADLEY AVENUE & 95 STREET
WHEREAS, Summergate Development, as part of their Development Agreement which was
approved on May 4, 2016 petitioned the City to construct certain off-site improvements of Hadley and
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95 Street solely to benefit the 383 lots of the Summers Landing development; and
WHEREAS, the cost of the improvements as agreed to in the development agreement totals
$1,447,902 and the developer and property owner agree to levy of these project costs in an assessment
against 383 lots and waived their assessment appeal rights pursuant to Minnesota Statutes, Chapter
429 in return for the City’s efforts to facilitate the collection of funding for the petitioned items.
NOW THEREFORE BE IT RESOLVED, the City Council of the City of Cottage Grove, County
of Washington, State of Minnesota, as follows:
1. Such proposed assessment, in the amount of $274,560 for the first 55 lots, 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 benefit by the proposed improvement in the amount of the assessment levied against
it. The balance of the improvement costs agree to, net of this $274,560 shall be deferred until
development upon the Outlots/remaining property.
2. Such assessment shall be payable in equal annual installments extending over a period of 10
years, at an interest rate of 3.07%, the first of the installments to be payable on or before the
first Monday in January, 2017, and shall bear interest on the entire assessment from the date of
this resolution until December 31, 2026. 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 no interest shall be charged if the entire
assessment is paid within 30 days from the adoption of this resolution; and she/he 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 payment is made. Such payment must
be made before November 15 or interest will be charged through December 31 of the next
succeeding year.
The Director of Finance shall transmit a certified duplicate of this assessment to the County Auditor to
be extended on the property tax lists of the County. Such assessment shall be collected and paid over
Passed this 2nd day of November, 2016
__________________________
Myron Bailey, Mayor
Attest:
___________________________
Joe Fischbach, City Clerk