Minutes - Council - 10/25/1994 - Laserfiche WebLink

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MAYOR AND COUNCIL INPUT 1) Special Assessment Deferral on Project #93-12 Finance Officer Hart stated that on Tuesday, October 11, 1994, a public hearing was held to adopt the assessments for Improvement Project g93-12. At this hearing, Council authorized the deferment of $1,855 on PIN 02-32-25-42-0006, a parcel owned by Mr. John Gobexnatz. The deferment was authorized for a maximum of 10 years, with interest accruing at 9.75 percent from the date of adoption to the date of activation. Activation would occur if the parcel was developed, improved, subdivided or sold. The preliminary opinion of the City Attorney was if activation did not occur prior to the 10-year maximum, the assessment would go away. Ms. Hart stated that upon further research, Mr. Goodrich has stated that the following are the actual rules governing Council authorized deferments: 1) The deferment can be for a maximum of 30 years, but this 30 years must also include the full repayment period. The assessment does not go away at the end of the period and activation would remain a factor. 2) The Council can select one of three ways in computing and charging interest: Interest can be accrued from date of adoption to activation; or interest can be paid annually; or interest can begin upon activation only, no accrual during deferral. Ms. Hart stated that a decision has to be made as to the manner in which this deferment is certified to Anoka County. She stated that based on Council action at the public hearing, she would be certifying the deferment for a maximum period of 10 years with interest accruing from the date of adoption of the assessment and reiterated that this assessment would not just go away. John Gobernatz, 17515 St. Francis Boulevard N.W., Ramsey, stated that Council abated it at 10 years. City Attorney Goodrich stated that he was wrong and that under the law, Council cannot do that. Mr. Gobematz asked if he would be paying interest for 10 years. Ms. Hart stated there are three options: Interest will occur from the date of adoption, interest can be paid annually, or interest can begin upon activation only. Mr. Gobernatz stated that another option would be that Council could abate the entire assessment. Ms. Hart stated that the general standard for deferrals is that they occur in hardships, for senior citizens or green acres. She stated she did not know of any that have not charged interest during that time period. Mayor Gilbertson stated that the amount of $1,875 is for the road Mr. Gobernatz stated he will pay for his two lots but he will not pay for a lot he does not have. City Administrator Schroeder stated that at the public hearing, following input from Mr. Gobernatz' neighbors, Council decided that this parcel does exist and it would receive assessment. Then Council entered into a deferment option. He stated he has seen a deferment once and it was for a low income senior citizen and the estate would pay the assessment plus it would accrue interest. He added that the property Mr. Gobernatz is referring to is a lot of record. City Council/October 25, 1994 Page 12 of 15