Agenda - Council - 07/26/2011 - Laserfiche WebLink

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CC Regular Session 6. 1. Meeting Date: 07/26/2011 By: Bill Goodrich, Administrative Services Title: Public Hearing to Consider Adoption of Assessment Roll for City Improvement Project 11 -21, Bunker Lake Boulevard and Armstrong Boulevard Background: The City entered into a Development Agreement and Assessment Agreement with Hageman Holdings LLC, a Minnesota limited liability company, in May, 2011. As a part of the Project, the City agreed to undertake certain public improvements the cost of which are to be specially assessed against the Project property. The improvements include the following and are known as City Improvement Project 7- 11 -21: Street and Trail Improvement - Bunker Lake Extension Drainage Improvements - Bunker Lake Sanitary Sewer - Bunker Lake Watermain Extension - Bunker Lake Blvd. Puma Street Surfacing & Trail This public hearing is required in order to satisfy the City's bonding requirements for financing of the public improvements. At the Assessment Hearing the Council shall hear and consider all obligations to the proposed assessment, whether presented orally or in writing. The Council must by resolution adopt the Assessment Roll. Once the Assessment Roll is adopted the assessments are set and become liens against the parcels listed. Pursuant to the Assessment Agreement the City and the Developer /Landowner have agreed that the special assessments shall be spread against the following Project property in the amounts shown below: Parcel Description Area Allocation % Assessment Amount Lot 1, Block 1 86.436 acres 60% $1,014,006.34 Outlot B 45.196 acres 33% $563,751.00 Outlot D 9.621 acres 7% $123,320.00 Total $1,701,077.34 The term of the special assessment and the interest rate is as follows: On Lot 1, Block 1, Alpha Development: Such assessment is proposed to be payable in equal semi -annual installments extending over a period of twenty (20) years, the first of the installments to be payable on or before October 15, 2012, and will bear interest at the rate incurred by the City in its bond debt issuance for this improvement plus any discount and costs of issuance of the bonds actually payable by the City, not to exceed two percent (2 %) of the aggregate amount of the bonds plus two (2) basis points, per year from the date of the adoption of the issuance of the bonds by the City to finance the improvements. To the first installment shall be added interest on the entire assessment from the date of the bond sale until October 15, 2012. To each subsequent installment when due shall be added interest for one year on all unpaid installments. AND On Outlots B and D, Alpha Development: Such assessment to be payable in equal -semi annual installments extending over a period of seventeen (17) years,