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on the appraisals. <br /> <br />Mr. Raatikka recalled that early this spring Council ordered right-of-way <br />plans for extending Front Street from Tungsten to Feldspar; those plans <br />were prepared with input from the affected property owners and have been <br />approved by the State for MSA funding. <br /> <br />Ralph, Randy and Todd Elofson arrived at this time. <br /> <br />Mr. Goodrich stated that at $25,000/acre, the total cost for easements for <br />sewer and water and Front Street would be $116 ,165 . <br /> <br />Councilmember Cox inquired if the property owners are aware that if the <br />easements are purchased based on the appraisals, it would be considered a <br />comparable sale and affect the tax structure of adjacent property. <br /> <br />Mrs. Ed Hamilton - Stated that the City Assessor already raised their <br />property valuation $60,000 in one year. <br /> <br />Mr. Goodrich noted that the property valuation Mrs. Hamilton refers to <br />applied to their home property and not the land that is the suject of <br />easement negotiations. <br /> <br />Councilmember DeLuca inquired if the $25,000/acre is based on unimproved <br />property or property with sewer, water and roads. <br /> <br />Mr. Goodrich replied that law requires appraisals to be as the land exists <br />and not take into consideration what improvements will do for the property. <br /> <br />Councilmember DeLuca inquired as to the impact to tax structure of adjacent <br />property if the easements are purchased at the appraised value. <br /> <br />Mr. Goodrich - Stated that the property is now classified as agriculture <br />and valued at $1200/acre. <br /> <br />Councilmember Sorteberg stated that all of the tax structure should not be <br />affected because all of the property, except that purchased for easements, <br />could remain as Green Acres agriculture. <br /> <br />Councilmember Cox stated that maybe this project is premature; the City <br />does not want to create a financial hardship to other property owners in <br />order to get sewer and water to the Schwartzman property. <br /> <br />Mr. Hartley noted that two projects are being dealt with: sewer and water <br />and an MSA road. It would be convenient to install sewer and water in the <br />same alignment as the proposed MSA road because the services would be <br />closer to the properties they are to serve, but it is not imperative; sewer <br />and water can be placed in the Hwy. #10 right-of-way. <br /> <br />Councilmember Cox stated that other developments paid for all their own <br />improvements and donated right-of-way for city and MSA streets; the tax <br />increment derived from those sewer and water areas that paid for their own <br />improvements is what is being used to pay the bond in this effort to <br />promote development south of Hwy. #10; maybe it would be better to use the <br />MSA funds to construct roads elsewhere in the community where easements <br />City Council/September 15, 1987 <br /> <br />Page 3 of 8 <br /> <br /> <br />