Minutes - Council - 04/26/1983 - Laserfiche WebLink

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Darryl Fults stated that the reason he proposed that language was when he bought his lot, he bought on a contract for deed, as many do. I would not have had a large enough payment for specials and that would have eliminated me from buying that lot on time payments. Mr. Schnelle stated that his major concern is that each and every year the City is able to pay principle and interest on bond. If there is not enough money to cover the bond for that year, it will go on the budget as a special levy. Will go along with anything if City Attorney can assure us that we can reach out and grab land and sell it if special assessments are no% paid. Mayor Gamec replied that regardless if the property was sold on a contract for deed, as far as the City is concerned the developer is still responsible for the assessments and letter of credit will not be released until assessments are paid. Jack Menkveld stated that the State would pay up any pending assessments on particular pieces of property as it is auctioned by the State. City Attorney Goodrich stated that EDC recommended amendment to 170.039D5 - Item 5 - Alternative Assessment Procedures - Item a: 100% Assessment With a 150% letter of credit and Item b: 100% assessment with 35% cash deposit and a mortgage on property. Mr. Goodrich stated that the point of discussion is whether or not City wants to take a chance on 35% not covering assessment payment and City have to foreclose on lots for the money to pay the assessments. Councilmember Sorteberg suggested the bank hold first mortgage. Jack Menkveld stated that the City has first mortgage anyway because of tax laws, there is a guarantee already built into the system. Robert Johnson - Attorney for Norm Holm - Stated he was born and raised in Ramsey and owns property in the North portion of Ramsey. Have had the opportunity of conducting hearings on annexations throughout the ~0unty He was township attorney when Ramsey drew up ordinances. Stated he is impressed with citizen participation and commended Council for taking time to make people aware of the situation. First, when you are talking about sewer, you have base value of lot and what is added to that is simply cost of sewer. When you take 35% of that cost, and I submit to you that that is much more conservative than other cities I know of. Those that have been conservative have never had to invest any of their general funds. You obtain special assessments at 7% - 8% and City charges 1% - 3% over that amount to build up a fund, and I know from my work in the County over the years, that the revolving fund has made money for the cities. Expansion and growth is very important. There have been a number of experiments where a city, Edina for instance, was planned strictly residential, but it came to a point where commercial/industrial had to be allowed for in order to reach a proper tax balance for the residential areas. City also has to be concerned with continued growth. Cost to maintain a young development is at a minimum and the City actually makes money, 7 or 8 years later the maintenance costs are incurred. I am very impressed with Ramsey's approach to orderly development and urge Council to consider seriously EDC's recommendations, especially Item 5b and let me assure you that 5b is the most conservative policy I have ever seen. C/April 26, 1983 Page 16 of 30