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CASE 12: DISCUSSION REGARDING EXTENSION OF SEWER AND WATER TO INDUSTRIAL AREA . Background: The City Council conducted a public hearing on October 20, 1986 on the proposed extension of sanitary sewer and municipal water to the City's Industrial area. Due to Charter requirements, the City Council cannot consider action on this project until 60 days have elapsed from the date of the public hearing. Many of the Comments at the public hearing were regarding the high cost of the proposed assessments for the extension of these utilities into the Industrial area. Many property owners stated that the assessments were far too high and that property owners could not afford to pay the assessments. In addition, property owners were concerned that the City was extending these utilities even though the majority of the property owners in the benefitting area didn't need or want the utilities. The City Administrator commented that the City will be considering deferments of assessments for those property owners who feel they can't afford assessments at the present time. In addition, the City will be using tax increment funds to pay for a substantial portion of these utilities. . The Economic and Finance Subcommittee reviewed the proposed assessments and looked at the possibility of offering a discount to those property owners who begin paying the assessments immediately and deferring assessments for those property owners who cannot pay the assessments immediately. The Subcommittee recommended that there be a ten (10) year assessment period and property owners may defer the assessment, unless they hook up immediately, for up to ten (10) years. The Subcommittee is recommending that if assessments are paid in full or put on the tax rolls immediately, there will be a 50% discount applied to the assessment. If property owners begin paying assessments before October 10, 1992, a 35% discount will be applied to the assessment. If property owners begin paying the assessments between 1992 and 1996, there will be a 25% discount applied to the assessment. Beyond 1996, there would be no discount applied to the assessment. . In addition, the Subcommittee recommended that certain conditions be imposed to maintain eligibility for deferments and to ensure that new development of raw land would start paying assessments. These conditions include: 1) if the land is subdivided, the owner may continue the deferment on that part of the property which is not platted provided an assessment agreement is entered into which will determine the amount of assessment deferred and the amount which will be paid in accordance with the current subdivision laws; 2) if the land is sold, the deferment may be transferred, however, the Subcommittee noted that many lending institutions require that all pending assessments be paid in full; 3) the assessment payment period would be started at the time a building permit is issued for new construction on raw land; 4) at the time existing businesses hook up, they would be required to start the assessment period; 5) if existing on-site systems fail, they would be required to hook up to utilities and start paying assessments; and 6) any new construction on raw land would be required to connect to utilities. z