ITEM 3.7 Quaday Avenue Project1_
TY
OtSeF o
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/ Finance Director
Flaherty
November 13, 2017
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent Item
City Attorney MacArthur
City Engineer Wagner
3.7
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council adopt the attached resolution for the modification of
special assessments related to the Quaday Avenue project at Great River Centre Fourth Addition.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
On February 22, 2016, the City Council adopted Resolution 2016-23 approving the assessment roll for the
Quaday Avenue Improvements project. Later, on May 9, 2016 the City Council adopted Resolution 2016-47
extending the amortization period for those same special assessments.
In 2016, the adopted amounts of the special assessments were based upon project cost estimates
determined by the City Engineer. The Quaday Avenue Improvements project has now been completed with
final costs being less than the original project cost estimates. The project savings accounted to $24,153.21
and would allow for the reduction in the previously adopted special assessments in the same amount.
The attached resolution would approve a modification to the amounts of the assessment roll only, with no
changes to the terms of the assessments. In summary:
Lot 1, Block 1
The new assessment amount will be $151,056.31, a reduction from the estimate of $163,485.45. The
assessment shall be payable in equal annual installments over a nine year amortization, beginning in
payable 2018, and an interest rate of 3.25%.
Outlot A
The new assessment amount will be $142,487.48, a reduction from the estimate of $154,211.55. The
assessment shall be deferred until development, with no interest accruing.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2016-23
• Resolution 2016-47
• Assessment Roll & Amortization Schedules
• Resolution 2017-89
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES:
Motion to approve Resolution 2017-89, Adopting modifications of special assessments related to the
Quaday Avenue project at Great River Centre Fourth Addition.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2016-23
RESOLUTION ADOPTING ASSESSMENT- IMPROVEMENTS TO QUADAY AVENUE
GREAT RIVER CENTRE OF OTSEGO FOURTH ADDITION
WHEREAS, the City of Otsego is the Owner of that property described as
GREAT RIVER CENTRE OF OTSEGO FOURTH ADDITION; and
WHEREAS, as Owner the City of Otsego hereby petitions for and consents to
the assessment set forth herein and waives any and all hearings, irregularities in
procedure, and any and all rights of appeal under Minnesota Statute 429.081 or any
other statute or case law; and
WHEREAS, the City of Otsego acknowledges and agrees that the property is
benefited in at least the amount of the assessment.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL. OF THE CITY
OF OTSEGO, WRIGHT COUNTY, MINNESOTA:
1. Such proposed assessment, a copy of which is attached hereto and made a part
hereof, is hereby accepted and shall constitute the special assessment against the
lands named therein, and each tract of land therein included in hereby found to be
benefited by the proposed improvement in the amount of the assessment levied against
it.
2. Such assessment against LOT 1, BLOCK 1 GREAT RIVER CENTRE OF OTSEGO
FOURTH ADDITION in the principal amount of $163,485.45 shall be payable in equal
annual principal installments extending over a period of seven (7) years, the first of the
installments to be payable on or before the first Monday in January, 2018 shall bear
interest at the rate of 3.25% percent per annum, said interest commencing on January
1, 2018. To each subsequent installment when due shall be added interest for one year
on all unpaid installments, The assessment against OUTLOT A, GREAT RIVER
CENTRE OF OTSEGO FOURTH ADDITION shall be in the principal amount of
$154,211.55 but shall be deferred until development, with no interest accruing.
3. The owner of any property so assessed may, at any time prior to certifications of the
assessment to the county auditor, pay the whole of the assessment on such property,
with interest accrued to the date of payment, to the Otsego City Clerk, except that no
interest shall be charged if the entire assessment is paid within 30 days from the
adoption of this resolution; and the owner may, at any time thereafter, pay to the Otsego
City Clerk the entire amount of the assessment remaining unpaid, with interest accrued
to December 31 of the year in which such payment is made. Such payment must be
made before November 16 or interest will be charged through December 31 of the next
succeeding year.
4. The Otsego City Clerk shall forthwith transmit a certified duplicate of this
^ assessment to the county auditor to be extended on the property tax lists of the county.
Such assessments shall be collected and paid over in the same manner as other
municipal taxes.
ADOPTED by the Otsego City Council this 22nd day of February, 2016.
Motioned By: Darkenwald
Seconded By: Schroeder
All in Favor: Darkenwald, Schroeder, Heidner
Those Opposed: None
Vern Heidner, Acting Mayor
Tami Loff, City Clerk
City of Otsego
Assessment - Quaday Avenue Extension
Special Assessments - Amortization Schedule
Outlot A
Assessment - Quaday Avenue Extension
Total
Year Assessed Principal Interest--
Balance
Great River Centre - Fourth Addition
2016 154,211.55 - - -
154,211.55
- -
Lot 1 Block 1
2017 - -
- -
154,211.55
2018 - -
- -
154,211.55
Payment
154,211.55
2020 - -
- -
Year Assessed Principal
Interest
Total
Balance
154,211.55
2023 -
- -
154,211.55
2016 163,485.45 -
-
-
163,485.45
-
-
163,485.45
2017 -
2018 - 23,355.06
5,313.28
28,668.34
140,130.39
2019 - 23,355.06
4,554.24
27,909.30
116,775.33
2020 - 23,355.06
3,795.20
27,150.26
93,420.27
2021 - 23,355.06
3,036.16
26,391.22
70,065.21
2022 - 23,355.06
2,277.12
25,632.18
46,710.15
2023 23,355.06
1,518.08
24,873.14
23,355.09
2024 - 23,355.09
759.04
24,114.13
-
Totals 163,485.45
21,253.12
184,738.57
City of Otsego
Special Assessments - Amortization Schedule
Assessment - Quaday Avenue Extension
Great River Centre - Fourth Addition
Outlot A
Payment
Total
Year Assessed Principal Interest--
Balance
2016 154,211.55 - - -
154,211.55
- -
154,211.55
2017 - -
- -
154,211.55
2018 - -
- -
154,211.55
2019 - -
- -
154,211.55
2020 - -
- -
154,211.55
2021 - -
- -
154,211.55
2022 - -
- -
154,211.55
2023 -
- -
154,211.55
2024 - -
Totals - - -
The assessment on this parcel is deferred with no interest until development occurrs.
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF ME NNESOTA
RESOLUTION NO: 2016-47
RESOLUTION ADOPTING MODIFICATIONS TO PREVIOUSLY
ADOPTED SPECIAL ASSESSMENTS FOR
LOT 1, BLOCK 1, GREAT RIVER CENTRE FOURTH ADDITION
WHEREAS, the City of Otsego is the Owner of the property legally identified as Lot 1, Block 1, Great River
Centre Fourth Addition; and
WHEREAS, the Otsego City Council previously adopted Resolution 2016-22 on February 22, 2016
outlining the re -assessment of costs in relation to improvements made to County Road 42; and
WHEREAS, the Otsego City Council previously adopted Resolution 2016-23 on February 22, 2016
outlining the assessment of costs in relation to improvements for Quaday Avenue; and
WHEREAS, the Otsego City Council would like to change the installment terms of the assessments adopted
within the respective resolutions identified above; and
WHEREAS, as Owner, the City of Otsego hereby petitions for and consents to the assessments set forth
herein and waives any and all hearings,, irregularities in procedure, and any all rights of appeal under
Minnesota Statute 429.081, or any other statute or case law, and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO,
MINNESOTA:
1. That the installment terms of the assessments adopted in Resolution 2016-22 be superseded by the
new installment terms identified in No. 2 of this resolution.
2. That such assessment for County Road 42 Improvements against Lot 1, Block 1, Great River Centre
Fourth Addition in the principal amount of $432,582.68 shall be payable in equal annual principal
installments extending over a period of nine (9) years, the first of the installments to be payable on or
before the first Monday in January 2018, and shall bear interest at the rate of 4.375% percent per
annum. Said interest will commence on January 1, 2018. To each subsequent installment when due
shall be added interest for one year on all unpaid assessments.
3. That the installment terms of the assessments adopted in Resolution 2016-23 for Lot 1, Block 1,
Great River Centre, be superseded by the new installment terms identified in No. 4 of this resolution.
4. That such assessment for Quaday Avenue hnprovements against Lot 1, Block 1, Great River Centre
Fourth Addition in the principal amount of $163,485.45 shall be payable in equal annual principal
installments extending over a period of nine (9) years, the first of the installments to be payable on or
before the first Monday in January 2018, and shall bear interest at the rate of 3.25% percent per
annum. Said interest will commence on January 1, 2018. To each subsequent installment when due
shall be added interest for one year on all unpaid assessments.
5. That copies of said assessments are attached hereto as Exhibit A and made a part hereof, is hereby
accepted and shall constitute the special assessment against the lands named therein, and each tract of
land therein included in hereby found to be benefitted by the improvements in the amount of the
assessment levied against it.
6. The owner of any property so assessed may, at any time prior to certifications of the assessment
to the county auditor, pay the whole of the assessment on such property, with interest accrued to
the date of payment, to the Otsego City Clerk, except that no interest shall be charged if the entire
assessment is paid within 30 days from the adoption of this resolution; and the owner may, at any
time thereafter, pay to the Otsego City Clerk the entire amount of the assessment remaining
unpaid, with interest accrued to December 31 of the year in which such payment is made. Such
payment must be made before November 15 or interest will be charged through December 31 of
the next succeeding year.
7. The Otsego City Clerk shall forthwith transmit a certified duplicate of this assessment to the
county auditor to be extended on the property tax lists of the county. Such assessments shall be
collected and paid over in the same manner as other municipal taxes.
ADOPTED by the Otsego City Council this 9th day of May, 2016.
CITY OF OTSEGO
Jessica Stockamp, Mayor
ATTEST:
%4V6--'Y-k �44-Y�
Tami Lo , City Clerk
MOTION made by Council Member Heidner and SECONDED by Council Member
INFAVOR: Stockamp, Heidner, Warehime, Darkenwald
OPPOSED:. None
W
r'
Payment
City of Otsego
Assessments -Amortization Schedule
Year Assessed
Principal
Interest
Special
Balance
Reassessment - Outstanding CR42 improvements
-
163,485.45
2016 163,485.45
Great River Centre - Fourth Addition
_
_
163,485.45
Lot 1 Block 1
�'
18,165.05
5,313.28
23,478.33
145,320.40
Payment
18,165.05
4,722.91
Year Assessed Principal
Interest
Total
Balance
4,132.55
22,297.60
_
432,582.68
2016 432,582.68
-
-
432,582.68
2017 - "
2018 - 48,064.74
18,925.49
66,990.23
384,517.94
2019 - 48,064.74
16,822.66
64,887.40
336,453.20
2020 - 48,064.74
14,719.83
62,784.57
288,388.46
2021 - 48,064.74
12,617.00
60,681.74
240,323.72
2022 - 48,064.74
10,514.16
58,578.90
192,258.98
2023 - 48,064.74
8,411.33
56,476.07
144,194.24
2024 - 48,064.74
6,308.50
54,373.24
96,129.50
2025 - 48,064.74
4,205.67
52,270.41
48,064.76
2026 - 48,064.76
2,102.83
50,167.59
0.00
Totals 432,582.68
94,627.47
527,210.15
Payment
Year Assessed
Principal
Interest
Total
Balance
-
163,485.45
2016 163,485.45
-
_
_
163,485.45
2017 -
-
�'
18,165.05
5,313.28
23,478.33
145,320.40
2018
-
18,165.05
4,722.91
22,887.96
127,155.35
2019
-
18,165.05
4,132.55
22,297.60
108,990.30
2020
18,165.05
3,542.18
21,707.23
90,825.25
2021 -
-
18,165.05
2,951.82
21,116.87
72,660.20
2022
-
18,165.05
2,361.46
20,526.51
54,495.15
2023
18,165.05
1,771.09
19,936.14
36,330.10
2024 -
-
18,165.05
1,180.73
19,345.78
18,165.05
2025
2026 -
18,165.05
590.36
18,755.41
Totals
163,485.45
26,566.38
190,051.83
Payment
City of Otsego
t Year Assessed
Principal
Interest
/ Special Assessments -Amortization Schedule
Balance
Reassessment - Outstanding CR42 Improvements
Great River Centre - Fourth Addition
-
432,582.68
2016 432,582.68
Lot 1 Block 1
-
-
432,582.68
2017 -
2018 -
Payment
18,925.49
66,990.23
Year Assessed Principal
Interest
Total
Balance
64,887.40
336,453.20
2020 -
2016 432,582.68 -
-
-
432,582.68
2021 -
-
-
432,582.68
2017 - -
2018 - 61,797.53
18,925.49
80,723.02
370,785.15
2019 - 61,797.53
16,221.85
78,019.38
308,987.62
2020 - 61,797.53
13,518.21
75,315.74
247,190.09
2021 - 61,797.53
10,814.57
72,612.10
185,392.56
2022 - 61,797.53
8,110.92
69,908.45
123,595.03
2023 61,797.53
5,407.28
67,204.81
61,797.50
2024 - 61,797.50
2,703.64
64,501.14
-
94,627.47
527,210.15
Totals 432,582.68
75,701.96
508,284.64
Payment
t Year Assessed
Principal
Interest
Total
Balance
-
-
432,582.68
2016 432,582.68
-
-
-
432,582.68
2017 -
2018 -
-
48,064.74
18,925.49
66,990.23
384,517.94
2019 -
48,064.74
16,822.66
64,887.40
336,453.20
2020 -
48,064.74
14,719.83
62,784.57
288,388.46
2021 -
48,064.74
12,617.00
60,681.74
240,323.72
2022 -
48,064.74
10,514.16
58,578.90
192,258.98
2023 -
48,064.74
8,411.33
56,476.07
144,194.24
2024 -
48,064.74
6,308.50
54,373.24
96,129.50
202 5 -
48,064.74
4,205.67
52,270.41
i 48,064.76
2025 -
48,064.76
2,102.83
50,167.59
0.00
Totals
432,582.68
94,627.47
527,210.15
r
City of Otsego
Special Assessments -Amortization Schedule
Assessment - Quaday Avenue Extension
�! Great River Centre - Fourth Addition
V Lot I Block 1
Payment
Year Assessed Principai interest Total Balance
2016 163,485.45
-
-
-
163,485.45
2017 -
-
-
-
163,485.45
2018 - '
23,355.06
5,313.28
28,668.34
140,130.39
2019 -
23,355.06
4,554.24
27,909.30
116,775.33
2020 -
23,355.06
3,795.20
27,150.26
93,420.27
2Q21 -
23,355.06
3,036.16
26,391.22
70,065.21
2022 -
23,355.06
-2,277.12
25,632.18
46,710.15
2023
23,355.06
1,518.08
24,873.14
23,355.09
2024 -
23,355.09
759.04
24,114.13
-
Totals 163,485.45 21,253.12 184,738.57 Payment
Year Assessed Principal Interest Total Balance
2016 163,485.45
-
-
-
163,485.45
2017 -
-
•-
-
163,485.45
2018 -
18,165.05
5,313.28
23,478.33
145,320.40
2019 -
18,165.05
4,722.91
22,887.96
127,155.35
2020 -
18,165.05
4,132.55
22,297.60
108,990.30
2021 -
18,165.05
3,542.18
21,707.23
90,825.25
2022 -
18,165.05
2,951.82
21,116.87
72,660.20
2023 -
18,165.05
2,361.46
20,526.51
54,495.15
2024 -
18,165.05
1,771.09
19,936.14
36,330.10
2025 -
18,165.05
1,180.73
19,345.78
18,165.05
2026 -
18,165.05
590.36
18,755.41
-
Totals
163,485.45
26,566.38
190,051.83
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CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2017-89
RESOLUTION ADOPTING MODIFICATIONS TO PREVIOUSLY
ADOPTED SPECIAL ASSESSMENTS FOR
QUADAY AVENUE IMPROVEMENTS WITHIN
GREAT RIVER CENTRE OF OTSEGO FOURTH ADDITION
WHEREAS, the P&F Properties, Inc. is the Owner of the property legally identified as Lot 1, Block 1, Great
River Centre of Otsego Fourth Addition; and
WHEREAS, the City of Otsego is the Owner of the property identified as Outlot A, Great River Centre of
Otsego Fourth Addition; and
WHEREAS, the Otsego City Council previously adopted Resolution 2016-23 on February 22, 2016
outlining the assessment of costs in relation to improvements for Quaday Avenue; and
WHEREAS, the Otsego City Council previously adopted Resolution 2016-47 on May 9, 2016 revising the
installment terms of the assessments adopted within Resolution 2016-23; and
WHEREAS, the Otsego City Council proposed to reduce the amounts of the assessments adopted within the
respective resolutions identified above; and
WHEREAS, as Owner of Outlot A'Great River Centre of Otsego Fourth Addition, the City of Otsego
hereby petitions for and consents to the assessments set forth herein and waives any and all hearings,
irregularities in procedure, and any all rights of appeal under Minnesota Statute 429.081, or any other statute
or case law; and
WHEREAS, P&F Properties as Owner of Lot 1, Block 1, Great River Centre of Otsego Fourth Addition as
previously waived any and all hearings, irregularities in procedure and any and all rights of appeal under
Minnesota Statute 429.081, or any other statute or case law pursuant to Paragraph 19 of that document
entitled Development Agreement Great River Centre of Otsego Fourth Addition- Lot 1, Block 1 dated May
16, 2016 and recorded at the Wright County Recorder's Office on May 17, 2016 as Document No.
A1314724.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO,
MINNESOTA:
1. That the amounts of the assessment for Lot 1, Block 1, Great River Centre Fourth Addition adopted
in Resolution 2016-23 and the installment terms of the assessments adopted in Resolution 2016-47
be superseded by the new amount and installment terms identified in No. 2 of this resolution.
2. That such assessment for Quaday Avenue Improvements against Lot 1, Block 1, Great River Centre
of Otsego Fourth Addition in the principal amount of $151,056.31 shall be payable in equal annual
principal installments extending over a period of nine (9) years, the first of the installments to be
payable on or before the first Monday in January 2018, and shall bear interest at the rate of 3.25%
percent per annum. Said interest will commence on January 1, 2018. To each subsequent installment
when due shall be added interest for one year on all unpaid assessments.
That the amounts of the assessment for Outlot A, Great River Centre of Otsego Fourth Addition
adopted in Resolution 2016-23 be superseded by the new amount identified in No. 4 of this
resolution.
4. That such assessment for Quaday Avenue Improvements against Outlot A, Great River Centre of
Otsego Fourth Addition in the principal amount of $142,487.48 shall be deferred until development,
with no interest accruing.
That copies of said assessments are attached hereto as Exhibit A and made a part hereof, and are
hereby accepted and shall constitute the special assessment against the lands named therein, and each
tract of land therein included in hereby found to be benefitted by the improvements in the amount of
the assessment levied against it.
6. The owner of any property so assessed may, at any time prior to certifications of the assessment
to the county auditor, pay the whole of the assessment on such property, with interest accrued to
the date of payment, to the Otsego City Clerk, except that no interest shall be charged if the entire
assessment is paid within 30 days from the adoption of this resolution; and the owner may, at any
time thereafter, pay to the Otsego City Clerk the entire amount of the assessment remaining
unpaid, with interest accrued to December 31 of the year in which such payment is made. Such
payment must be made before November 15 or interest will be charged through December 31 of
the next succeeding year.
7. The Otsego City Clerk shall forthwith transmit a certified duplicate of this assessment to the
County Auditor to be extended on the property tax lists of the county. Such assessments shall be
collected and paid over in the same manner as other municipal taxes.
W,
ADOPTED by the Otsego City Council this 13th day of November, 2017.
ATTEST:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
MOTION made by Council Member and SECONDED by Council Member
IN FAVOR:
OPPOSED:
3