09-25-03 PH9TF.=M 3.3_
PUBLIC HEARINGS
OTSEGO CITY COUNCIL
7 PM, THURSDAY, SEPTEMBER 25, 2003
Public Hearing No. 1
1. Mayor Larry Fournier will open the Public Hearing for Paie Avenue from
85th Street to CSAH 39 and 85`h Street from Page Avenue to Nashua Avenue
Mayor Fournier opened the Public Hearing at 7 PM.
Roll Call: Mayor Larry Fournier; Councilmembers: Vern Heidner, Virginia
Wendel, Jerry Struthers and Dan Scharber.
Staff: Judy Hudson, City Clerk; Karee Rowell, Deputy Clerk; Andrew MacArthur, City
Attorney; Ron Wagner, City Engineer and Jeff Elliott, Assistant City Engineer.
2. Comments by the City Attorney.
Andrew MacArthur, City Attorney, stated the purpose of this Public Hearing and the
process to follow if appealing the assessment. He noted the Assessment Roll would be
on the October 13, 2002 City Council Agenda for consideration of adoption.
3. Presentation of the Assessment Roll by the Cit�En ineer.
Jeff Elliott, Assistant City Engineer presented the Assessment Roll and what is left to be
done by Dresel Construction. City Clerk Judy Hudson attested the proper publishing and
noticing was done.
4. Public Comments.
Mayor Fournier opened for Public Comments at 7:10 PM.
Mike Louisiana, Page Avenue, stated that Dresel did a great job and asked if they will
stripe Page Avenue. Ron Wagner said temporary striping would be done when the
seeding gets done this fall.
Richard Kincannon, Owner of the Golf Course, stated he protests the assessment for the
following reasons; cost does not justify the benefit; he feels he is treated unfairly in that
he has 580 feet of roadway and lots across the street are 400 feet and he has 6 times their
cost; and he is not zoned commercial but zoned agricultural.
Mr. MacArthur replied the actual use of the property is looked at rather than the zoning
districts. Mayor Fournier said other commercial properties are typically assessed at
100%.
Earl Lieske, Page Avenue asked how the pool in his back yard would increase the value
of his property. He also questioned the depth. Mr. Wagner said the easement for ponding
was already in place before this improvement plus the curb; gutter and street increases the
value. He said the average depth of the pond is 18 inches but there may be a spot toward
87`h Street, which is deeper, and the water table in this area is high.
Mr. Lieske also asked if the City would do mosquito control and what is the interest rate.
Tom Constant of 13776 85th Street said the Assessment Letter stated $4,450 and now he
is hearing a different amount.
Jeff Elliot explained that when the notices were sent he thought that the costs were higher
and now with more information the assessment can be lowered.
Public Hearings of September 25, 2003. Page 2.
Mr. Constant added that the project looks good.
Jean Kincannon, 8478 Nashua Avenue asked if the residents living in the horseshoe area
with their only access out is via 85`h Street were considered to be assessed and if this
project would be considered a benefit to their property.
Mr. Wagner said they were assessed when they had their streets improved in the 1999
Improvement.
Mrs. Kincannon added that Dresel has been wonderful and very accommodating and
everyone in attendance agreed and also included that Charlie Cherrier, the Hakanson
Anderson inspector had done a great job.
5. Close the Public Hearin for or Page Avenue and 85`h Street.
Mayor Fournier closed the Public Hearing at 7:29 PM.
Public Hearing No. 2
1. Mayor Fournier open the Public Hearing for 85`h Street Extension
(East of CSAH 42)
Mayor Fournier opened the Public Hearing at 8:01 PM.
Roll Call: Mayor Larry Fournier; Councilmembers: Vern Heidner, Virginia
Wendel, Jerry Struthers and Dan Scharber.
Staff. Judy Hudson, City Clerk; Andrew MacArthur, City Attorney; Ron Wagner, City
Engineer and Jeff Elliott, Assistant City Engineer.
2. Comments by the City Attorney.
Mr. MacArthur explained the purpose of the assessment hearing and the process for
appealing the assessment. He said he did talk to the Kolles' attorney earlier today and
that the Kolles will be objecting to the assessment.
Mr. MacArthur gave a brief history of the project and indicated that the City had
previously held an improvement hearing. The road was built between the two properties
and was done as a City project.
The City purchased an easement from the Kolles', which is part of the overall project
cost. The City paid $86,400 for the easement. The Days dedicated an equal amount of
easement for the project as part of their plat. It was Mr. MacArthur's understanding that
the Kolles' assessment would be deferred until developed. Mr. Neilson had proposed a
written agreement stating that assessment would be paid at time of development. Mr.
MacArthur said the rate of interest needs to be determined.
3. Presentation of the Assessment Roll by the City Engineer.
Ron Wagner reviewed the project and went over two proposed assessments.
Option 1 includes the cost of the easement. Option 2 shows a split of the Kolles
easement between the Kolles' and the Days properties.
Public Hearings of September 25, 2003. Page 3.
4. Public Comments.
Judy Hudson attested all proper noticing and publishing was done.
Jim Neilson, attorney representing the Kolles, 118 Main Street, Anoka, MN. He said Mr.
MacArthur properly stated the discussion they had earlier today. He said that in order to
appeal or continue to discuss he needs to give a formal objection and he wants to keep the
discussion going. Mr. Nelson said that the Kolles continue to farm and their property is
not commercial. They did not need this road and the road could have been put entirely on
the developed property. The Kolles were given compensation for the easement, but they
didn't want the road. Mr. Neilson feels the benefit is to the developer and the public and
not the Kolles. In the Feasibility Report it states from Page 4, the estimated cost and the
Engineer took into account the easement amount. The assessment estimate of $117.83
per foot. The Kolles will not object to the figures which are way more than previously
shown in 2001 and at that time the City said that the interest rate will be 1% over bond
rate which was estimated at that time at 4 to 4.5%. In 2001, the Council told us that the
developer would put in the project and pay for everything and at the time the Kolles
develop they would pay for one-half of the costs. But now the City did the project, which
wasn't the Kolles' understanding. Mr. Neilson said their suggestion is that the Council
adopts the Assessment Roll using Option No. 2, the $187,500 with no interest. The
Kolles would consent to a deferred assessment. This is a farm and is under Green Acres.
CM Heidner stated that the Kolles feel both parties should pay for the road but that the
Days gave up their road easement. Mr. Nelson replied yes that the Kolles' have no use
for the road and didn't want it.
Mr. MacArthur said the improvement hearing was done because it was a public project.
Mr. Neilson understands this but at the time of the hearing they understood it was to be
done by the developer.
CM Wendel asked if they don't want to pay the interest then who will. Mr. Neilson
replied the public.
Mayor Fournier asked if he thinks the Kolles would want to use this road someday. Mr.
Neilson replied yes when sold to a developer at which time the assessment would be paid.
CM Heidner asked if Mr. Neilson if he thinks that because the Day property has water
and sewer it increases the value of the Kolles' property.
Mr. Neilson replied yes that property values have gone up in Otsego.
5. Close the Public Hearing for the 85`x' Street Extension
Mayor Fournier closed the Public Hearing at 8:30 PM.
CM Heidner asked how far back from the road does it increase the property values.
Mr. MacArthur said t t would be an appraisal issue.
ayor rry Fournier
Attes 0, 1 � L(m
9uJH'udtoYitY Clerk/Zoning Adm.