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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.