ITEM 3.12 Duke Realty AssessmentOt§elzo�
MINNESOTA 4010
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Administration
Adam Flaherty, Finance Director
November 9, 2015
PRESENTER(s):
REVIEWED BY:
ITEM #:
Consent Agenda
City Administrator Johnson
3.12 Duke Realty Assessments
AGENDA ITEM DETAILS
RECOMMENDATION:
It is recommended by staff that the City Council adopt a resolution for the recertification of certain
special assessments to property owned by Duke Realty in the Gateway North development.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No I No
BACKGROUND/JUSTIFICATION:
The City made improvements to the water and sewer infrastructure near Queens Avenue in 2007. The
improvements provided benefit to the abutting properties, and the costs of those improvements were
assessed against those properties in 2007.
Duke Realty is now the owner of those respective properties and has entered into a developer's
agreement with the City for the construction of buildings that Duke will lease out. The respective
properties owned by Duke have subsequently been replatted in phases over the last few years to allow
for construction activity.
During the process of replatting the respective properties, the PID numbers have changed. The original
PID number of 118-256-000010/01 no longer exists. Unfortunately when that PID number was removed
from the County records, so was the $261,578.25 of outstanding special assessments against it. The
County has now provided the City with the new PID numbers for the replatted Duke properties, and the
recertification of the outstanding special assessments can occur.
Duke Realty was invoiced by the City for the 2015 principal and interest, and chose not to pay those
amounts. Instead they opted for the accrued interest ($14,386.80) to be incorporated into a new
amortization schedule, without extending the original terms of repayment. Therefore the new total
amounts of the special assessments are $275,965.05.
SUPPORTING DOCUMENTS: ATTACHED NONE
-Resolution 2015-69 (for approval)
-Exhibit A
P(1CCIR1 F MOTION
word motion as you would like it to appear in the minutes.
-Motion to approve Resolution 2015-69, adopting the recertification of special assessments against
properties owned by Duke Realty as outlined in Exhibit A.
R1InrZFT INFORMATION
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMM
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2015-69
RESOLUTION FOR THE RECERTIFICATION OF CERTAIN
SPECIAL ASSESSMENTS TO PROPERTIES OWNED BY DUKE REALTY
WHEREAS, the City of Otsego made improvements to the water and sewer infrastructure on Queens
Avenue, with the cost of the respective improvements being certified as special assessments against the
benefitting properties in 2007; and
WHEREAS, Duke Realty is the owner of those respective properties and has entered into development
agreements with the City of Otsego that included the replatting of the original parcels; and
WHEREAS, as part of the replatting process, the original parcel identification number was eliminated from
the County records along with the outstanding special assessments; and
WHEREAS, the County has now assigned new parcel identification numbers; and
WHEREAS, Duke Realty has requested that the outstanding special assessments be allocated to the new
parcels and be recertified against the respective properties, and has waived all hearing and notice
requirements.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO,
MINNESOTA:
That the outstanding special assessments from the original parcel identification number be allocated and
recertified against the new parcel identification numbers as outlined in Exhibit A.
ADOPTED by the Otsego City Council this 9th day of November, 2015.
MOTION made by Council Member
IN FAVOR:
OPPOSED:
W
ATTEST:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
and SECONDED by Council Member
1, City of Otsego
AN Special Assessments - Summary Information
t Reassessment & Reallocation Queens Avenue Water &Sewer
a
;- Duke Realty - Gateway North - 3rd & 4th Additions
va-10
Original Information
PID Description Lot Size Allocated % Amount Levy #
118-256-000010/01
118-256-000010/01
118-256-000010/01
118-256-000010/01
118-256-000010/01
Original Assessment
2015Interest Accrued
New Assessment
52,315.65 28530-0
52,315.65 28530-1
52,315.65 28530-2
52,315.65 28530-3
52,315.65 28530-4
261,578.25
14,386.80
275,965.05
Revised Information % Amount
PID Description Lot Size Allocated Allocated Levy#
118-277-001010
3rd Addition -
Building #6
18.625
24.44%
67,444.12
(1)
118-288-001010
4th Addition -
Building #5
30.672
40.25%
111,068.25
(1)
118-288-001020
4th Addition -
Building #3
13.636
17.89%
49,378.15
(1)
118-288-001030
4th Addition -
Future Building
13.276
17.42%
48,074.53
(1)
Total
76.209 100.00% 275,965.05
Notes
(1) - Wright County will assign the new levy number for these assessments.
U:\Taxes\Special Assessments\2015\Duke Realty - Reassessment Allocation
City of Otsego
., Special Assessments - Amortization Schedule
IM Reassessment & Reallocation - Queens Avenue Water & Sewer
Duke Realty - Gateway North - 3rd & 4th Additions
V 118-256-000010/01
Original Interest Payment
Year Assessed Accrual Principal Interest Total Balance
2007 490,459.00 3,547.45
-
-
-
490,459.00
2008 - -
32,697.25
30,522.70
63,219.95
457,761.75
2009 - -
32,697.25
25,176.90
57,874.15
425,064.50
2010 - -
32,697.25
23,378.55
56,075.80
392,367.25
2011 - -
32,697.25
21,580.20
54,277.45
359,670.00
2012 - -
32,697.25
19,781.85
52,479.10
326,972.75
2013 - -
32,697.25
17,983.50
50,680.75
294,275.50
2014 - -
32,697.25
16,185.15
48,882.40
261,578.25
2015 - -
32,697.25
14,386.80
47,084.05
228,881.00
2016 - -
32,697.25
12,588.45
45,285.70
196,183.75
2017 - -
32,697.25
10,790.10
43,487.35
163,486.50
2018 - -
32,697.25
8,991.75
41,689.00
130,789.25
2019 - -
32,697.25
7,193.40
39,890.65
98,092.00
2020 - -
32,697.25
5,395.05
38,092.30
65,394.75
2021 - -
32,697.25
3,596.70
36,293.95
32,697.50
2022 - -
32,697.50
1,798.35
34,495.85
-
490,459.00 219,349.45 709,808.45
Revised Interest Payment
Year Assessed Accrual Principal Interest Total Balance
2007 490,459.00 -
-
-
-
490,459.00
2008 - -
32,697.25
26,975.25
59,672.50
457,761.75
2009 - -
32,697.25
25,176.90
57,874.15
425,064.50
2010 - -
32,697.25
23,378.55
56,075.80
392,367.25
2011 - -
32,697.25
21,580.20
54,277.45
359,670.00
2012 - -
32,697.25
19,781.85
52,479.10
326,972.75
2013 - -
32,697.25
17,983.50
50,680.75
294,275.50
2014 - -
32,697.25
16,185.15
48,882.40
261,578.25
2015 - 14,386.80
-
-
-
275,965.05
2016 - -
39,423.60
15,178.10
54,601.70
236,541.45
2017 - -
39,423.60
13,009.80
52,433.40
197,117.85
2018 - -
39,423.60
10,841.50
50,265.10
157,694.25
2019 - -
39,423.60
8,673.20
48,096.80
118,270.65
2020 - -
39,423.60
6,504.90
45,928.50
78,847.05
2021 - -
39,423.60
4,336.60
43,760.20
39,423.45
2022 - -
39,423.45
2,168.30
41,591.75
-
504,845.80 211,773.80 716,619.60
U:\Taxes\Special Assess ments\2015\Duke Realty - Reassessment Summary
City of Otsego
ti
Special Assessments - Amortization Schedule
Reassessment &Reallocation - Queens Avenue Water & Sewer
Duke Realty - Gateway North - 3rd Addition - Building #6
118-277-001010
Payment
Year Assessed Principal
Interest
Total
Balance
2015 67,444.12 -
-
-
67,444.12
2016 - 9,634.87
3,709.43
13,344.30
57,809.25
2017 - 9,634.87
3,179.51
12,814.38
48,174.38
2018 - 9,634.87
2,649.59
12,284.46
38,539.51
2019 - 9,634.87
2,119.67
11,754.54
28,904.64
2020 - 9,634.87
1,589.76
11,224.63
19,269.77
2021 - 9,634.87
1,059.84
10,694.71
9,634.90
2022 - 9,634.90
529.92
10,164.82
0.00
Totals 67,444.12 14,837.72 82,281.84
U:\Taxes\Special Assessments\2015\Duke Realty - Reassessment 118-277-001010
City of Otsego
Special Assessments - Amortization Schedule
Reassessment & Reallocation - Queens Avenue Water & Sewer
r
Duke Realty - Gateway North - 4th Addition - Building #5
118-288-001010
Payment
Year Assessed Principal Interest Total Balance
2015 111,068.25
-
-
-
111,068.25
2016 -
15,866.89
6,108.75
21,975.64
95,201.36
2017 -
15,866.89
5,236.07
21,102.96
79,334.47
2018 -
15,866.89
4,363.40
20,230.29
63,467.58
2019 -
15,866.89
3,490.72
19,357.61
47,600.69
2020 -
15,866.89
2,618.04
18,484.93
31,733.80
2021 -
15,866.89
1,745.36
17,612.25
15,866.91
2022 -
15,866.91
872.68
16,739.59
(0.00)
Totals 111,068.25 24,435.02 135,503.27
U:\Taxes\Special Assess ments\2015\Duke Realty - Reassessment 118-288-001010
v
City of Otsego
Special Assessments - Amortization Schedule
Reassessment & Reallocation - Queens Avenue Water & Sewer
Duke Realty -Gateway North - 4th Addition -Building #3
118-288-001020
Payment
Year Assessed Principal
Interest
Total
Balance
2015 49,378.15 -
-
-
49,378.15
2016 - 7,054.02
2,715.80
9,769.82
42,324.13
2017 - 7,054.02
2,327.83
9,381.85
35,270.11
2018 - 7,054.02
1,939.86
8,993.88
28,216.09
2019 - 7,054.02
1,551.88
8,605.90
21,162.07
2020 - 7,054.02
1,163.91
8,217.93
14,108.05
2021 - 7,054.02
775.94
7,829.96
7,054.03
2022 - 7,054.03
387.97
7,442.00
(0.00)
Totals 49,378.15 10,863.19 60,241.34
U:\Taxes\Special Assess ments\2015\Duke Realty - Reassessment 118-288-001020
City of Otsego
Special Assessments - Amortization Schedule
jo
Reassessment & Reallocation - Queens Avenue Water & Sewer
WAS
Duke Realty - Gateway North - 4th Addition - Future
Building
7
118-288-001030
Payment
Year Assessed Principal
Interest
Total
Balance
2015 48,074.53 -
-
-
48,074.53
2016 - 6,867.79
2,644.10
9,511.89
41,206.74
2017 - 6,867.79
2,266.37
9,134.16
34,338.95
2018 - 6,867.79
1,888.64
8,756.43
27,471.16
2019 - 6,867.79
1,510.91
8,378.70
20,603.37
2020 - 6,867.79
1,133.19
8,000.98
13,735.58
2021 - 6,867.79
755.46
7,623.25
6,867.79
2022 - 6,867.79
377.73
7,245.52
0.00
Totals 48,074.53
10,576.40
58,650.93
U:\Taxes\Special Assess ments\2015\Duke Realty - Reassessment 118-288-001030