ITEM 4.2 Great River Centre 4th AdditionY
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MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Administration
Adam Flaherty, Finance Director
February 22, 2016
PRESENTER(s):
REVIEWED BY:
ITEM #:
Adam Flaherty, Finance Director
City Administrator Johnson
4.2 (A, B & C)
AGENDA ITEM DETAILS
RECOMMENDATION:
It is recommended by staff that the City Council adopt the corresponding resolutions for the certification
of special assessments related to the P&F Machining project at Great River Centre Fourth Addition.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
No
IS A PUBLIC HEARING REQUIRED?
No
BACKGROUND/JUSTIFICATION:
There are three different components of the project that will be certified as special assessments.
CR42 — In 2007, the City levied special assessments for the improvements to CR42 to the parcel involved
with the P&F Machining project. Those assessments were not paid by the previous owner, and the
parcel went into tax forfeiture. The City has since acquired the parcel and is working with P&F Machining
on a development project. As part of the negotiations, the outstanding unpaid special assessments
($432,582.68) will be recertified to the parcel. The assessments will begin to be payable in 2018, with a 7
year amortization schedule and interest of 4.375%.
Quaday Ave. Extension — In order to accommodate the development of the parcel involved with the
P&F Machining project, Quaday Avenue will be extended to the South of the existing 85th Street. The
cost of this street extension is estimated to be $635,394 by the City Engineer. The City has been
awarded an infrastructure grant from DEED that will cover 50% of the project costs, up to a maximum of
$317,697. The remainder of the costs will be certified as special assessments to the newly platted
parcels (Lot 1= $163,485.45 & Outlot A = $154,211.55). The assessment against Lot 1 will begin to be
payable in 2018, with a 7 year amortization schedule and interest of 3.25%. The assessment against
Outlot A will be deferred with no interest until development occurs.
Utility Availability & Connection Charges — As part of the negotiations, the City Council has allowed P&F
Machining to pay their water & sanitary sewer utility availability and connection charges as a special
assessment. The water utility availability and connection charges total $51,246. The sanitary sewer
utility availability and connection charges total $122,385.60. The grand total of the amount to be
certified as a special assessment will be $173,631.60. The assessments will begin to be payable in 2017,
with a 7 vear amortization schedule and interest of 3.25%.
SUPPORTING DOCUMENTS: ATTACHED NONE
• Resolution 2016-22
• Resolution 2016-23
• Resolution 2016-24
• Exhibit A— Amortization Schedules
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
3 Separate Motions
-Motion to approve Resolution 2016-22, Adopting the re -assessment of prior assessments for
improvements to County Road 42 against Lot 1, Block 1 of Great River Centre Fourth Addition.
-Motion to approve Resolution 2016-23, Adopting the assessment for improvements to Quaday Avenue
in Great River Centre Fourth Addition.
-Motion to approve Resolution 2016-24, Adopting the assessment for sanitary sewer and water charges
against Lot 1, Block 1 of Great River Center Fourth Addition.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A I N/A
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2016-22
RESOLUTION ADOPTING ASSESSMENT- RE -ASSESSMENT OF PRIOR
ASSESSMENT FOR IMPROVEMENTS TO COUNTY ROAD 42- LOT 1, BLOCK 1,
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, the property was previously assessed for improvements to County
Road 42 undertaken by the City, in the remaining principal amount of $432,582.68; and
WHEREAS, the property went tax forfeit and was subsequently acquired by the
City by deed from the State of Minnesota; and
WHEREAS, the City has resolved to re -assess the principal amount originally
assessed over all of GREAT RIVER CENTRE OF OTSEGO FOURTH ADDITION
specifically against LOT 1, BLOCK 1 GREAT RIVER CENTRE OF OTSEGO FOURTH
ADDITION
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 $432,582.68 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 4.375% 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.
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 15 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:
Seconded By:
All in Favor:
Those Opposed:
Vern Heidner, Acting Mayor
Tami Loff, City Clerk
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 15 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:
Seconded By:
All in Favor:
Those Opposed:
Vern Heidner, Acting Mayor
Tami Loff, City Clerk
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2016-24
RESOLUTION ADOPTING ASSESSMENT- SANITARY SEWER AND WATER
CHARGES- LOT 1, BLOCK 1 GREAT CENTRE OF OTSEGO FOURTH ADDITION
WHEREAS, the City of Otsego is the Owner of that property described as LOT 1,
BLOCK 1, GREAT RIVER CENTRE OF OTSEGO FOURTH ADDITION; and
WHEREAS, the City has entered into a Purchase Agreement to sell the property
set forth above, and Purchaser has requested and City has agreed to assess City
sanitary sewer availability charges, City sanitary connection fees, City water availability
charges and City water connection fees for the building to be constructed upon the
property; 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 $173,631.60 shall be payable in equal
annual 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, 2017 shall bear
interest at the rate of 3.25% percent per annum from the date of the adoption of this
assessment resolution. To the first installment shall be added interest on the entire
assessment from the date of this resolution until December 31, 2016. To each
subsequent installment when due shall be added interest for one year on all unpaid
installments.
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 15 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:
Seconded By:
All in Favor:
Those Opposed:
Vern Heidner, Acting Mayor
Tami Loff, City Clerk
City of Otsego
Special Assessments - Amortization Schedule
Reassessment - Outstanding CR42 Improvements
Great River Centre - Fourth Addition
Lot 1 Block 1
Payment
Year Assessed Principal Interest Total Balance
2016 432,582.68
-
-
-
432,582.68
2017 -
-
-
-
432,582.68
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
-
Totals 432,582.68 75,701.96 508,284.64
City of Otsego
Special Assessments - Amortization Schedule
Assessment - Quaday Avenue Extension
Great River Centre - Fourth Addition
Lot 1 Block 1
Payment
Year Assessed Principal 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
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
A�
City of Otsego
Special Assessments - Amortization Schedule
Assessment - Quaday Avenue Extension
Great River Centre - Fourth Addition
Outlot A
Payment
Year Assessed Principal Interest Total
Balance
2016 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 - - - -
154,211.55
Totals - - -
The assessment on this parcel is deferred with no interest until development occurrs.
City of Otsego
Special Assessments - Amortization Schedule
Assessment - Utility Availability & Connection Charges
Great River Centre - Fourth Addition
Lot 1 Block 1
Interst Payment Principal
Year Assessed Accrual Principal Interest Total Balance
2016 173,631.60 4,839.09
-
-
-
173,631.60
2017 - -
24,804.51
10,482.12
35,286.63
148,827.09
2018 - -
24,804.51
4,836.88
29,641.39
124,022.58
2019 - -
24,804.51
4,030.73
28,835.24
99,218.07
2020 - -
24,804.51
3,224.59
28,029.10
74,413.56
2021 - -
24,804.51
2,418.44
27,222.95
49,609.05
2022 - -
24,804.51
1,612.29
26,416.80
24,804.54
2023 - -
24,804.54
806.15
25,610.69
-
Totals 173,631.60 27,411.20 201,042.80