The URL can be used to link to this page

Home My WebLink AboutItem 07Lakeville November 18, 2013 Item No. RESOLUTION IMPOSING A SERVICE CHARGE FOR SPECIAL SERVICE DISTRICT NO.1 FOR TAXES PAYABLE 2014 Proposed Action Staff recommends adoption of the following motion: Move to approve Resolution Imposing a Service Charge for Special Service District No. 1 Approval of the motion will result in approval of the special service charge for payable 2014. Overview On July 6, 1998, the City Council approved Ordinance 631 establishing a Special Service District No. 1. The Special Service District Advisory Board has requested City Council consideration of levying a special service charge payable in 2014 and approval of the attached budget for the period of July 1, 2014 to June 30, 2015. The allocation of the total service charge to the downtown properties is based on the net tax capacity of the commercial values of the properties in the district. The Special Service District Advisory Board is recommending that the service charge payable remain unchanged ($27,500) consistent with those of prior years. Primary Issues to Consider • Purpose of the public hearing • Budget • Special Service Charge assessment list • Legal considerations Supporting Information • Budget • Specia rai a Charge Allocation eller, Fina ce Director Financial Impact: $ 27,500 Budgeted: To be determined at Hearing Source: Sp Svc Chg Related Documents (CIP, ERP, etc.): Ordinance Establishing a Special Service District Notes: Primary Issues to Consider • Purpose of the public hearing. Minnesota Statute 428A.03 requires that a public hearing must be conducted each calendar year with notices mailed to each business organization subsequent to the service charge. After the public hearing is conducted, and the resolution is adopted, the amounts will be certified to the Dakota County Treasurer /Auditor for collection with taxes payable in 2014. • Budget. The proposed budget for period of July 1, 2014 through June 30, 2015 is as follows: Actual Budget Proposed Fiscal Year Fiscal Year Fiscal Year Ended Ended Ended June, 2013 June, 2014 June, 2015 Revenues - service charges Current Levy collected 30,003 27,500 27,500 Delinquent levy collected Other revenues - - 2,500 Net service charges 30,003 27,500 30,000 Expenditures Executive Director (Wage/Payroll Tax) 11,028 11250 11250 Postage/P0 Box Rental 54 150 50 Office supplies 450 600 300 Professional fees (Acctg/Computer) 385 300 225 Meeting expenses (Chamber/DLBA Board) 158 150 100 Website 2,864 300 750 Flower Pots 3,048 2,500 2,500 Brochures /marketing/Advertising 4,463 2,500 1,950 Sponsorships 500 500 250 Events Farmers Market 420 400 Trick or Treat 1,146 1,000 Chamber - DLBA "After Hours" 500 Holiday Lighting 75 Holiday on Main 4,932 5,250 5250 Block Bash 1,449 4,000 5,100 Easter 91 100 Promotional Events (Retail Committee Events) 1,513 Less Reimbursement (1,685) County assessment fee 143 - 150 Total expenditures 30,959 27,500 29,950 Net change (956) - 50 Balance - Beginning 14,313 13,357 13,357 Balance - Ending 13,357 13,357 13,407 • Special Service Charge assessment list. Attached is a schedule of the proposed Special Service District by parcel. The Service charge for a specific parcel may vary from year to year as a result of changes to tax classification, assessed market value or changes in value due to property improvements. Legal considerations The Special Service District is subject to Minnesota Statutes 428A and City of Lakeville Ordinance 631. EXHIBIT B SPECIAL SERVICE DISTRICT - DOWNTOWN Proposed Special Service Charge Allocation Market Tax Capacity Special Service PROPERTY I Value Value I Charge 22 44450 02 41 Richard/Ann M iller 434,130 7,932 926 22 44450 12 020 20777 LLC 136,300 2,195 256 22 4445012 042 20777 LLC 159,900 2,448 286 306,200 4,643 542 22 02900 78 051 Holyoke Professional Ltd 906,700 17,384 2,029 (22 13700 084 01) 22-47600 -01-010 Holyoke Crossing LLC 1625,700 32,514 3,795 22- 13700 -02 -081 Holyoke Crossing LLC 135,400 2,708 35 (22 -04450 -11113) Holyoke Crossing (former J +J 22 -47600 -01020 Hold.) 2,212,800 43,506 5,077 2212,800 43,506 5,077 22 85100 01051 Seven Sixty Five LLC (Former J &J Holding Co.) 149,600 2,244 262 22 44450 12 050 Seven Sixty Five LLC (Former J &J Holding Co.) 149,600 2,990 349 299,200 5,234 611 22 63700 01040 Lakeville Real Estate M anagement LLC 56,500 1130 132 22 63700 01080 Lakeville Real Estate Management LLC 282,900 5,658 660 22 63700 01030 Lakeville Real Estate M anagement LLC 56,000 1120 131 22 63700 01020 Lakeville Real Estate M anagement LLC 282,900 4,908 573 678,300 12,85 1,496 22 44450 12 044 Gregory JJNancy Papatola Tate Smith 238,900 4,028 470 22 44450 12 040 Gregory J. /Nancy Papatola Tate Smith 101.600 2,032 237 340.500 6.060 707 22 85130 01130 Wells Fargo 804,800 5,346 1,791 228510001080 Wells Fargo 51800 777 91 228510001070 Wells Fargo 45,400 681 80 228510001020 Wells Fargo 113,800 2,276 266 1,05,800 19,080 2,227 22 13700 02 0 '6 KNS Investments 268,600 4,622 539 EXHIBIT B SPECIAL SERVICE DISTRICT - DOWNTOWN Proposed Special Service Charge Allocation A nchor Bank (Former Hewitt 22- 3290 -00 -011 Investments) 46,000 920 107 22-3290 -0109 Anchor Bank (Former Hewitt Investments) 524,700 9,744 1,137 570,700 9,664 1245 22 44450 07 93 PROPERTY Value 4,312 Value Charge PID # OWNER 2014 646 2014 2014 Hardware) 22 44450 07 120 Rose Acceptance Inc 257,900 - 4,408 514 2244450'0070 Holyoke Plaza LLC 264,600 4,542 530 22 44450 9 090 Holyo ke Plaza LLC 41600 832 97 TOTAL 306,200 5,374 627 22 44450 10 10 PJK Land LLC %Paul Krause 114,400 1716 200 22 85100 01041 R. Gallagher Reichardt Tate 259,300 4,436 59 228510001071 R. Gallagher Reichardt Tate 12,900 258 30 272,200 4,694 548 22 4445010 041 VFWPost 212,600 3,502 409 22 44450 -10-010 VFWPost 53,400 1068 125 22 44450 -10-020 VFWPost 52,900 1,058 124 22 44450 10 030 VFWPost 52,900 1058 124 2244450 10 040 VFWPost 19,500 390 46 391300 7,076 826 228510001050 20757 LLC% M ark Hotzler 91,800 3,086 360 A nchor Bank (Former Hewitt 22- 3290 -00 -011 Investments) 46,000 920 107 22-3290 -0109 Anchor Bank (Former Hewitt Investments) 524,700 9,744 1,137 570,700 9,664 1245 22 44450 07 93 Lakeville Family BoW, Inc. 253,100 4,312 503 22 44450 06 91 Allstot Pro parties 314,100 5,532 646 22 -47600 -02 -010 H 8 V Apartments (Ace Hardware) 1094,300 21,136 2,467 (22 44415 09 01) 22 -4445 -01011 Dakota County CDA 594,400 11,138 1300 TOTAL 12,583,700 235,635 27,500 CITY OF LAKEVILLE Resolution No. RESOLUTION IMPOSING A SERVICE CHARGE FOR SPECIAL SERVICE DISTRICT NO. 1 FOR TAXES PAYABLE 2014 BE IT RESOLVED by the City Council of Lakeville, Minnesota, as follows: SECTION 1. Recitals: Findings 1.01. Pursuant to Ordinance No. 631, the City created a special service district for certain property located adjacent to Holyoke, Holt, and Howland Avenues from 202nd Street West on the north to 210th Street West on the south. The specific properties included within this land area (the "District's are identified on Exhibit "A" attached hereto. 1.02. Notice of a public hearing has been given and a public hearing has been held. SECTION 2. Imposition of Service Charge 2.01. Amount of Service Charge There amount and against the properties hereto (the "Service Charge'. is hereby imposed a service charge in the specified on Exhibits "A" and "B ", attached 2.02. Nature and character of Special Services — Budget. There is hereby approved a budget for Special Service District fiscal year beginning July 1, 2014 through June 30, 2015 as specified on Exhibit "C" a copy of which is attached hereto. 2.03. Multi -year Service Charge The Service Charge imposed by this resolution is a charge for more than one year. The Service Charge will remain in effect through and including the year 2014 for taxes payable in said year. 2.04. Calculation of Service Charge The Service Charge shall be calculated as a percentage of the net tax capacity of the taxable property located in the Special Service District. The minimum charge levied against a property owner shall be $100.00 and the maximum charge shall be $6,000.00 per property owner. If the charge that would otherwise be imposed on a property owner is greater than the maximum allowable charge, the overage shall be redistributed against the other parcels in the District based upon net tax capacity. If the charge that would otherwise be imposed on a property owner is less than the $100.00 minimum charge, the charge against other parcels in the District shall be reduced based on net tax capacity. For taxes payable in 2014, the proposed Service Charge will be $27,500.00. 2.05. Distribution of Total Service Charge The distribution of the total Service Charge among properties within the District and subject to the Service Charge may vary and shall be recalculated pursuant to the formula specified in Section 2.03 if and to the extent that (i) commercial /industrial property tax classification rates increase or decrease based on action by the Minnesota legislature; or (ii) the net tax capacity of a parcel increases or decreases based on changes in the assessed value of the parcel attributable to improvements or changes made to the property; or (iii) a parcel increases or decreases in size by acquisition or sale. SECTION 3. Collection of Service Charges 3.01. Collection The Service Charges shall be payable and collected at the same time and in the same manner as provided for payment and collection of ad valorem taxes. For purposes of determining the appropriate tax rate, taxable property or net tax capacity shall be determined without regard to captured or original net tax capacity under Minnesota Statutes, Section 473F.08. 3.02. Penalty and Interest Service Charges made payable in the same manner as provided for payment and collection of ad valorem taxes, if not paid on or before the applicable due date, shall be subject to the same penalty and interest as in the case of ad valorem tax amounts not paid by the respective date. 3.03. Due Date The due date for the Service Charge payable in the same manner as ad valorem taxes is the due date given in law for the real or personal property tax for the property on which the service charge is imposed. Services Charges imposed on net tax capacity which are to become payable in the following year must be certified to the County Auditor by the date provided in Minnesota Statutes, Section 429.061, Subd. 3 for annual certification of special assessment installments. SECTION 4. Revenue Surolus. To the extent that the total of Services Charges collected exceed the cost of services rendered within the District, at the election of the City, either: (i) such excess amount shall be held as a reserve to pay the cost of future services provided under this resolution; or (ii) the next ensuing year's levy of taxes and service charges shall be decreased by a corresponding amount. SECTION S. Recording The City may record this Resolution against parcels located within the District and subject to the Service Charge for the purpose of providing notice of the Service Charge to prospective purchasers of such parcels. 2 ADOPTED by the City Council of Lakeville, Minnesota 18` day of November 2013. CITY OF LAKEVILLE M- Matt Little, Mayor ATTEST: Charlene Friedges, City Clerk EXHIBIT S SPECIAL SERVICE DISTRICT - DOWNTOWN Proposed Special Service Charge Allocation PROPERTY 22 44450 02 121 22 44450 12 020 22 4445012 042 22 02900 78 051 (22 13700 084 01) 22- 47600 -01 -010 22- 13700 -02 -081 (22- 44450- 111 -13) 22- 47600 -01 -020 22 85100 01 051 22 44450 12 050 Market I Tax Capacity I Special Service Richard /Ann Miller 434,100 7,932 926 20777 LLC 146,300 2,195 256 20777 LLC 159,900 2,448 286 306,200 4,643 542 Holyoke Professional Ltd 906,700 17,384 2,029 Holyoke Crossing LLC 1,625,700 32,514 3,795 Holyoke Crossing LLC 135,400 2,708 316 Holyoke Crossing (former J +J Hold.) 2,212,800 43,506 5,077 Seven Sixty Five LLC (Former J & J Holding Co.) Seven Sixty Five LLC (Fortner J & J Holding Co.) 22 85100 01 100 22 85100 01 080 22 85100 01 070 22 85100 01 020 Wells Fargo Wells Fargo Wells Fargo Wells Fargo 149,600 2,244 262 149,600 2,990 349 299,200 5,234 611 56,500 Lakeville Real Estate Management 22 63700 01 040 LLC 5,658 Lakeville Real Estate Management 22 63700 01 080 LLC 131 Lakeville Real Estate Management 22 63700 01 030 LLC 678,300 Lakeville Real Estate Management 22 63700 01 020 LLC 777 Gregory J. /Nancy Papatola Tste 22 44450 12 044 Smith 80 Gregory J. /Nancy Papatola Tste 22 44450 12 040 Smith 22 85100 01 100 22 85100 01 080 22 85100 01 070 22 85100 01 020 Wells Fargo Wells Fargo Wells Fargo Wells Fargo 149,600 2,244 262 149,600 2,990 349 299,200 5,234 611 56,500 1,130 132 282,900 5,658 660 56,000 1,120 131 282,900 4,908 573 678,300 12,816 1,496 238,900 4,028 470 101.600 2.032 237 340.500 6.060 707 804,800 15,346 1,791 51,800 777 91 45,400 681 80 113,800 2,276 266 1,015,800 19,080 2,227 22 13700 02 010 KNS Investments 268,600 4,622 539 U EXHIBIT B SPECIAL SERVICE DISTRICT - DOWNTOWN Proposed Special Service Charge Allocation PROPERTY Market I Tax Capacity I Special Service 22 44450 07 120 Rose Acceptance Inc 257,900 4,408 514 22 44450 10 070 Holyoke Plaza LLC 264,600 4,542 530 22 44450 10 090 Holyoke Plaza LLC 41,600 832 97 52,900 306,200 5,374 627 22 44450 10 110 PJK Land LLC % Paul Krause 114,400 1,716 200 22 85100 01 041 R. Gallagher Reichardt Tate 259,300 4,436 518 22 85100 01 071 R. Gallagher Reichardt Tate 12,900 258 30 272,200 4,694 548 22 4445010 041 VFW Post 212,600 3,502 409 22- 44450 -10 -010 VFW Post 53,400 1,068 125 22- 44450 -10 -020 VFW Post 52,900 1,058 124 22 44450 10 030 VFW Post 52,900 1,058 124 22 44450 10 040 VFW Post 19,500 390 46 391,300 7,076 826 22 85100 01050 20757 LLC % Mark Hotzler 191,800 3,086 360 Anchor Bank (Former Hewitt 22- 32190 -00 -011 Investments) 46,000 920 107 22- 32190 -01 -010 Anchor Bank (Former Hewitt 524,700 9,744 1,137 Investments) 570,700 10,664 1,245 22 44450 07 183 Lakeville Family Bowl, Inc. 253,100 4,312 503 22 44450 06 101 Allstot Properties 314,100 5,532 646 22- 47600 -02 -010 H & V Apartments (Ace Hardware) 1,094,300 21,136 2,467 (22 44415 010 01) Dakota County CDA 2244415 -01 -011 594,400 11,138 1,300 TOTAL 12,583,700 235,635 27,500 C EXHIBIT C Revenues - service charges Current Levy collected Delinquent levy collected Other revenues Net service charges Expenditures Executive Director (Wage/Payroll Tax) Postage/PO Box Rental Office supplies Professional fees (Acctg/Computer) Meeting expenses (Chamber/DLBA Board) Website Flower Pots Brochures /marketing/Advertising Sponsorships Events Farmers Market Trick or Treat Chamber - DLBA "After Hours" Holiday Lighting Holiday on Main Block Bash Easter Promotional Events (Retail Committee Events) Less Reimbursement County assessment fee Total expenditures Net change Balance - Beginning Balance - Ending Actual I Budget I Pro sed Fiscal Year Fiscal Year Fiscal Year Ended Ended Ended June,2013 June 2014 June,2015 30,003 27,500 27,500 - - 2,500 30,003 27,500 30,000 11,028 11250 11,250 54 150 50 450 600 300 385 300 225 158 150 100 2,864 300 750 3,048 2,500 2,500 4,463 2,500 1,950 500 500 250 420 400 1,146 1,000 500 75 4,932 5,250 5,250 1,449 4,000 5,100 91 100 1,513 (1,685) 143 - 150 30,959 27,500 29,950 (956) - 50 14,313 13,357 13,357 13,357 13,357 13,407 2