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HomeMy WebLinkAbout09-11-89 • CITY OF LAKEVILLE SPECIAL COUNCIL MEETING SEPTEMBER 11, 1989 The meeting was called to order at 7:00 p.m. by Mayor Zaun. Roll call was taken. Present: Councilmembers Enright, Sindt, Harvey and Mayor Zaun. Absent: Councilmember Nelson. Also present: P. Farrell, City Attorney; K. Nelson, City Engineer; J. Robinette, Community Development Director; B. Erickson, City Adminis- trator; D. Feller, Finance Director; L. Gustafson, Assessment Clerk; D. Zuelke, Donohue Engineering; C. Friedges, Acting City Clerk. Mayor Zaun outlined the procedures to be followed for each public hearing. Item 2. Mayor Zaun opened the public hearing on proposed assessments to Improvement Project 89-6, Sealcoating in District 3. The City Clerk attested to legal notices published and mailed. The mayor stated that letters of appeal had been received from Ralph Trabant and Brian Knoch, along with a memo from staff regarding assessments to the Holen and Wech properties. 89.331 Motion was made by Sindt, seconded by Harvey to receive the Ralph Trabant and Brian Knoch letters, as attached to these minutes. Roll call was taken on the motion. Ayes, Zaun, Enright, Sindt, Harvey. Keith Nelson presented project costs, units assessed and assessment figures and explained that this is an old part of the city consisting of small platted lots and large rural parcels. He compared the assessment amounts in the original feasibility report to the actual assessments. He explained that the staff is recommending some parcels be reduced due to the lot configuration. Dennis Feller explained that this is a two year assessment at 8.6% interest. Senior citizen deferments are available to property owners 65 years of age or older, and the assessment would not have to be paid until the property title is transferred. Ralph Trabant addressed the council requesting the assessment for his parcel, which contains two lots on Judicial Road, be reduced. The survey of his property shows his lots being 100 feet deep; they are now only 50 feet deep due to Orchard Lake and are considered unbuildable for that reason. The lots face the gravel portion of Judicial Road and he feels he would not benefit by an improved road in front of unbuild- able lots. CITY OF LAKEVILLE SPECIAL COUNCIL MEETING SEPTEMBER 11, 1989 Bob Erickson recommended the staff consider his request and make a recommendation at a future date. Councilmember Harvey suggested he would tend to agree with the property owner if the staff concurs. Brian Knoch stated that he has three lots, one being a "sliver" lot, which is unbuildable, and requested his assessment be reduced. Mayor Zaun replied that some so-called unbuildable lots can be built on by issuance of a variance. It was suggested that his lots could possibly be administratively combined. If was further suggested that this situation be remedied at the time of street vacation consideration for Hirschy Lane and Woodlake Drive. Staff recommended that the sliver parcel be deleted from the assessment roll and that the two other parcels be assessed one large unit each. 89.332 Motion was .made by Sindt, seconded by Harvey to acknowledge receipt of staff reports dated 9/11/89 concerning the Wech and Knoch parcels, as attached to these minutes. Roll call was taken on the motion. Ayes, Enright, Sindt, Harvey, Zaun. 89.333 Motion was made by Harvey, seconded by Sindt to close the public hearing. Roll call was taken on the motion, Ayes, Sindt, Harvey, Zaun, En- right. 89.334 Motion was made by Harvey, seconded by Enright to adopt Resolution No. 89-125 adopting the assessment for Improvement Project 89-6, District 3 Sealcoating, as modified by the staff reports dated 9/11/89.. Roll call was taken on the motion. Ayes, Harvey, Zaun, Enright, Sindt. Item 3. Mayor Zaun opened the public hearing on proposed assessments to Improvement Project 88-1, 172nd Street rehabilitation. The City Clerk attested to legal notices published and mailed. Councilmember Nelson arrived - 7:30 p.m. The City Attorney explained that state statute requires property owners present objections in writing, giving them the opportunity to appeal to the district court if not satisfied with the decision reached by the City Council. 2 . ~ • CITY OF LAKEVILLE SPECIAL COUNCIL MEETING SEPTEMBER 11, 1989 89.335 Motion was made by Enright, seconded by Harvey to receive letters (as attached to these minutes) from the following residents involved in this project: Gary Schmidt; Mary Kaye Holasek/Jean Thompson; Frank Suss(2); Clifford Simons; Kevin Smith; Oral Oberlander; Mark Simunds; Andrew Pritchard; Edward Friermuth; John Emory; Phillip Ward; John Williams/John D. Hanson; Jeffrey Sharrock; Gerald Isvik. Roll call was taken on the motion. Ayes, Zaun, Enright, Sindt, Harvey, Nelson. Keith Nelson presented overall project costs and assessments; and Dennis Feller explained that this is a 20 year assessment with the first payment due with 1990 property taxes. Interest is at 8.6%, and senior citizen deferments to homestead property owners 65 years of age or older are available. Amy Schmidt addressed the council on three issues: a) Her legal notice for the assessment hearing contained an incorrect address. b) Why set a precedent on the policy for assessing property; council should be more flexible. c) The 22 lots located in the cul-de-sacs are not being assessed for a road that they are benefited by. The council stated they had previously directed city staff to assess only the adjacent abutting property owners, and they have the preroga- tive to make that recommendation. Mayor Zaun referred to Mrs. Schmidt's letter in reference to the City failing to satisfy the notice and procedural requirements as set forth by Minnesota Statutes, and asked Mrs. Schmidt to further explain that statement. She indicated her husband (who was not present) had written the letter and she did not know what he was referring to. Mayor Zaun asked the staff to contact Gary Schmidt for clarification. Ed Friermuth asked why 172nd Street is not being assessed an area charge like 175th Street was when it was blacktopped back in 1978. He also questioned whether the $9200 assessment would actually increase his property value by that amount. Pat Farrell explained that the reason 175th Street was assessed on an area basis was that it was a major collector street, and 172nd Street is not. The 175th Street project was the most recent project where an area assessment was made. He went on to explain that the city deter- mines the benefit to property when they look at an improvement project in the preliminary phase. Mark Simunds asked how the $9200 assessment would benefit his 85 feet of frontage the same as adjacent properties that have larger frontages. 3 . ~ . . CITY OF LAKEVILLE SPECIAL COUNCIL MEETING SEPTEMBER 11, 1989 Keith Nelson explained that all lots in a subdivision, except for corner and side lots, are generally similar, and the City assesses on a unit parcel basis rather than a frontage basis. Mayor Zaun added that the City Council had originally taken the position to assess on a unit basis. Gerald Isvik objected to the suggested $9200 increased value of his home, and asked if the City would accept an opinion from a realtor. Mayor Zaun stated the Council would be willing to accept a realtor's estimate, however, an estimate from a licensed appraiser would be preferred. John Emory stated he wants to have an appraisal done on his property and asked what formula the City uses to calculate these increases in value, as he wants to have his personal appraiser use the same formula. Pat Farrell explained that all the lots have increased in value at least by the amount of the assessment, and that the city does not use a specific formula. Bob Erickson added that equating home value to special assessments is a very difficult determination to make. Follow- ing the City Council work session at which the method of assessment for this project was determined, the city administrator contacted the assessor's office to obtain sales information regarding vacant lots in Woodbury 1st Addition in an attempt to see if the $9,220.81 assessment would meet the benefit test. Mr. Emory also suggested that the $9000 assessment could have been reduced to $4500 if the cul-de-sac lots had also been assessed, since 22 of the 44 homes that use 172nd Street are in the cul-de-sacs. The staff explained that the City feels that eventually those cul- de-sac streets will need some type of repair, and those properties alone will have to pay those assessments, not the 172nd Street property owners. Kevin Smith stated his yard had drain file installed that did not benefit him, but would benefit the homes in the cul-de-sac down the hill, since they have the water problems. He also asked whey there was an overrun in the bids. Keith Nelson explained that since the preliminary cost estimate, following soil borings and during final design, changes are sometimes required, as well as increases in some quantities from the original report. Oral Oberlander voiced his objection to the way the project was completed, indicating poor restoration of yards and driveways. He felt the project inspection was very poor. Seeding and sodding had to be accomplished at his own expense to restore his yard to its original condition. He further requested an additional five year credit since this street never lasted 10 years and deteriorated after five, stating the residents are paying for this improvement for the second time. 4 • • • CITY OF LAKEVILLE SPECIAL COUNCIL MEETING SEPTEMBER 11, 1989 Frank Suss asked to have the $9200 assessment to his property clari- fied. He also asked why the area to the south of 172nd Street is not being assessed for storm sewer. Keith Nelson explained that the City is paying for oversizing of the storm sewer to serve areas south of the plat out of the trunk storm sewer fund, and that some developer will have to pay a storm sewer area charge at the time development occurs. Cliff Simons stated that at the original council meeting discussing this project, the residents were told that the city would pay 50% of the costs. He also questioned whether the drain file was necessary due to the dry ground conditions, and Keith Nelson attributed that to the drought of 1988. Mr. Simons further stated that the street was being used for heavy trucks commuting to the Cherrywood Addition when that was being constructed. Councilmember Harvey stated that the City was aware of the truck weight issue and had asked staff members to take a truck count on that street, in which they used a portable scale. The consensus was that the street did not appear to be over loaded. Councilmember Sindt added that 172nd Street needed work long before the Cherrywood addition developed. Mr. Simons further stated that he was not referring to the trucks of today, but the overweight trucks that were allowed years ago when the road was poorly constructed. Councilmember Nelson reminded the citizens that the City pays for the portion of any improvement that is not assessed, the City meaning the citizens of Lakeville. The percentage taken off a project assessment goes to ad valorem taxes and, therefore, the citizens are ultimately paying this in their taxes. Councilmember Enright referred to the citizens' complaint that the City breached their agreement to pay 50% of the costs. She recalled recommending that at a previous council meeting but stated that the figure was never agreed upon by the council. Staff stated that at present, 25.30% of the project costs are being Financed by the City. Enright asked Daryl Zuelke about inspections that were done on that project, and he stated that a full time inspector had been assigned. He further stated that the sod and driveway problems that occur can still be addressed, and indicated that Donohue will resolve these issues. John Williams asked if they will be assessed for Highview Avenue improvements, and the council indicated they would not, as only abutting property owners can be assessed. John Emory objected to the assessment and stated he would not have purchased his home had he known of the assessment at the time of purchase. He also stated that he does not expect the tax payers to help them out with the assessments, but rather the cul-de-sac lots. 5 . ~ • • CITY OF LAKEVILLE SPECIAL COUNCIL MEETING SEPTEMBER 11, 1989 Councilmember Harvey explained a similar situation in Clay's Acres a few years ago where the residents opposed to the project. The project, however, was completed, and had a positive affect on the people in that area. They take more pride in their homes, which are saleable once again. He feels the same impact will take place in the 172nd Street area. Bob Erickson suggested that since the street was actually beginning to deteriorate after five years rather than ten, the possibility exists that the assessment could be re-calculated to give another five years credit. 89.336 Motion was made by Harvey, seconded by Sindt to close the public hearing. Roll call was taken on the motion. Ayes, Enright, Sindt, Harvey, Nelson, Zaun. Councilmember Harvey stated (and Sindt agreed) that the neighborhood situation was the result of an article in the Minneapolis Tribune, which highlighted the "miscues" on the part of the developer, further stating that the article did not necessarily focus on the condition of the street, but the development in general. Councilmember Enright stated she would be willing to consider giving this project another five years credit, but was making no commitment. 89.337 Motion was made by Sindt, seconded by Enright to table assessment of this project. (Staff would research in an effort to arrive at a date that the road became deteriorated.) Bob Erickson suggested if the council is going to modify the assess- ment, tabling this matter would take them no where, since the majority of the property owners have appealed. He suggested the assessment be modified by reducing an additional $868 at a maximum. Since a new sidewalk was constructed on one side of the street, in which that side paid for it and the other did not, the sidewalk assessment of $906.36 (64.74 per unit) could possibly be paid for by the trail fund. Councilmember Sindt rescinded her motion to table. 89.338 Motion was made by Enright, seconded by Nelson to authorize the sidewalk improvement to be paid for by the trail fund and add five additional years of credit to the assessment. Mayor Zaun suggested it would be more appropriate to take the stance of the original hearing, adopt the assessment roll as presented, and negotiate with the individual property owners. 6 CITY OF LAKEVILLE SPECIAL COUNCIL MEETING SEPTEMBER 11, 1989 Pat Farrell suggested adopting the assessment roll and waiving the 30 day period of time to negotiate with the residents. He suggested three options the council has in front of them: 1) Table for further discussion; 2) Adopt assessment roll as presented; 3) Adopt amended assessment roll as suggested by city administrator. Roll call was taken on motion 489.338. Ayes, Nelson and Enright. Nays, Sindt, Harvey, Zaun. Motion failed. 89.339 Motion was made by Harvey, seconded by Sindt to adopt Resolution No. 89-126 adopting the assessment, as originally presented, for Improve- ment Project 88-1, 172nd Street rehabilitation. Roll call was taken on the motion. Ayes, Harvey, Zaun, Sindt. Nays, Nelson and Enright. Mayor Zaun suggested the city attorney and staff meet with the resi- dents in an effort to resolve the project assessment and restoration issues. Item 4. Mayor Zaun opened the public hearing for street light assessments in the Woodbury First Addition. The City Clerk attested to the legal notices published and mailed. There were no comments from the audience. 89.340 Motion was made by Enright, seconded by Nelson to close the public hearing. Roll call was taken on the motion. Ayes, Harvey, Nelson, Zaun, Enright, Sindt. 89.341 Motion was made by Enright, seconded by Sindt to adopt Resolution No. 89-127 adopting the assessment for street lights in Woodbury First Addition. Roll call was taken on the motion. Ayes, Nelson, Zaun, Enright, Sindt, Harvey. Item 5. Mayor Zaun opened the public hearing on assessments to Highview Avenue, project 88-2. The City Clerk attested to legal notices published and mailed. 89.342 Motion was made by Enright, seconded by Nelson to acknowledge receipt of letters of appeal received from Clinton Zweber, Richard Sexton, James F. Larsen and Brigitte Benthin, as attached to these minutes. 7 • CITY OF LAKEVILLE SPECIAL COUNCIL MEETING SEPTEMBER 11, 1989 Roll call was taken on the motion. Ayes, Zaun, Enright, Sindt, Harvey, Nelson. Keith Nelson presented the original project .and final costs. He presented a report dated 9/11/89 (as attached to these minutes) recommending 70 front feet be reduced on the Benthin parcel and 200 front feet be reduced on the St. John's University property, as these footages are in the floodplain. Julian Zweber spoke on behalf of Clinton and Kathleen Zweber who own property on the southern end of Highview Avenue. Their concerns were that the Larsen/Zweber agreements in 1975 (when the road was con- structed)stated that no assessment would be charged for future black- topping of this road. He also stated that the feasibility report proposed a $19.25 front foot assessment, with credit given for previous assessments. He indicated that no credit was given in this proposed assessment, and they feel the assessment exceeds the benefit to his farm land. They could also be facing assessments for the extension of 175th Street. Pat Farrell indicated he was familiar with the 1975 project, and that the agreement states it is likely that state aid funds would finance the future paving of this road. He reminded the Zwebers that the assessment had been reduced by the courts back in 1975 to $10,000 rather than $23,000. He further stated that today's council is not bound by a 16 year old feasibility report which states that future improvements could be covered by state aid funds. Councilmember Sindt suggested this item be tabled for further review and recommendation by staff. Mr. Benthin stated he has 840 feet of frontage on Highview Avenue, but feels he cannot look forward to any commercial benefit from this property. Richard Sexton stated he objected to the assessment which, he feels, is out of proportion for his property. 89.343 Motion was made by Enright, seconded by Sindt to close the public hearing. Roll call was taken on the motion. Ayes, Enright, Sindt, Harvey, Nelson, Zaun. 89.344 Motion was made by Harvey, seconded by Sindt to adopt Resolution No. 89-128 adopting the assessment for Improvement Project 88-2, street and drainage improvements on Highview Avenue, with the exception of the four property owners who filed objections, Zweber, Larsen, Sexton and Benthin. Roll call was taken on the motion. Ayes, Sindt, Harvey, Nelson, Zaun, Enright. 8 . ~ .r' • • • CITY OF LAKEVILLE SPECIAL COUNCIL MEETING SEPTEMBER 11, 1989 89.345 Motion was made by Sindt, seconded by Harvey to consider the appeals of the Highview Avenue residents at the next regular council meeting, September 18, 1989. Roll call was taken on the motion. Ayes, Harvey, Nelson, Zaun, Enright, Sindt. Item 6. Mayor Zaun opened the public hearing on proposed assessments to Holyoke Avenue sidewalk, curb and gutter rehabilitation project 87-5. The City Clerk attested to legal notices published and mailed.. Keith Nelson. presented the project costs, preliminary report estimate, unit rate for curb ($10.00 per front foot) He indicated that the project financing would, in part, come out of the city trunk storm sewer fund and tax increment financing. Leo Cameron was concerned about sidewalk snow plowing, trimming of an evergreen tree and the curb cut. Keith Nelson explained that the six inch curb was torn out and replaced by a four inch curb for drainage, at no cost to the City. He stated he would work with Donohue Engineer- ing to address Mr. Cameron's other concerns. Dennis Feller informed the Camerons that they may be eligible for a senior citizen deferment, and suggested they contact the assessment clerk for more information. 89.346 Motion was made by Enright, seconded by Sindt to close the public hearing. Roll call was taken on the motion. Ayes, Nelson, Zaun, Enright, Sindt, Harvey. 89.347 Motion was made by Harvey, seconded by Sindt to adopt Resolution No. 89-129 adopting the assessment for improvement project 87-5, sidewalk, curb and gutter on Holyoke Avenue. Roll call was taken on the motion. Ayes, Zaun, Enright, Sindt, Harvey, Nelson. Item 7. Mayor Zaun opened the public hearing on the proposed assessment to Lakeville Commerce Center, project 88-9. The City Clerk attested to the legal notices published and mailed. Keith Nelson presented the project costs and explained that three parcels of property would be deferred with interest. 9 • • CITY OF LAKEVILLE SPECIAL COUNCIL MEETING SEPTEMBER 11, 1989 89.348 Motion was made by Harvey, seconded by Nelson to receive the letter from J.L. Shiely Company and the letter of recommendation by the City Engineer dated 9/11/89, as attached to these minutes. Roll call was taken on the motion. Ayes, Enright, Sindt, Harvey, Nelson, Zaun. Linda Schutz, representing the J.L. Shiely Company, asked when their property might be put into the Metropolitan Urban Service Area, allowing them to make use of the sanitary sewer and watermain that was just installed along County Road 64. Since the benefit of these improvements to their property is questionable, Shiely Company is requesting a deferment of the assessment, without interest, until such time as they either sell the property or are granted permission to use the utilities. Bob Erickson explained to Ms. Schutz that Shiely is in control of the direction this land is going, more so than the City. A comprehensive plan amendment is granted on actual land development as development occurs, subject to Metropolitan Council approval. Dennis Feller recommended a deferment with interest and explained that the City sells bonds and has to pay interest on those bonds. A deferment without interest would force the City to pay the interest that the property owner is responsible for. 89.349 Motion was made by Sindt, seconded by Harvey to close the public hearing. Roll call was taken on the motion. Ayes, Sindt, Harvey, Nelson, Zaun, Enright. 89.350 Motion was made by Harvey, seconded by Nelson to adopt Resolution No. 89-130 adopting the assessment for Improvement Project 88-9, Lakeville Commerce Center. Roll call was taken on the motion. Ayes, Harvey, Nelson, Zaun, Enright, Sindt. 89.351 Motion was made by Harvey, seconded by Enright to adopt Resolution No. 89-131 adopting deferred assessments for Improvement Project 88-9, Lakeville Commerce Center, as per the City Engineer's report dated 9/11/89. Roll call was taken on the motion. Ayes, Nelson, Zaun, Enright, Sindt, Harvey. 10 ~ ,~s. CITY OF LAKEVILLE SPECIAL COUNCIL MEETING SEPTEMBER 11, 1989 Item 8. Mayor Zaun opened the public hearing on the proposed assessments to Lakeville Elementary Addition, project 88-9. The City Clerk attested to legal notices published and mailed. Mrs. Donnelly questioned whether the possible construction of a new high school north of the elementary school site would affect her assessment and cause her property to be double assessed since the utility lines would be extended to serve that property. Keith Nelson indicated that if sewer and water were extended further north along Dodd Boulevard, there would be additional assessments to that improvement since Mrs. Donnelly owns a substantial amount of frontage adjacent to the road. 89.352 Motion was made by Sindt, seconded by Nelson to close the public hearing. Roll call was taken on the motion. Ayes, Zaun, Enright, Sindt, Harvey, Nelson. 89.353 Motion was made by Enright, seconded by Nelson to adopt Resolution No. 89-132 adopting the assessment for improvement project 89-5, Lakeville Elementary Addition. Roll call was taken on the motion. Ayes, Enright, Sindt, Harvey, Nelson, Zaun. 89.354 Motion was made by Sindt, seconded by Enright to adjourn the special council meeting. Roll call was taken on the motion. Ayes, unanimous. Time: 10:30 p.m. Respectfully submitted, Charlene Friedges, Acti City Clerk D ane Zaun, r 11