81-38
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
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RESOLUTION
ESTABLISHING AVAILABILITY CHARGES FOR THE NORTH
AREA SEWER & WATER PROJECT 7l-l
Dated: October l3, 1981
Motion by Councilmember Geving
Resolution No. 8l-38
Seconded by Councilmember Swenson
WHEREAS, Subdivision 3 of Section 444.075 of Minnesota
Statutes authorizes the City of Chanhassen to impose just and equitable
charges for the availability of municipal waterworks systems and
municipal sewer systems, and
WHEREAS, such charges may be imposed for all premises abutting
on streets where municipal water mains or sewers are located, whether
or not connected thereto, and
WHEREAS, the City by various resolutions adopted heretofore,
authorized the construction of a municipal water works system and a
municipal sewer system, designated as the North Service Area Sewer and
Water Project 7l-l, and
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WHEREAS, the City, for the purpose of paying the cost of
building and constructing the Project 7l-l facilities, issued and sold
its general obligation bonds in accordance with Chapter 429, and
WHEREAS, the City Council of the City of Chanhassen, by its
resolution dated October l, 1973 adopted an assessment roll for said
Project 7l-l, whereby certain of said residential equivalent units were
assessed and others were not, and
WHEREAS, said 1973 assessment roll thus provided for
assessments sufficient to pay only a portion of the costs of said
Project 7l-l, and
WHEREAS, said resolution specifically declared the then
intent of the City to reimburse itself in the future for the unassessed
portion of the cost of said Project 7l-l by levying additional assessments,
and
WHEREAS, said October l, 1973, partial assessment was levied
on the basis of fiscal projections then before theCity Council
indicating that estimated connection charges to be collected from the
developers of anticipated future commercial and residential construction
would be sufficient to fully reimburse the City for the unassessed
portion of the cost of construction of said Project 7l-l, and meeting
its debt service obligation, and
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WHEREAS, in May of 1980, the City Council reviewed financial
projections which indicated that the sum of such connection charges
collected by the City between October l, 1973 and May of 1980 and
estimated future connection charge collections would be insufficient to
reimburse the City for the unassessed portion of the costs of said
Project 7l-l and insufficient to timely retire the various debt
instruments heretofore to finance said Project 7l-l, and
WHEREAS, the City Council, by its resolution dated May l2,
1980, adopted a new assessment roll for said Project 7l-l providing for
the collection of certain of those residential equivalent units which were
not assessed on October l, 1973, and
WHEREAS, timely appeals were filed pursuant to Section 429.08l,
as to thirteen parcels on said May l2, 1980 assessment roll, and
WHEREAS, the Carver County District Court by its Order dated
February 9, 1981, (City of Chanhassen vs. Joseph Massee and Marcia
Massee, et al File No. l6968~, vacated the Project 7l-l assessment adopted
on May l8, 1980 as to said thirteen parcels for which timely appeals
were filed, and
WHEREAS, the Court in its Memorandum appended to said
February 9, 1981, Order found that:
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II... there is no statutory authority for the City Council of
Chanhassen to unofficially subdivide properties (parcels)
into 'residential equivalent units' in order to assess some
portion of the total number of each property's 'units' and
defer assessments against the remainder of such 'units'
of a given property until a later date,1I and
WHEREAS, the Minnesota Supreme Court in Ariderson v City of
Bemidji, 295 NW2d 555, a case of first impression, decided July 3, 1980,
stated that municipalities do not have the authority under Chapter 429
of Minnesota Statutues to defer portions of assessments until 1ater
dates; only the entire assessment may be deferred, and
WHEREAS, the municipal attorney has advised the City Council
that the assessments adopted on October l, 1973, against the thirteen
parcels affected by the Court's order of February 9, 1981, may be
invalid because of the partial deferment policy which was implemented
by the October l, 1973 resolution adopting the project 7l-l assessment
roll, and
WHEREAS, Section 429.07l(2) of Minnesota Statutes authorizes
the re-assessment of parcels upon one or more of the following events:
a. a court of competent jurisdiction setting aside an
assessment, or
b. a finding by the City Council that an assessment is
excessive, or
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c.
a determination by the City Council on the advice of
the municipal attorney that the assessment or any
part thereof is or may be invalid, and
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WHEREAS, the City Council, pursuant to notice, conducted on
August 3l, 1981 a public hearing on the adoption of a proposed new
Project 7l-l assessment roll, which would have vacated the assessments
adopted on October l, 1973 and substituted new assessments, in the
amount of the special benefit which each affected parcel of land derives
from Project 7l-l, thereby terminating the deferments contained in the
October l, 1973 assessment roll, and
WHEREAS, the City Council, at various public meetings
conducted in 1981, has received testimony from affected property
owners, who stated that the termination of the deferments contained in
the October l, 1973 assessment roll would force the premature sale and
development of the parcels which would be affected by the proposed
1981 re-assessment of Project 7l-l, and
WHEREAS, the City Council has considered the comments and
objections of the affected property owners, and
WHEREAS, the most current information before the City
Council indicates that the total of the proceeds of the assessments
adopted on October 1, 1973, and the proceeds of the remaining assessments
adopted on May 12, 1980, and the connection charges collected heretofore,
or estimated to be collected in the future, will be insufficient to
pay the cost of establishing the Project 7l-l facilities, including
the principal and interest becoming due on the obligation issued for
Project 7l-l,
NOW, THEREFORE, BE IT RESOLVED, by the City Council of
the City of Chanhassen, Minnesota:
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A charge for the availability of water and for sewer service
is hereby established for all premises in the Project 7l-l
service area abutting on streets or other places where muni-
cipal water mains or sewer mains are located, whether or not
connected thereto.
2.
The amount of said availability charge on each parcel of
land shall be equal to the lesser of the following amounts:
A. the amount of the special benefit which each parcel
derives from the Project 7l-l facilities and similar
facilities which serve said parcel, less the
principal amount of any outstanding assessments which
have been imposed against each said parcel heretofore
in connection with Project 7l-l or similar projects
which serve said parcel, or
B. the amount of the Project 7l-l assessment which was
levied against said parcel by the Council in its
resolution of May l2, 1980, adopting the Project 7l-l
Re-Assessment Roll, said amount being identified on said
roll as the "total deferred" amount.
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The Council hereby declares that its purpose in establishing
the amount of the availability charge at the lesser of the
two amounts described above, is to afford equal treatment
to all parcels of land in the Project 7l-l service area.
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3.
The amount of such special benefit shall be determined by
the Council after considering the advice of the City Engineer
and such other qualified persons as the Council may select.
4 .
Any availability charge imposed pursuant to this resolution
shall become due and payable upon the occurence of any of
the following events:
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A. Any platting or replatting of the subject parcel of
land, or
B. Any subdividing of the subject parcel of land, or
C. Any commencement of construction of any dwelling
unit upon the subject parcel of land, or
D. Any sale or transfer of all or any part of the
subject parcel of land, excluding:
l. the creation of a mere lien against said subject
parcel of land, or
2. the creation of a purchase money security
interest for household goods, or
3. the transfer by devise, descent, or by
operation of law upon the death of a joint
tenant, or
4. the grant of a leasehold interest of three years
or less, not containing any option to purchase.
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5.
Any availability charges, imposed pursuant to this resolution,
together with seven percent (7%) simple interest thereon'
accruing from October l, 1973, shall be paid within ninety
(90) days of any of the events described in paragraph 4 of
this resolution.
6.
In the event that any availability charge imposed by
this resolution, together with accrued interest thereon,
is not fully paid within ninety (90) days of any of the
events described in paragraph 4 above, the City Treasurer
shall certify the amount of the unpaid availability charge,
together with accrued interest thereon, to the county auditor
for collection, in one lump sum, with the taxes against the
affected parcel of land as other taxes are collected.
7.
Prior to the occurrence of any of the events described in
paragraph 4 above, the owner of any affected parcel of land
may at any time pay the whole of any availability charge
imposed pursuant to this resolution with interest to the
date of payment, to the City Treasurer; and such owner may
make partial payments thereon; any such payments shall be
credited first to accrued interest and then to principal.
8.
Any availability charge, imposed pursuant to this resolution,
shall be a specific lien against a parcel of land effective
immediately upon the adoption of a further resolution of
the Council imposing such charges against specifically
designated parcels of land.
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9.
The City Clerk/Manager shall mail to each owner of any parcel
of land affected by any availability charge imposed pursuant
to this resolution, a notice specifying the amount payable
by such owner
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day of
Adopted by the Council of the City of Chanhassen this l3th
October , 19 8l
Attest:
. a Ck.~
City Clerk Manager
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Yes
No
Absent
Mayor Hamilton
Councllwoman Swenson
Councllman Horn
Councllman Gevlng
Councilman Neveaux
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