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7. Request to delete Interest Charges on a Deferred Assessment, 4001 Aster Trail Henry Gess/Opal Schram CITY OF R CHANHASSEN i 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 ' (612) 937-1900 • FAX (612) 937-5739 iMEMORANDUM TO: Don Ashworth, City Manager FROM: Gary Warren, City Engineer ''"` }- DATE: November 30 , 1989 iSUBJ: Henry Gess Deferred Assessment Review Pleasant Acres 2nd Addition iProject No. 73-1 I have been asked at the last minute to review the file con- cerning the assessments against the Gess property located at 4001 Aster Trail in Chanhassen. At the time of the adoption of the assessment roll in 1973, the property was in the ownership of Warren R. Schram. As noted in the attached assessment hearing minutes from October 1 , 1973 and the City Council action, the assessment against the property of $3,551. 00 was deferred on the appeal of Mrs . Opal Schram who had stated her home was 250 feet ' away from the sewer lateral line. A review of our as-built drawings and scaling indicates that the property is closer to 190 feet away from the City ' s sewer and water utilities which lie across the creek from the building. The City ' s connection ordi- nance, Section 19-42 requires that if a property is within 150 feet of City utilities that they would be required to connect. This, therefore, I presume was the basis for the deferrment in that the property is beyond 150 feet. The property is bordered on the north by railroad tracks which i would provide a natural barrier to utility service from the north. Since the City ' s utilities are in relatively close proxi- mity to this property lying along the southerly border, there is i little question in my mind that the utility service constructed as a part of the Pleasant Acres 2nd Addition Project No. 73-1 would provide the ultimate utility service to this property and therefore is deriving benefit from this construction. It is therefore my opinion that the $3,551.00 original assessment was appropriate and similarly the deferment was appropriate. The question appears to center more around the City' s policy of i applying interest to deferred levied assessments. In this case, as noted in the attached resolution, item 3, the assessments were to accrue at a 7% interest rate. There are similar other ' instances where deferred assessments have been granted in the City although our current policies based on advice of our finan- cial auditors is to avoid deferments. I A Don Ashworth November 30 , 1989 Page 2 The assessment has accrued interest charges as noted in the November 9 , 1989 memorandum from Dave Hempel to a value of $7 ,590 . 68 of which $4 ,039. 68 is now interest. It appears from the review of previous sewer and water assessments in the City, as noted in Mr. Hempel 's memo, that the current assessment against ' the Gess property is comparable to recent assessments which the City is encountering if the utilities were constructed today and assessed today. I therefore do not see any disparity in the 7% interest which has accrued. In checking with the City Treasurer , the bond issue which funded this project has been paid off and therefore the City is not in any financial difficulty as it rela- tes to this assessment. However, from a consistancy standpoint, ' i .e. other deferred assessments do exist similar to this one, it is the opinion of this office that the assessment should stand as levied. It is my belief that the area ultimately, if subdivided, will obtain service from the sanitary sewer and watermain installed under Project No. 73-1 and thereby receive benefit as levied. ' Attachments ' 1 . October 1, 1973 Assessment Hearing minutes. 2 . October 1, 1973 Vilage Council minutes. 3 . Letter from Opal Schram received November 27 , 1989 . 4 . Statement concerning the sewer assessment at 4001 Aster Trail ' in Chanhassen. 5 . Staff memorandum from Dave Hempel dated November 9 , 1987 with attachments . ' 6 . June 1, 1989 letter from the City Manager. 7 . May 24 , 1989 letter from Henry Gess. c: Ms . Opal Schram Ms. Cindy Gess-Thompson 1 1 I f PLEASANT ACRES SECOND ADDITION PROJECT 73-1 ASSESSMENT HEARING OCTOBER 1, 1973, at 7:30 p.m. ') The hearing was called to order by Mayor Klingelhutz. The following members were present: Mayor Klingelhutz, Councilman Neils, Councilman Wolf, Councilman Bennyhoff, and Councilman Kurvers. The following II interested persons were present: Roy Heller, James Hardy, and Opal Schramm. . The notice of assessment hearing as published in the official Village IInewspaper was read by Lloyd Schnelle. Bill Brezinsky gave the project and assessment roll presentation. Mrs. Opal Schramm stated her home is 250 feet from a lateral sewer line. The Engineer suggested her lateral assessment be deferred ILuntil the land is developed. A motion was made by Councilman Wolf and seconded by Councilman Bennyhoff to adjourn the assessment hearing. The following voted II in favor thereof : Mayor Klingelhutz , Councilman Neils, Councilman Wolf, Councilman Bennyhoff, and Councilman Kurvers. No negative votes., Motion ca . Mee ing adjourned at 8:00 p.m. 1 All41 ■ ._ / Jean Meuwissen 1111 ,?�u�— Secretary i 1 CHANHASSEN VILLAGE COUNCIL MINUTES - OCTOBER 1, 1973 The regular Chanhassen Village Council meeting was called to order at I 8:00 p.m. on October 1, 1973, by Mayor Al Klingelhutz and was opened with the Pledge to the Flag. The following members were present: Mayor Klingelhutz, Councilmen Bennyhoff, Kurvers, Neils, and Wolf. I MINUTES : A motion was made by Councilman Kurvers and seconded by Councilman Wolf to approve the September 24, 1973, Council minutes. The following voted in favor thereof: Mayor Klingelhutz, Councilmen I Bennyhoff, Kurvers, Neils, and Wolf. No negative votes. Motion carried. I A motion was made by Councilman Wolf and seconded by Councilman Neils to approve the September 26, 1973, Council minutes. The following voted in favor thereof: Mayor Klingelhutz, Councilmen Wolf, Neils, Bennyhoff, and Kurvers. No negative votes. Motion carried. IIA motion was made by Councilman Neils and seconded by Councilman Bennyhoff to note the North Area Sewer and Water Assessment Hearing II minutes of September 18, 1973. The following voted in favor thereof: Mayor Klingelhutz, Councilmen Wolf, Neils, Bennyhoff, and Kurvers. No negative votes. Motion carried. IIA motion was made by Councilman Neils and seconded by Councilman Bennyhoff to note the Red Cedar Point Street Vacation Public:-Heerring IIminutes of September 17, 1973. The following voted in favor thereof: t � _5:- r sx Village Council Minutes, October 1, 1973 ,. II I HENNEPIN COUNTY WELL - CHRISTMAS LAKE: Bill Schoell gave a report. IHe feels the well i � - �rth rehabilitating. The report on the Hennepin (^•- Village Engineer was noted by the Council. IILAZY C �! � vas made by Councilman Wolf and seconded yy ount ���1p� :ertify delinquent sewer charges in the amount c my Auditor for collection on taxes. 1 The foil thereof: Mayor Klingelhutz, Councilmen Neils, B Id Wolf. No negative votes. Motion carried. 1 MINNETONR_. ur;VELOPMENT GUIDE PLAN: The Attorney presented a resolution on this guide plan. IIA motion was made by Councilman Wolf and seconded by Councilman Neils to adopt the resolution regarding the Minnetonka Development Guide. The following voted in favor thereof: Mayor Klingelhutz, Councilmen I Neils, Kurvers, Wolf, and Bennyhoff. No negative votes. Motion carried. .5 60 60 (700 V -; II ,r PLEASANT ACRES SECOND ADDITION: A motion was made by Councilman Wolf and seconded by Councilman Neils to adopt the proposed assessment roll of sewer and water project 73-1 as amended. Said amendment relating to deference of the assessment of $3 ,551.00 against the X 1 ( Warren R. Schramm property until such time as the property is developed. The following voted in favor thereof : Mayor Klingelhutz, Councilmen Kurvers, Neils, Wolf, and Bennyhoff. No negative votes. Motion carried. NORTH SEWER AREA ASSESSMENT ROLL, PROJECT 71-1: Bill Brezinsky presented I a report of amendments to the assessment roll dated October 1, 1973. This is a supplement to preceeding reports. A motion was made by Councilman Neils and seconded by Councilman I Wolf to approve the North Area Sewer and Water Assessment Roll for Project 71-1 as amended by adoption of a resolution. The following voted in favor thereof : Mayor Klingelhutz, Councilmen Bennyhoff, Neils, Wolf, and Kurvers. No negative votes. Motion carried. A motion was made by Councilman Bennyhoff and seconded by Councilman I Neils to adjourn the meeting. The following voted in favor thereof : Mayor Klingelhutz, Councilmen Kurvers, Wolf, Neils, and Bennyhoff. No negative votes. Motion carried. I / i / TIME: 12:45 a.m.401 - J Jean Meuwissen I /�(' L. ` ')----- Secretary i' 6?(- . I I VILLAGE OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA RESOLUTION Date October 1, 1973 Resolution No. 101732 Motion by Councilman iVO1t Seconded by Councilman Neils ADOPTING NORTH AREA SEWER & WATER PROJECT 73-1 ASSESSMENT ROTJ. BE IT RESOLVED by the Village Council of Chanhassen, Minnesota, as follows: 1. The amount proper and P necessary to be specially assessed at this time for NORTH AREA SEWER & WATER PROTECT 73-1 against every assessable lot, ' piece or parcel of land affected thereby has been duly calculated upon the basis of' benefits , without regard to cash valuation, in accordance with the provisions of Minnesota Statutes, Chapter 429 , and notice has been duly published and mailed as required by law, that this Council would meet to hear, consider, and pass upon all objections , if any, and said proposed assessment has at all times since its filing been open for public inspection, and an opportunity has been given to all interested persons to present their objections, if any, to such proposed assessments, and said proposed assessment has been amended as to certain parcels of land as to the Council seems just. 2. This Council, having heard and considered all objections so presented, and being fully advised in the premises, finds that each of the lots, pieces and parcels of land enumerated in the proposed assessment as so amended was and is specially benefited by the construction of said improvement in not less than the ' I amount of the assessment set opposite the description of each such lot, piece parcel of land, and such amount so set out is hereby levied against eachof the and respective lots, pieces and parcels of land therein described. ' 3. The assessment against each parcel, together with interest at the rate 7 % per annum accruing on the full amount thereof from time to time unpaid, shall I be a lien concurrent with general taxes upon such parcel and all thereof. The total amount of each such assessment shall be payable in equal annual principal install- ments extending over a period of 15 years, the first of said installments,together I with interest on the entire assessment from the date hereof to December 31, 1973 to be collectible with general taxes in the year 1974 , and one of each of the remaining installments, together with one year's interest on that and all other unpaid I installments , to be payable with general taxes in each consecutive year thereafter until the entire assessment is paid. • I 4. It is hereby declared to be the intention of the council to reimburse itself in the future for the portion of the cost of this improvement paid for from municipal funds by levying additional assessments, on notice and hearing as pro- vided for the assessments herein made, upon any properties abutting on they improve- ment but not herein assessed for the improvement when changed conditions relating to such properties make such assessment feasible. I 5. To the extent that this improvement benefits non-abutting properties which may be served by the improvement when one or more later extensions or improvements are made, but which are not herein assessed therefor, it is hereby declared to be the intention of the council, as authorized by Minnesota Statutes Section 429.051 , to reimburse the village by adding the portion of the costs so paid to the assessments levied for any such later extensions or improvements. ' 6. Prior to certification of the first installment of the assessment to the County Auditor, the owner of any lot, piece or parcel of land assessed hereby may at any time pay the whole of such assessment with interest to the date of payment, to the Village Treasurer, or he may make partial payments pursuant to the ordinance ' providing therefor, but no interest shall be charged if such whole or partial payment is made within 30 days after the date of this resolution; and he may thereafter pay to the county treasurer the installment and interest in process of collection on the 1 then current tax list, and he may pay the remaining principal balance of the assess- ment to the Village Treasurer. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. 7. The Village Clerk-Administrator shall file the assessment rolls pertain- ing to this assessment in his office and shall certify annually to the county auditor on or before October 10 of each year the total amount of installments and interest which are to become due in the following year on the assessment on each parcel of land included in the assessment roll. 1 8. The Village Clerk-Administrator shall also mail to each owner of a right of way or public property included in the assessment roll a notice specifying the amount payable by such owner as required by Minnesota Statutes , Section 429. 061 , Subdivision 4. ' Adopted by the Council of the Village of Chanhassen this 1st day of October , 19/_. ATTEST: or/ MAYOR ' Is! Adolph Tessness . , VILLAGE CLERK-ADMINISTRATOR 1 I I 1 ' 777 Excelsior Blvd Excelsior, Mn. 55331 Nov. 20, 1989 Mr. Don Ashworth, Administrator City of Chanhassen Dear Mr. Ashworth: I was unable to reach you on Friday or Monday before the Nov. 4th Council Meeting, but I did talk with Karen and was told the matter of the sewer assessment for the property at 4001 Aster ' Trail was not on the agenda for that meeting. She also said she felt sure it could be on for the next meeting on Dec . 4th. Since I assume you will be presenting the matter, I thought it might be helpful for you to review our version of the situation. So I am sending it along with this note. Mr. Gess will not be at the meeting, but his daughter, Cindy and I plan to be present. Thank you for your efforts on our behalf. Sincerely yours, of,4 Opal M Schram 1 1 I CITY NOF OV 2 7 1989 CHArvl;ySjEN I CONCERNING THE SEWER ASSESSMENT AT 4001 ASTER TRAIL :- I/ CHANHASSEN On Oct. 31, 1989, Opal Schram, Henry Gess and Cindy Gess-Thompson were to City of Chanhassen Administrative Offices to confer with Mr. Don Ashworth regarding an assessment against the property at 4001 Aster Trail in the Lake Minnewashta area. (The location of the property is 3A. in NE* of NE* S. of R.R. in Chanhassen #2, 3 acres) . This property was own- ed by Warren and Opal Schram when the sewer and water project was imple- mented in the early '70's, and was sold to Henry Gess in 1984. At the meeting with Mr. Ashworth we were shown minutes of a 1973 Chanhassen Council meeting showing that the property was assessed $3,551 for one hook-up on the East side of the creek which would be due when there was development there requiring the use of the facility. The house IIwas some distance from this point and was not required to use this sewer Iand water. The minutes said nothing about interest being added to the original assessment and no notice was ever sent to the Schrams or the Gess family. In 1988, Henry Gess was considering selling the 'property to his daughter, Cindy, and her family. They sought to obtain a mortgage and were told there was a sewer assessment against the property, which plus 7% interest, amounted to more than $7,000. Neither the Schrams nor the 1 Gess family had ever been informed or billed for this increasing debt. The purpose in bringing this before the Council is to request an 1 adjustment of this matter. 1 1 1 r II - ..,-----I it.,f CITY of .,_ _ .p, T. . , ":, , r f;-. - f-- CHANHASSEN i ,..: , ,,_ 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937-1900 • FAX(612) 937-5739 rMEMORANDUM TO: Don Ashworth, City Manager rFROM: Dave Hempel, Sr. Engineering Technician DATE: November 9 , 1989 rSUBJ: Henry Gess Deferred Assessments Pleasant Acres 2nd Addition IIProject No. 73-1 The following is a cost comparison of previous sanitary sewer and r water service assessments, connection charge and Mr. Gess 's deferred assessment. rI. Previous Sanitary Sewer and Water Assessments Year Total IProject Constructed Assessed Colonial Grove 2nd Addition 1980 $ 6,000 .00 rNorth Lotus Lake 1987 9,040 .00 rSouth Lotus Lake 1975 7 ,400 .00 Pheasant Hill 1984 7 ,500 .00 IIII. Typical Connection Charge 1989 $• 7 ,014 . 00 r III. Mr. Gess ' s Deferred Assessment 1989 $ 7 ,590 .68 rMr. Gess ' s deferred assessment breaks down as follows: 1973 Original Assessment Amount $ 3,551.00 IIPlus Interest through 1989 at 7% 4 ,039 .68 IITOTAL $ 7 ,590 . 68 r /I Don Ashworth November 9, 1989 Page 2 The connection charge is adjusted annually by 4%. If Mr. Gess ' s assessment was collected as a connection charge, the difference would be approximately 3% less annually. Attachments 1. Location map. 2. City Council minutes dated October 1, 1973 3. Letter to Henry Gess dated June 9 , 1989 . c: Gary Warren, City Engineer 1 I I r 1 • 1 1 1 1 1 1 1 I SE. corner oN' IL__:_r_of Sec 31 I O• •.. r ..! i 682 88Res� ,p- in 5 w I cc W m cc i W 7 Ya Q _O S a r /� N --J„,- x 6 G r W w a1O p. 6x � - i ,t, , 1 d0 b / �P �'e / - Cg� - 8 ' ,\t‘:01 . ; \ /G PO O pv, 4 NI • f/EN2y ., GE S s 12170/126(77 ARREN _ _ BK 59 38 9 so / I ' /). -/ . I UGHLIN I I Qt / • ti Q i Q` / V , tv i / / ill/ i 7 / LESTER ' . ANDERSON CIF 0 3874 J / J ill // pQQ el 1 / i 1 / ���� 6 / ' S ,, I 4 - 42.1? I::// i - ' * Village Council Minutes, October 1, 1973 -5- n II HENNEPIN COUNTY WELL - CHRISTMAS LAKE: Bill Schoell gave a report. i He feels the well is - ,rth rehabilitating. The report on the Hennepin r^• , Village Engineer was noted by the Council. I a LAZY C 8 was made by Councilman Wolf and seconded by Count a1)'6?� :ertify delinquent sewer charges in the II amount c �7 my Auditor for collection on taxes. The foil thereof: Mayor Klingelhutz, Councilmen Neils, B id Wolf. No negative votes. Motion carried. IIMINNETONK_. ur;VELOPMENT GUIDE PLAN: The Attorney presented a resolution on this guide plan. ,' A motion was made by Councilman Wolf and seconded by Councilman Neils to adopt the resolution regarding the Minnetonka Development Guide. II The following voted in favor thereof: Mayor Klingelhutz, Councilmen Neils, Kurvers, Wolf, and Bennyhoff. No negative votes. Motion carried.025-- Oo&D y0O - y 11 PLEASANT ACRES SECOND ADDITION: A motion was made by Councilman Wolf and seconded by Councilman Neils to adopt the proposed assessment roll of sewer and water project 73-1 as amended. Said amendment II relating to deference of the assessment of $3 ,551.00 against the Warren R. Schramm property until such time as the property is developed. The following voted in favor thereof: Mayor Klingelhutz, a Councilmen Kurvers, Neils, Wolf, and Bennyhoff. No negative votes. Motion carried. NORTH SEWER AREA ASSESSMENT ROLL, PROJECT 71-1 : Bill Brezinsky presented I a report of amendments to the assessment roll dated October 1, 1973. This is a supplement to preceeding reports. IA motion was made by Councilman Neils and seconded by Councilman Wolf to approve the North Area Sewer and Water Assessment Roll for Project 71-1 as amended by adoption of a resolution. The following I voted in favor thereof : Mayor Klingelhutz, Councilmen Bennyhoff, Neils, Wolf, and Kurvers. No negative votes. Motion carried. A motion was made by Councilman Bennyhoff and seconded by Councilman I Neils to adjourn the meeting. The following voted in favor thereof : Mayor Klingelhutz, Councilmen Kurvers, Wolf , Neils, and Bennyhoff. No negative votes. Motion carried. I � / / if 12:45 a.m. , Jean Meuwissen �,', ,E�(' mot- �'��- Secretary 11 I- II II ` 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937-1900 R 1 June 9, 1989 II Mr. Henry Gess II 4001 Aster Trail Excelsior, MN 55331 Re: Deferred Assessments II Pleasant Acres 2nd Addition File No. 73-1 IIDear Mr. Gess: I am writing to you in response to your letter requesting the II City Council to review and delete the deferred assessments on your property. After review of the project file I find the sani- tary sewer and water assessment roll was adopted at the October 1, 1973 Council meeting. At that time, the Council amended the II assessment roll to defer the assessment against your parcel until such time as the property is developed. According to state sta- tutes, property owners have 20 days after the assessment roll is II adopted to file an appeal objecting to their assessments. Records indicate no such appeals were filed; therefore, the City has no reason to review or delete the assessments deferred IIagainst your property. Records also indicate that sanitary sewer and water runs directly through your property; therefore, you do receive direct benefit Ialthough you are not currently hooked up to these utilities. As I mentioned earlier, your assessment is deferred until such II time as your property is developed. At that time, the assessments will be levied to the County to be listed on the tax rolls. During the deferral period, assessments are accruing at a rate of 7% annually. For your convenience I have attached a copy I of the City Council minutes relating to the adoption of the assessment roll. t . II II II • CITY oF 1. A cHANHAssEN ' 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937-1900 1 1 June 1, 1989 Mr. Henry Gess 4001 Aster Trail Excelsior, MN 55331 ' Dear Mr. Gess : - Thank you for your letter of May 24, 1989. Such has been referred to our Engineering Department. I would antici_ate that Dan Reamer or Dave Hempel will be contacting you in the near future. To properly respond to your request, the City Council will need more information than that shown in your letter, i.e. date property was assessed, reason for requesting recon- '-- sideration, etc. Again, Mr. Hempel or Mr. Reamer should be con- tacting you in the near future to obtain this information. After completion of their report, the item will be scheduled on the next regular agenda. I would anticipate that the item will appear on the agenda of June 26, 1989, 7:30 p.m. , City Council Chambers, City Hall. Should you not hear from Mr. Hempel/Mr. Reamer in the near future, I would request that you recontact me. I. Sincerely, Don Ashworth City Manager DA:v I I I .. _._ .._.. ... 0 J � , R r . • I maz7 � /Pry 1 1 6,11 .4.sL 4.:)c 7L , L417 in ''''`I Cc I0.1 01 e_1,6,1,..kS4e:r: O'ot & 1'(€ r c A cL h kc,s se r. , 53-3 i 7 1 r-D ' t_:, YYiz. I wor & I I :1-1:: C4..)0 LA--/ci / .) -7Ln r()4? ckesi-- +I.e._ 0_ Uc t_dl Lc / / 0 r€. iii r e (..) +1- . c-v QC C-LsSes,"K Qtr- 1 0.----...41 1 4--' rr�, + Po r pr Up 4.. (-4-7 �T /716O -4 -Ice -7-;-4-,: ( . 1 Lk?0 l 1 U J, k e_ -I-0 Ii.c�� c 1 t. s d.2-. k-I-‘z_c 0 I jt 7 I' 1 &S E ,Q0-1-)--�Zy, fl I as E Gkik E'. ix I-4 S - - ! - t . Lam : ( 1 0- pea t- c :v 0 Li,i -QrK1 c--.. 0 611° � -c 9 (L`. 1,0._vc G v.y , I.c.(1-_,s A brIS- �J/‘'cc. sE- C ,IN.-�-t-�-�- ►ti�.E c,`--f 41'7 V- X117 i(P\ . . - 1 - 5, iL CLr' C C- ,t-kg --e-fP . I , 4/, -,', ,,72,6 / C — - /�� �� \ r4- I1, J v,,,,,-4 8'7. G6-- 'L 7 e x 0 as io;, i j lti 5 5 .3.3. ,. I MAY 2 6 1989 ICITY OF CHANHASSE:N