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/i <br /> Elk Request for Action <br /> Fiver <br /> To Item Number <br /> Mayor and City Council 10.1 <br /> Agenda Section Meeting Date Prepared by <br /> Work Session November 4, 2013 Cal Portner, City Administrator <br /> Item Description Reviewed by <br /> Houlton Property Trunk Utility Assessments <br /> Reviewed by <br /> Action Requested <br /> Discuss and provide staff direction regarding Houlton property trunk utility assessments. <br /> Background/Discussion <br /> In 1992, the city extended sewer interceptor and water/sewer trunk utility improvements west of <br /> downtown,which included the Houlton property (PID #s 75-005-1100, 75-004-1000, 75-133-4200). The <br /> city bonded to finance the project and paid interest for the balance of the outstanding principal. <br /> The total assessment for the property was $142,178.03. At that time,the Council deferred interest on the <br /> principal for three years for all undeveloped properties. The Houltons applied for and were granted a <br /> Green Acres Program deferment for the pending assessments. By law,when the property is sold or <br /> transferred,the assessment and principal are due. Due to the deferment,the assessments have accrued <br /> $204,601.34 in interest as of October 31, 2013, for a total due of$346,779.37. <br /> The Houltons have retained Mr.Jeff Dotseth of Jeff Dotseth and Associates Realty to market their <br /> property. Mr. Dotseth and the Houltons have come to an agreement in principal with The Conservation <br /> Fund for the purchase of the property. The Conservation Fund has submitted a grant request on behalf <br /> of the City of Elk River for the purchase of the property. <br /> The City Council has discussed and passed two resolutions supporting the efforts of the Conservation <br /> Fund on the city's behalf. The city has been assured by the Conservation Fund that the acquisition would <br /> not require a city contribution. The City Council has been informed that future capital and other <br /> improvements, maintenance and security/protection of the property will be the responsibility of the city. <br /> As required by the grant application,the property was appraised by an independent firm. The estimated <br /> market value assumes the seller will pay off the balance of the special assessments. The appraisal is not <br /> public information at this time;however,if the Council so choses, a closed meeting may be called to <br /> review the appraisal. <br /> It is anticipated that the Council will be asked to waive or pay all or part of the deferred special <br /> assessment. <br /> NW- UR <br />