11-21-1983 CC MIN - Laserfiche WebLink

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Page Six City Council Minutes November 21, 1983 be deferred until development occurs, or, for a maximum of 3 years from the date the assessment was levied, and further indicated that the deferred assessment would be at 8 percent interest. The City Administrator indicated that the street construction cost of the roadway was $125,400 with overhead costs at $28,450 for a total assessable cost to the Planned Unit Development of $153,850. Mayor Hinkle opened the public hearing. Mr. Cliff Lundberg questioned the 8 percent interest for the deferred assessment. The City Administrator indicated that as the City does not have to payiuterest for the money used to construct the roadway, the City does not have an interest expense, and therefore, the City is governed by State Statute which allows up to eight percent interest to be charged. Mr. Gary Santwire expressed his opposition to the deferment of the assessment and the interest rate. Mr. Santwire indicated that the City could invest that money used for the road project at a higher rate of interest. Discussion was carried on regarding the construction of the roadway in the Planned Unit Development, the contribution to the storm sewer costs by MSA funds, and the deferment of the assessments in the Planned Unit Development. The City Administra- tor indicated that the City Council agreed to defer the assessments, as the developer was not ready for the project and yet it made sense to construct the road because of the MSA funds provided. Councilmember Gunkel indicated that she was not in favor of the deferment of the assessments or the construction of the street in the Planned Unit Development area as the developer was not ready for development of the property. Councilmember Duitsman indicated that he felt the storm sewer project should be com- pleted and the deferment of the assessments would help the developer and therefore would ultimately be of benefit to the whole City. Mayor Hinkle indicated that the storm drainage has been a problem facing the City for a long time and further indicated that the MSA funds had accumulated for use by the City of Elk River and that it was pointed out to the City that they must use those funds or they would lose allocated MSA funds in future years. Mayor Hinkle indicated that the City Council then designated specific MSA roads in the City of Elk River. Mayor Hinkle further indicated that at that time, the City Council also had to address the storm drainage problem. Mayor Hinkle indicated that he felt the use of MSA funds for Gates Avenue and the storm sewer drainage project was in the best interest of the City and because the developer was not ready for development in the Planned Unit Development, he also felt it was in the best in- terest of the City to allow the deferment of the assessments in the Planned Unit Development for 3 years or when development begins. Discussion was also carried on regarding the road width and design criteria by the State. Mayor Hinkle closed the public hearing.