3.2. SR 09-06-1994 - Laserfiche WebLink

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. -~ IUJRiver To: Mayor and City Council From: John Dietz, Councilmember Re: Sandpiper Utility Extension Date: August 29,1994 1) RAFT The two options listed below are offered as possible compromise solutions to the Sandpiper Estates utility extension 1ssue. I ask the Council to consider these options this week before makmng a finaa decision on September 6th. Option 1 1) The City will forgive the $3800 per acre trunk fee for the 24 homes currently in Sandpiper Estates. Any new homes built in the future would have to pay this assessment. 2' The City will forgive the lateral storm sewer assessment for the 24 homes currently in Sandpiper Estates. Any new homes built in the nttture would have to pay this assessment. . 3) The interest rate for the assessment payback would be set at 6% with a choice of 5, 10, or 15 year payback periods. 4) Interest on the assessment would not begin to accrue until May 16, 1997. The first payment would be due on the October 15, 1997 property tax statement. 5) Owners of the 24 existing homes would not have to hook up to city sewer until the spring of 2001 (6 year period to hook up). 6) Assessments would be certified against the properties when the bonds are sold for the project. This option would cost the City about $140,000 for the balance of the Sandpiper assessments, about $75,000 for the two year interes.t deferral and an additional interest amount (depending on the bond rate) for the G% rate attached to the assessments. Some of teese costs would be recovered as assessments are paid on new development in the subdivision. . Option 2 1) Extend the tru~ line through the Sandpiper addition but do not extend laterals into the development. . 2) Council initiate action to rezone Sandpiper Estates RlB with a minimum lot size of one acre. No lot splits would be allowed unless lateral sewer and water is extended into the development. 720 Dodge Avenue N.W.; Elk River, Minnesota 55330 (612) 441-7420