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Item ~_~.~' <br /> <br /> Howard R, Green Oompany <br /> <br />June 18, 2003 <br />File: 818860J-0564 <br /> <br />The Honorable Mayor and City Council <br />City of Elk River <br />13065 Orono Parkway <br />Elk River, MN 55330 <br /> <br />RE: BOSTON STREET/CONCORD STREET AREA ASSESSMENT <br /> <br />Dear Council Members: <br /> <br />As directed by the City Council at last week's meeting, I have discussed with Lori Johnson, Finance <br />Director, the vadous options that could be made available for the payment of the assessment by the <br />affected property owners in the Boston Street/Concord Street improvement area. Ms. Johnson was <br />very emphatic that assessments should not be spread beyond a 20-year period. Also, because <br />Sherbume County will treat each variation on the assessment payback as a unique and separate <br />assessment schedule, Ms. Johnson would like to keep the number of options to a bare minimum. <br />Therefore, we are proposing two options: The first is the option that was sent out to the affected <br />property owners with the notice of the Assessment Hearing; that is a 15-year constant principal <br />payment method. The second option would be a 20-year constant annual payment method. A copy <br />of each option is attached. <br /> <br />As can be seen by the two examples attached, the 15-year constant principal payment method starts <br />out with an annual payment of just under $2,200 and ends up with an annual payment of just over <br />$1,200 at the end of 15 years, for a total payment of principal and interest over that period of time of <br />$24,911.06. The 20-year constant annual payment method holds payments at approximately $1,450 <br />per year for 20 years, giving a total payment at the end of that period of principal and interest of <br />$28,938.89. <br /> <br />If these two options are acceptable to the City Council, we will send a letter to each of the 21 affected <br />property owners indicating they can have the option to change their assessment to a 20-year constant <br />annual payment method. If they do nothing, it will be recorded as the 15-year constant principal <br />method. In order to make the change, they will simply have call the Finance Department and request <br />the change. <br /> <br />If you have any questions regarding this issue, I will be in attendance at your June 23, 2003 City <br />Council meeting. <br /> <br />Sincerely, <br /> <br />Howard R. Green Company <br /> <br />Terry J. t,,~rer, P.E. <br /> <br />TJM:sw <br /> <br />Enclosures <br />Ltr-O61803-Council <br /> 1326 Energy Park Drive · St. Paul, MN 55108 · 651/644-4389 fax 651/644-9446 toll free 888/368-4389 <br /> <br /> <br />