10.3. SR 08-04-2014 - Laserfiche WebLink

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City of Elk=' Request for Action River To Item Number Mayor and City Council 10.3 Agenda Section Meeting Date Prepared by Work Session August 4, 2014 Cal Portner, City Administrator Item Description Reviewed by Houlton Farm Deferred Assessments Reviewed by Action Requested Discuss and provide direction regarding disposition of Houlton Farm deferred assessments. Background/Discussion The Trust For Public Land is in the process of acquiring the Houlton Farm property utilizing the proceeds from the Outdoor Heritage Council grant. The property will then be conveyed to the city. The property will undergo an updated appraisal to determine the purchase price. As of July 31, 2014, the property had deferred special assessments of$354,830.69. The appraisal will consider the pending assessments. Upon closing of the property,the deferred assessments will be paid by the sellers. The sellers have asked if the city would consider relief from the assessments similar to the proposal agreed to during the last grant process that did not come to fruition. The City Council at that time expressed consensus that the assessments and interest must be paid in full;however they would allow a reduction if the grant allowed for a continued farming lease to replace the reduced assessment payment. The current grant is more restrictive than the former and the land may not be farmed whole or in part as long as needed to offset deferred assessment amount previously considered. The family's representative has indicated they would sell the property and pay off the assessments provided the city would allow them to maintain a lease for the tillable portion for agricultural purposes until the planned prairie restoration commences. Further,the family understands that the city will be held harmless if the Lessard- Sams Heritage Council demands payment for land leases on publicly purchased property. Financial Impact There are no identified financial impacts to the city. Attachments • Draft Memorandum of Agreement • Deferred Special Assessments P a w E A E U s r NaA f RE]