10-14-1996 Council Packet - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION DATE: Octoberiflpi^d^ ITEM NO: ^ Department Approval: Name Ron Moorse Title City Administrator Administrator Reviewed:Agenda Section: Administrator’s Report Item Description: ^ Sewer Assessment on Tax Forfeit Parcel Background In 1980, the Minnetonka Bluffs sewer project was assessed such that, T a homeowner owned two or more contiguous parcels, the assessment was spread across the parcels rather than assessed only to the parcel containing the house. This has resulted in a situation in which a property owner who owned two contiguous parcels on Hanlon Avenue (please see the attached map) paid the portion of the assessment on the parcel with the house and let the other parcel go tax forfeit. The parcel with the house was then sold. The current ow ners are now trying to sell the house but would have better luck if they could add the tax forfeit parcel to their cuTent lot. The tax forfeit parcel could be purchased from the County for a minimum amount. However, the city normally requires all unpaid sewer assessments including interest and penalties to be re-levied if a tax forfeit parcel is purchased. In this case the principal amount of the assessment is $3,350.00. The interest and penalties have pushed the total assessment amount to over $6,000.00. The owner of the adjacent property has requested the city to re-levy only the principal amount of the assessment rather than the interest and penalties. The owner has also requested that the new buyer be allowed to pay the assessment amount over a five year period. Please see the attached letter. Staff Recommendation Although in the normal case the city would not waive the accrued interest, in this case the assessment procedure has created a unique and difficult situation which as been a significant obstacle to getting this parcel back into private ownership. Because of this, staff supports the request to levy only the principal amount of the assessment with the condition that the tax forfeit parcel be legally combined with the adjacent homestead parcel. Staff also supports the five year payment plan with an annual interest rate oil7c. COUNCIL ACTION REQUESTED: Motion to approve the re-levying of only the principal amount of the sewer assessment ($3,350) on Lot 24 adjacent to 500 Hanlon Avenue, to be paid in five equal installments of principal, plus interest at an annual rate of 7%, with the condition that the tax forfeit parcel be legally combined with the 500 Hanlon Avenue parcel.