12-09-1996 Council Packet - Laserfiche WebLink

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MINUTES OF THE REGULAR ORONO CITY COUNCIL MEETING II' LD ON NOVEMBER 25, 1996 CITY ADMINISTRATOR ’S REPORT (#8) LAFAYETTE RIDGE TAX FORFEIT PROPERTY Gafiron reported the Lafayette Ridge Homeowners Association is requesting the City release Outlot C to their association and waive the street light assessment made in 1990 Outlet C is a wetland parcel that was designated to remain in the ownership of the association as a density credit and as a benefit to five parcels The outlot went into tax forfeiture in 1994 as the developer never made the County aware of who should receive the property tax statements Because of the tax forfeiture, the association lost their right to redeem the parcel last year Gaftron indicated there were three options available, ana Staff is recommending the City assist the association in regaining the parcel. The options include: 1) Release the property for sale to adjacent landowtiers only, since it is unbuiidable, 2) activate the City's Housing and Redevelopment Authority and have the HRA purchase the property for sale to the LRHA, or 3) apply to the County for a cancellation of the forteiture based on an incorrect method of special assessment, i e., assessment of an outlot rather than the benefited homestead lots Another issue indicated by GalTron for resolution is LR^lA's request for waiving the street light assessments, of w hich no portions have ever been paid. The Council ’s options include 1) Deny the waiver and require payment of past due amounts as a condition of release of the property, 2 ) approve a partial waiver of the assessments, or 3) waive the entire assessment Callahan inquired about the amount of assessment Gaffron noted the principal amount to be about $2500 and $2800-$2900 atkr accrued interest Callahan asked w hat would have happened if the assessment was not against Outlot C Gaffron said it w ould have been spread over the five homestead parcels. Hurr noted that those five parcels do not abut Co Rd 15 Gaffron indicated the original assessment was $3.90 per front foot charge.' to all abutting properties Callahan inquired since the assessment is to the City and a lien is on the property, how' is it the County or State benefits by acquiring the property instead of the City since it is the City's debt. Moorse explained that once the property goes tax forfeit, it becomes State property and the City gains the right to acquire it if the City decides it needs th.' property. Callahan asked if there were any restrictions if the property were acquired Moorse eported it would have to be for public use GafIVon said the City has not had any intention to acquire it Callahan noted the Council has not studied it He questioned the County rule regarding the option of going through the HRA 12