05-09-2011 Council Packet - Laserfiche WebLink

Home Browse Search

MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. _____________________________________________________________________________________ Page 21 of 25 (11. APPEAL OF ASSESSMENT FOR UNPAID BLLS - CREEKSIDE IN ORONO, Continued) Mattick stated he understands the point that those costs were incurred before these parties purchased the lots but that the issues are, number one, that the request amounts to the City, in essence, absorbing that $5,300, which is an unbudgeted expense; and two, the property did benefit from those services, which helped get it to the point that it was at when it was purchased by the new buyers. Mattick stated he understands those costs were not spelled out at the time of purchase but that they were expenses that were incurred that helped to improve the property to the condition it was in at the time of purchase. McMillan asked how the purchaser would have known of these costs prior to purchase. Mattick stated the county would not necessarily show it and that it is hit and miss on pending assessments. When someone calls city hall, it is Staff’s hope it would be caught at that time, but at the time these gentlemen called, Staff did not realize these costs were out there. Mattick indicated he is not suggesting that the new owners did not do their due diligence, but that the decision is whether the City should pick up these cost or assess the owners. Johnson stated they purchased the lots at what they thought was a fair market price at the time and then were later told about the old charges. Gonya noted in Staff's report it talks about the fact that in April of 2009 these things were discussed. He purchased it in September of 2009, so the City was well aware of the costs at that time. Gonya indicated he is not sure who the title company talks to, but if the City would have said there was an outstanding amount and told them about it prior to purchase, that would have been the right way to do it. The title company did their work as they were supposed to and nobody said there was anything out there. Bremer asked if he is aware of the difference between an assessment and a non-assessment. Bremer noted this amount was not assessed at the time the title search was done. Gonya stated he does not understand the legal terms. Bremer commented the Council gets the point that these charges were not known at the time of purchase and that it is really a policy decision by the City Council on how this should be handled. Bremer stated everyone needs to be treated the same on this whether they are here tonight or at some point in the future and that she would like to know whether they have been paid already. Johnson indicated the other property owner is the Gustafsons and that he does not feel they have paid the assessed charges. There is also another property owner who purchased a lot from the bank who is not here tonight and is currently building a house. Gaffron noted the City would know the payment status by May 15 since that is when taxes are due. McMillan asked when the old costs were billed to the previous developer. Gaffron stated the City billed the previous developer periodically during the construction. Based on the fact that Orono is classified as a MS4 city, they have the obligation to the state and others to continue to do inspections on an open construction site, and so the costs were accruing as the development proceeded forward. Item #02 - CC Agenda - 05/09/2011 Approval of Council Minutes 04/25/2011 [Page 21 of 25]