Laserfiche WebLink
MINUTES OF THE <br />ORONO CITY COUNCIL MEETING <br />Monday, April 25, 2011 <br />7:00 o'clock p.m. <br />_____________________________________________________________________________________ <br /> <br /> Page 23 of 25 <br /> <br />(11. APPEAL OF ASSESSMENT FOR UNPAID BLLS - CREEKSIDE IN ORONO, Continued) <br /> <br />Mattick noted the City was sending invoices out to the entities that controlled the real estate and it was <br />not a pending assessment at the time they purchased the property. Staff had not brought these bills to the <br />Council to certify at that point. <br /> <br />Franchot commented realistically there was not a pending assessment but the bills were still there, and if <br />Staff had said that there were some outstanding bills, it would be a different matter. <br /> <br />Gaffron noted Staff did regularly send bills out to the developer and that Staff did send a letter to the <br />various entities notifying them of these outstanding charges. <br /> <br />Johnson stated after they purchased the lots and they had the meeting, Mr. Gaffron did send them some <br />information on the costs. Johnson indicated they proceeded to go about their business of getting the <br />development done and it was towards the end of the construction that they sorted through the bills and <br />then questioned why they should have to pay these old costs. <br /> <br />Gaffron stated in his opinion the City should not have to pay those costs and that the development <br />agreement suggests that the new developer is obligated. <br /> <br />Johnson stated he is not a developer and that he did not have a development agreement with the City. <br /> <br />Mattick noted the development agreement is a recorded document that runs with the land and is the <br />document that allows the property to be developed. The new owners did their due diligence to find out <br />what pending assessments there might be on the property. At the same time the City was sending out <br />notices to the people who controlled the land. Mattick indicated he has no doubt that the new owners did <br />not know about these charges and that it comes down to whether the City or the builders or the property <br />owners should pay for it. <br /> <br />Franchot commented it does not sound like there is a precedent issue here. <br /> <br />Bremer asked why they did not appear before the Council last fall when these assessments were certified. <br />She added that clearly the property owners would have received notice of the assessment. <br /> <br />Johnson stated he did receive the letter from the City and that he figured he would speak with the County <br />about the old costs and pay the current costs. Johnson indicated he did not realize that Hennepin County <br />would refer him back to the City. <br /> <br />Bremer noted Orono is an assessing authority as well as the county. <br /> <br />Johnson stated at the time he received the notice he already knew he was not going to pay the full <br />assessment because he was in disagreement with it and that he had asked Mike Gaffron to send him out a <br />separate invoice with the house expenses listed and another invoice with the development costs. Johnson <br />stated it was his intention to have the development costs split between the lots. Johnson noted he still has <br />not received that invoice. <br /> <br />Bremer asked if they feel the assessed amount is the wrong amount. <br /> <br /> <br />Item #02 - CC Agenda - 05/09/2011 <br />Approval of Council Minutes 04/25/2011 <br />[Page 23 of 25]