11-25-1996 Council Minutes - Laserfiche WebLink

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MINUTES OF THE REGULAR ORONO CITY COUNCIL MEETING HELD ON NOVEMBER 25, 1996 CITY ADMINISTRATOR'S REPORT #8 LAFAYETTE RIDGE TAX FORFEIT PROPERTY • Gaffron 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. Outlot 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. Gaffron indicated there were three options available, and Staff is recommending the City assist the association in regaining the parcel. The options include: 1) Release the property for sale to adjacent landowners only, since it is unbuildable; 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 forfeiture based on an incorrect method of special assessment, i.e., assessment of an outlot rather than the benefited homestead lots. Another issue indicated by Gaffron for resolution is LRHA's request for waiving the street light assessments, of which 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 after accrued interest. Callahan asked what would have happened if the assessment was not against Outlot C. Gaffron said it would 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 charged to all abutting properties. Callahan inquired since the assessment is to the City and alien 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 the property. Callahan asked if there were any restrictions if the property were acquired. Moorse reported it would have to be for public use. Gaffron 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. is 12