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AGENDA RECOMMENDATION |
7.A.
City Council Regular Meeting
- Meeting Date:
- 01/27/2025
Agenda Item:
Resolution considering Final Assessments for Grace Lutheran Church Properties, related to Capital Improvement Project No. 10988, 4th Street.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
On February 13, 2023, the City Council held the required improvement hearing and a preliminary assessment hearing on the projects. At that hearing, there were no objections, the project was ordered, and the preliminary assessment roll was adopted. As has been our practice, the City conducted a second assessment hearing, known as the final assessment hearing on November 12, 2024. This hearing amended the amounts proposed to be assessed using the actual costs of the project. Property owners were mailed notice for this hearing on September 30, 2024.
The City Council held the final special assessment hearing on Monday, November 12, 2024. During this hearing, the City received an objection from Grace Lutheran Church, to the proposed assessments for the following parcels:
Parcel Number Property Owner
01.09.18.201.014 Grace Lutheran Church
01.09.18.201.015 Grace Lutheran Church
01.09.18.201.016 Grace Lutheran Church of Mkto
01.09.18.201.017 Grace Lutheran Church
01.09.18.201.018 Grace Lutheran Church
01.09.18.201.019 Grace Lutheran Church
01.09.18.201.020 Grace Lutheran Church Augustana
Grace Lutheran Church provided both written and oral testimony regarding their objection during the hearing. As a result of the hearing, the City Council adopted the proposed assessments for all of the parcels except for the excluded parcels owned by Grace Lutheran Church and listed above. The City Council continued the hearing on the parcels noted above to Monday, January 27, 2025 at 6:00 p.m. The meeting minutes from the November 12, 2024 meeting reflect the date and time of the continued hearing.
Minnesota Statutes require that “The assessment amount charged to the property cannot exceed the amount by which the property benefits from the improvement, as measured by the increase in the market value of the land due to the improvement. The assessment must be uniformly applied to the same class of property. A local improvement may benefit properties that are not abutting the improvement, and those benefited properties also may be assessed.” To further evaluate the City’s assessments, the City did contract with a certified appraiser to render an opinion of value regarding the objected assessments.
The appraiser has determined that the Special Benefit for the above-referenced parcels is $68,936. Staff has reviewed the report with the City Attorney and is recommending the City Council consider assessing the lesser amount between the Appraiser’s analysis or the amount previously shown in our assessment notices. As such, staff has developed the following table showing the amounts recommended by the Appraisers and the amounts generated by our policy. The third column is the Staff recommendation for the assessment.
The City Council held the final special assessment hearing on Monday, November 12, 2024. During this hearing, the City received an objection from Grace Lutheran Church, to the proposed assessments for the following parcels:
Parcel Number Property Owner
01.09.18.201.014 Grace Lutheran Church
01.09.18.201.015 Grace Lutheran Church
01.09.18.201.016 Grace Lutheran Church of Mkto
01.09.18.201.017 Grace Lutheran Church
01.09.18.201.018 Grace Lutheran Church
01.09.18.201.019 Grace Lutheran Church
01.09.18.201.020 Grace Lutheran Church Augustana
Grace Lutheran Church provided both written and oral testimony regarding their objection during the hearing. As a result of the hearing, the City Council adopted the proposed assessments for all of the parcels except for the excluded parcels owned by Grace Lutheran Church and listed above. The City Council continued the hearing on the parcels noted above to Monday, January 27, 2025 at 6:00 p.m. The meeting minutes from the November 12, 2024 meeting reflect the date and time of the continued hearing.
Minnesota Statutes require that “The assessment amount charged to the property cannot exceed the amount by which the property benefits from the improvement, as measured by the increase in the market value of the land due to the improvement. The assessment must be uniformly applied to the same class of property. A local improvement may benefit properties that are not abutting the improvement, and those benefited properties also may be assessed.” To further evaluate the City’s assessments, the City did contract with a certified appraiser to render an opinion of value regarding the objected assessments.
The appraiser has determined that the Special Benefit for the above-referenced parcels is $68,936. Staff has reviewed the report with the City Attorney and is recommending the City Council consider assessing the lesser amount between the Appraiser’s analysis or the amount previously shown in our assessment notices. As such, staff has developed the following table showing the amounts recommended by the Appraisers and the amounts generated by our policy. The third column is the Staff recommendation for the assessment.
| Parcel ID Number
|
Property Owner
|
Appraiser Special Benefit Opinion |
Prior Proposed Assessment
|
Recommended Assessment |
| 01.09.18.201.014 | Grace Lutheran Church | $4,236 | $8,706.28 | $4,236.00 |
| 01.09.18.201.015 | Grace Lutheran Church | $3,605 | $28,373.36 | $3,605.00 |
| 01.09.18.201.016 | Grace Lutheran Church of Mkto | $11,154 | $8,335.80 | $8,335.80 |
| 01.09.18.201.017 | Grace Lutheran Church | $8,366 | $6112.92 | $6,112.92 |
| 01.09.18.201.018 | Grace Lutheran Church | $8,366 | $6,112.92 | $6,112.92 |
| 01.09.18.201.019 | Grace Lutheran Church | $4,394 | $9,632.48 | $4,394.00 |
| 01.09.18.201.020 | Grace Lutheran Church Augustana | $28,815 | $14,819.20 | $14,819.20 |
| Total | $68,936.00 | $82,092.96 | $47,615.84 |