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Memo Special Assessments 90-02 . .. . .J~ CITY OF HOPKINS MEMORANDUM DATE: May 7, 1991 TO: Honorable Mayor and CitY,council FROM: James Gessele, Engin~ering Superintendent J..1. /J. SUBJECT: -Special Assessment Appeals Project 90-02, Cambridge Street The following appeals to the above-referenced project have been received to date. A brief summary of the appeal and staff's recommendation are outlined in each case~ 1. Appeal Request: Attorney for Ember's Restaurant located at 1111 Cambridge Street requests revision of the assessment by reason that: "assessment. does not adhere to the provisions of Minn. Stat. 429..05lo The test of validity of special assessment is whether improvement for which assessment was levied has increased market value of property. The appellant in this case does not believe the statutory test has been met." Staff Recommendation: The assessment against this property is two-fold: assessment of front footage for street improvements and assessment of front footage for watermain installation. The appeal is not clear whether one or both segments of the assessment are being contested. In the case of watermain, Council ordered an improvement project in part because water service, e.g. water flows/fire protection, fell below acceptable standards. The suggested remediation was to install a 12" main in Cambridge with connections near Blake Road and again at Hiawatha Avenue, thus completing a looping system. Clearly, such a project benefits the abutting properties. In the case of street reconstruction, the City deemed the street to be in substandard condition based on its 1988 IMS street inventory and its mere physical condition. Assessments for street work have been based on the City's Roadway Improvement Policy 7-D and the cost split of 60-40 in force at that time. The policy of residents assumfng 60% of . . . ~ May 7, 1991 Page 2 JG/rr qtreet improvement costs was based partially on an opinion rendered by an appraiser that such cost sharing met the test of increased market values given the market street construction costs and the average size lots in the city of Hopkins. Staff recommends Council deny the appeal for revision of assessment by reason that the project has benefitted the property and that the City's adherence to its Roadway Improvement Policy meets the test of increased market value of property. . .' . NEW YORK OFFICE 210 DELAWARE AVENUE LAW OFFICES DANIEL J. BIERSDORF & ASSOCIATES, RA.' SUITE 425 100 LUMBER EXCHANGE BUILDING TEN SOUTH FIFTH STREET MINNEAPOLIS. MINNESOTA 55402 TELEPHONE (612) 339-1242 BUFFALO, NEWVORK 14202 TEl.EPHONE t716} .S2.6H50 ...' April29,1991 City Clerk Hopkins City Hall 1010 - Is".. Street South Hopkins, MN 55343 Dear Clerk: DB/gao RE: Assessment Appeal Project No. 90-02 Cambridge Street Improvement WISCONSIN OFFICE 250 EAST WISCONSIN AVENUE SUITE 1050 MILWAUKEE, WISCONSIN 53202-421 0 TELEPHONE (4114) 278.8558 , CERTIFffiD MAIL RETURN RECEIPT REQUESTED Enclosed for filing is the Assessment Hearing Appeal Form for the above-referenced matter, Sincerely, ~ Dan Biersdorf, , Enclosure cc: Henry Krista! C:\HOUR\DB\EMBR-LTR,CLK . ASSESSMENT HEARING APPEAL FORM PROJECT NO. 90-02 Address of Assessed Parcel 1111 Cambridge Street " What assessment does this concern Reconstruction of Cambridge Street N .E. Property Identification Number: 1 9 117 2 1 1 2 0 0 2 2 -- --- -- -- I 9 117 2 1 1 2 0 0 4 1 Do you wish to address the City Council at the hearing? (_) Yes (xx...X)No Please complete this form if you intend to appeal ,to the council to defer, revise or cancel your assessment. This form must be completed and filed with the City Clerk no later than the close of the City Council assessment hearing. Your request will become part of the public hearing record. I request that the City Council consider (check one): a . (-) *Deferral of assessment (retired by virtue of . permanent disability) b. (-) *Senior Citizen deferment (over 65 years of age) c. (-) Cancellation of assessment d. LX) Revision of assessment Reason for the request: Assessment does not adhere to the provisions of Minn.' Stat. S 429.051. The . test of validity of special, assessment. is whether improvement for. which ) assessment was levied has increased market value of property. The Appellant in this case does not believe the statutory test has been met. . * You will need to fill out a special form for deferral of assessment and provide the city verification of your income , or disability . Dan Biersdorf as Attorney for Embers, Inc. (print name) -f-~?- Cf'/ (date) . , 1664'University Avenue (address of property owner) \ ( ~(2 ) s:??-72. ',/2- telephone St. Paul, MN Zip 55104 . . . c T Y o F HOP K N S MEMO Date: May 7, 1991 To: Jim Gessele From: Jerre Miller Re: Assessment Appeal By Embers This is. in response to your letter concerning the assessment appeal by Embers Restaurant concerning the Cambridge Street project. The basis of the appeal contests the amount of the benefit to be equal to the assessment. M.S. 429.051 and cases cited thereunder establish the test of the validity of a special assessment is based on whether the improvement for which the assessment was levied has increased the market value property in at least the amount of the assessment. Continental Sales . & Equipment v. Town' of Stuntz, , (1977) 257 N.W.2d 546. It has been held that it is the benefit in increased market value to assessed property rather than the cost itself of the improvement that constitutes meeting the test of benefit~ Rodenbaugh v. Bay Port, 450 N.W.2d 608. It has been held that an assessment procedure which has been accomplished in legal fashion has benefited the assessed property. This presumption is rebuttable in nature and it is the burden of the party appealing from the assessment to overcome the presumption that the special assessment increased the value of the property by at least .the assessed amount. Preserve v. Eden Prairie, 421 N.W.2d 419. You have indicated the project consisted of installation of a watermain and reconstruction of a roadway which was in poor condition based on an IMS study performed in 1988~ 1010 First Street South, Hopkins, Minnesota 55343 612/935-8474 An Equal Opportunity Employer ...' r ~ . . . The benefit is then measured by the upgraded access and the ability to draw on City water rather .than private wells. Even if the Embers was served by City water, the City dan establish the poor water supply which would threaten existing properties in the event of a fire because the necessity to pump extraordinary amounts of water from the system would have exhausted it prior to the improvement. Based on all of the above, I believe the City should be able to establish the benefit and it may be appropriate to select an appraiser for this purpose experienced in determining and measuring benefit in assessable projects. JAM . .' . CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION NO. 91-58 ADOPTION OF THE ASSESSMENT ROLL PROJECT 90-02 WHEREAS, pursuant to proper notice duly given as required by law, the City Council has met and heard and passed upon all objections to the proposed assessment for the construction of street, curb and gutter, storm sewer and watermain, Cambridge Street, as described in the files of the city Clerk as Project 90-02, and has amended such proposed assessment as it deems just, ; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF HOPKINS, MINNESOTA: 1. Such proposed assessment, as amended, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessment shall be payable in equal annual installments extending over a period of 15 years, the first of the installments to be payable on or after the first Monday in January, 1992, and shall bear interest at the rate of 8 percent per annum from the date of the adoption of this assessment resolution. To the first installment shall be added interest on the entire assessment from May 7, 1991 until December 31, 1992. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 3. It is hereby declared to be the intention of the Council to reimburse itself in the future for the portion of the cost of this improvement paid for from municipal funds by levying additional assessments, on notice and hearing as provided for the assessments herein made, upon any properties abutting on the improvement but not made, upon any properties abutting on the improvement but not herein assessed for the improvement, when changed conditions relating to such properties make such assessment feasible. 4. To the extent that this improvement benefits nonabutting properties which may be served by the improvement when one or more later extensions or improvements are made, but which are not herein assessed, . . . . therefore, it is hereby declared to be the intention of the Council, as authorized by Minnesota statutes section 420.051, to reimburse the City by adding any portion of the cost so paid to the assessments levied for any of such later extension or improvements. 5. The clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to~be extended on the property tax lists of the County, and such assessments shall be collected and paid qver in the same manner as other municipal taxes. Adopted by the City Council of the city of Hopkins this 7th day of May, 1991. , BY ATTEST: James A. Genellie, City Clerk Nelson W. Berg, Mayor