HomeMy WebLinkAboutA077 - Council Action Form dated September 13, 2016 ITEM # Addt'I. Item
DATE: 09-13-16
COUNCIL ACTION FORM
SUBJECT: RELEASE OF ASSESSMENT AND UTILITY CONNECTION FEE
OBLIGATION FOR LOTS 12, 13, 15, AND 16 IN EASTGATE
SUBDIVISION
BACKGROUND:
Lots 12, 13, 15, and 16 in Eastgate Subdivision were recently sold for development. In
1998, the original Eastgate developer signed a Development Agreement promising
payment for improvements to roads and utilities in the Subdivision. In 2000, the
development became the subject of a bankruptcy proceeding; and in 2001, the City
entered into a Covenant that modified the owner's public infrastructure obligations. The
property was ultimately acquired by First National Bank through the bankruptcy
proceeding.
The Covenant requires payment to the City for the estimated costs of widening Dayton
Avenue for a turn lane and for connections to water and sewer service. This payment is
to be made upon the sale or transfer of each lot. The covenant prorates the amount
owed for each lot on the basis of the lot's land area. In 2005, First National Bank paid
the outstanding utility tapping fees owed on the lots, leaving only the road widening
assessment outstanding.
Per the schedule of fees owed to the City, $13,860 was owed for Lot 12; $13,860 was
owed for Lot 13; $6,930 was owed for Lot 15; and $6,930 was owed for Lot 16. These
amounts have now been paid to the City of Ames, and Releases are necessary so that
the purchasers of the lots can close on the real estate transactions for the properties.
ALTERNATIVES:
1. Accept payment as above-noted and authorize the Releases of Assessment and
Utility Connection Fee Obligation for Lots 12, 13, 15, and 16 in Eastgate Subdivision.
2. Do not accept payment and do not authorize the Releases.
MANAGER'S RECOMMENDED ACTION:
The buyers of Lots 12, 13, 15, and 16 have now remitted payment in the required
amounts to the City. Therefore, it is the recommendation of the City Manager that the
City Council accept payment and authorize the Releases of Assessment and Utility
Connection Fee Obligation for Lots 12, 13, 15, and 16 in Eastgate Subdivision.