HomeMy WebLinkAboutA086 - Council Action Form dated January 10, 2017 ITEM # 14
DATE: 01-10-17
COUNCIL ACTION FORM
SUBJECT: RELEASE OF ASSESSMENT AND UTILITY CONNECTION FEE
OBLIGATION FOR EASTGATE SUBDIVISION LOTS 8 AND 9
BACKGROUND:
In 1998, the original Eastgate developer signed a Development Agreement promising
payment for improvements to roads and utilities in the Subdivision. The development
was then the subject of a bankruptcy proceeding; and the property was ultimately
acquired by First National Bank in 2001 through the bankruptcy proceeding. The City
then entered into a covenant that modified the owner's public infrastructure obligations.
That covenant required payment to the City for the estimated costs of widening Dayton
Avenue for a turn lane and for connections to water and sewer service. These payments
were 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.
Lots 8 and 9 in the Eastgate Subdivision were recently sold for development. Per the
schedule,of fees owed to the City, $6,510 was owed for Lot 8 and $6,510 was owed for
Lot 9. These amounts have now been paid to the City, and releases are necessary so
that the purchasers of the lots can close on the properties.
ALTERNATIVES:
1. Accept payments as noted above and authorize of the Releases of Assessment and
Utility Connection Fee Obligation for Lots 8 and 9 in Eastgate Subdivision.
2. Do not accept payment and do not authorize the Releases.
CITY MANAGER'S RECOMMENDED ACTION:
The development agreement and covenant on these properties require payment for
road widening costs upon the sale or transfer of lots in Eastgate Subdivision. The
buyers of Lots 8 and 9 have now remitted payment in the required amounts to the City.
Therefore, it is the recommendation of the City Manager that the City Council approve
Alternative No. 1 as described above.