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HomeMy WebLinkAboutA019 - Letter dated December 27, 1988 regarding special assessments CITY MANAGER'S OFFICE SMITH, NUTTY, SHAEP, BENSON& JAHN DEC 2 8198B ATTORNEYS AT LAW CITY ®F ALES, IOWA DONALD L.SMITH 618 DOUGLAS - P.O.BOX 270 -AMES,IOWA 50010 JOHN E.NUTTY TELEPHONE: 515-232-1471 DALE E.SHARP DAVID W.BENSON ABA/NET:ABA1592 LAWRENGE E.JAHN December 27 , 1988 Steve Schainker City Manager Administrative Building 621 Main Street Ames , Iowa 50010 RE: WGGC Subdivision - Special Assessments Dear Steve : The purpose of this letter is to propose staff approval of a proration of the special assessments to the three platted lots and to the unplatted property. If the proposal is satisfactory to the staff, we will seek the Council ' s ap- proval . The information necessary for a proration was developed by John Klaus , Paul Wiegand and Alyce Carroll in early Octo- ber . Mr . Klaus ' October 6 , 1988, letter to me has the data. Our specific request is that the equitable reapportion- ment be as shown in the attachment to John' s letter . That is . a. Lot One have $5, 188.25 prorated to it . b. Lot Two have $5, 188.25 prorated to it . c . Lot Three have $2, 686 . 30 prorated to it . d . The unplatted land have $64, 392 .22 prorated to it . Section 584. 61 of the Code authorizes the Council to make this proration. If the above proration is made , we will be able to file the platting documents without the need to pre-pay the as- sessments . This statement runs counter to the traditional thinking. However, it is authorized in Section 409.9 of the Code . That section reads in part : " . . .however , the opinion of the attorney or the certificate of the recorder may show a mortgage or -2- encumbrance if the plat is accompanied by a consent to such platting by the holder of the mortgage or encumbrance and a release from the mortgagor or en- cumbrance of all streets , easements and other areas to be conveyed or dedicated to the governmental unit within which such land is located . . ." Section 409.9 was amended in 1977 to add the above language . It requires a consent by the lien holder and a release from the lien as it applies to streets and easements . The grant- ing of our request will bring about all of the above . The consent by the City to the plat has already been given and will be confirmed in the Council ' s resolution for the prora- tion. The release for the streets will be accomplished by the proration. The release of the easement from the assess- ment lien is not needed because the easement is granted to the City; that grant wouldn' t be encumbered by the assessment as the lien is in favor of the City. I have spoken with Sue VandeKamp, the Story County Re- corder, on this matter. Sue told me that she will accept the plat and its related documents for filing if the attorney' s opinion and the treasurer' s certificate show an unpaid spe- cial assessment in favor of the City of Ames so long as the assessment is on the lots , not the streets . The lien of the City remains on the three lots and on the unplatted land . The only security the City would be giv- ing up is the land in the roadbed for Alexander Avenue . The request contained in my letter to you of November 30, 1988, proposed a much more significant surrender of se- curity. The proposal contained in this letter does not sig- nificantly diminish the City' s security. If you or other members of the staff have any questions , please feel free to contact me . Yours very truly, SMITH, NUTTY, SHARP, BENSON & JAHN DALE SHARP Attorney at Law DS :dl pc : Mary Walter Dick Johnson