City Council Minutes 06-03-1985
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MINU ES
SPECIAL MEETING - MON ICELLO CITY COUNCIL
June 3, 1985 - 7:00 A.M.
A special meeting of the City Coun il, being duly called by the
Mayor and posted by the City Admin"strator, was held at 7:00 A.M.,
Monday, June 3, 1985, in the City all. Members present were
Mayor Grimsmo, Council members Fra Fair, Bill Fair, Dan Blonigen,
and Jack Maxwell. Members absent: None. Also present were
City Administrator Eidem, Finance irector Wolfsteller, and Dickman
Knutson, representing Meadow Oak.
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The single agenda item and purpos
was called was to discuss a propo
amount of special assessments cur
Oak Estates. The proposal was to
assessments from Meadow Oak Estat
in a proportionate way over Outlo
Mayor called the meeting to order
Eidem to give a brief background
Eidem explained that discussions
Homes had been meeting with City
months to work out a solution for
currently in place against Meadow
that under the current system, in
Estates would sell for approximat
lots in Outlots C and D (when rep
over $8,000.00. Eidem explained
transfer and reapportionment of a
the individual lot prices in Esta
while increasing the replatted in
D to approximately $12,500.00.
approximately equal in cost so
effectively. with that, Eidem t
Knutson, representing Ultra Home
and marketing tactics for the re
building sites.
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Mr. Knutson explained that he wa
Federal, personally, in order to
in Ultra Homes, and furthe~ to P
H. The money used to buyout th
lots would provide enough income
payments to the Federal Land Ban
foreclosure sale on Mr. Boyle's
that Midwest Federal has request
the replat of Outlots C, D, G, a
They are of the impression that
saleable and a better protection
for which the special meeting
al to reapportion a certain
ently levied against Meadow
remove $130,000.00 in special
sand respread said assessments
s C and D in Meadow Oak. The
and asked City Administrator
xplanation on the proposal.
ith the developers of Ultra
taff for approximatelY 12-15
the high special assessments
Oak Estates. He explained
ividual lots in Meadow Oak
ly $17,000.00, while individual
atted) would sell for slightly
hat the intent of making the
sessments would be to lower
es to approximatelY $13,000.00,
ividual lots in Outlots C and
e intent is to make all lots
at they could be marketed more
rned the floor over to Dickman
, to explain the proposed financing
italized sale of Meadow Oak
securing financing from Midwest
buyout the two other partners
rchase Outlots C, D, G, and
partnership and acquire the
for Mr. Boyle to make the required
, hence postponing the bank
roperty. Mr. Knutson also noted
d Ultra Homes to proceed with
d H before the end of 1985.
latted lots will become more
for the financial commitment.
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Council Minutes - Special Meeting - 6/3/85
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Both Council members Maxwell and lonigen expressed substantial
concern over the placing of asses ments against unimproved lots.
Their concern stemmed from the fa t that monies would be placed
against unimproved lands, and the developers upon sale of the
improved lots could simply walk a ay from the unimproved land
leaving the City hOlding the debt on land that is unimproved.
At that time, in order for the Ci y to execute sales of the lots,
the City would have to further in est monies to install the public
improvements. Eidem explained th t that was staff's concern
all along and was also the primar reason that it took so long
to arrive at an agreement. Eidem went on to say that it would
be absolutely essential to enter "ndependent contracts with Ultra
Homes that provided some types of ironclad guarantees to the
City to prevent developer walk aw y. Eidem indicated that such
agreements had been executed with the Monticello Country Club
during their replat and that with the City Attorney involved,
he felt confident that a similar a reement could be achieved
with Ultra Homes. Mr. Knutson ind"cated that while those documents
were not prepared, Midwest Federal would be satisfied seeing
a motion from the Council authoriz"ng the respreading of special
assessments, and directing the Cit staff and City Attorney to
prepare and execute the required d cuments to achieve said respreading.
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Mayor Grimsmo asked if any support"ng documentation had been
shown to City staff from Midwest F deral or Federal Land Bank,
etc. Staff indicated they had not Mayor Grimsmo indicated
that any motion, in his estimation must require that letters
be provided from the financial ins itution showing that the finance
plan was, in fact, how it had been presented to staff and Council.
He then indicated he was ready for a motion.
Motion by Fran Fair to grant appro
$130,000.00 in special assessments
removed from the individual lots w
reapportioned as lump sums against
to be contingent upon receipt of p
Federal that they are financing th
and further directing staff and Ci
execute the assessment roll and bi
The motion was duly seconded by Bi
Grimsmo, Fran Fair, Bill Fair. Vo
Maxwell, Dan Blonigen. Motion car
There being no other business
of special meeting, the Mayor
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Th mas A. Eidem
City Administrator
al to a reapportionment of
said assessments to be proportionately
thin Meadow Oak Estates and
Outlots C and D, said reapportionment
oper documentation from Midwest
restructuring of Ultra Homes,
y Attorney to prepare and
ding contracts for repayment.
I Fair. Voting in favor:
the opposition: Jack
held under the announcement
ned the meeting.
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