01-0771R

RESOLUTION AUTHORIZING REASSESSMENT OF CANCELED STREET AND UTILITY ASSESSMENT FOR PARKWOOD DIVISION, PARKWOOD DIVISION PHASE II AND PARKWOOD PHASE III.

BY COUNCILOR ECKENBERG:

        WHEREAS, on January 22, 1990, the city council approved Resolution No. 90-0032 assessing the property referred to therein as Parkwood Development for the cost of street and utility improvements to the property, at least $59,860.80 of which remains unpaid; and

        WHEREAS, on March 2, 1992, the city council approved Resolution No. 92-0167 assessing the property referred to therein as Parkwood Division Phase II for the cost of street and utility improvements to the property, at least $29,518.24 of which remains unpaid; and

        WHEREAS, on May 15, 1995, the city council approved Resolution No. 95-0322 assessing the property referred to therein as Parkwood Phase III for the cost of street and utility improvements to the property, at least $282,147.24 of which remains unpaid; and

        WHEREAS, the property referred to in said resolutions as Parkwood Development, Parkwood Development Phase II and Parkwood Phase III subsequently was forfeited to the state of Minnesota for nonpayment of real estate taxes but has since been returned to private ownership; and

        WHEREAS, the city has held a hearing regarding the reassessment of said sums against said properties after notice to all necessary parties, said hearing and notice thereof complying with the requirements of Section 62 of the Duluth City Charter and Section 45-79 of the Duluth City Code, 1959, as amended; and

        WHEREAS, the city council has determined that the work for which the assessments were originally levied have benefitted the respective properties by amounts at least equal to or in excess of the amounts originally assessed against each such property, including the amounts to be reassessed hereunder.

        RESOLVED, that pursuant to the authorization of Laws of Minnesota, 1997, Chapter 231, Article 2, Section 53, the following, previously canceled assessments are hereby reassessed in the amounts set forth below and that this reassessment role is hereby confirmed:
 

Parkwood Development $ 59,860.80
Parkwood Division Phase II $ 29,518.24
Parkwood Phase III $282,147.24
Total $371,526.28


STATEMENT OF PURPOSE:  The purpose of this resolution is to confirm the reassessment of outstanding assessment amounts against Parkwood Division, thereby allowing the city to recover project costs that were bonded for or otherwise paid out of city funds.

Between 1990 and 1995 the city levied assessments for street and utility improvements against three phases of the development of Parkwood Division which is located South of the Morris Thomas Road and West of Hutchinson Road. When the property went tax forfeit, over $1,120,000 of these assessments were unpaid.

Under general state law, when property goes tax forfeit, any outstanding assessments are canceled and the amount of the unpaid assessments become the obligation of the general taxpayers. Under this scenario, if and when the property is later acquired and developed, the new purchaser acquires the property free and clear of the assessment and becomes the beneficiary of a windfall paid for by the taxpayers.

However, in 1997, the city of Duluth secured passage of special legislation (cited above) which authorized the city to reassess benefitted property for any unpaid portion of the original assessment, thus restoring a more level playing field with regard to the development in question as compared to those developments which do not go tax forfeit.

This resolution authorizes such a reassessment in the amount of $371,526.28 with regard to the Parkwood Division.