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1989-07-13 Council minutesCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Special Meeting Held Thursday, July 13, 1989 Pursuant to due call and notice thereof, the special meeting of the City Council, City of Mendota Heights, was held at 7:00 o'clock P.M. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. Mayor Mertensotto called the meeting to order at 7:04 o'clock P.M. The following members were present: Mayor Mertensotto, Councilmembers Cummins, Blesener, Witt and Hartmann. The meeting began with introductory comments by Mayor Mertensotto, concerning how the City had gotten involved in the potential purchase of homes in the Furlong Neighborhood at the request of the residents in that neighborhood who have problems with their properties. The Mayor indicated that this special meeting had been set aside to meet just with the Furlong neighborhood, since it was difficult to have a complete discussion on a regular City Council agenda evening. The Mayor reiterated that the City anticipates that it would have about $400,000 per year available for the purchase of homes, and that there is no developer available at this time willing to do a mass redevelopment of the neighborhood so that everyone can be purchased at once. Therefore, the Mayor indicated that the City would have to proceed with acquisitions on a priority basis. The Mayor questioned whether anyone had any problem with the priority statement as it had been drafted by City staff and tentatively approved by the Council. There was no response from the audience. Bernard Biesner, 1309 Furlong, inquired about the Minneapolis court case that had found that there was no property depreciation due to airport noise. Mayor Mertensotto responded that the case had gone on for 18 years, and raised questions of fact not law. The Mayor said that he felt it was not compelling in this case. Biesner questioned whether Mendota Heights had looked into sound proofing homes, as was being contemplated in South Minneapolis. well as airport noise. With regard to sewer and water, it was indicated that the assessment per lot of at least $15,000, would be too high. That much value would not be added to the properties so that it would be hard for the City to legally defend the assessments. Mr. Biesner inquired about the cost of street improvements only. City Administrator Frazell indicated that based on improvements in other parts of the City, a complete urban standard street with storm sewers would probably run about $2,500 for a standard size lot. The Council asked for a show of hands of how many households were represented at the meeting. It was noted that 32 different households of the 36 potential were present. Mr. Bill Peterson of the Dakota County Assessor's Office was present. Bernard Biesner asked for his comments about how the assessors are valuing Furlong properties. Mr. Peterson responded that their valuations are based on the fact that these properties have on site sewer and water, rather than municipal improvements. Mr. Biesner inquired about City wide assessments that the Furlong neighbors had paid for water and sewer. Mayor Mertensotto responded that the only assessment Furlong would have paid was a City wide trunk sewer assessment on a per acre basis for the line that goes under the river between Mendota Heights and St. Paul. The Mayor indicated that the Furlong residents have not been assessed any of the costs for building a new water tower, but that was being paid by a 10 percent surcharge on water bills. Mr. Peterson continued by saying that the assessor' s office is required by law to keep properties on the books at between 90 and 100 percent of their market value. He reported that they do that by looking at actual sales in a neighborhood, and there had been very few of those in Furlong over the last few years. Mr. Peterson said that the land values only are discounted about 25 to 30 percent for the fact that municipal sewer and water is not available. Mr. David Hiner, 1312 Furlong, indicated that he had sold a house in the neighborhood for $77,900 within the last few years, and that the assessor's market value on the property at that time was $54,000. Mr. Peterson reported that it is currently on the books at $66,600. Mr. Hiner presented the Council with several individual petitions opposing the buy out. Mr. Hill said that he is a Realtor with Merrill- Lynch, and feels that there are buyers for homes in Furlong. However, he said that it was almost impossible to sell there now because of all the negative publicity surrounding the possibility of the City purchasing homes. Mr. Hill said that if the City would leave the neighborhood alone and simply fix up the streets, he felt that the properties could be sold on the private market. However, under the current situation, Realtors are professionally obligated to disclose to any potential buyer the possibility of a City buy out in the neighborhood. Mr. Hill said that he thought Furlong was an aesthetically unique and appealing area. He added that buying only three homes per year would negatively affect the value and saleability of the remaining homes. Mr. Jim Schwartz, 1286 Kendon Lane, asked about the City Council's approval of Bridgeview Shores, Copperfield, etc. with the concerns of airport noise. He asked how it could be okay to approve those new developments, but indicate that Furlong had to be removed. Mayor Mertensotto responded that the Furlong residents were the ones who had indicated to the City Officials that the airport noise was intolerable. He added that the new homes in Southeast Mendota Heights are being built with special noise attenuation features included. Ms. Carol Doffing, 1314 Furlong Avenue, indicated that she felt there is a market for Furlong homes under $100,000, but those of higher value have more trouble selling. Ms. Doffing said that she was speaking for those in favor of allowing people to sell at their individual discretion. Ms. Doffing said that the draft buy out policy was fair and acceptable, with two possible modifications: 1. That is was unrealistic and unfair to ask people to accept less for their property than the tax value placed on it. 2. It was questionable whether the property should be devalued for the airport noise, giving the finding of no diminution in the Minneapolis case, and the fact that the neighborhood has other amenities, such as proximity to the Minneapolis and St. Paul downtowns. Ms. Doffing indicated that she and the others who had signed the petition she had for the Council were asking for: 1. Individual choice in sale. 2. Nothing less than the assessor's market value. 3. An assurance of the continuation of an opportunity to sell. 4. That people suffer no loss of value because of the impact of the City purchasing homes itself. 5. That an appeal mechanism be established for values that are felt to be too low. Ms. Doffing presented the petition to the Council. Mayor Mertensotto responded that it was hard for the City to make a commitment, because it doesn't have the immediate dollars available. He added, however, that the City was trying to help the residents. Mr. Chris Woolsey, 2316 Highway 55, informed the Council that he did not want to move at all from the neighborhood, either immediately or in the long term. Mayor Mertensotto responded that the City was not going to force anyone to sell. However, it is possible that at some point, the Council might have to take a look at the long range use in the neighborhood if there were only a few houses left. Mayor Mertensotto said that the City had the best of intentions, and everything had gone well until we were deluged with so many requests to buy homes. Councilmember Cummins reminded the audience that the City had gotten into this program at the request of the residents. Mr. Hill suggested that the City should do something for those houses that have such a severe sewer and water problem that they are unsalable. He suggested that those with saturated drain fields, etc. be condemned or purchased by the City, but that no other houses be taken. Mr. Jim Schwartz, 1286 Kendon Lane, asked if the City would hold the properties it had purchased indefinitely. Councilmember Cummins responded that it was the Council's intent that the properties would be cleared and the lots maintained in an acceptable fashion. Councilmember Cummins continued by indicating that the City is proposing to purchase houses with monies from its tax increment district. He felt that it some day obligated the City to recover that when that might be able to happen. He added that the cost of putting sewer and water in to serve the existing homes simply was too expensive and wouldn't add a defensible amount of value to the properties. Mr. Bob Tousignant, 1300 Furlong Avenue, indicated that he and several others were not interested in the City's buy out offer. He felt that the whole project was dividing the neighborhood, and could lead to charges of inverse condemnation by those who do not have their houses purchased immediately. Mayor Mertensotto asked what the neighborhood would feel about the City just abandoning any buy out "program ", and simply agreeing to only buy houses that have the severe sewer and water problems. The Mayor added that he felt some people were trying to take advantage of the City, which was making it difficult to help those neighbors who really needed the City's assistance. Mr. Tom Swenson, 1294 Kendon Lane, indicated that he wanted to sell his house, and if the City would not cooperate he would go to the Metropolitan Airports Commission for its assistance. Mr. Bernard Biesner asked about the possibility of fixing the sales figure for all homes today. Councilmember Jann Blesener suggested that perhaps the City could have all of the houses appraised to set a bottom line figure. There was then some general discussion between the Council and the audience . about the appraisals that had been done to date, and whether the purchase of any homes in the neighborhood would depreciate the value of the remaining homes. After further discussion, there was a consensus that the City should help just with those houses with the most severe sewer and water problems which can't be corrected at a reasonable cost. Councilmember Hartmann moved to curtail any further buy out program in the Furlong neighborhood, and that any statements that the City was intending to purchase those homes are hereby cancelled and withdrawn. Councilmember Cummins seconded the motion. Ayes: 5 Nays: 0 There being no further Council, Councilmember be adjourned. Councilmember Hartmann Ayes: 5 Nays: 0 business to come before the Witt moved that the meeting seconded the motion. TIME OF ADJOURNMENT: 8:57 o'clock P.M. evin D. Frazell City Administrator ATTEST: 0:04. SO464-67.75i0- Charles E. Mertensotto Mayor