ADMINISTRATION-Erik J. Thorvig, Economic Development Coordinator
Title
APPROVAL OF SPECIAL ASSESSMENT FOR BLAINE LOCK AND SAFE AT 10136 SUNSET AVE.
Background
Blaine Lock and Safe purchased the building at 10136 Sunset Ave in December, 2017. They purchased the building to relocate their business from their current location at 121st Ave. and Highway 65. The owners are remodeling the building which requires fire suppression. Due to lack of equity in the building because of low value, the business is having difficulty securing the necessary bank financing to complete both the building remodel and fire suppression. Staff proposed the option of financing the fire suppression through a combination of the fire suppression grant program and a special assessment. A similar arrangement was done five years ago for Companion Veterinary Hospital on County Road 10.
The total project cost to add the fire suppression system, based on bids obtained by the applicant is $69,143. The fire suppression grant program would pay up to $25,000 with the remaining $44,143 financed through a special assessment. The special assessment has a 10 year term at 4.5% interest. The initial fire suppression cost would be paid from the EDA general fund, with the fund being paid back the assessed amount over the 10 year period with interest.
Recommendation
By motion, approve the Resolution.
Body
WHEREAS, Blaine Lock and Safe owns the property at 10136 Sunset Avenue described as PIN # 24-31-23-44-0007 and is desiring to make improvements to the building that requires fire suppression; and
WHEREAS, the owner of said property has requested financial assistance in the form of a special assessment to install a fire suppression system on said property; and
WHEREAS, the owner of said property has entered into an Agreement for Levy of Special Assessments and Waiver of Right to Appeal Levied Special Assessments for the installation of a fire suppression system; and
WHEREAS, the cost of the system to be installed, based on bids obtained by the property owner, is $69,143 with $44,143 of that portion to be special assessed, plus a $250 assessment fee, once the owner completes the work.
NOW, THEREFORE, BE IT RESOLVED that the Blaine City Council as follows:
1. The proposed assessment, a copy of which is attached hereto and made a part thereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the improvement in the amount of the assessment levied against it.
2. The owner of any property so assessed may within thirty (30) days of the adoption of this resolution pay the whole of the assessment with no interest to the City’s Special Assessment Clerk or make partial prepayment in the amount of at least ten percent (10%) of the total assessment to the City’s Special Assessment Clerk with no interest. Any remaining assessment will be payable according to this resolution.
3. Assessments shall be payable in annual installments extending over a period of ten (10) years, the first of the installments to be payable with the 2019 real estate taxes. Installments shall bear interest at the rate of five percent (5%) per annum from the date of the adoption of this assessment resolution.
4. The owner of any property so assessed may at any time after December 1, 2018 pay to the City’s Special Assessment Clerk the remaining principal after payment of the current installment prior to November 15 of any year with no further interest charged on the remaining principal.
5. The City Manager shall forthwith transmit a certified duplicate copy of this assessment to the County Auditor to be extended on the proper tax lists of the County and such assessments shall be collected and paid in the same manner as other municipal taxes.
PASSED by the City Council of the City of Blaine this 6th day of September, 2018.