#10 Request to extend deferral of special assessments for Q & N Farms
DEPARTMENT OF PUBLIC WORKS MEMORANDUM
12 April 2010
TO: City Council
FROM: Mike Payne, Engineering Manager
SUBJECT: ACTION ON A REQUEST FROM Q&N FARMS TO EXTEND DEFERRAL OF
SPECIAL ASSESSMENTS FROM 5 YEARS TO 10 YEARS.
Summary
Within the last year, Q&N Farms purchased 47 acres immediately south of Sunset Meadows
subdivision, located at the southwest corner of Austin Road and CTH A. Q&N Farms intends to
continue farming the property, which is contiguous with Mr. Quaerna’s farm. The property
purchased by Q&N Farms has a sanitary sewer and sewer easement through the property to
serve Sunset Meadows. Gary Peters previously owned and farmed this property south of
Sunset Meadows and was granted a 5-year non-use deferment by the Council on April 9, 2008.
Q&N Farms is requesting the Council grant a 10-year non-use deferment from April 2008.
Council Policy No. 63, IV permits a non-use deferment for a special assessment levied against
a property while no use of the improvement is made or the property is undeveloped. The
annual interest carrying costs of these deferments are assigned to the appropriate Utility, in this
case the Wastewater Utility. The granting of a non-use deferment is at the discretion of the
Council. This land is readily developable, but the new owner does not have development plans
for this property. The amount of the deferred assessment for approximately 1,900 linear feet of
sanitary sewer is $124,362 with carrying costs for this sewer estimated at $5,600 / year using
4.5% interest at the time the funding was borrowed in 2008.
Recommendation
Although it is unusual for a property owner to request an extension of a deferment prior to the
expiration date, the Council Policy does not prohibit a request for a subsequent non-use
deferment. The Engineering Division recommends Council approve the requested extension of
the non-use deferment.
Suggested Motion
I move to approve the request from Q&N Farms to grant a 10-year non-use deferment for
sanitary sewer from the date of the original Council Action in April 2008.
Attachments:
- Letter of Request
- Council Policy No. 63, Part IV
- Location Map
cc: Eric Levitt
Jacob J. Winzenz
Carl Weber