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AF-SA - 43945� CITYOF° FRIDLEY Cl�'ICCE'�7'f:R • h�3?I l.'I�IVERSITYAVE.N.E. FRIDLEti'.A1INNESOTA55-i3'_ • PHOfv`E:it�l'��?I-�-���� May 23,-�986 Mr . ar�d N�rs . G. R. Skirmer 6217 Central Avalue N.E. �idley, M�irmesota 55432 Dear Mr .� N� s. Skirmer : Thank you for coming in to meet with me recently to discuss the development of your property. I wauld lik.e to �+�r�e the proposal that we believe to be consistent with actual City costs: . 1. The total street and utility assess�ent for the 11 lots developed by l�. Briclm�s in 1982 was $179,554 or $16,323 per lot (see attached Sum�y of Proposal) . �. The attached sketch indicates a method of subdividing yaur property withaut exte�d.ing Ben More Drive to create six lots fror�ting on Heather Place. If you wish to retain Ir�t 2 far ya� existing home, five of the six lots wrnild be available for you to develop. 3. If the �179,554 1982 asses�nt had been equally divided �no�ng Mr. Briclazer's 11 lots and your 5 lots, the cost per lot wauld have been $11,222, totaling $56,110 for yaur five lots. 4. The fo� year accn�ed interest on tY�e $56,110 at 9% per year is $20,199. This is the rate yau would have paid starting in 1982, if assessments had been levied in 1982, but payment deferred. 5. The City can apply the assessment of $15,261 per lot amd defer it up to five years. In this way yau will have the option of either th+e buyer or the seller pay�ir�g the asses�t charge at the time of sale of the lots. In addition, cansistent with policy on de- ferred assessnents� interest will accn3e at 9% per year until paid in full. This proposal has certain positi� �fits far yaur property: 1. The Briclmer de�relopoaexft gave a�l �e right-of-way for the street (Heather Place). Mr. & Mrs. G. R. Skiumer May 23, 1986 Page 2 2. The Ben More Drive extension is mw eli�nated. 3. Both of the above it�s would allow you to have lots 11,000 square � feet and larger where the minirrn m lot requirenent is only 9,000 square feet. 4. The City will pravide a raater loop at no charge to yo� development. 5. Str�eet and utility costs are mw exactly la�or,ai instead of beir�g estimated. 6• Yo�' property should benefit frvm the high quality development to the south. 7, Yau will have the choice of you or the buyer payir�g the assessnents, with interest, when the lots are sold. With y�is agreenent, I am willing to recaimend this proposal to the City Crnmcil. As yau lazow, the City Cauncil is the only authority which can approve this proposal. If the proposal is acceptable to you� please advise me, in writing, by N1ay 29, 1986 so that I can sutanit it to the CoLmcil in time for �their review and apprwal at the Jtme 2 meeting . This proposal anly addresses the issue of access onto Heather Place and the costs of street and utilities. If you decide to develop yo� property, I wvuld be happy to provide you with the required procedures°, charges and fees related to tive develapment of the property. If I can be of any f�ther service, please feel free to call me. S�cerely, �1�1.�..� l� ' ' . ��� I�si.m M. Q�eshi, City Manager 1�: ch Attactanents ti I , �'� � "�•�� • Briclaier's Total Assessnent in 1982 -$179,554. $16,323 per lot for 11 lots. If Briclazer and Skirmer had shared costs in 1982, costs per lot (11 lots for 8ric�mer and 5 lots for Skiemer ) wa�ld have been $11,222. ($179,554 divided by lb lots). Skiumer's Costs in 1982 for 5 lots: 5 x$11,222 =$56,110. 1986 Interest Total on $56,110 for 4 years at 9% -$20,199 Plus Original $56,110 56,110 Total 1986 Figure for Five Lots $76,309 1986 Total Cost per Int ($76,309 divided by 5 lots) _ $15,261 �_ . . _� _� �-/�� SU"'U1ARY OF PROP�JSaL BRICKNER�S TOTAL ASSESSMENT IN I9H2 -�179,554� $16,323 PER LOT FOR 11 LOTS� IF BRICKNER AND SKINNER HAD SHARED COSTS IN 1��'Z, COSTS PER LOT �11 LOTS FOR BRICKNER AND 5 LOTS FOR SKINNER) WOULD HAVE BEEN .`"c11,ZZZ� �KINNER�S COSTS IN �98� FOR 5 LOTS: 5 X�1�.,222 =�56,110� 1936 INTEREST TOTAL ON �56,1�� AT 90 -`�20,199 PLUS ORIGINAL �a56,11� �56,�1� TOTAL I9�i6 FIGURE ��T�,3D� 1��i6 TOTAL COSTS PER LOT �FOR FIVE LOTS) -�15,Z61 . .�� �/ �� �ENEFITS TO R, SKIPJilER 1� T� �RICKNER GAVE ALL R�I'J� SKINNER GETS BENEFITS� 2� BEN MORE DRIVE EXTENSION N0�•J ELIMINATED� 3� CITY WILL PROVIDE WATER LOOP AT NO CHARGE� 4� Q� SKINNER WILL KNOIV COSTS; WHICH WERE ESTIMATES iN �.ggl, S� R� SKINNER�S PROPERTY WILL BENEFIT FROM HICH GIUALITY OF T� BRICKNER DEVELOPMENT� 6� R, SKINNER WILL NOT HAVE TO PAY ASSESSMENT BURDENS FOR ZO YEARS OR UNTIL LOTS ARE SOLD� �ASSESSMENTS WILL BE DEFERRED AT 9% INTEREST�)