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8.3 Deferr Agriculture Assess CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 7/19/99 4:00 P.M. AGENDA SECTION: ORIGINATING DEPARTMENT: APPROVED FOR NO. 8 AGENDA: PLANNING & DEVELOPMENT ITEM ROY DUDARK NO. 3 BY: /~ BY~ Item Consider a resolution deferring special assessments on certain tracts of agricultural land to be included in the South Ninth Street Water and Sewer Benefit District. Back~round In conjunction with the South Ninth Corridor Plan, plans and specifications have been prepared for the installation of a 12" water main and a 15" sewer main along South Ninth Street from Schilling Road to Water Well Road. The financing for this $846,000 project includes an assessment of $531,000 to five tracts of land that presently do not have water and sewer service. Four of the tracts are privately owned and the owners have petitioned for these utility improvements to be constructed by the city and their $388,000 cost to be special assessed over 15 years. The fifth tract is state highway right-of-way and thus cannot be special assessed but will be paid by lump sum at the time of development. The four private property owners, Riffel Moving Services (Tract 1), McArthur Enterprises (Tract 2), Russell and Russell (Tract 3) and Elden Miller Trust (Tract 4), have requested a deferral of special assessments as a condition of being annexed into the city and being included in a benefit district for these water and sewer improvements. KSA 12-6,111 authorizes the City Commission to delay the payment of special assessments for public improvements in unplatted and undeveloped areas of the city. The delay in commencement of payment may not exceed 15 years or until such time as the property is platted or developed. Under the statute, undeveloped areas are defined as areas which: a) are in excess of 2.5 acres; b) have not been platted; c) are primarily used for agricultural purposes; and d) have a population density of less than one family per acre. These four tracts meet these criteria. The amount assessed to deferred property may not exceed the original assessment plus prorated interest which would have been charged initially for a ten- year installment payment schedule. During the deferral period, no additional interest charges are assessed. Such interest costs would be paid by the city. A resolution of intent to grant a deferral for the four properties has been prepared for your consideration. Formal deferral would be done by ordinance in conjunction with the allocation of costs and establishment of the benefit district upon completion of the project. Recommended Action Consider approval of the attached resolution. Encl. Benefit District Map Resolution 99-5483 cc: Norman Riffel Rex Russell North McArthur Mark Miller Benefit District Aubur dote I Addition Highwoy t~igh t-of- Woy Unplotted ~'roct 2 Unplotted l'roct 4