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File #: 19-0075R    Name:
Type: Resolution Status: Passed
File created: 1/18/2019 In control: Finance
On agenda: 1/28/2019 Final action: 1/28/2019
Title: RESOLUTION AUTHORIZING SETTLEMENT OF CLAIM AGAINST 2821 HAGBERG STREET IN THE AMOUNT OF $11,464.95.
Title
RESOLUTION AUTHORIZING SETTLEMENT OF CLAIM AGAINST 2821 HAGBERG STREET IN THE AMOUNT OF $11,464.95.

Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to accept the sum of $11,464.95 from Ruth Dahl, the owner of the property located at 2821 Hagberg Street, Duluth, Minnesota, in settlement of all claims of the city arising out of the deferred assessment agreement bearing City Contract No. 53130, said sum payable to fund no. 325-030-4500 (special assessment fund, finance, special assessments).

Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize an agreement with Ruth Dahl to accept $11,464.95 in settlement of all claims arising out of a deferred assessment agreement which deferred her obligation to pay the assessment against her home at 2821 Hagberg Street for a new sewer, which agreement was entered into in 2000.

As councilors are aware, when a public improvement like a new sewer is installed adjacent to a property not previously served by such an improvement, the property owners' fair share of the cost of that improvement is accessible against the benefitted property. Normally the property owner has the option of paying the entire amount immediately or of paying it in up to 15 annual installment at a rate of interest approved by the council. In either case, the payment obligation starts immediately with either the full amount or with the first installment.

However, under Section 45-83 of the City Code (which mirrors State statutory provisions), an owner who qualifies as being subject to hardship, which includes by definition an owner who is 65 years of age or older, a qualifying owner has the option of deferring payment of their assessment obligations until the happening of certain events which includes death of the owner, loss of homestead status of the property and sale of the property. The amount owed and interest accruing during the term of the deferral continue to bear in...

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