HomeMy WebLinkAbout1994-179
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RESOLUTION NO. 94-179
A RESOLUTION AUTHORIZING TAX INCREMENT ASSISTANCE
FOR THE REDUCTION AND ABATEMENT OF SPECIAL ASSESSMENTS
WHEREAS, it has been demonstrated to the City Council that a tax sale is schedule for August
9, 1994, wherein the County of Washington proposes to auction 24 improved twin home lots in the Forest
Ridge Addition of the City; and,
WHEREAS, a proposal to purchase these lots from the owner prior to forfeiture has been .
presented by Blichfe1dt Realty of318 East Avenue South, Dresser, Wisconsin 54009, which provides that
the outstanding amount of delinquent taxes, interest, penalty and special assessments against all of this
property in the amount of$307,023.20 representing taxes, special assessments, and penalty, interest and
costs on all of the property, except thai in addition to the amounts Blichfeldt Realty is willing to pay for
the property, the unpaid principal balance on unpaid assessments held at the City is in the amount of
$160,112.40; and,
WHEREAS, that Mr. Blichfeldt has demonstrated to the Council that it is not feasible to purchase
the property for the amount of the delinquent taxes and assessments and in addition, the amount of future
unpaid assessments since the total of these two figures exceeds the fair market value of the property; and,
WHEREAS, the property is located in Tax Increment Financing District No.1, which is known
as the Downtown and Industrial Park and Scattered Site District, and the local assessments remaining
unpaid are for Local Improvement No. 171, Local Improvement No. 240, and Local Improvement No.
251; and,
WHEREAS, after negotiations with the City Finance Director, Mr. Blichfe1dt agreed to pay to
the City the amount of special assessments that would have been payable to the City in the year 1994,
had the property gone tax forfeit and this is in the amount of $39,413.46; and,
WHEREAS, Blichfeldt proposes to develop the parcel into 24 lots similar to the adjacent parcel
that he has developed and using that development as a model, the 24 lots would generate approximately
$24,300 in tax increment revenue in each year until the year 2010; and,
WHEREAS, Blichfeldt estimates that the project would be fully built out in three to four years
if he is able to consummate the sale and the expected tax increments would be payable through the
balance of the Tax Increment Financing District or until the year 2010 and would most likely generate
sufficient tax. increment revenues to pay the remaining assessments; and,
WHEREAS, if the parcel were to remain on the auction block, in view of the high amount of
assessments, it no doubt would not sell and remain delinquent and this delinquency would retard the
development far beyond the potential for development that the Blichfeldt proposal has demonstrated; and,
WHEREAS, based upon the files, records and proceedings herein and upon the report of the City
Coordinator and the City Finance Director and the evidence presented by Mr. Blichfeldt, including the
statement of delinquent taxes submitted in support of the proposal, the Council resolves as follows:
I. All current assessments levied against Plat Parcel No. 9033-2130 for Local Improvement Nos.
171,240, and 251, except for assessments that were certified and payable for years prior to 1994, the
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same be and they are hereby abated as follows:
L.I. 171 - $ 2,215.54
L.I. 240 - $ 724.95
L.l. 251 - $130 548.06
Total - $133,488.55
2. This abatement is granted on the condition that Mr. Blichfeldt pay $39,413.46, representing
the amount of assessments that would have been certified against this parcel in the year 1994, except for
the del inquency.
3. The City Finance Director is directed to transfer from time to time proceeds of tax increment
derived from the build out of this parcel and the parcels in which it will be divided from time to time
over the length of the tax increment district such amounts as are necessary to reimburse these
improvement funds for the amounts being abated by this resolution.
Enacted by the City Council this 2ndday of August, 1994.
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Charles M. Hooley, Mayor
ATTEST:
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Morl Weldon, City Clerk