HomeMy WebLinkAbout2014-288 Establishing Recaputre and ReimbursementCity of Corcoran November 13, 2014
County of Hennepin
State of Minnesota
ORDINANCE NO. 2014 -288
AN ORDINANCE ADOPTING PROCEDURES FOR ESTABLISHING RECAPTURE AND
REIMBURSEMENT AGREEMENTS FOR STREET AND UTILITY IMPROVEMENTS
THE CORCORAN CITY COUNCIL ORDAINS AS FOLLOWS:
Section 1. Purpose. This ordinance shall be adopted to establish a uniform methodology and
process for the administration of recapture and reimbursement agreements for
developers in circumstances where a developer uses private funds to construct a
public utility and /or street improvements and desires to be compensated by property
owners benefited by the improvements.
Section 2. Recapture and Reimbursement Agreement Defined. Recapture and
reimbursement agreement shall be defined as an agreement between the City and a
property owner for the sole purpose of reimbursing such owner for the installation of
a public utility and /or street improvements. Said improvements shall have the effect
of directly benefitting future development of other properties within the area.
Section 3. Projects Affected by Recapture and Reimbursement Agreement. All properties
that connect to a public utility and /or street improvement system for which a
recapture and reimbursement agreement is in force and which property has not been
assessed or has not borne an equitable share of the cost for such public system,
shall be subject to a recapture and reimbursement connection charge. The
connection charge shall be based on a pro rata share of the cost as stated in the
recapture and reimbursement agreement, at the reasonable discretion of the City as
recommended by the City Engineer.
Section 4. Collection of Reimbursement. It shall be the City's duty to collect such appropriate
connection charges and remit such monies to the developer designated in the
Agreement for the term provided.
Section 5. Benefitted Properties. The recapture and reimbursement agreement shall provide
for partial reimbursement of the cost of making a public utility and /or street
improvement against other property owners who:
a) Are determined to be within the reimbursement area by the City.
b) Are determined to have a reimbursement share based on a benefit to
the property.
c) Did not contribute a proportionate share to the original cost of the
public street, water, sewer or storm water improvement.
d) Subsequently developed their property within the allowable period
identified in the recaptures and reimbursement agreement and at the
time of development are not required to install similar utility or street
improvements because the improvements were already constructed
by the developer.
e) No recapture and reimbursement agreement may encompass a
period greater than 25 years.
Section 6. Reimbursement Costs /Determination.Reimbursement amounts shall be a pro rata
share of construction and contract administration costs including, but not limited to,
design and engineering costs of the project. The City Engineer shall determine the
City of Corcoran November 13, 2014
County of Hennepin
State of Minnesota
ORDINANCE NO. 2014 -288
reimbursement share by using a method of cost apportionment which is based upon
the benefits to the property owner from such property.
Section 7. Reimbursement Procedures. The procedures for recapture and reimbursements
shall be as follows:
a) A reimbursement area shall be formulated by the City Engineer based
upon a determination as to which parcels adjacent to or in the vicinity
of improvements would require similar public utility and /or street
improvements upon development.
b) The engineer's recommendation shall be forwarded to the city council
for a determination of benefit.
c) Recapture and reimbursement agreements may be formulated and
shall be final after the city council's determination of benefit.
Section 8. Improvements within Benefit Area. Development proposals located within the
designated reimbursement area that will benefit from a pre- existing public utility
and /or street improvement constructed pursuant to the creation of a reimbursement
area, shall as a prerequisite and condition to approval contribute the appropriate
reimbursement share designated by the formula set forth in the applicable recapture
and reimbursement agreement.
Section 9. City Participation. The City may join in the financing of improvement projects
and may be reimbursed in the same manner as the owners of real estate who
participate in the projects. The terms and conditions of the City's participation shall
be specified in the recapture and reimbursement agreement for the stated project.
Section 10. Enforcement of Recapture and Reimbursement Agreements. In processing
and imposing obligations for reimbursement of developers, the City in no way
guarantees payment of amounts by future developers or the enforcement of the
recapture and reimbursement agreement against such persons or property. The City
will not be used for enforcement or collection of development obligations beyond
those duties specifically undertaken by the City in a recapture and reimbursement
agreement.
Section 11. Severability. If any section of this ordinance should be held to be invalid or
unconstitutional by a court of competent jurisdiction, such invalidity or
unconstitutionality thereof shall not affect the validity or constitutionality of any other
section of this ordinance.
Section 12. Effective Date. This Ordinance shall be in full force and effect upon its publication
and passage.
ADOPTED by the City Council on the 13th day of November, 2014.
VOTING AYE
® Guenthner, Ken
® Asleson, Rich
® Cossette, Tom
® Hank, Pat
VOTING NAY
❑ Guenthner, Ken
❑ Asleson, Rich
❑ C:ossette, Tom
❑ Hank, Pat
City of Corcoran
County of Hennepin
State of Minnesota
November 13, 2014
ORDINANCE NO. 2014 -288
® Thomas, Ron ❑ Thomas, Ron
(l�Lv �- mac.- c,...�- �(.� --�—
Ken Guenther, Mayor
ATTEST:
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YaLnie Heinecke, City Clerk