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HomeMy WebLinkAbout1988-098-06/14/1988-MAKING FINDINGS OF FACT REGARDING THE APPEAL OF THE FINANICAL OFFICER'S DECISION REGARDING THE REALL RESOLUTION 88-98 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING FINDINGS OF FACT REGARDING THE APPEAL OF THE FINANCIAL OFFICER'S DECISION REGARDING THE REALLOCATION OF CERTAIN ASSESSMENTS IN THE BOARDWALK SPECIAL IMPROVEMENT DISTRICT NO. 77 WHEREAS, on March 18, 1988, the Financial Officer conducted a hearing, after such notice to the public and the affected property owners as required by Section 22-99 of the Code, regarding the proposed reallocation of assessments to be placed on three parcels of land in the Boardwalk Special Improvement District more fully described as follows: 1) Portion of Lot 15, Observatory Heights, described as beginning at the SE corner of said lot, then west 671 .90 feet along south line of said lot to point on the westerly right-of-way of Colorado State Highway #1, then along the easterly right-of-way N 00*16' West 301 .20 N 00*24" East 94.67 feet to a point on the southwesterly right-of-way of a public road , then south 65021 ' East 740 . 08 feet along the southwesterly right-of-way to the Northeast corner of said lot, then South 87.19 feet along the easterly line to the True Point of Beginning, less Fountainhead PUD Phase One. 2) Lot 1, Fountainhead PUD, Phase One, City of Fort Collins. 3) Lot 2, Fountainhead PUD Phase One, City of Fort Collins; and WHEREAS, on May 4, 1988, the Financial Officer issued a decision that the reallocation of assessments for these parcels should be levied on a square-footage basis; and WHEREAS, on May 18, 1988, TCP, Inc. , the owner of one of the three parcels of land affected by the reallocation filed a notice of appeal from the aforesaid decision of the Financial Officer; and WHEREAS, on June 7, 1988, the City Council heard and determined said appeal . NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that, having reviewed the record on appeal in this matter and having received presentations and arguments of all parties in interest pursuant to the procedures for appeal contained in Article II, Division 3 of the Code, the Council hereby makes the following findings of fact: 1 . The reallocation of assessments on a square footage basis as described in the Financial Officer's Findings and Conclusions dated May 4, 1988, a copy of which is attached hereto as Exhibit "A" and incorporated herein by reference, constitutes a fair and equitable method of reallocation for the reasons stated therein. 2. The Financial Officer properly interpreted and applied all relevant provisions of the City Code and Charter in making his determination as to the proper method of reallocation in this matter. 3. The Financial Officer properly considered all relevant provisions of local and state law affecting his decision, including the provisions of Section 22-86 of the Code. 4. The Financial Officer properly exercised his discretion as hearing officer and his decision was supported by competent evidence in the record. BE IT FURTHER RESOLVED that the decision of the Financial Officer of May 4, 1988, establishing a square-foot method of allocating assessments for the above-described affected parcels of property in the Boardwalk Special Improvement District, more fully described in Exhibit "A" be, and hereby is, upheld. Passed and adopted at an adjourned meeting of the Council of the City of Fort Collins held this 14th day of June, A.D.N118,( "ISTA TMayor TTEST: City Clerk EXHI'IT "A " FINANCIAL OFFICER'S FINDINGS AND CONCLUSIONS REGARDING THE REALLOCATION OF CERTAIN ASSESSMENTS IN BOARDWALK SPECIAL IMPROVEMENT DISTRICT #77 The following constitute the findings and conclusions of the Financial Officer for the City of Fort Collins regarding the matter of assessments to be placed on parcels of land located at Boardwalk Drive and South College Avenue for street improvements constructed through the Boardwalk Special Improvement District #77. 1. Background On March 18, 1988, a hearing was conducted by the City, after notice to the public and to affected property owners, regarding the proposed assessments to be placed on three parcels of land in the Boardwalk Special Improvement District. The three parcels of land are described as follows: Lot 1, The Fountainhead P.U.D. , now owned by TCP. Lot 2 , The Fountainhead P.U.D. , now owned by Arkansas Federal. A portion of Lot 15, Observatory Heights Subdivision, now owned by Arkansas Federal. On February 7, 1988, the City had proposed a reallocation of the assessment against these parcels, pursuant to Section 22-99 of the City Code, such that the properties would bear the following assessments based on a representative square footage proportion of the total area in the properties. Present Area % of Owner Square Foot Area Assessment Lot 1 TCP, Inc. 82, 740 49. 4 $ 97, 085. 64 Lot 2 Arkansas Fed. 62, 825 37. 5 73, 649. 82 Lot 15 Arkansas Fed. 22 , 021 13 . 1 25, 873.77 (A portion) 167, 586 100 $ $196, 609.23 *Total assessment as provided in Ordinance 15, 1986. The materials reviewed by the Financial Officer in reviewing the proposed reallocation include the following documents: 1. The formation resolutions and ordinances and amendments to those documents; 2 . The agreement among the City and the property owners; 3 . The assessment resolutions and ordinances, including assessment rolls prepared by the City; 4 . All correspondence regarding this matter in the City Clerk' s files; 5. The transcript prepared from the tape of the hearing; and 6. The letter dated March 24 , 1988 and attachments provided by March & Myatt, representing Arkansas Federal Savings and Loan. 2 . Analysis At the hearing, TCP, Inc. , presented its concern that the proposed square footage reallocation of assessments was not appropriate. TCP argued that the basis for assessments, as provided in the assessment ordinance, was to be on a lineal foot basis. TCP claims it relied upon the Ordinance in reaching its decision to purchase Lot 1. It also relied upon information provided by the Larimer County Assessor in determining the financial obligations regarding the property. Although TCP acknowledged the fairness and logic of the reallocation of assessments on a square footage basis, it does not believe that it should bear a higher assessment than one based on a lineal foot basis, because of its reliance on that method of assessment. 3 . Findings It is hereby determined that the proposed reallocation of the original assessments as described above, which is based on information in the City Clerk's records and information provided at the hearing by the S.I.D. Coordinator and Financial Policy Analyst, is consistent with the requirements of Chapter 22 of the City Code, and fairly apportions the assessment among the above described parcels of property according to the special benefits which are derived by each parcel from the district improvements. The City has an obligation to follow the legal principles established by relevant case law in fixing the amount of special improvement district assessments. That principle, simply stated, is that assessments should bear a reasonable approximation to benefits received. Both front foot and square foot based calculations are allowable under the City Code (which makes special reference to irregularly shaped parcels in Section 22-86) . In this case, Lot 15 carries a much greater front footage to area ratio than the other two parcels. Therefore, an allocation based on front footage basis would overload Lot 15 as compared to Lots 1 and 2 . This would not be consistent with the Code or the intent of fair and equitable assessments that the City follows on its special district assessments generally. While TCP may have relied on the initial front footage formula as specified in the assessment ordinance, such reliance appears misplaced. Admittedly, original petitioners may (and in this case did) accept front footage allocations in the creation and assessment phases. However, once original parcels are subdivided, Section 22-99 of the Code would permit the reallocation of assessments on a square footage basis. In fact, this is the method of allocation which is generally used for such reallocations. More importantly, in the absence of any agreed-upon reallocation, the Code specifically provides that the entire remaining balance of the unpaid assessment continues as a lien on the entire original tract. Thus, the present reallocation would in fact lessen the amount of the assessment and the legal burden which is presently imposed by the Code on each of the assessed parcels. 4 . Conclusion It is the determination of the Financial Officer that the Finance Department shall proceed with the implementation of the reallocation of assessments based on the square footage proportions. This will include notification to the Larimer County Assessor's office and Treasurer's office for collection of the assessment pursuant to the relevant provisions of the City Code. Alan Krcmar k, F nanc al Off cer City of Fort Collins, Colorado Effective Date: May 4, 1988