Memorandum 15-105 Lillian Walli Subdivision

Memorandum 15-105

TO:                       Mayor Wythe and Homer City Council

FROM:                 Katie Koester, City Manager

DATE:                  June 29, 2015

SUBJECT:         Lillian Walli and Resolution 15-048(S)

The Council voted to postpone Resolution 15-048, initiating a Homer Special Improvement District for Lillian Walli at the June 15 meeting based on the fact that the petition that was circulated to gauge property owner interest in the HSAD erroneously stated that the subdivision was eligible for HART and HAWSP cost sharing. Like other new subdivisions in the City of Homer, the developer is responsible for the cost of the utility and road improvements. The subdivision agreement signed in 1988 states that the developer is responsible for “street, drainage, water, storm drain, sanitary sewer, street signs, street lighting, underground power and monumentation improvements.”

Because the petition had inaccurate information, the City Attorney recommends replacing it with Resolution 15-048(S) that clearly outlines the responsibilities of each party and directs staff to re-circulate the petition among lot owners on Eric Lane.

I have included my email correspondence with the lot owner initiating the special assessment district along Eric Lane, Fran Durner, that further explains how the City can help with the improvements. Lillian Walli is a unique case: the subdivision was platted a long time ago, lot owners have been assessed for water and sewer improvements along Eric Lane and up West Hill, and there are multiple lot owners. Through Resolution 15-048(S) the City is proposing to help develop Lillian Walli in three important ways:

Offering the financing mechanism, organizational structure and construction expertise through the City of Homer Special Assessment District Process. (Note: it is likely more cost effective to privately develop the utilities and road in question, however finding private financing and a legally binding mechanism for all lot owners to participate is more difficult.)
Crediting lot owners for what they have previously contributed in Sewer Assessments.
Cost sharing with lot owners to bring Eric Lane (Fairview Avenue) up to a collector street standard.

I appreciate that the cost of the improvements are steep, that there has been a long string of road blocks to developing the subdivision, and hard feelings. However, the City has to balance the desire to develop Lillian Walli with the precedent that is being set for other developments and the wise use of taxpayer dollars.