Memorandum 16-119 Deferred Assessment Govt Lot 2 Kachemak Drive

Memorandum 16-119

TO:                        Katie Koester - City Manager

FROM:                  Carey Meyer - Public Works Director

DATE:                    July 14, 2016

SUBJECT:              Deferred Assessment - Split Lot

                                Kachemak Drive Water/Sewer Improvements (Phase III)

Background:  As assessments have been developed for several special assessment districts along Kachemak Drive (Phase I and II water/sewer improvements and the natural gas project), the Council has agreed that where a lot that was divided by the construction of the Kachemak Drive, a single assessment would be the most fair (with the second assessment being deferred until the vacant side was developed).

The Council passed Resolution 06-74 to authorize deferred assessment s for “split lots” within the Phase I of the Kachemak Drive Water/Sewer Improvements LID; Resolution 15-063 for the natural gas special assessment district; and Resolution 13-008 for Phase II of the Kachemak Drive Water/Sewer Improvements LID.

The Council created a SAD (Special Assessment District) for Phase III of the Kachemak Drive Water/Sewer Improvements project (Resolution 16-042), where a similar situation exists. A lot (a portion of Government Lot 2) is split by the Kachemak Drive road improvement and no right-of way or property line was created).

Discussion: In the case of the split lot within Phase III of the Kachemak Drive Water/Sewer SAD, the vacant portion of the split lot on the north side of Kachemak Drive was provided water and sewer service as part of the Phase I project. An assessment was levied. No service was provided to the portion on the south side (where the owner lives). Phase III will provide water and sewer service to the portion of the lot on the south side where the owner lives.

To be consistent with how we have treated other lots along Kachemak Drive, the owner of this lot should be assessed once (on the portion of the lot where the owner lives). This would mean that the previous Phase I assessment would be turned into a deferred assessment, and that a new Phase III assessment be levied on the south portion of the lot where the owner lives.

Recommendation

City Council pass a resolution turning the deferred assessment on the north side of Government Lot 2, created under Phase I, to a deferred assessment and that a new Phase III assessment be levied on the south portion of the lot where the owner lives.

Attached: Resolutions 06-74, 15-063, and13-008; and map of split lot.