Memorandum 15-099 EDC Recommendations for Subdivision Special Assessment Districts

Memorandum 15-099

TO:                       MAYOR WYTHE AND HOMER CITY COUNCIL

FROM:                  MELISSA JACOBSEN, CMC, DEPUTY CITY CLERK

DATE:                   JUNE 22, 2015

SUBJECT:           ECONOMIC DEVELOPMENT COMMISSION RECOMMENDATION REGARDING SPECIAL ASSESSMENT DISTRICTS LEVY OF ASSESSMENT AFTER SUBDIVISION

Throughout the course of discussion by the Economic Development Advisory Commission related to affordable housing, the Commission considered the impact of the Special Assessment District process, specifically related to the assessment of newly created lots within a district. It was the consensus of the Commission that the current methodology of levying an assessment on a newly created lot is a deterrent for property owners to subdivide larger lots.  The Commission believes adding the full cost of the assessment along with the subdivision costs drives up the cost of the smaller lots making them more difficult to sell.  The Commission also finds this inhibits a developer’s opportunity to build affordable homes within the city.

At the June 9, 2015 regular meeting the Commission considered the following three options: 

1. That the district stops collecting at the payoff date or other date specific;

2. That a formula be considered for a decreasing amount to be be collected until zeroing out at the payoff or other specific date.

3. Do nothing.

They agreed unanimously to recommend option 1, that the district stops collecting at the payoff date, or other date specific, adding that it have a 5 year sunset for collections.

BROWN/ FRIEDLANDER RECOMMENDED THE NUMBER ONE SOLUTION AS PART OF A FAIRNESS DOCTRINE WITH A FIVE YEAR SUNSET CLAUSE FOR THE PAY OFF DATE TO ASSIST THOSE OWNERS.

There was no discussion.

VOTE: NON OBJECTION: UNANIMOUS CONSENT

Motion carried.

RECOMMENDATION: Consider the proposal from the Economic Development Advisory Commission and determine whether to bring forward an ordinance to amend Title 17 relating to subdivision after levy of assessments.