CCR2015012-Attachment
CITY OF MUSKEGO ROAD ASSESSMENT POLICY #2
FOR COMPLETION OF CONSTRUCTION OF NEW ROADWAY AND RELATED
IMPROVEMENTS IN NEW DEVELOPMENTS WHEN THE DEVELOPER FAILS TO
COMPLETE THE IMPROVEMENTS
WHEREAS, pursuant to Wisconsin Statutes Chapter 236 and the City of Muskego Land
Division Ordinance, developers of subdivisions in the City are obligated to construct
certain public improvements, at the Developer’s cost; and
WHEREAS, the City requires developers to provide a financial guarantee to ensure that
they complete the public improvements required for their development projects; and
WHEREAS, from time to time, despite every effort, developers do not complete the
required subdivision improvements, and the financial guarantees are insufficient or
ineffective in recovering costs that are necessary for completion of the subdivision
improvements, and the Developer cannot be compelled to do so; and
WHEREAS, in such situations, the City may decide to complete all or part of the
remaining subdivision improvements for the benefit of the owners of lots within the
subdivision, however the City taxpayers should not have been obligated to pay this
expense, and therefore the City intends to recover these costs from the benefitted
parties, which is the owners of lots in the subdivision.
WHEREAS, the City finds that the most reasonable method of assessment is to apply
an equal portion of the costs to each lot in the subdivision, because the subdivision
would not have been approved or created absent the development plans showing these
improvements, so each lot is equally benefitted; also many times but not always this
assessment option is reflected in the Developer’s Agreement which is recorded against
the lots and is binding on the successors.
NOW, THEREFORE, the City of Muskego hereby intends to establish a policy
regarding cost recovery in the event the City completes subdivision development
improvements due to the failure of a Developer to do so in circumstances where there
are insufficient financial guarantee funds to recover the City’s costs.
STATEMENT OF SPECIAL BENEFITS TO PROPERTIES BEING ASSESSED FOR
NEW ROADWAY AND RELATED IMPROVEMENTS:
1. The basis for assessment shall be an equal share assigned to each lot in the
subdivision. If the roadway and improvements are within m ore than one phase
of a development, the assessment shall be applied to every lot of every phase of
the development, in an equal amount.
Completion of Development Assessment Policy – January 2015
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2. New roadway assessable and non-assessable costs:
a. The costs to be assessed will include, as applicable, the cost of land
acquisition, construction, design, engineering, construction management,
administration and legal expenses incurred associated with the
construction of the remaining subdivision improvements.
3. Assessment and Payment of Assessments.
a. The assessment applies equally to lots currently improved with structures
and to lots that are vacant.
4. Installment Payments.
a. The Common Council may allow special assessments to be paid in
annual installments as provided for in the Final Assessment Resolution,
as allowed by Wisconsin Statutes Section 66.0715(3) and other
applicable laws.
5. Lien of Assessment.
a. Every special assessment levied pursuant to this policy is a lien on the
property against which it is levied, from the date of the determination of
the assessment by the governing body. All assessments or installments
which are not paid when due shall be extended upon the tax roll as a
delinquent tax against the property with interest through January 31st and
all proceedings in relation to the collection, return and sale of property for
delinquent real estate taxes shall apply to such special assessment,
except as otherwise provided by statute.
6. Reserved Rights.
a. In circumstances where, pursuant to this policy, the City completes certain
development work within a subdivision, the City reserves all rights with
regard to any such work. The City may choose not to complete every
portion of the work that would have been completed by the Developer had
the Developer performed the work. The City reserves the right to modify
the development plans in its discretion, and to complete the work solely to
the City’s satisfaction. Any changes that may be made to the original
development plans shall have no impact on the assessment.