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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 2 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.