How much can i be assesed?

[Eelpout08]

Does anyone know if there is a maximum allowed assesment for a street project vs what the property is worth or how much the property will benefit from the improvements? Or where i could find that information. I have a corner lot and both streets are proposed to be rebuilt. The city wants to punkers my property over %15 of what the property is valued at. I just want to make sure i am not paying more than my fair share.

[Lip_Ripper Guy]

I'm not very familiar with the laws regarding this, but I do know your property value needs to increase by at least the amount of the assesment. I can tell you your property value isn't going to increase by 15% because of a new street.

There is a case going on in Le Center right now about this very issue.

[pushbutton]

You would have to call the city engineering/assessment office to find out what the cap is. Kind of like being a lamb and going to the wolf den for for your answer though. Might be worth a shot to ask the city attorney the question first. Usually the city attorney will just make a call down to the engineering/assessment office to find out the answer if he/she does not already know. Would think it would be difficult to fight the city on the cost vs value. You are really just along for the ride to pay the bill, and they can usually just justify the numbers how they want to for "the good of the public". Sure you can fight it, but it would probably cost more to fight it then what you would have to pay for the assessment. I went/going through a condemnation process along with improvements and certainly got screwed, but would have had to spend a minimum of 25,000 to save 26,000......

[delcecchi]

Does anyone know if there is a maximum allowed assesment for a street project vs what the property is worth or how much the property will benefit from the improvements? Or where i could find that information. I have a corner lot and both streets are proposed to be rebuilt. The city wants to punkers my property over %15 of what the property is valued at. I just want to make sure i am not paying more than my fair share.

You only have a short time to appeal the assessment. Do so immediately upon receiving the assessment. You and the other home owners in the region will probably need a lawyer. Normally I thought corner guys only had to pay for one edge.

[LightningBG]

Normally I thought corner guys only had to pay for one edge.

I think I've heard cases where the corners have to pay 1.5x

Could be different for each town I guess.

[delcecchi]

Just let me re-iterate. You and your neighbors should at least speak to a lawyer. DO NOT TRUST THE CITY TO TELL THE TRUTH OR DO THE RIGHT THING!!!

When you get the assessment, appeal immediately and start the process of going to court, in order to preserve your rights. A bunch of people here in Rochester got totally ripped (other less printable verbs not used) by the city on a sew/water project because the people believed the city employees.

In Minnesota they cannot assess you more than the increase to the value of your property. Start lining up your experts and legal help as soon as you know the details.

[Lip_Ripper Guy]

This is generally sound advice, IMO. Just pay attention, and if something doesn't sound right, consult with an attorney. Even if you have to buy an hour of time, it could be money well spent.

Also remember that although the city makes you a handy dandy payment plan, if you try to sell before it is paid off, 99% of the buyers will ask/need you to pay it off before buying.

[Dave S]

A similar issue arose in Le Sueur not long ago. The property owners felt they were going to get the screws put to them so a few of them lawyered up and put a stop to our city administrators carp. The antics haven't stopped but you most definitely owe it to yourself to consult with an attorney.

[cavalierowner]

I will add that if you hire a lawyer, make sure the lawyer can show proven experience in that type of work. You don't want the lawyer getting an education on your dime. In fact, that goes for any type of case.

[Tom7227]

Folks have it correct, the amount of an assessed cannot exceed the increase in value to the property.

But -

That is a fairly subjective issue that will be based on the evidence presented at the assessment hearing. At some point in the process there will be a public hearing on the project. After some fairly boring testimony someone from the municipality side of things will say the magic words - 'in my opinion the improvements made as part of this project will increase the value of the affected properties by amounts equal to or in excess of the amounts assessed.'

During the hearing people will be able to get up and say whatever they want. Most likely someone will say that it costs too much, they don't want it etc. Maybe someone will say the magic words 'in my opinion the amount assessed against property XYz does not equal the increase in value to the property. The increase in the value to XYz is $QBC.'

The appeal in a court then becomes an issue of the qualifications of those who rendered opinions about the increase in value and whether sufficient evidence was introduced to support the opinion.

In my example the witness for the municipality didn't give any evidence of his/her qualifications, nor was there any evidence of how the opinion was formed. Same problem with the testimony from a homeowner.

Assuming that these simplistic deficits are covered during the hearing then it is likely that someone would have to cross examine the witness(s) to see if holes could be punched in either their qualifications, data upon which they based their opinion, or the opinion itself.

In my experience very few homeowners have the knowledge on how to do the above, and very few have the resources to hire it out. If you 'win' your assessment would be lowered but you'd still be out the money you spent to fight it. A lawyer and a real estate professional who has the background to do a credible valuation of the property will cost a pretty penny.

[Tom7227]

A court will have to determine whether or not the municipal officials abused their discretion in making their decision. There is a pretty high standard involved here. I may not have it exactly correct but I think it is something like having to find that there was no rational basis for coming to conclusion X. That means that if there's a chance that someone could come to that conclusion then the court cannot overturn it.

I suppose in some places there may not be a sufficient level of sophistication and advice to a municipality where the proper evidence and opinions wouldn't be introduced. Rare I suspect, but possible.

I believe that the municipality would be defended by the League of Minnesota Cities or whatever carrier they have for this type of coverage. This also means that their pockets are pretty deep in terms of paying for the defense in an action.

I am not claiming to be an expert in this area. I did work on this kind of stuff for about 15 years when I was a staff attorney for a large city in Minnesota. I also was involved in a major sewer and water project in my neighborhood and I spent a lot of time learning about the details of these sorts of things.

[delcecchi]

All I can say is that I witnessed several cases here in Rochester, one where the homeowners didn't protect themselves and got shafted (golden hill) and a couple where they did and the assessments were reduced by the court. (oak hills, toogood court). The oak hills fiasco ended up producing a big enough loss for the city that they stopped forcibly annexing and installing services in developed areas for a number of years.

Yes, it takes a lawyer but if there are a bunch of homeowners who band together to share the cost of the case, it can be done. Fifty houses saving 10 grand or more per house adds right up. Make the government comply with the law. Organize! Know your rights!

[BoxMN]

FWIW, on my corner lot in WBL I think I recall that we got assessed 1x the distance of the shorter street, and 0.5x the distance on the longer street. It came out to $6300 back in '97 for me, ouch (highest assessment in neighborhood due to 1.5 lot and corner...). But we were in negotiations on buying the place, so the seller dropped the price by half the assessment, and I took over the whole assessment, so we both paid half essentially.

You hate to have to pay for something you already have (a street) but the new street (and sewer, water, etc.) has been very nice for us the past 14 years, and in the end I am glad we got it. Hated looking at the tax each year for 7 years though

Good luck. Living on corner costs more, but you only have one real neighbor, and that is worth it, haha!

[Powerstroke]

The rules for assessment costs are set in each municipality.

Some cities share costs, some assess the whole thing.

Tom is dead on about the law and that the assessment cannot exceed the value added. Make sure you consider everything that is being done. Road recon is one thing, but if you end up with new sewer and water, storm sewer, curb and gutter and a new road, that's fairly significant. Fighting against new utilities might save money but your new road will have new holes in it as the old water/sewer infrastructure will still need repairs. Now you have patches in the street and a new source of potholes.