A. Deferments For Hardship, Senior Citizens Or Persons With Disabilities: Special assessments may be deferred as a result of hardship for senior citizens or retired and disabled persons pursuant to Minnesota Statutes section 435.193:
1. Deferral Categories And Authority: The City Council may defer the payment of any special assessment on homestead property owned by a person who is sixty five (65) years of age or older, or who is retired by virtue of permanent and total disability, and the City Clerk is hereby authorized to record the deferment of special assessments where the following conditions are met:
a. The applicant must apply for the deferment not later than ninety (90) days after the assessment is adopted by the City Council.
b. The applicant must be sixty five (65) years of age or older or retired by virtue of permanent and total disability.
c. The applicant must be the owner of the property.
d. The applicant must occupy the property as his principal place of residence.
e. The applicant shall meet the eligibility requirements of the Minnesota Energy Assistance Program.
f. The average annual payment for assessments levied against the subject property must exceed one and one-half percent (1.5%) of the adjusted gross income of the applicant as evidenced by the applicant's most recent Federal Income Tax return. The average annual payment of an assessment shall be the total cost of the assessment divided by the number of years over which it is spread.
2. Term:
a. The deferment shall be granted for as long a period of time as the hardship exists and the conditions aforementioned have been met.
b. It shall be the duty of the applicant to notify the City Clerk of any change in the applicant's status that would affect eligibility for deferment.
3. Payment:
a. The entire amount of deferred special assessments shall be due within sixty (60) days after loss of eligibility by the applicant.
b. If the special assessment is not paid within the sixty (60) days, the City Clerk shall add thereto interest at a per annum interest rate of one and one-half percent (1.5%) above the bond interest rate and the total amount of principal and interest shall be certified to the County Auditor for collection with taxes the following year.
c. Should the applicant demonstrate to the satisfaction of the City Council that full repayment of the deferred special assessment would cause the applicant particular undue financial hardship, the City Council may order that the applicant pay within sixty (60) days a sum equal to the number of installments of deferred special assessments outstanding and unpaid to date, including principal and interest, with the balance thereafter paid according to the terms and conditions of the original special assessments.
4. Termination Of Deferment: The option to defer the payment of special assessments shall terminate, and all amounts accumulated plus applicable interest shall become due upon the occurrence of any one of the following:
a. The death of the owner when there is no spouse who is eligible for deferment.
b. The sale, transfer or subdivision of all or any part of the property.
c. Loss of homestead status on the property.
d. Determination by the City Council for any reason that immediate or partial payment would impose no hardship.
B. Deferments Regarding Urban Development: The City Council may, at its discretion, defer special assessments related to urban development consistent with the City's Comprehensive Plan for benefited properties as follows:
1. Properties eligible for the option deferments under this section shall meet the following criteria:
a. The property is zoned A-1, A-2, R-1, R-2, or R-3 District.
b. Development of the property is limited to one dwelling unit and related accessory uses.
2. The option to defer the payment of special assessments shall terminate and all amounts accumulated plus applicable interest shall become due upon the occurrence of any one of the following, whichever occurs first: (Prior Code § 6-4-6)
a. Rezoning to R-C, R-4, R-4A, R-5, R-6, R-7, R-MH, INS or PUD District or any commercial or industrial district as defined title 11, chapter 50 of this Code. (Prior Code § 6-4-6; amd. 2018 Code)
b. The subdivision of all or any part of the property.
c. Five (5) years from the date the assessment is initially adopted.
d. A date or event specified by the City Council at the time the option to defer payment of special assessments is approved.
3. The City Council, at its discretion, may approve an extension to defer the payment of special assessments that would terminate pursuant to subsection B2 of this section subject to the following:
a. The extension is requested in writing and filed with the City Clerk at least thirty (30) days prior to the expiration of the initial deferment.
b. The request states the reasons for which the property owner believes the deferment should be extended.
c. If approved by the City Council, the extension of the deferment shall terminate as provided by subsection B2 of this section. (Prior Code § 6-4-6)