(A) Whenever property which has been assessed as an entire tract or parcel is subsequently divided into two or more lots or parcels, any person having an ownership interest in any portion of the property divided may make application to the City Council for a segregation of the assessment lien. In cases where the City Council deems a segregation to be appropriate, fair and equitable to the city and all other property owners, it shall make the final determination as to the amounts of the assessment lien to be segregated and placed upon each parcel involved in each segregation procedure.
(B) Applications for the segregation of assessment liens shall be on forms provided by the city. The form shall contain, among other items, the following:
(1) A legal description of the original tract, either by lot and block or metes and bounds, as the case may be;
(2) Legal descriptions of each parcel or tract after the original tract is divided;
(3) The square foot area of each parcel or tract;
(4) Registered surveyor’s map which shows the location of each tract with legal descriptions and square footage of each tract;
(5) Names, addresses and telephone numbers of all persons, firms and corporations having an interest, legal or equitable, as owners, lessee, mortgagee, beneficiary under trust deed or otherwise, as to each parcel or tract;
(6) Copies of contracts, deeds and other documents and instruments executed to effect a division of the original parcel;
(7) Competent appraisals or other evidence satisfactory to the City Council disclosing the fair cash market value of each tract;
(8) Every person, firm and corporation having an interest, legal or equitable in all tracts which comprise the original tract shall join in the application for segregation;
(9) A waiver of any irregularity in any part of the proceedings resulting in the assessment lien, including the manner, form, procedure and amount of lien, and the amount of the lien is acknowledged as a valid and subsisting lien against the property;
(10) Acknowledgment that even though the full amount of the prorated portion of an assessment lien is paid with respect to the parcel or tract divided and segregated from the original tract, the property which is the subject of the application for segregation is still subject to the obligations of the bond issue in existence for the financing of the project which gave rise to the assessment lien, including, but not limited to, the city’s obligation to cause to be levied taxes on all property, including the applicants’ segregated property, to pay the principal and interest on the existing bond indebtedness; and
(11) Agreement that the entire amount of the portion of the assessment lien found under division (A) above to be segregated and placed upon the parcel divided from the original tract, will be paid by applicants upon the final determinations being made by the City Council.
(C) (1) An application under this section shall be accompanied by a nonrefundable fee of $250. The amount of the fee may be subsequently or later revised by resolution of the City Council.
(2) An application under this section shall be also considered a separate application under § 34.105 for each lot or parcel. A separate installment payment application fee of 0.5% of the original assessment shall be charged for each additional parcel or lot created.
(D) No application for segregation of an assessment lien shall be considered or approved by the City Council if any of the following exist:
(1) The assessment lien on the original parcel or tract is in default in payment of principal or interest, or the property or the owners or possessors thereof are in violation of any zoning, land use or building laws, ordinances or regulations;
(2) The existence of, or threatened raising of, a question of the validity of an assessment lien by anyone having an interest in the tract or parcel on which the lien is sought to be segregated;
(3) The existence of litigation pertaining either directly or indirectly to the validity of the assessment lien;
(4) Failure of the applicant to waive any irregularity in any part of the proceedings which resulted in the assessment lien, including the manner, form, procedure and amount of lien, and/or failure to acknowledge as valid and subsisting the assessment lien against the original parcel or tract;
(5) Failure of the applicant to acknowledge and agree that, even though the full amount of the prorated portion of the assessment lien is paid with respect to the tract divided from the original parcel, the property which is the subject of the application for segregation of an assessment lien is still subject to the obligations of the bond issue in existence for the financing of the project which gave rise to the assessment lien, including, but not limited to, the city’s obligation to cause to be levied taxes on all property, including the applicants’ property, to pay the principal and interest on the bond issue;
(6) Any division or partition of the original parcel of property which would be contrary to or in violation of any zoning, land use or building laws, ordinances, rules or regulations;
(7) Any division which would leave a splinter or unbuildable lot, or which may prejudice the city’s security for payment of principal or interest on the bond issue;
(8) Failure of applicants to furnish the required information or to execute the application in the form required; or
(9) Any fact or condition which the City Council finds may prejudice the interest of the city.
(E) Upon consideration of an application, the City Council, upon finding that divisions (E)(1) through (E)(3) below apply, shall by resolution order the City Recorder to discharge the portion of the assessment lien apportioned to the subject property upon receipt of payment to the city of the amount determined and set forth in the resolution by the City Council:
(1) The application meets the requirements of this section;
(2) The application may be granted as requested, or as may be amended, without prejudice to the rights and security of the city; and
(3) The segregation portion of the assessment lien apportioned to the property which is the subject of the application is determined to be in a specified amount.
(F) In the event the City Council determines that an application for segregation should be denied because the interests of the city may be prejudiced, appropriate notation thereof shall be made in the minutes.
(Prior Code, § 35.111) (Ord. 1157, passed 9-7-1999)