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6. Stahlberg Petition to Reduce City AssessmentsCity of Kalispell '1 Post Office Box 1997 - Kalispell; Montana 59903-1997 - Telephone (406) 758-7000 Fax - (406) 758-7758 REPORT TO: Honorable Mayor and City Council FROM: Charles Harball, City Attorney Chris Kukulski, City Manager SUBJECT: Stahlberg Petition to Reduce City Assessments MEETING DATE: November 18, 2002 BACKGROUND: Mr. Gerry Stahlberg owns approximately seven acres of commercial property [Northwest Machinery] at 740 West Railroad Street in the City of Kalispell. Over the years he has been paying the full city assessments for this property, which include storm water, streets and lighting. Mr. Stahlberg is asking the City to consider the fact that five of his seven acres are encumbered by a Burlington Northern easement, which effectively renders those acres useless for his commercial purposes. The City bases its assessments on the square footage of property. The rationales for this formula are varied. It may be that 1) the size of the property is reasonably proportional to its value and that properties of greater value should be paying greater assessments or 2) that the properties of greater size receive more value of city services [streets or lighting] or 3) that properties of greater size may be a greater burden on the city services [storm water]. At least as to rationales 1 and 2, Mr. Stahlberg would argue that the railroad easements significantly diminishes the value of his property and that because of the constraints placed on his property by the tracks, his access to city streets and lighting is significantly diminished. As to rationale No. 3, the City currently pays a lease fee of $1,600 per year to Burlington Northern for the benefit of storm drain placement within its leasehold (including its easement on Mr. Stahlberg's property). Mr. Stahlberg does not receive any such payment. Based on the above information a workshop was held on October 21, 2002 to discuss Mr. Stahlberg's request. At that time the Council discussed the issue and asked that it be placed on the November 18 Council Agenda. Both Charlie Harball and I feel that Mr. Stalberg's situation is unique and merits a reduction in his special assessments. It would be reasonable to limit the assessments on the property to the square footage of land NOT encumbered by the BNSF Easement (approx. 2 acres). I would further recommend that the City consider making this action effective for tax year 2000. RECOMMENDATION: The Council pass a motion authorizing the City Manager to reduce Mr. Stahlberg's special assessments consistent with the square footage of land NOT encumbered by the BNSF Easement. This action will be effective for tax year 2000. Respectfully submitted, CW, Chris Kukulski, City Manager Charles Harbal ity Attorney