Section 451.15 Payments; Financing
451.15 PAYMENTS; FINANCING.
Subdivision 1.Financing.
The program may include one or more of the methods described in this section for financing the cost of the installation of improvements.
Subd. 2.Cash.
The city may contract with a property owner for the payment in cash of the cost of the installation of the improvements upon completion of the installation of the improvements. The payment must be secured by:
(1) a deposit with the city of 90 percent of the contract price; or
(2) a written commitment from a bank or other financial institution approved in the program to lend the property owner the full amount of the contract price for payment to the city.
Subd. 3.Promissory note.
The city may accept payment of the contract price by a promissory note from the property owner delivered at the time of entering into the contract payable at such times, not exceeding ten years, and in the amounts and at the interest rate specified in the program.
Subd. 4.Lien as security.
The balance of payments due under subdivision 2 and the entire principal of and interest on a promissory note delivered under subdivision 3 are secured by a lien created by this subdivision on the real property on which the improvements are made. If payment is not made according to the terms of the program, or the note, the chief financial officer of the city may certify the entire amount so due to the county auditor for collection as other taxes are collected.
Subd. 5.Special assessments.
The program may provide that at the request of the property owner the unpaid cost of the installation of an improvement is to be specially assessed against the real property on which the improvement is installed in the manner provided by section 429.101, except that:
(1) the adoption of an ordinance is not required; and
(2) obligations issued to finance the improvements must mature not later than ten years from the date of their issuance.
History:
2000 c 493 s 11