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Council lays over assessment appeal for 586 Burgess to March after owner cites financial hardship
Summary
The City Council heard an appeal of a vacant‑building assessment for 586 Burgess and laid the matter over to March 26, 2025, while staff checks statutory limits on multi‑year spreads and community partners explore assistance. Owner Tom Novak described being underinsured after a fire and unable to complete repairs.
The St. Paul City Council on Jan. 7 laid over an appeal concerning a vacant‑building assessment for 586 Burgess Street to March 26 so staff can review statutory limits and local partners can evaluate assistance options.
Legislative hearing officer Ms. Moorman told the council the property entered the vacant‑building program after a 2020 fire and currently carries a $5,077 assessment before the council. Moorman recommended approval of the assessment and spreading payments over five years but said staff had referred the owner to planning and economic development, NeighborWorks and the District 6 council for assistance.
Property owner Tom Novak told the council he had obtained permits after the fire but contractors and rising costs stalled progress; he said insurance paid about $139,000 but estimates to rebuild ran as high as $380,000. "It's cost prohibitive," Novak said, adding he was working, drawing on savings and still facing assessments stacking onto his mortgage payments.
Council Member Buoy proposed extending the payment plan from five to seven years if statute allows and asked staff to report back on which assistance organizations had been contacted. Buoy also proposed, as a contingent option, waiving a 2025 assessment should the owner secure permits and make construction progress; staff cautioned state statute (chapter 429) may limit spreading assessments to five years and recommended reviewing the legal limit with the real estate attorney.
The council voted to lay the matter over to the March 26 council meeting to allow staff to confirm statutory limits and to report on applications for assistance and payment options.
No final adjustment to the assessment was made at the Jan. 7 meeting; the council instructed staff to return with more information.
