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Cannon Falls council approves reassessment deal to clear interest and enable potential sale of mall property
Summary
The council approved Resolution 2880 to reduce long‑running deferred-assessment interest and offer a 10‑year principal repayment to help facilitate a prospective buyer’s purchase of the Cannon Mall, with the buyer agreeing to building-permit improvements and to convey a private path to the city.
The Cannon Falls City Council on June 16 approved a resolution intended to facilitate the sale and redevelopment of the Cannon Mall property by restructuring long‑standing deferred assessments.
City staff told the council the original settlement tied to annexation of the mall area required undeveloped parcels to pay assessments when developed, but interest has accrued for roughly 25 years and now exceeds $450,000. Staff recommended eliminating accrued interest and setting a principal repayment of $118,525 payable over 10 years at 5 percent, with no prepayment penalty.
Staff said prospective buyers who reviewed the terms commit to filing building permits and to carry out improvements — staff noted contractors were already assessing the roof — and would convey a private road (the 64th Avenue path between Rancho Loco and Hickory Drive) to the city for public use and connectivity as part of the deal. City staff said the conveyance would support the city’s active-transportation plan and improve non‑motorized access near recent apartment development.
Councilmembers asked clarifying questions about the extent of the land to be conveyed, potential conversion of private drives into public right‑of‑way, and long‑term maintenance of the mall parking area. Staff said the proposed reassessment terms aim to remove a barrier that has deterred investment in the property, noting that the accrued interest liability made redevelopment financially impractical for potential buyers.
A motion to approve the reassessment resolution carried on a voice vote.
The resolution directs staff to proceed with drafting final reassessment paperwork and return to the council for the formal reassessment agreement and final terms.
