Roseville, church debate merits of street assessment
Kavita Kumar and Laurie Blake/Star Tribune
Published Jul 16, 2002
After a long-running struggle between church and state, a small Roseville congregation won't be assessed $158,000 to pay for a rebuilt road.
The Roseville City Council voted 3 to 2 Monday night to change its city assessment policy and to excuse Advent Lutheran Church from being the only property owner on Josephine Road to have to pay an assessment.
More than 60 people attended the meeting, most of them church members and supporters who wore red bandanas around their necks to show their solidarity.
The Rev. Tom Basich, who has led the church he founded for 49 years, welcomed the relief but said the matter must still be taken to the Legislature to clarify whether a special assessment is a tax.
"The Constitution of Minnesota says all churches are tax exempt; a special assessment is a tax," he said.
Before the vote, Basich said: "To get this $158,000 off our back now would be a very big help. We have had to be diverted from our usual religious work into a fight to preserve our very existence here."
While at least two council members said that a special assessment is not a tax, they agreed to remove the assessment from the church.
The conflict began 18 months ago when the city of Roseville sent the 300-member church a notice that it would be assessed $158,000 of the $540,000 cost to rebuild Josephine Road.
City policies excuse homeowners from assessments on roads, like Josephine, that are eligible for state aid. That left only one of the 34 property owners to be assessed for the half-mile road: Advent Lutheran.
"So we said we're not going to pay it," Basich said.
Church officials were further irritated by an offer they said they got from the city to lower the assessment in exchange for some parcels of the church's 11 acres.
Basich called the alleged offer extortion. "We said absolutely not, we are not going
to do it and not going to pay the assessment," he said.
The city paid for 75 percent of the project with state aid -- funds that are drawn from the state gas tax and license tab fees. Basich said he viewed the assessment as double dipping.
Duane Schwartz, Roseville's public works director, said the assessment was an attempt to recover some of the project costs not eligible for state reimbursement. Schwartz, who became public works director after the project began, said he could not find evidence that the city had offered to reduce the assessment in exchange for land.
Mayor John Kysylyczyn said the majority of the council has never supported the full assessment and has disagreed with the city staff about it.
"The attitude I think down there at City Hall is if you can find somebody who will give you money, take it," he said.
Roseville's policy was not to assess homes and duplexes for road improvements that are paid for with state-aid funds.
All other properties, including churches and schools, were assessed at 35 to 100 percent, Schwartz said. The initial bill to Advent Lutheran would probably have been reduced by the council, just as past assessments on other churches have, he said.
Under the new policy drafted by Council Member Greg Schroeder and approved on Monday, homeowners and other property owners, including tax-exempt institutions and businesses, will pay about 25 percent for unimproved state-aid roads.
But the council waived the new assessment policy for Advent Lutheran and other property owners along Josephine Road and West Owasso Blvd. Schroeder said it
was unfair to ask those homeowners to pay an assessment now, as would have been required by the new policy, when the city told them in the past that they would be charged nothing. So he said the church should also have to pay nothing.
The two dissenting council members, Dean Maschka and Craig Klausing, said the new policy is unfair and inconsistent.
Klausing said it was unfair that property owners will be given different assessments than in the past. He also said it didn't make sense to charge homeowners and businesses on the same scale since businesses attract more traffic.
Maschka said the city was giving special treatment to Advent Lutheran, while other churches have had and will have to pay assessments.
"Now we are supporting a church with tax dollars," he said, adding that it could become an issue raised by the American Civil Liberties Union.
Kysylyczyn said he doesn't think anyone should be given a special assessment on state-aid roads. But he voted for the new policy to reach a compromise, he said.
"I can't correct mistakes that were made in the past," he said. "I can only deal with what I have here today."
He also said businesses already pay more in property taxes, so he didn't think it was unfair to have them assessed at the same rate as homeowners.
Basich said that 13 other churches in Roseville have paid assessments and that some lost land in the transaction. Churches are running into similar issues nationwide, he said.
"City councils are using special assessments, eminent domain and zoning ordinances to work their will on churches," he said.
-- The writers are at
lblake@startribune.com and kkumar@startribune.com .
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