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On Monday, May 19, the Pipestone City Council approved nine settlement agreements that will reduce the amounts of special tax assessments on nine city properties. The settlements come as a result of civil lawsuits that were brought against the city by nine property owners who questioned the City’s special tax assessments in relation to a 2022 street and utility improvement project. In total, the settlements reduced the assessment amount by $67,615.78.
In November of 2023 suits were filed against the city claiming (in summary) that the City’s special assessments exceed “any increase in fair market value to Appellant’s property caused or created by said described project,” and “the determination of the area actually benefited by the construction of the improvement, if any, and the proportionate distribution of the cost of the improvement among the owners of the property benefited by the improvement, is arbitrary, capricious, oppressive and unreasonable.”
Special assessments, for street projects, can be paid as a lump sum or can be paid over time. The special assessments related to the 2022 project can be paid over a term of 15 years and will incur an interest charge of 5 percent. This interest rate is 1.47 percent above the rate the city pays for the bond to cover the construction costs.
The city sets the interest rate charged to property owners higher than the bond rate to help cover costs of appeals (such as these nine) and to help cover the city’s debt obligations if a property owner fails to make timely payments.
While the specifics for each of the nine settlements may vary, here are details for each: Randall and Denise Solma original $19,732.12, settled amount $13,569.27; Rodney and Bobbi Lemke original $13,936.96 settled amount $9,602.18; Mark and Andrea Onken original $21,474.59, settled amount $10,158.11; Nancy Prosise and Thomas Thies original $23,635.52, settled amount $9,594.66; Dawn Rossow original $14,037.12, settled amount $9,662.27; Lisa Olson original $15,496.80, settled amount $10,538.08; Derek and Michelle Hennager original $25,769.30, settled amount $12,036.26; Jesse Post and Post Property Management, LLC original $9,621.40, settled amount $5,772.84; Cindy Dollarhide original $16,439.09, settled amount $11,593.45.
Community Concern
During the community concerns portion of the May 19 meeting, Keith Mattson expressed a couple of concerns. First, Mattson mentioned his concern of “predatory behavior” involving methamphetamine. Specifically, Mattson is concerned for women in the community who “are getting exploited over that kind of behavior.”
Mattson’s second point involved the City’s Human Rights Commission. “I believe it is a very important organization that doesn’t really take too bold of a stand on anything,” he said. “We had Cinco de Mayo canceled, we had Juneteenth celebration cut to three hours, and you know, these things concern me, because this is supposed to be the land of the free and you’re supposed to be able to express yourself….becomes that watered down, and that’s concerning to me.”
Mattson also questioned the treatment of a previous member, Rico Washington. “I feel like he was railroaded out of the Human Rights Commission,” claimed Mattson.
According to the City of Pipestone, Washington’s term as a member of the Commission expired in January 2025 and he has not come forward as a candidate to participate again on the Commission.