The Albert Lea City Council on Monday voted unanimously to table its decision regarding a potential amendment with the developers of the Tiger Hills housing development.

Second Ward Councilor Larry Baker said he would feel more comfortable if developer Greg Moen were in attendance to answer additional questions from the council. Third Ward Councilor Ellen Kehr seconded the motion.

Moen had requested the council amend the way assessments for the second phase of the development be paid for. He requested the payments be conducted in the same format as the first phase of the project, with assessments on a lot being allowed to be paid in full plus interest at the time that lot is sold — instead of a certain amount each year.

The council previously amended the developer’s agreement to allow for this in phase one.

In a letter to City Attorney Lee Bjorndal and Mayor Vern Rasmussen, Moen said this plan has worked well for the first phase of the project as he has been able to pay his taxes in full.

The issue at hand with phase two is whether to allow the same plan, allowing Moen to focus his money on delinquent taxes until the time each lot is sold, at which time the assessments for that lot would be paid in full, plus interest.

According to Interim City Manager Pat McGarvey, phase two of the project currently has delinquencies on 13 parcels.

The total of delinquent taxes, special assessments and interest totals more than $260,000 as of April 1.

Of that amount, at least $187,000 is owed to the city for assessments on the lots for the public improvements the city financed through the issuance of general obligation improvement bonds in 2005.

The lots are projected for a forfeiture sale in 2012 if the delinquent taxes are not paid.

McGarvey said the city would get first position on the sale of the property because it has assessments that are still owed.

If the proceeds of a forfeiture sale are sufficient to cover the total special assessments owed to the city, then the city comes out fully paid for the assessments. If the sale is for less than the full payment, the city could accept partial payment and forgive the balance or accept partial payment and re-assess the balance due back.

In his letter to the city, Moen listed several highlights of his development.

He said he has sold 22 out of 60 lots and has added $4.07 million in tax base to the city.

Of the roughly $1.3 million that the city put into the project, Moen has paid about $500,000 of the principle owed. He said he has paid about $57,000 in interest to the city and about $75,000 in building permit fees.

Homeowners in the development paid a total of about $46,000 in taxes during 2011.

“Remember that before we started this project the city received $0.00 from this land, as it was then located in the county and not on the city tax area,” Moen said.

The council is slated to take up the issue again at its first meeting in June.