Following a new Mandan proposal and a counter proposal by protesters, it didn't appear the city's attempt to force annexation of property adjacent to the site of the new junior high was anywhere near resolution.

Mediator Patrick Ward said that at the beginning of Wednesday's second mediation meeting between the city and protesting property owners, that he hoped to reach an agreement in either this meeting or perhaps in a third meeting. Following nearly two hours of discourse a third meeting was tentatively set for 3 p.m. April 19.

Should an agreement to bring the property in north Mandan fail, the city can decide to take the issue to an administrative law judge for a decision. Ward, an appointee of the governor based on Century Code mediation procedures, will make a recommendation to the judge.

A judge will have to determine if the area to be annexed is urban in character and also will determine the balance between the economic impact on the property owners if they are annexed as well as the economic impact on the city if the property isn't brought into corporate limits.

With the new junior high school to open its doors in the fall of 2008, the city maintains improvements to access roads need to be made as well as putting in city water and sewer lines to serve the residential development that is sure to follow.

City engineer Tom Little offered a pared-down version of its first proposal for improvements, which includes only 27th Street NW and Eighth Avenue NW. The engineering department did develop a tiered plan in which those who lived closest to the improvements paid the most in special assessments and those the most distant paid the least.

Little said that the costs developed by the city were estimates, and the spreading of assessment was just a proposal and would later be determined by the special assessment commission following construction of the projects.

Total costs of the improvement projects - street construction and water and sewer - is about $1.6 million. The estimated special assessments ranged from about $14,500 per acre for those living closest to the improvements to about $1,500 per acres for those living the most distant.

The school district has offered to provide $1 million to help with the improvements.

After listening to the city's proposal, attorney Bill Delmore, representing the majority of property owners, offered a counter proposal.

Delmore pointed out that there had been little development in the area for the past decade and most of the landowners did not plan for further development. In this case there was no need for water and sewer improvements the city is seeking.

Delmore added that most of the property owners were seniors living on fixed incomes and under the city's plan they would be forced to sell their property or subdivide it.

The property owners ask that no improvements be made to either 27th Street or Eighth Avenue, and instead 31st Street NW be connected to Eighth Avenue and Eighth Avenue paved to Heskett Road to the north. The improvements would involve no special assessments and be paid for with the money offered by school district and through Morton County.

Attorney Tom Kelsch, representing the Terry Grazing Association, which would be among the hardest hit by the special assessments to nearly $600,000, said that through this annexation and another south of the city, that Mandan faced having a glut of properties and a situation similar to that in the late 1990s when properties were turned back to the city.

"The city got the property back and basically had a fire sale. It was good in that houses were built but it did cost the city a fair amount of money that it paid for a number of years," Kelsch warned.

"There's talk that the housing market is slowing down, at least nationally, and if interest rates go up, it will happen here. If people can't pay their special or can't sell property other than at a loss, well you're putting a tough burden on my clients."

Following the offer, Ward called for a break. Representatives from the city, county and school district met privately to deliberate.

"We talked back there and got some input from the county and school district," Ward said upon resuming the meeting. "The city wants some time to think it over and tweak it some more. I don't think the idea of developing Eighth Avenue to the north is practical. Keep in mind, the million dollars offered by the school district may not be forthcoming if the situation changes, that's something you wouldn't want to lose."

Ward added that should street improvements be made it didn't make a lot of sense not to include water and sewer improvements. Ward suggested a third meeting be held within two weeks.

City attorney Malcolm Brown said the city would further sharpen its pencil in trying to bring down the cost of special assessments. Delmore asked if the new proposal could be provided to his clients by the end of next week, to which Brown replied the city will try.

(Reach reporter Gordon Weixel at 250-8255 or gordon.weixel@;bismarcktribune.com.)