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HomeMy WebLinkAbout2006-02-14 CC Meeting Packet EnclosureOax -Pa--rk Hei Ae for Council Actiol Meeting Date FebruaKy 1 4 ,111 200 Time Required: 10 Minutes Agenda Item Title; Disposal of Ci Owned Prop erly Requested L3y Agenda Placement: New Busin ss Originating Department/ Requester's Signature ub' ect of public hears n - see enclosure #9 is Johnsam itv Administrator Action Requested: Digsc ss - properly values determine best value and r. authorize sale of Pro - porgy s e l ect to the final execution of a satisfactor°�r Development Agreement. Background/ Ju.stifica.tion (Please indicate if any previous action has been taken or if other public bodies have advised) As part of the continuing development and negotiations for the CSM project, it is requested that the City dispose of two easement areas to CSM necessary to complete their campus. The city may only convey (sell.) these properties based on their fair market value determined by an appraisal. It is my understanding that the City has to purchase these areas in the 1990s with the development of 58th street, at that time was to bend northwardly. CSM has paid for the City to secure are appraisal and was completed by R.W. Kirchner 8. Associates, which concluded that these areas have a total value of 248,000* *. CSM does dispute these values and had a second appraisal done by BRKW which concluded a lesser amount of $164,000. The council may select either figure to sell these easements to CSM. As of 4:00pm Friday afternoon 2 I am still awaiting irch er's analysis of the BRKW report and w endeavor to see if these two entities can reconcile their respective calculations and both agree on a figure. However, the City may choose either figure or somewhere in the middle. I am stm researching the City's costs to acquire these easement properties. More information will be provided at the council Meeting. Please also note that pursuant to Minnesota Statute 462.336 the Planning Commission has reviewed the disposal of this public property and has found the sale of the property consistent with the City's comprehensive plan. * *Kirchner does agree that he miscalculated the square footage on the northern parcel, these numbers have been corrected. NOTICE OF PUBLIC HEARING FOR TBE CITY OF Ord PARK HEIGHTS ON PROPOSED ACQUISITION OF REAL ESTATE INTEREST OWED BY T CITY OF OAK PARK . IGH'I'S AS REQUESTED BY CS1dI, INC. NOTICE IS HEREBY GIVEN that the City Council for ,the City of oak Park Heights, Washington County, Minnesota shall hold a public hearing at the municipal building located at 14168 oak Park Blvd., Oak Dark Heights Minnesota, upon the request from CSM, Inc. requesting of the City that they be allowed to acquire the City's real estate interest in and to real property within. the City of oak Park Heights described as follows Those specific road and utility easements created in Document Moe 1005324 w*thin. the office of the Registrar of Titles, Washington. County, Minnesota, wherein the City of oak bark Heights acquired permanent easement for road and utility purposes over and across the south 40 feet of a portion of the North Half of the Northeast Quarter (NI/2 of NE 114), Section Five (5), Township Twenty -Nine (29) North, Range Twenty (20) west, Washington County, Minnesota That real estate interest acquired by the City of oak Park Heights as was created in Document No. 876327 in the office of the County Recorder in and for Washington County, Minnesota, wherein the City of oak Park Heights acquired a perpetual easement for public roadway, drainage and utility purposes conveyed to the City of oak Park Heights by Warranty Deed dated February 24, 1996 and filed of record on March 6, 1 996 as Document Igo. 576327, affecting land located in the North Half of the Southeast Quarter of the Northeast Quarter (NI/2 of SE l l4 of the NE 1/4) of Section Five (5), Township Twenty-Nine (Z9), Range Twenty (20), Washington. County, Minnesota, lying within an 80 foot wide strip of land as more specifically described therein the above - referenced document. The City Council of the City of oak Park Heights will be conducting a public hearing to receive public input on the proposal. The public hearing shall be held. on February 14, 2006 at 5:00 o'clock p.m. or as soon thereafter , as the matter can he heard before the City Council. All written and oral comments will be considered. Copies of the request and supporting documentation are on file in the offices of the City Administrator and are available to the public for review and inspection during regular business hours. Dated this day of January, 2006. BY ORDER of THE CITY COUNCIL: oleo IV AUVNIMIJU13 R a 4 lvi imans 'a'n'd Ld30NO3 I ILI V - Lu ! DL3K OUYd NVO Z :LU VIOSM e2F � 3AN3A H:)IMHOH. - H Mom JM&Ls VLOS "sw NI a - z 5. N AM )ivo lb 30VII A I - fo 1 3- 1 el l p I A V3 its g All 12 !Ila 01 - Ila 0 T. ---------- re% � � •� � fir_ t sf J � � �� + � I .� 5 $, � E f 1 IYY A V. a[ M'A 7 �• vi BAY j T T lei I. ir t- M-W t1 'r Z� Ix .0 ° �. U=. CQ CD X I Z 1 4 0 fo Ln to ! VOW R1 ��! 01111111 , '1� IN - 115 �,' �31;. ru Ulm LU 92 R N i'`.; = :1• ^: U it �� � L-A. a- i3* OD uJ WN R . - I. r-4 4�— 1: M 1i1tW;!( - � �� '' j 11M ?ILL AL I . j. O; ��q +� L�w'!.A'31,�� L'` .f (« F3cf►'; i . � ' ����I ri ;� � .� � -�-- ' � � w � � a} •�._ � � � _,. S4' z a. • - mcnwxw v ► F i. bv. i" �r }} � � f l , 1```1` � �� �' R .� ;• � � � �� 1; 111 >= z LU a. rw La 0 CA 0 tie t—VIZ.!f" ------- ....... 0 1 00 B AV )IVAON LU 0 40 >= z LU a. rw La 0 0 1 00 0 >= z LU a. rw La December 1, 2 005 Eric Johnson, City Administrator City of O a k Park He 141 Oak Park Boulevard No. Oak Park Heights, MN 55082 Re: Appraisal Report Certain Easements N % of NE 1 /4, Section 5 Oak Park Heights, MN 55082 Dear Mr. Johnson: In accordance with your request, I have made an inspection and hereby submit an appraisal report on the above two pieces of land at the above described location and legally described and set forth in the text of this report. For purposes of this appraisal the land being appraised was designated as Parcel 1 and Parcel 2. The city is conveying their rights acquired in easement to a prospective developer. The p urpose of the appraisal is to estimate market value of the rights being conveyed. .After careful consideration of the property, I have concluded that as of November 29, 2005 the market values are: Parcel 1 ` �v ►R) Parcel 2 " to (-4 , 1 , Combined values $171,000 $ 77,000 $248,000 Wherefore, it is .ma opinion that as of November 29, 2005, the combined market value is: • T F � rig- sk • K • C = _ �� r y. c .- .... .... ............. .... .... -. ... -.... .. -..- .- .- ...... i .. l i ($248 Your attention is called to the accompanying report that describes the property, the Neighborhood, ,market conditions and set forth my analysis in arriving at conclusion. 2 i` ■ Sim . l t Kfl-R�U ' f. N V2 of NE 1/4, S ection 5 Oaf. Park Heights, VIN 55082 Note: This appraisal is subject to the Assumptions and Limitations set forth in the report and cannot be fully understood unless they read. in their entirety. Y Respect W Raymond W. Kirchner S PW S RPA Minnesota Certified General Real Property Appraiser License 44000780 Wisconsin Certified General Appraiser and -Licensed Appraiser #3 74 -� o 10 . PP a ^. Location: Present Owner: Site Area; Parcel I ::5 em ut� Parcel 2 - &j 0-.r -*_ Combined area Highest and Best Use: Present Zoning: Estimated value of Parcel I Estimated - value of Parcel Combined estimate A ppraiser,* N z/2 of NE ' /4, Section 5 Oak Park Heights, .SIN 55082 City of Oak Park Hei ghts 24,386 square feet, + or 33,2_00 square Feet, + or -- 57,586 square feet, + or -- Commercial B -4, Limited. Business $171 ,000 $ 77,000 $248,000 R aymond W. Kirchner, SRA/SRPA iCenses: Minnesota Certified ed general Deal Property Appraiser License #400 Wisconsin Certified gene 0780 General .Appraiser and Licensed. Appraiser # PP 374 010 Date of the appraisal: November 29, 2005 M B RKW REAL ESTATE VALUATION SERVICES CS M= or; oration :ott T u b rnan 5o" o ::wa.shington. Ave. S. Suite 3000 _- _ Z.• 11�Ii n :al?. ...�li MN 55415 ., . RE: P ermanent Roadway and Utility Easements Southeast Quadrant of State Hwy, 3 6 and Novak Ave: N. o ak P ark P1ei ghts, MN 5 5 o S 2 Bear Mr. Tubman: At your request, we have inspected the above referenced property and have made a stud y of conditions affecting its value. The accompanying report contains, in summar y form., a complete description of the property, presentation and. analysis of market data in. support of the value conclusion.,. and demonstrates the valuation techniques employed. The subject of this appraisal is the p ermanent roadway and utility easement rights held by . the City f oak park Heights over two strips of land located south of State Hwy. 36 � and southeast of Novak Ave. N. in oak Park. Heights. The two strips of land include a north p arc el with a land area of 30,368 square feet (0.70 acre) and . a south parcel with an area of 24,3 square feet (o.56 acre), with a total easement- encumbered area being appraised of 54,754 square -feet (1.26 acres). The encumbered strips, which .have a predominant width of 40 feet, are separated from each other by a distance of about 515 feet but are part of a larger tax parcel with a gross area, including all road right of way, f 10 acres, more 'or less. The subject and adjoining land is zoned D-4, y ' �ect land is far- assemblage bla with Business. The highest and best use of the subs g adjoining land to support a retail development, CSM Corporation is in the process of assembling an approximately 22-acre site, which includes the subject land, for a proposed retail development. The developer has control of the land assemblage by either warranty deed from recent clo -sing or g purchase agreements scheduled to close later this year. CSM has control of the underly fee title ownership of the subject land encumbered strips and is seeking to have the cit y vacate the roadway /utility easements. The purpose of this appraisal is to provide an opinion of the market value of the city easement rights. The intent of the ap praisal is to assist the client in negotiating the acquisition of the city easement ri ghts, This is a complete appraisal -- summary report which is intended to comply with the reporting requirements set forth under Standards Rule 2-2(b) of the Uniform Standards p g re q of Professional Ap praisal Practice, Supporting, documentation which i s not presented within this report is retained in the appraisers' files. 5PRUCE TREE CENTRE SUITE 314 1 600 UNIVERSITY AVE 5T PAUL MN 551 04 651 -646-61 1.4 FAX 651-646-8086 brkw @brkw,com Based on our research and analysis, we have concluded that the market value of the sub*ect permanent roadway /utility easement rights, as of January 13, 2006 is as follows: North Parcel Easement Rights Market Value $ 91,000 South Parcel Easement Rights Market Value $73 Total Market Value of Permanent Roadway /Utility Easements: $164,000 Permanent Easement R.l hts Market Value As of 1113106: ONE HUNDRED SIXTY -FOUR THOUSAND DOLLARS ($164,000) The market - value estimate is contingent upon the estimated marketing time of six to twelve months for the property. The value estimate assumes that all levied real estate taxes and special assessment balances, if any, have been paid in full. It is a gross value and no allowances were made for brokerage commissions, real estate taxes, or other carrying costs associated with the property during the marketing period. This appraisal has been made in conformity with the Code of Ethics and Standards of Professional Practice of the Appraisal Institute and the Standards of Professional Practice of the State of Minnesota. This appraisal assignment is not based on a requested minimum valuation or specific valuation for approval of a loan. The estimate of market value identified in this report was developed independent of any undue influence. The facts and information contained in this report were obtained from sources that are considered to be reliable and are true to the best of our knowledge and belief, but are not guaranteed. This appraisal report is contingent upon the assumptions and limiting conditions included within the report. Your attention is directed to the following report for the supporting data, analyses, and conclusions, which support the market value estimate. Sincerely, BRKW APPRAISALS, INC. Paul 4n Gs Certified General Real Property Appraiser Minnesota License #4003073 Marc E. Knoche, MAI Certified General Real Property Appraiser Minnesota License #4001101 PRKW APPRAISALS, INC. PAGE 2 SALIENT FACTS AND CONCLUSION Property Description /Address: Permanent roadway /utility easement rights SE Quadrant State Hwy. 36 & Novak Ave. N. Oak Park Heights, MIDI 55082 'fax Parcel I.D. No.: Part of 05-029-20-11-0033 Date of valuation: January 13, 2006 Property Rights .Appraised: Easement interest Market value Estimate: North Parcel $ 91 South Parcel 73 000 Total $164,004 Property Data* Land Area: Forth Parcel 30,368 Sp' or 0.70 ac. South Parcel 24,3 86 SP or 0.5Gac. Total 54,754 SP or 1.26 ac. Zoning: Bµ4, Limited Business Utilities: All available including city water and sanitary sewer Iffiglhest and Pest Ilse As vacant: Assemblage with adjoining land for retail development As Improved: Not Applicable Appraisers: Paul J. Gleason Certified General Real Property Appraiser Minnesota License 94003073 Marc E. Knoche, MAI Certified General Real Property Appraiser Minnesota License 94001101 BRKW A.PPRA.ISALS, INC. PAGE 1 :tire• ti •. Tyr `_ " -.: �1•r 's5r rr� Y �•• } i�• t City of Oak Park Heights 14168 Oak Park Blvd. N •Box 2007.Oak Park Heights, MN 55082 a Phone (651) 439 -4439 •Fax (651) 439 -0574 February 3 2005 TO: Planning Commission IV FROM: Eric Johnson, City Adm RE: Disposal of City Properl As part of the CSM (Lowe's) development, CSM must purchase from the City two easements that the City maintains a property interest. The properties are described in the attached Notice of Public Hearing and map. It is my understanding that the City purchased these properties from the Ritzer's in the 1990's with the annexation of the area west of Oakgreen Pursuant to Minnesota Statute 452.35 see below, the City cannot dispose of this property until the Planning Commission reviews such proposed sale and conveys an opinion to the City that such sale is consistent with the City's Com prehensive P_ lan, - •warsF�'�.rxs:v -.+L �iY:' rl.• a:.,: �. rsY�::.':. r.:; .:L:.a4'i.�.7z.' --- As you are aware, this property was rezoned to B -4 in 2005 and did receive a positive recommendation from the Planning Commission for the CSM project at that time. This issue will be discussed in more detail at the meeting but the Planning Commission, at the end of such discussion will need to make a formal recommendation as to the disposal of this property. 462.356 Procedu4e to effect plan: generally. Subd. 2. Compliance with plan. After a comprehensive municipal plan or section thereof has been recommended by the planning agency and a copy filed with the governing body, no publicly owned interest in real property within the municipality shall be acquired or disposed of, nor shall any capital improvement be authorized by the municipality or special district or agency thereof or any other political subdivision having jurisdiction within the municipality until after the lannin a enc has reviewed the Er22osed acquisition disposal or ca .i i. ta rovement and re orted in v=i tin to the 2 2y . orning - bo& or other s ecial district ox a en or polit i cal subdirision concerned its findin s as to c .fiance of the ro osed ac isi t iox disposal or rovement vi tax the camp.rehensive muni ci. a3. plan. Failure of the planning agency to report on the proposal within 45 days after such a reference, or such other period as may be designated by the governing body shall be deemed to have satisfied the requirements of this subdivision. The governing body may, by resolution adopted by two-thirds vote dispense with the requirements of this subdivision when in its judgment it finds that the proposed acquisition or disposal of real property or capital improvement has no relationship to the comprehensive municipal plan.