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4.2. SR 09-17-2001R3ver 13065 Orono Parkway Elk River, MN 55330 TO: FROM: DATE: SUBJECT: Item # MEMORANDUM Mayor and City Council Michele McPherso~)irector of Planning September 17, 200 I September Park and Recreation Commission Update 4°2° The September Park and Recreation agenda was very light in that there were very few action items for the Commission to consider. The Commission, however, would like to request Council consideration for the acquisition of the following parcels of land: 1. Richard LaFavor site - 70 acres in the northeast corner of the city near Monroe Street. 2. Bloomdahl property - approximately 312 acres located on both sides of County Road 33 west of County Road 1. Attachments · February 28, 2000 City Council Minutes · Location map - LeFavor property · June 21, 2001 Offer from Richard LaFavor · Location map - Bloomdahl property · Future park property matrix · 10-year Park Capital Improvements Budget At the February 28, 2000 joint meeting with the City Council, the City Council encouraged the Commission to identify and approach property owners as to their willingness to sell land to the City of Elk River for future parkland. In 2000, the Park and Recreation Commission spent several months identifying and prioritizing a variety of parcels for possible acquisition (attached). The Commission has been sending out "feelers" to those property owners whose property ended up as high priorities for acquisition. The first several attempts were not successful, and the Commission has continued to work down the list to other properties. Phone: 763.441.7420 Fax: 763.441.7425 www. ci.elk-river, mn.us Memo to Mayor and City Council September 17, 2001 Page 2 LaFavor Offer Separate from the Commission's work, in June of 2001, Richard LaFavor, owner of Mach Glass, an Elk River resident, approached staff with the possibility of selling 70 acres in the northeast corner of the City for park purposes. The LaFavor property is located west of Monroe Street and north of County Road 21. Approximately 10 acres of the 70 offered abut Monroe Street. The 70 acres includes an approximate 9-acre wetland area through which Trott Brook runs. The site is rolling and has a combination of both wetland and upland areas. This property could provide both passive and active recreational opportunities for residents living in the northeast corner of the City. Mr. LaFavor has made an offer to the City (attached) to purchase the property at $10,000 per acre with 50 percent down and an interest rate on the remaining principal of 8 percent. Staff would like to provide a counter offer of an interest rate of 5 percent on the remaining principal. Staff believes that at the current market rate, $10,000 per acre is probably an appropriate price for land north of County Road 33. The Commission voted unanimously to recomrnend that the City Council direct staff to continuenegotiations with Mr. LeFavor for the acquisition of the property. Bloomdahl Property The Bloomdahl property, located on both sides of County Road 33, west of County Road 1 became the third priority for the Commission to consider in terms of land acquisition. The Bloomdahl property is owned by the Bloomdahl family and contains an existing farmstead that is reaching the century mark and is a combination of farmland, as well as natural environment areas such as wetlands and tamarack swamps. Electric lines also cross the property. At this time, the Commission has only toured the property and spoken with one of the family members. The Commission feels that this property would be an ideal regional park and could provide an alternative recreation experience to Woodland Trails Park. The presence of the farmstead is also a benefit. The cost for this property could not be singularly borne by the City and grants would need to be obtained. Neither side has proposed an offer at this time. The Commission voted unanimously to recomrnend that the City Council direct staff to continue negotiations with the Bloomdahl family for the acquisition of the property. Staff requests that the Council provide further direction regarding these two parcels of property recommended for acquisition by the Park and Recreation Commission. S:\PLANNINGMVlICHMC\CCREPRTS\SEPTP&R.DOC City Council Minutes February 28, 2000 4.2. City Council Executive Session 4.3. 4,4. Page 2 The City Council held an executive session of the City Council. Reconvene Council Meetin,q. The Mayor reconvened the regular meeting of the city council at 6:42 in the training room for a joint meeting with the Park and Recreation Commission. Consider Police Union Contract COUNClLMEMBER MOTIN MOVED TO ACCEPT THE POLICE UNION CONTRACT AS PRESENTED BY THE CITY ADMINISTRATOR. COUNClLMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0. Open Mike Request for Korean War Veteran Memorial Jerry Palmer, 13538 Istandview Drive, reviewed his plans and requested authorization to construct a memorial in Lions Park in memory of a classmate that died while serving in the Korean War. There was no objection from the council regarding the request. Joint Park and Recreation Commission/City Council Workshop Michele McPherson noted that the Park and Recreation Commission requested this meeting to discuss issues of mutual concern. The Park and Recreation Commission took the lead in discussing the agenda items. 1. Purpose and Mission Commissioner Kuester reviewed the purpose and mission of the Park and Recreation Commission. Mayor Klinzing suggested that programming and recreational functions be added to the mission statement. Council Expectations of Commission's Role in Planninq and Park Development Process Commissioner Dana Anderson talked about the Council's expectations of the Park and Recreation Commission regarding the process of making recommendations to the Council on planning and park development. The Commission reviewed the process that took place regarding the plat of Seven Oaks. The issue discussed pertained to the Council's lack of support of the Park and Recreation Commission's recommendation. Mayor Klinzing noted that there will be times when the Council and Park and Recreation Commission will disagree and that this is a normal part of the process. The Council suggested that the Commission notify the Council if there is developer or public disagreement with the Commission's recommendation to the Council. It was also suggested that the Council be presented with a bigger picture of park issues, specifically, how the recommendation fits into the city's master park plan. Councilmember Dietz left at this time (7:15 p.m.) City Council Minutes February 28, 2000 Page 3 3. 1999 Accomplishments and 2000 Goals Chair Huberty presented the Council with the Commission's 1999 accomplishments and 2000 goals. The Council requested notification of the Commission's next tour of the city's parks. 4. Review of Commission's Bud.qet Policy Director of Planning Michele McPherson reviewed the Commission's five-year capital improvement budget. The Council suggested that there be some flexibility in the budget. Mayor Kiinzing suggested that the Commission solicit public input regarding the budgeting process. 5. Potential Reqional Park Locations Michele McPherson talked about the possibility of acquiring land for regional parks. The Council talked about the criteria for identifying a regional park. Michele noted that there are two parcels of property the Commission may be interested in for parks. The Commission questioned the Council as to the procedure that should be followed for potential park land acquisition. The Council suggested that a member of the Commission and staff approach the property owner regarding the possibility of the City acquiring the property. Mayor Klinzing suggested that the representatives of the Commission and staff stress to the property owners that they are talking about a concept only which is not yet endorsed by the Council. Mayor Klinzing cautioned the Commission that they consider ali aspects of the acquisition such as siting problems and public opposition prior to contacting the property owner. Councilmember Thompson left at this time (8:30 p.m.). Mayor Klinzing noted that although there is no quorum, discussion could continue, however no council action could be taken. 6. Snowmobile Policy Commissioner Dave Anderson discussed the problems the city is experiencing with snowmobiles. He stated that there have been a number of complaints and violatiOns regarding snowmobiles riding on private property. He also noted that there has been evidence of damage from snowmobiles to the City's trails, roads, and private property. Commissioner Anderson showed the Council pictures of areas that have been damaged by snowmobiles. Mayor Klinzing noted that there is nowhere for snowmobilers to ride and that some of them are not aware that they are riding illegally. The Council suggested that the Park and Recreation Commission take the lead in identifying a corridor for snowmobiles and in amending the existing snowmobile ordinance. The Council also suggested that the Commission work with the snowmobile club in identifying a potential trail for snowmobiles. It was also suggested that a parking area be provided near the trail so that snowmobiles can be trailered to the trail. City Council Minutes February 28, 2000 Page 4 7. Community Recreation Update Michele Bergh updated the Council and Commission on Community Recreation activities. Discussion took place regarding the possibility of having a Park and Recreation Commissioner on the Community Recreation Board. It was suggested that a Commissioner attend meetings in the role of alternate to the Council representative on the board. Councilmember Mofin suggested that the City and Community Recreation would be better served by a Park and Recreation Commissioner than by a Council liaison. He felt that Park and Recreation Commissioners often have a background in recreation and definitely have a vested interest, it was suggested that all aspects of the issue be further reviewed prior to making a decision. 7. Other Business The City Administrator suggested May 24, 2000, as a MnDOT tour date. 8. Staff Updates There were no staff updates. 10, Adiournment There being no further business, Mayor Klinzing adjourned the meeting of the Elk River City Council at 9:00 p.m. Sandra Peine City Clerk ~~ Location Map ~v~r Case Number: LaFavor Property N June 21,2001 City of Elk River Michele McPherson 13065 Orono Parkway Elk River, MN 55330 RE: 70-ACRE PARCEL PROPOSAL FOR PARK SITE Dear Michele, After reviewing with our C.P.A. firm the proposal and addendum dating June 11 th & June 14th, 2001, regarding the purchase of the above stated property, our accountant has advised us to make some changes to our offer. Our C.P.A. firm has indicated to us that the IRS, in the case of installment payments being made, requires a charge of interest. We also were advised to sell the entire 70 acres instead of selling only 63 and retaining 7acres. Based on those issues we would like to update the City of Elk River and the Park and Recreation offer as follows: Offer the City of Elk River a cash offer of $9,500.00 per acre on the entire 70 acres. This would be the most favorable option for us because our company is experiencing tremendous growth and requires additional cash to support this growth. Sell the entire 70-acre parcel of land to the City of Elk River for $10,000.00 per acre over 5 years at 8% interest. Our C.P.A. f'mn has advised us to structure the transaction as follows: $70O,000.00 $350,000.00 $350,000.00 Purchase Price 50% Down Balance Due IT~. SAFETY. [9928 Industrial Blvd· Big Lake, MN ooot, ,~ · x0~ .~0~,63,00 · Fax:/0o._o~.0~ol * 866.GET. MACH · machglass~?aol.com Year one: $350,000.00 x 8% $ 28,000.00 ~ Principle reduction payment ~ 12 months = $70,000.00 Year Two: $280,000.00 x 8% $ 22,400.00 - Principle reduction payment ~ 24 months = $70,000.00 Year Three: $210,000.00 x 8% $ 16,800.00 - Principle reduction payment ~ 36 months = $70,000.00 Year Four: $140,000.00 x 8% $ 11,200.00 - Principle reduction payment @ 48 months = $70,000.00 t~T¥. ~$AF, ET¥ !9c)28 Industrial Blvd· Big Lake, MN 55309 * 763.2~2.6530 · Fax:763.2~2.6531 . 86(~.GET. MACH · machglass~aot.con',. Year Five: $ 70,O00.00 x 8% $ 5,600.00 - Principle reduction payment ~ 60 months = $70,000.00 We have offered both cash and payment terms so the City may decide what is in their best interest. If you have any questions please feel free to call me at my office at #763-262-6530 or my cell phone at #612-309-0010. Thank you again for your continued interest in our property. Sincerely, Richard and Dana LeFavor ;~ . t~Y. SAFETY. i9928 industrial Blvd· Big Lake, MN 5~o09 · 7(]3.262.(]530 · Fax:F63.2e,2.C-.331 · S6~.GET.MACH · machgtass(¢:aol.com ~~ Location Map ~lver Case Number: Bloomdahl Property N Future Park Property Matrix Property Owner Location Size Description Price Desired Park Issues Priority Classification Flat and open, Auburn and !1.37 adjacent to Barrington Santwire Properly 6th St acres Park $58,00( N/A W 1/2 NW 1/4 NE 1/4 Disconnecte( Section 11 Twp Rolling,mostly open from Gruys Phil Barsody 33 20 acres high ground For Sale? Area Wide/Community properly Flat and open Adjacent Twin agricultual land with Adjacent Lakes, County 38.63 some Iow areas on Anoka's Twin Barker (75-124-4400) Rds 31 and 13 acres Twin Lake Community / Athletic Complex Lakes Park 5 Flat and open Adjacent Twin agricultual land with Adjacent Lakes, County 38.63 some Iow areas on Anoka's Twin Hoebelheindch (75-124-4300) Rds 31 and 13 acres Twin Lake Community I Athletic Complex Lakes Park 5 190th Ave and Rolling and open with Under Srace Assembly of God County Rd 13 4 acres some water and trees Discussion Neighborhood Park UOWmOWn ana I-cat open ~n ~moa Area wme/L;ommun~ty/H~s~o~j/ 3ailey Point River 11 acres ~lain Neighborhood 1 Land offered t,~ Lowland and open, Area Wide / Community / the County for Eugene and Cecelia Scheel 213th Avenue 80 acres along Trott Brook Neighborhood Park a park 225th Ave and 240 Adjacent Gruys Schulze (75-102-2000)(75-103-1400) Baldwin St. acres property Area Wide I Community Park 6 30+145+ Greys (75-101-3101)(75-102-1000)(75-102- Section 2, Twp 20+20+2 lowland, peatbog, 4101)(75-102-4105)(75-102-4205) 33 0 acres tamarac wooded Area Wide / Community Park Access 7 Wooded high and Iow ground with tamarac Future Ama Wide I Community David Thompson (75-108-2200) Section 8 40 acres woods Park Wooded high and Iow Judith and Richard Thompson (75-105-3300)(75 ground with tamarac Future Area Wide I Community 105-4200) Section 5 80 acres woods Park Wooded high and Iow ground with tamarac Future Ama Wide I Community Gad Thompson (75-108-1000) Section 8 50 acres woods Park County Road 1, Wooded high and Iow Section 8, Twp ground with tamarac Future Area Wide / Community 31oomdahl(75-108-2400)(75-108-2400) 33 80 acres woods Park 3 Mostly wooded in the undeveloped East of Gagne [+/-) 6 §ood fringe of the Elk and .3a~, Westedund (75-131-2435) Park acres River unbuildable Add to Gagne Park undeveloped East of Gagne (+/-) 5 Some woods and and Scott Wallace/Grayce Scott (75-131-2405) Park ac~es Praide in flood fringe unbuildable Add to Gagne Park Woods and mostly in the flood fringe with Undeveloped :some buildable but could have West of Gagne 11.33 ground off of 189th a house built Richard/Nancy Brunetl (75-131-2225) Park acres Ave on it ~,dd to Gagne Park Adjacent Top of Access to the Wodd Park Proctor and Alvertta Malmstrom (75-121-4100) and Proctor 40 acres open field trail head Add to Top of the World Park 4 Mississippi River and Hwy 10. near Kelly 300 Flat open along river Future Area Wide/Neighborhood On River next Specht property Farm acres and Hwy 10 Park ~o Kelly Farm 2 Fpkmtx.xls Estimated Park and Recreation Capital Improvements Budget Draft Park Capital ;,,,~,r~,¥ement Plan Expenses 2000-2010 ,648.62 : :: ~7,991~15 ; $796,626.05 $1~044;767.0;. [ $i,6~ ~25,1~ ~ 258:t0 ~1~ 200~ Aotual Costs Park lm~w~ment 200f Est. Cost Patkln~rovement2002 F-s~ Cost Park lmprovement 2003 Est. Cost Park ln~rovement 2004_ Est. Cost Pan, Improvement2006 Est. CostPark ln~rovement 2006 Est. CostPark lm~ovement 2OOT Est. Cost__ Patk lmprovement 2008_ EsL Cost Tmtt Brook Farms__ $163,598.00 Deerfield 4 Playground Playground, CC 3n:l $36,128.4~ Barri~on, all $24,400.0( ~ddition $10,000.0~ CC 3n:J full court $10,000.00 Pld)~gmund, YAC $30,000.0{] Undew~nrn~t park Imp $10,000.00 Undevelo~l Park Irn~ $10,000.00 Undeveloped Park Imp $10,~00.0~ Undeveldped Park Imp $10,000.0{~ Meadowvaie Heights Meadowvale Heights Amenities CC 3rd $10,685.8; Pla~mund, Riveq~ace$30,000.0~ Undeveloped Park Imp $10,000.0~ Undew~r~ Park Imp $10,000.00 Undeveloped Park Imp $10,000.00 Pla)ground, Hil!~H,. 5 $60,000.0( Hillside 5 baske[b.il $10,000.00 xaide restoration $13,000.0~ icnic shelter $25,000.0~ Meadowvaie Heights Meadowvale Heights Undeveloped Park Imp$0.0( Uedeveld~ed Park Imp $4,314.9~ Baldwin, all $15,700.00 Hillside 5 landscape $13,400.00 seedin~l $600.00Prairie Seed $1,500.0C ~=7~hn $25,000.00 Meadowvale Heights ~ $2,245.5(~ CC 3rd Amenities $6,500.0~ Playgmued, Miss Oaks $25,000.00 Ridgewcod East, all$16,300.00 buffer $5,000.00 Praide Seed $1,500.00 Prairie Seed $1,500.00 Prairie Seed $1,500.00 Meadow Park PlaL__ __.$1,122.51 Deerfleld 4 Wa, $6,000.--"--~ Deer~eld 4 Landscape $4,900.00 -- MoUenaur landscape $2,500.00 ~ Oaks $0.0_~ Rive~lace Amenities$3,000.0~ -- -- -- O..~._pen Field, 191 1/2 Ave $466.63 Deen~ld 4 Lands~pe __$1,250.0~ --__ ~ $.__.._~,925.76 Devine Barn $32,000.06 __ -- .... Pmide Seed $1,500.00 ~__ $2,208.2'/ =railie Seed $1,500.00 Praide Seed $1,500.00 Pmide Seed ~1,S00.00 YAC Playground $30,000.00 Trott Brook Ex~penses $80,914.86 , t'AC Im. pmvem~-'-- $20,000.0G YAC Inl~omvements $20,000.00 YAC Im_btovements $20,000.00 YAC Im[~rovemenls $20,000.00 YAC~m[0~ovements -- $~0,000.00 YA--'~ Imjorovements $20,000~ YAC Im~ovements---- $20,000.00 YAC Improvements $20,000.0~ Orono Park $--1,694.68 -- -- -- Taxes $197.21 Subtbtal $16~,124.97 Subtotal -- $125,'"--~.9-"--~ Subtotal -- $67,100.----'---~ Subtot~ $49,700.0'--'~ Subtotal $99.600.00 Subtotal $61,500.00 Subtotal $66,500.00 Subtotal $44,500.00 Subtotal $56,500.00 Land A uisitien __ Land A_.c!].uisitldn __ Land A~n Land AC~ruisitien Land Accj. uisition Land Acquisition Land Aco~.ulsition Land Acq..u..~itien Land Acq. ulsition ~__ ParcelG $29,000.00 ParcoIG -- $29~000.00 ParcelG __ $29,000.0( ParcelG $29,000.00 ParcalG $29,000.00 ParcelG Remainder __ -$1..~_.__~,124.67 Remainder __460,964.._.__9--8 Remainder *$~2,100.00 Remainder $16,300.---'~ Remainder __ 434,__600.00 Remainder __ $3,80..__0.0{) Rem.__ainder -41,500.02 Remainder .__~$20,500.0~ Remainder $8,500.00 ~__ $9,100.00 Trail Budg_.~____ $9,100.00 Trail BedJ~ $9,100.00 Trail Bedg.~ $9,100.00 Trail Bud~ $6,100.0~ trail Bud~____ $9,100.00 Trail Budg_.~ $9,100.00 Trail Budget $9,100.00 Trail Bud~ $9,100.00 ~leadovale Heights bit Meadowvale Heights Hillside 5 wood~ $3,000.00 Hillside 5 bit. Trails $9,700.00 trail along__.m, ad$15,000.0( Deerfieid 2nd sidewalk $7,000.00 boardwalk $15,000.00 Hillside 5 concrete walk $2,900.00 __ ---- ~ $450.00 Total Trail Imp. $1,600.00 Total Trail Imp. $5,900.00_ Total Trail Imp. $9,700.00 Total Trail Imp. Total Trail Imp. $15,000.0~ Total Trail Imp.__ $7,000.0~_ Total Trail imp. $15,000.00 Total Trail Imp. __ ~nses $165,574.97 Total 2OOf Ex~nses$506,564.98 Toial 2OO2 Ex~es $215,333,3.~ ~ $172,400.00 Total 2OO4 Expenses$209,100.00 Total 2OO5 Ex~ses _ $182,500.0~ Total 2OO6 nsEx~ns~ $147,000.00_ Total 2OOT nEx~ $59,500.00 Total 2OO~ Ec~nses $56,500.0C ~ $612,991,36 ~alance 2001 $392,083.64 End~ Balance 2002 $432,667.8-~ E~/ng Balance 2003$624,226.0-'~ E~/ng Balance 2004 $635,667.09 End~ Balance 2005 $1,163,996.35 Endin~ Balance 2006 $1,532,925.4'--~ E~Balance 2007 $2,116,828.25 Ending Balance 2008 $2,611,758. IrEerast Second 1/2 2000 $13,717.'-"--~ interest 2001 $11,762.51 Interest 2002 $12,979.72 Interest 2003 $18,726.78 IrEemst 2004 $25,070.01 Interest ~ ........ $34,919.89 rntorest2006 $45,987.76 Interest2007 $63,504.85 Ioterest2008 $78,352.74 ~ $110,780.00 · I ssumed at 3% ~ al .... nd. '--'-'-- ~~ ~~"~~~~__--~~ Page 1 Estimated Park and Recreation Capital Improvements Budget ~3,~gg,10$ ~ $3,676,876 02 Pan~ ln~orovement 2009 Es~ Cost Petk lm~vement 2OfO EsL Cost Undeveloped Park Im~ $10,000.0~ Undeveloped Park Imp $10,000.00 Meadowvale Heights · ~nic shelter $25,000.0~ Prairie Seed $1,500.0~Prairie Seed $1,500.00 YAC Improvements$20,000.0~ YAC Improvements$20,000.00 Sublotal $56,500.0~ Subtotal $31,500.00 Land Acc~uisition .and Ac~uisition Remainder $8,$00.0~Remainder $33,S00.00 Trail Improvements Trail Improvements 200~ ESL Cost ~OfO EsL Cost Trail Bud~ $9,100.0~Frail Budget $9,100.00 Total Trail Imp. Total Trail Imp. Total2OOgEx~es $56,500.0~ Total2OlOE~es $31,500.00 End/n~ Ba/ance 2009 $3,142,605.84 End~ Balance 2010 $3,645,376.02 Interest2009 $94,278.18 Inlemst2010 $109,361.28 To~12oOgEndBalance $3,236,884.02 Total2OfOEndBalance $3,754,737.30 P~e2