4.4. SR 09-17-2001TO:
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor and Council
Pat Klaers, City Administrator
September 17, 200 I
Consider Bailey Purchase Agreement
Item~ 4.4.
This past winter the City Council reviewed an appraisal (by Jerry Smith) for the Bailey
property. The City Council authorized and paid for this appraisal. The Bailey property is on
Quinn Avenue between 5th Street and 4th Street and is adjacent to the southwest part of the
library parking lot (sec attached map). After review of the appraisal, it was the consensus of
the City Council to pursue the purchase of the Bailey property. The purchase of this
property makes good planning sense for the future library expansion.
Last spring, the city and the attorney for Mrs. Bailey looked at a draft standard purchase
agreement. After discussion of the purchase agreement and evaluation of the situation it was
decided to consider a life estate arrangement. Staff feels that this is the best type of
arrangement for the city as we pay now for the property (at the appraised value) and the city
obtains the property when Mrs. Bailey moves out or is no longer living. With this
arrangement the city has no issues with leasing or renting the property back to Mrs. Bailey,
dealing with maintenance of the property, insurance, taxes, etc. The city has no immediate
plans for expansion of the library or its parking lot and we can wait a number of years to
obtain control of this property.
The total amount of funds for this purchase is available in the library reserves. If this
transaction moves forward, the city will continue to look at the site configuration and will
have discussions with adjacent property owners as appropriate.
One final item to note, and this relates to the Planning Commission review of land
transactions. The City Council can waive Planning Commission (review by resolution
adopted by two-thirds vote) if the Council finds that the acquisition has no relation to the
comprehensive plan. If Council wants to dispense with the Planning Commission review, it
can adopt the attached resolution and subsequently approve the purchase agreement. I think
that the Council could make this finding, as the library is not specifically mentioned at all in
the comprehensive plan. Parks and Streets and Utilities are the only government facilities
that are reviewed in the Comprehensive Plan.
If the City Council wants the Planning Commission to review this proposed acquisition, then
staff should just receive Council input on the attached proposed purchase agreement. We
will then have the Planning Commission comment on the acquisition at its September 25
meeting and the Council can then reconsider this purchase agreement at its October 8
meeting.
T
RESOLUTION 01 -
CITY OF ELK RIVER
A RESOLUTION WAIVING THE REQUIREMENT FOR THE PLANNING
COMMISSION REVIEW OF THE BAILEY PROPERTY ACQUISITION
WHEREAS the City Council of the City of Elk River has discussed library
expansion plans at capital improvement meetings; and
WHEREAS the only reasonable expansion for the library is to the west of its existing
facilities; and
WHEREAS the Bailey property west of the library parking lot has recently become
available; and
WHEREAS acquisition of the Bailey property for the expansion of the library and/or its
parking lot has no relationship to the Comprehensive Plan;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River,
Minnesota:
That the requirement for review by the Planning Commission of the acquisition of
the Bailey property for the future expansion of the library and/or parking lot is
hereby waived.
Passed and adopted this 17th day of September 2001.
Stephanie A. KAinzing, Mayor
AT'I'EST:
Sandra A. Peine, City Clerk