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4.2. SR 09-24-2001Item ~ 4.2. TO: FROM: DATE: SUBJECT: MEMORANDUM Mayor and City Council Stephen Rohlf, Building and Zoning Administrator September 24, 2001 Purchase ol~ Tax Forfeited Property Three parcels within the city limits are up for tax forfeiture sale. A vicinity map showing all three parcels discussed below is included with this memo. Lot 1, Block 2, Country Crossing Business Center (PIN #75-575-0205) This lot, which is 2.79 acres, is located in the southwest corner of the intersection of Joplin Street and Business Center Drive (see attached map). The parcel is zoned Business Park with an underlying Community Commercial land use. The city first reviewed the potential purchase of this lot in June of 2000. The City Council signed a resolution expressing its intent to buy it on August 13% 2001. This resolution placed the city in first position to purchase the property in question. Because the city expressed interest in this lot it was pulled from a pending sale of tax-forfeited property scheduled by Sherburne County for the end of October 2001. The city has six months to purchase the property from the date the City Council signed the resolution, but is under no obligation to ultimately do so. If the city does not purchase the property within the six months, which ends on February 13th, 2002, it will be placed on the next available sale of tax-forfeit property. The city should make a decision regarding the purchase of this parcel by the end of September, so if it decides not to purchase the parcel, it can be placed on the next sale in October. The county does not necessarily hold sales every year. If a decision not to purchase the parcel is made after the October sale, it will likely remain vacate for several more years and, consequently, the special assessments will remain unpaid. A potential use of the property is to divide it into two parcels, using one for a satellite fire station and the other for a commercial/industrial building. The sale of a commercial/industrial lot could help offset the purchase price of the entire parcel. A developer has expressed interest to staff in purchasing half or all of the parcel from the city. The County Assessor has appraised the total value of the property at $165,700. This price includes $65,736.06 of delinquent special assessments. The balance of the special assessments on this property, which are not currently delinquent, is $13,657.73. This makes the total cost of the lot $179,357.73. The city receives 20% of the net value of the land sale (after the delinquent special assessments and a portion for the county park fund are taken out). The County Assessor estimates the current market value for an improve commercial/industrial lot in this area is $1.65/square foot. At this figure, the selling price of a 1.5 acre commercial/industrial lot (approximately half of the lot in question), is $107,800. Staff recommends the city purchase Lot 1, Block 2, Country Crossing Business Center. Outlot A, Barrington Place Estates (PIN # 75-530-0010) The City Council reviewed the purchase of this parcel at the same time as the above parcel and has signed a resolution indicating their intent to buy it. A map of this lot is attached. This parcel is significant to the functioning of storm water drainage in this area and is currently not protected by drainage easement. The purchase price set by the county for this lot is $100. By purchasing this lot, the city is accepting any liability that goes along with owning it. Staff recommends the city purchase Outlot A, Barrington Place Estates. Outlot A, Cherryhill Bluffs 2nd Addition (PIN # 75-548-0010) This lot is part of a significant wetland complex south of 193rd Avenue and west of Dodge Street. A map of this lot is attached. Like the two lots discussed above, the city sign a resolution expressing a desire to purchase this lot. The selling price is $100. This parcel is important to the functioning of drainage in the area. However, it is protected by drainage easement. Additionally, the parcel is a natural wetland, adding another existing layer of protection on it, the Wetland Conservation Act. By owning this parcel the city would be needlessly accepting the associated liability, it is already protected by other means. Staff recommends the city does not purchase Outlot A, Cherryhill Bluffs 2nd Addition. TOP THE WORLD i PARK C~TY PARK ORONO UNCaL~ SCHOOL ESTATESI lNG BI ORONO ;)T 1,BLOCK 2, COUNTRY CROSSING BUSIN N.W. I/4 of the S.W. I/4, Sec. 32, T. 33, R. 26. South line of the right~°f-way of U.S. Highway No. I0 / N88°40'OO"W 378 59 / 90. 58 69. 45 ~ · ~ ~ c~ ':'-'- ................... / '~ J ~ ~ 1 ./ 17~. ?~ OUTLOT A- ~oge and Utility . Easement--,;,. II O~ II ~ I1.,~ Not Tangent-- .~ 4/~, 44 i~ .4=25 '4~.~ · t ~ , ,, l~ ~. 4o --- ~~ ~ ' ~ 9754 ~ ~~B "~ot ~angen~ Not Tangent---~-~ 42 ~ ....... ~J ~'-t. 2 423. 77 4O N89~/~6"W 40 / / ESS CENTER I 73' 9.-- --.. ,..-- " ~~.~.~TLOT A, BARRINGTON PLACE ESTATES ~ North Line ol Lot 21, B~ock 2, BARRINGTON PLACE. ~-- 93.00 '-- OUTLOT A -- - N 88°55'42" W 467.23 --- 66.46 57.00 60.03 60.83 60.02 11§.91 t~ 56. ~6 I "-N 88'55'42" W 6a.p_q_i zo 142.15 t.. _' .j ~ - - - OUTLOT A s~RYYNILL iiLUFF$~ ~-, 00'0~ O0 '06 O0 '0,9 O0 '0,9 -- O0 '0~-. O0 '0,9 :~ 00 '0,~ - - - O0 'Ogl - - - 1~ .£¢',gbol N