6.2. SR 05-16-2011REQUEST FOR ACTION
TO ITEM NUMBER
Ci Council 6.2.
AGENDA SECTION MEETING DATE PREPARED BY
Communi Develo ment Ma 16, 2011 erem Barnhart, Plannin Mana er
ITEM DESCRIPTION REVIEWED By
Request by Eagles Lodge for City Assistance to Abate Nuisance
at PID 75-405-0940 REVIEWED BY
ACTION REQUESTED
Approval to begin the formal process to abate the nuisances by demolition found at 75-405-0940 and
assess costs to the property owner (Eagles Lodge).
BACKGROUND/DISCUSSION
The former auto parts store at 4t'' and King has been in a state of decay for a number of years.
Specifically, the roof is caving in, causing internal decay of structural components. Previous owners of
the property contaminated the soil. These issues have resulted in the following violations of City
Ordinances:
1. Sec 46-31, (1) [defines a public nuisance, a misdemeanor]: Maintains or permits a condition
which unreasonably annoys, injures, or endangers the safety, health, morals, comfort, or
repose of any considerable number of members of the public.
2. Sec 46-35: Buildings or structures which endanger public health, safety or property (subpart
3); dilapidated condition or decay.
3. Sec.108.1.1 (International Property Maintenance Code): Unsafe Structures. An unsafe
structure is one that is found to be dangerous to the life, health, property, or safety of the
public or the occupants of the structure by not providing minimum safeguards to protect or
warn occupants in the event of fire, or because such structures contains unsafe equipment or
is so damaged, decayed, dilapidated, structurally unsafe, or of such faulty construction or
unstable foundation, that partial or complete collapse is possible.
City staff has received a petition for "The Removal of Hazardous Building and Consent to Assessment of
the Costs Therefor," signed by Gregory Olson, Chairman of the Trustee's, to abate the nuisances. A
process similar to that employed during the former bowling alley demolition will be used, and includes
the following steps:
1. Complete Owners and Encumbrances (O&E) report. An O & E report will verify that Elk
River Aerie #3264 Fraternal Order of Eagles is the owner of the property and is the correct
name. It will verify that there are no liens against the property. It will verify that there is not
another operating entity of the Eagles or otherwise occupying or using the property. The
petition states that there are no tenants on the property. Statute requires execution by
owners, lienholders, and tenants. Because the petition includes Greg Olson's name, we will
n:\public bodies\ciry council\council rca\agenda packet\OS-16-2011\done\request for action council demo 5-16-11.docx
need a resolution from the Eagles authorizing the petition and authorizing Gregory Olson to
execute.
2. Complete Phase I and Phase II environmental assessments. This is an update of the
environmental review of the property completed in 2004 and updated in 2010. These
reviews have found petroleum infiltration that will need to be removed. Staff has asked
Landmark Environmental services to give the City an estimate on what these updates would
cost. Because these are not optional, the estimate was requested to manage expectations.
Landmark suggests costs of $2,900 for the Phase I and $16,600 for the phase II (which
include laboratory and drilling subcontractor costs). The Phase II includes providing
regulatory advice to the City of Elk River and preparing applications for the City's signature
to the MPCA VIC Program and the MPCA Petroleum Brownfields Program.
3. Prepare and advertise an RFP. Ultimately, the normal Chapter 429 assessment process will
be employed.
4. Hire a contractor and environmental consultant.
5. After services, receive invoices and make payment on costs. Follow procedure
recommended by environmental consultant in regards to reimbursement from the state
petro fund for remediation costs.
6. Bill costs to the Eagles (the Eagles anticipate receiving some petro fund dollars to assist with
the cost; the balance would be assessed to their property taxes).
7. Assess all unpaid costs to property taxes, following Ch. 429 assessment process.
FINANCIAL IMPACT
The City would incur costs initially, but all costs would be paid by the Eagles, either through receipt of
petro fund dollars, or assessed to property taxes.
ATTACHMENTS
Petition for The Removal of Hazardous Building and Consent to Assessment of the Costs
Therefore
Action Motion by Second by Vote
FOllow Up
n:\public bodies\city council\council rca\agenda packet\OS-16-2011\done\request for action council demo 5-16-Il.docx
Petition for
Removal of Hazardous Building and Consent
To Assessment of the Costs Therefor
To: City Council
The City of Elk River (the "City")
Elk River Aerie #3264 Fraternal Order of Eagles (the "Owner") of the Property (the
"Property") legally described as follows:
East 33 feet of Lott, and all of Lot 3, Block 9, Elk River Village,
Parcel Number 75-405-0940,
petitions The City of Elk River to remove all structures located on the Property and to
charge the cost of doing so against the Property pursuant to Minn. Stat. § § 463.191 and
463.21, and consents to the levy of a special assessment against the Property,
pursuant to Minn. Stat. Ch 429, in the amount of the City's total cost to remove all
structures presently located on the Property, said assessment to be paid in five equal
annual installments against the Property with interest thereon a 8 percent per annum.
Owner represents and warrants that Owner is the sole fee owner of the Property,
that there are no occupying tenants on the Property, and that there are no lien holders of
record on the property.
Owner specifically waives any objection to the process by which the City
proceeds to remove the structures on the Property, to the costs assessed by the City for
the removal of the structures, and to the City's failure to strictly follow the notice and
other requirements of Mimi. Stat. Ch. 429 with respect to ordering the structures
removed.
Owner expressly waives objection to any irregularity with regard to the
assessment of the Property for the City's cost to remove the structures, expressly waives
any claim that the amount assessed is excessive, and expressly waives all rights of appeal,
including the rights under Minn. Stat. Ch. 429, from the assessment by the City for the
costs of removing the structures, and expressly agrees:
1. that the Owner will pay when due all assessments levied for the removal of
the structures;
2. that removal of the structures will increase the fair market value of the
Property by an amount equal to or in excess of the amount to be assessed
hereunder;
3. that such increase in such fair market value is a special benefit of the Property;
and
4. that the amount to be assessed hereunder is reasonable, fair, and equitable.
The City agrees to comply with all Petrofund and Minnesota Pollution Control Agency
requirements, and agrees to bill the Eagles Club for all costs so that the Eagles can apply
for reimbursement through the Minnesota Department of Commerce Petrofund.
Dated this 28t~' day of March, 2011.
Owner:
~~
By: l
Greg ry lson, Chairman of Trustee's
Elk River Aerie #3264 Fraternal Order of Eagles
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