5.3. SR 08-01-2011~~~~
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Elk ~~... REQUEST FOR ACTION
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TO ITEM NUMBER
Ci Council 5.3.
AGENDA SECTION MEETING DATE PREPARED BY
Administration Au st 1, 2011 R. Thistle, Interim Ci Administrator
ITEM DESCRIPTION REVIEWED By
Approve Funding Option fox DNR Grant Application for
Bailey Park Acquistion REVIEWED BY
ACTION REQUESTED
Approve funding approach for City portion of Bailey Park Acquistion should Elk River receive an award
of DNR Natural and Scenic Areas Grant Program.
BACKGROUND/DISCUSSION
The following is a summary of the Bailey Park project provided by Joe Hiller of the DNR. Joe's
summary, found below, is consistent with City staff perspecitve that are familiar with the issue.
Since 1983, the City has received 6 grants from the State to acquire and develop Lions Park and
Woodlands Trail Park (see attached list of the 6 grants). Each grant includes an agreement between
the City and the State whereby the City agreed to retain all lands within the park boundaries solely
for outdoor recreation.
The City inadvertently violated two of these grant agreements when they allowed the Boys Club to
construct its facility along the southern border of Lions Park. The facility trespasses on
approximately 12,870 square feet of park land, thus converting it, in violation of the grant
agreements, to non recreation use. The remedy for such conversions is to acquire replacement lands
of at least equal market value. Working with Lori Johnson, the previous City Administrator, the
value of the converted lands in Lions Park was determined to be $20,592. The City must therefore
acquire replacement lands of at least equal value and add them to an existing park or establish a new
park.
When the City requested grant application forms last spring, I informed Ms. Johnson that the City
would not be eligible to apply unless the conversion at Lions Park was mitigated. Lori suggested
using part of the value of the Bailey Point Acquisition as mitigation. I told her this would be
acceptable to the State. Since funding from the federal Land and Water Conservation Fund
(LAWCON) was also used in these grants, the National Park Service would have to agree as
well. Based on my experience with the Park Service, I believe they would also accept this mitigation.
The City has submitted an application to the Natural and Scenic Areas Grant Program fora 50%
matching grant to acquire approximately 22.58 acres at Bailey Point appraised at $99,150. A 50%
grant would be $49,575. The City's application has ranked high enough to be considered for
funding. If the City were to agree to use $20,592 of the appraised value to mitigate the Lions Park
C:\Users\jjohnson\Appllata\Local\Microsoft\Windows\Temporary Internet Files\Content.0utlook\SFWAYSNS\bailey park project 2011.docx
conversion, then the remaining value of $78,558 would be eligible fora 50% grant of $39,279. The
City's eligibility to apply for other state grant programs would also be restored.
Please let me know if the City would be willing to accept a reduced Natural and Scenic Areas Grant
and, at the same time, mitigate the outstanding conversion at Lions Park. The State is only
considering this grant offer and is not making an official commitment. If a grant is not awarded, the
City will still be obligated to acquire mitigation land, either at Baileys Point or at some other
location. We plan to finalize the grant awards within the new few days.
The value placed on the Bailey property was deternmined by an independent appraiser hired by the
City of Elk River.
FINANCIAL IMPACT
The City portion of the DNR Grant, under the proposal discussed between the City and the DNR, would
be $59,150 based upon the aquistion price of $99,150. This price also includes the mitigate of the issue at
Lyons Park and allow the city to be eligible for future DNR funding programs for which we would want
to apply. The proposed funding source would be the GRE reserve fund (peaking plant PILOT).
ATTACHMENTS
• Proposed agreement for Bailey Park between the City of Elk River and the Department of
Natural Resources. This will need to be exectuted should the Bailey's Park be selected for
funding by the DNR.
Action Motion by Second by Vote
Follow Up
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Draf#
AMENDMENT #1 to Grant A reement LW27-01217A
Grant Start Date :..............................7/29/1983
Original Grant Expiration Date:.....12/31/1986
Amended Grant Expiration Date :............... NA
Total Grant Amount :....................$37,800
Original Grant :.............................$37,800
This amendment is by and between the State of Minnesota, through its Commissioner of Natural Resources [STATE] and the City of
Elk River, MN [GRANTEE].
Recitals
1. The STATE has a grant agreement with the GRANTEE identified as LW27-01217A, Lions Park [ORIGINAL GRANT] to acquire
approximately 34.67 acres for outdoor recreation.
2. The GRANTEE proposes to delete approximately 0.3 acres valued at approximately $20,592 from the park boundary and add, as
mitigation, lands of at least equal value at Bailey Point Park.
3. The STATE and the GRANTEE are willing to amend the ORIGINAL GRANT as stated below.
Grant Amendment
REVISION 1. Project Boundary
The project boundary is changed to delete approximately 0.3 acres from Lions Park as shown on Attachment A -Boundary Map
of Lions Park and add approximately 22.5 acres at Bailey Point Park as shown on Attachment B -Boundary Map of Bailey Point
Park. Attachments A and B are made part of this amendment.
Except as amended herein, the terms and conditions of the ORIGINAL GRANT and all previous amendments remain in full force
and effect.
1. GRANTEE
The GRANTEE certifies that the appropriate person(s) have executed
the Grant on behalf of the GRANTEE as required by applicable
articles, bylaws, resolutions, or ordinances.
2. STATE
By:
sy:
Signature Date
Printed Name
Title
signature
Printed Name
Title
Date