10.2. SR 07-07-2014 City of
Elk=' Request for Action
River
To Item Number
Mayor and City Council 10.2
Agenda Section Meeting Date Prepared by
Work Session July 7, 2014 Jeremy Barnhart,Deputy Director, COD
Item Description Reviewed by
Focused Area Study Implementation—Yale Court Cal Portner, City Administrator
Reviewed by
Action Requested
Receive information related to the implementation of the FAST study and provide direction.
Background/Discussion
Update
Since the last update, staff has confirmed the access locations with MnDOT. MnDOT confirmed that
with the construction of an interchange,all accesses between 173 Td and 165"'will be removed. Further,
MnDOT confirmed that with the construction of an intersection,the at-grade intersections on the west
side of the highway, south of 171" and north of 165`'',will be removed. Based on preliminary drafts of
the surface road networks,much of the Yale Court lot will be necessary to provide the right-of-way for
the design speeds and necessary width.
Yale Court
In response to the firm price requested by the owner of the Yale Court property, staff has identified a
number of options available to the Council. Staff seeks direction as to how to proceed.
Option 1. Purchase the property for the asking price, $300,000. This is significantly more than the
$68,000 and the $158,000 market value suggested by the county,though it may be less costly than
acquiring it through more aggressive measures.
Option 2. Continue to work with a developer toward a private/public partnership,with the
understanding that the property owner desires to construct a multi-story residential project, overlooking
the river, on property currently guided and zoned commercial.
Option 3. Wait on the acquisition of the property. There are a couple of challenges with this
option,as there is no indication that the price will decrease with time, and the city runs the risk that a
building permit could be applied for tomorrow and the city would have to issue it, requiring more costly
modification.
Option 4. Develop additional options for the routing of the west side surface road. The current
alignment was identified to minimize impacts to existing businesses and separate commercial from
residential traffic as much as possible. Relocating the alignment will almost certainly require the removal
of existing businesses.
NaA f RE]
East side
The city owns much of the necessary future right-of-way (ROW) for the construction of the interchange.
The balance is owned by Dawn Moyer and the Spechts'. There is little urgency to acquire these parcels as
when development is pursued by the owners, appropriate ROW can be negotiated.
However, the combination of the city parcel and the Moyer property is advantageous to both parties, as it
would create a larger,more attractive parcel for sale. Staff will verbally present the issue prior to moving
forward.
Financial Impact
None
Attachments
■ Memo to Administrator,June 18, 2014
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ElkT_ Memorandum
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To: Cal Portner, City Administrator
From: Jeremy Barnhart,Deputy Director, CODD
Date: June 18, 2014
Subject: FAST Study Implementation-Yale Court
At the direction of the Economic Development Authority (FDA), staff has prepared an
implementation strategy for the Focused Area Study (FAST). Of signature focus is the
necessary road connections on the west side of Highway 10, between 167`h (near Broadway
Pizza) and 171"(near SuperAmerica). The FAST study noted the need for a frontage road
system,which is critical to establish the permanent traffic patterns, so when the interchange
is constructed,impacts to businesses will be lessened.
To date,the EDA has directed the preparation of an appraisal of the Yale Court property,
and the Council authorized the completion of a feasibility study to determine construction
costs and impacted parcels. This report is due in August.
Once the feasibility study is completed,a purchase plan will be developed toward the
acquisition of parcels for sale.
Currently, one parcel at the southern end of Yale Court is available for sale. This property is
owned by Elk River Ford and marketed by Steve Rohl£ The asking price is $300,000. The
County assesses it at$158,000, and an appraisal completed in April of 2014 lists the value at
$68,000. There is a $299,900 mortgage on the property. Mr. Rohlf does not seem motivated
to sell the property for any amount less than$300,000.
Staff has also met with a potential developer,who desires to construct a multi-story
residential project on the adjacent parcel,but utilizing the portion of the Yale Court parcel
not used for the street. His project, still in the conceptual stage,would require an
amendment to the Land Use Plan and zoning ordinance.
Staff will continue to work with this developer pending the results of the feasibility study.
Staff can be more aggressive on the acquisition,if so directed.
P0WIeEa 0
N:\Public Bodies\Agenda Packets\07-07-2014\x10.2 at 1 Fast Study Implementation update.docx INAfURE1