8.1. SR 11-16-2015 EW Request for Action
River
To Item Number
Mayor and City Council 8.1
Agenda Section Meeting Date Prepared by
General Business November 16, 2015 Amanda Othoudt,EDD
Item Description Reviewed by
Agreements with Sherburne County and MnDOT Cal Portner, City Administrator
for Purchase of Property (Joplin Street Area) Reviewed by
Action Requested
Approve,by motion, the purchase of a remnant parcel from Sherburne County and enter into an
agreement with MnDOT to purchase the surplus easement.
Background/Discussion
The city has been working with a developer on a land assembly project with four separate parcels
(Exhibit A). The city owns two of the four parcels at the intersections of Joplin Avenue and Business
Center Drive. The owners of the remaining parcels include the county, and the heirs of Hogan A.
Wingness and Harry and Sue Lakoduk. The northerly parcel, owned by both Lakoduk and Wingness are
encumbered by MnDOT right-of-way easements.
The developer proposes site improvements with up to three commercial/retail buildings possibly
including a national client with a drive thru, a regional client, and an opportunity for local business
development in a multi-tenant building. The developer also proposes to work with the city, county, and
the fair board to relocate the existing sign to a new location on the site.
An appraisal was conducted on the city-owned property on July 21, 2015,by Nagell Appraisal&
Consulting. The City Council approved a purchase agreement for the sale of the city property to the
developer at their November 2, 2015, meeting.
Upon successful acquisition of the property from each of the fee owners and upon release of the right-
of-way easement by MnDOT, the city will sell the fully-assembled parcel to the developer.
Staff recommends a formal purchase agreement with the county to acquire the northerly portion of the
property (Exhibit A) and enter into a formal agreement with MnDOT to purchase the surplus easement
once the property is secured from the fee owners.
Financial Impact
E&I Investments have deposited $10,000 of earnest money to the city to begin the process. If the
acquisition costs exceed$10,000, the developer will be required to deposit additional sums in escrow.
Attachments
■ Exhibit A
■ Property Survey
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Action Requested:
■ Purchase remnant parcel from Sherburne County
■ Enter into agreement with MnDOT to purchase surplus
easement