4.2.B. SR 12-06-2004
Item 4.2.&
MEMORANDUM
TO: Mayor and City Council
FROM: Catherine Mehelich, Director of Economic Developmen~
DATE: December 6, 2004
SUBJECT: Consider Resolution Authorizing Eminent Domain and
Acquisition of Real Property for the Downtown Revitalization
Project and to Clear Title to an Existing Street - Jackson Block
Attachment
. Resolution Authorizing Eminent Domain and Acquisition of Real Property in
Accordance with Minn. Stat. 117.042 for the Downtown Reviralization Project Area
No.1 and to Clear Title to an Existing City Street
Background
Over the past year sraff and the city attorney have determined thar the city has free and clear
title ro approximately half of the Jackson Block. The balance is still dedicated right-of-way.
Before the city can vacate that right -of-way the city needs to acquire the reversionary
interests of the adjoining properties.
Summary
Staff and the attorney have been working on that and have acquired what is needed from the
following adjoining parties:
. The Bank of Elk River
. Keith Holme (Kemper Drug property)
. Prank Galli (Diamond City Bread property)
Staff has been told by Ed Barder (aide Main Eatery property) and Steve Johnson (Antiques
property) that rhey would sign as well.
The title company has directed that the city needs to acquire the reversionary interests from
the dedicators of the original plar. The only way to acquire that is by proceeding in eminent
domain for the strip along Highway 10, and also includes, just in case staff is not able to
collect the last couple quit claim deeds from Barder, Johnson and Lenzmeier (former
Houlton building), they have been included as a porential for needing to condemn. There is
Consider Resolution Authorizing Eminent Domain and Acquisition of Real
Property for the Downtown Revitalization Project and to Clear Title to an
Existing Street - Jackson Block
Dccember 6, 2004 City Council Meeting
Page 2 of2
no intention of condemning those parcels if we are able to get the deeds from them in the
meantime.
Finally, staff is working with the title company to find out if the city even needs to acquire
anything further from Barder, Lenzmeier and Johnson, and also to see if we can't fmd a
different way to resolve the strip along the north.
Requested Action
Staff is going to keep trying to fmd a way to avoid having to proceed with eminent domain
to obtain clear title to all of Jackson Block. In the event we can't staff is asking the Council
to approve the attached Resolution Authorizing Eminent Domain and Acquisition of Real
Property in Accordance with Minn. Stat. 117.042 for the Downtown Revitalization Project
Area No.1 and to Clear Title to an Existing City Street so staff can proceed with eminent
domain if necessary.
RESOLUTION NO.
CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ELK RIVER
AUTHORIZING EMINENT DOMAIN AND ACQUISITION OF REAL
PROPERTY IN ACCORDANCE WITH MINN. STAT. ~ 117.042 FOR THE
DOWNTOWN PHASE I TAX INCREMENT FINANCING DISTRICT NO. 22
AND TO CLEAR TITLE TO AN EXISTING CITY STREET.
RECITIALS
WHEREAS, the City of Elk River is a statutory city organized and existing under
the laws ofthe State of Minnesota with all powers, rights and authority of a statutory city
and is a public body corporate and politic;
WHEREAS, the City of Elk River has the authority to acquire real property by
condemnation in accordance with Minnesota law including Minn. Stat. ~ 412.211, Minn.
Stat. gg 465.01 and 465.16, and Minn g 469.124 through 469.134;
WHEREAS, the City of Elk River, by previous action, has designated Municipal
Development District No. 1 ("Development District") which Development District is
coterminous with the city limits of the City of Elk River;
WHEREAS, the City of Elk River has adopted a development program for the
Development District ("Development Program");
WHEREAS, in accordance with the Development Program, the City of Elk River
has deemed it advisable to encourage development within the Development District in an
effort to increase the tax base of the City of Elk River, provide for employment
opportunities within the City of Elk River and otherwise benefit the health, safety, morals
and welfare of the residents of the City of Elk River in accordance with public purpose
provisions of applicable state and local laws;
Resolution Authorizing Eminent Domain
Page2of5
WHEREAS, the City Council ofthe City of Elk River has adopted a Tax
Increment Financing Plan for the Downtown Phase I Tax Increment Financing District
No. 22 within the Development District ("TIF District");
WHEREAS, the City of Elk River deems it necessary and convenient to acquire
the necessary property in the TIP District in order to fulfill the objectives of the
Development Program, to encourage and facilitate development in the TIP District, as
well as improving roads, utilities and other public infrastructure and to provide
employment opportunities, increase the tax base and otherwise benefit the health, safety
and welfare and morals of the residents of the City of Elk River ("Objectives")
WHEREAS, the real property to be acquired by the City is an existing platted
right-of-way and has been since 1868 and the underlying fee owners may claim some
right, title or interest in the real property should the City vacate said right-of-way.
WHEREAS, the City has no obligation to vacate said right-of-way, but may do
so in the future to fulfill the Objectives.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Elk River.
1. In order to carry out the Objectives, it is necessary to acquire fee title to
the real property identified in Exhibit A attached hereto ("Real Property").
2. The acquisition of the Real Property by the exercise of the power of
eminent domain in the manner provided for by Minnesota Statutes Chapter 117 serves a
public purpose and is deemed to be necessary to further the Objectives.
3. The City of Elk River deems it necessary for the Objectives and
encouraging development in the TIP District to acquire said Real Property. The City of
S:\Downtown Revitalization\Condemnation\Jackson Square\Resolution Authorizing Condemnation (94144) (2).DOC
____.,_,____.__...."~m______________..~__________~._~____.____._________...__..__.__~~__~"_____.
Resolution Authorizing Eminent Domain
Page 3 of5
Elk River further deems it necessary to clear title to the underlying right-of-way by
acquiring fee title thereto.
4. Because the development of the Real Property is to begin prior to the time
by which court-appointed commissioners could reasonably be expected to render their
award for the taking of the Real Property, the City of Elk River deems it necessary to
proceed without delay under Minn. Stat. 117.042 to pay to the owners or into court a sum
of money to secure compensation to the owners of the real property, which amount shall
be equal to the city's approved appraisal value as determined by City staff.
5. The City of Elk River staffis hereby authorized and directed to execute all
documents and contracts necessary to acquire the Real Property identified in Exhibit A,
which actions include the specific authorization to: (a) obtain appraisals or minimum
damage assessments of the real property interests to be acquired. The owners of the Real
Property (iflocated) shall be provided with a copy of the appraisal at least twenty (20)
days prior to presenting the condemnation petition to the Court and must be obtained
prior to commencing condemnation; (b) make written offers to affected property owners
and negotiate such offers to a successful conclusion (which negotiations and offers shall
be conducted in good faith prior to the commencement of condemnation); (c) acquire the
real property interests needed at the appraised value plus additional damages, if any, as
approved by the City Administrator; and (d) in circumstances where negotiation proves to
be unsuccessful or has already proven to be unsuccessful, condemn the real property
interests needed under the procedures provided for in applicable Minnesota Statutes, and
in compliance with all requirements of said statutes, including using the quick take
procedure set forth in Minn. Stat. 9 117.042.
S:\Downtown Revitalization\Condemnation\Jackson Square\Resolution Authorizing Condemnation (94144) (2).DOC
Resolution Authorizing Eminent Domain
Page 4 of5
6. The City of Elk River staffis further authorized and directed to take all
action necessary to implement this authorization including obtaining appraisals or
minimum damage assessments of all property interests to be acquired and retaining legal
counsel to assist in commencing condemnation. Any actions previously taken by staff in
this regard are hereby ratified and affirmed.
The motion for adoption of the foregoing resolution was introduced by
Councilmember
and duly seconded by Councilmember
, and upon a vote being taken thereon, the following voted in favor
thereof:
And the following voted against the same:
Dated:
Stephanie A. Klinzing, Mayor
ATTEST:
, City Clerk
S:\Downtown Revitalization\Condemnation\Jackson Square\Resolution Authorizing Condemnation (94144) (2).DOC
Resolution Authorizing Eminent Domain
Page 5 of5
EXHIBIT A
REAL PROPERTY
S:\Downtown RevitalizationlCondemnationVackson SquareIResolution Authorizing Condemnation (94] 44) (2).DOC
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