4.9. SR 09-19-2016 EGty1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 4.9
Agenda Section Meeting Date Prepared by
Consent September 6, 2016 Amanda Othoudt,EDD
Item Description Reviewed by
Joplin Property Authorization to Amend Appraisal Cal Portner, City Administrator
Values Reviewed by
Action Requested
Adopt,by motion, a resolution authorizing amended appraised values.
Background/Discussion
Staff is working with our attorneys to secure interest in the property owned by the Lakoduk and
Wingness heirs and MnDOT to release the old highway easement located at the SE corner of TH10 and
Joplin Street NW.
On June 6, 2016, the Council authorized acquisition by eminent domain and approved the appraised
values for properties. The two properties,referred to as Parcels 1 and 3A, sought appraised values in the
amounts of$9,000 and $21,000 respectively, totaling$30,000.
Based upon updated information,it has become apparent that Parcel 1 is two parcels with separate
ownership and has a somewhat larger total area than assumed in its appraisal and Parcel 3A has a slightly
smaller area than assumed in its appraisal.
Staff has obtained updated appraisal values for the parcels described in Exhibit A in the following
amounts:
■ Parcel 1A -- $8,200
■ Parcel 1B -- $10,600
■ Parcel 3A -- $16,300
■ Total value of parcels: $35,100
A separate appraisal was then needed to conclude a value reduction based on the overlying MnDOT and
city Right of Way easement of each of the parcels described in Exhibit A. This appraisal will be reviewed
by the land commissioners.
Staff has obtained the appraisal values for the parcels described in Exhibit A in the following amounts:
■ Parcel 1A -- $1,000
■ Parcel 1B -- $1,000
■ Parcel 3A -- $1,000
■ Total value of parcels: $3,000
POWERED 6T
A IR
Once approved, the appraisals of the properties as encumbered by right-of-way easements will be used at
a hearing before court-appointed land commissioners for a determination of compensation. To acquire
title to the properties, the city will deposit into court an amount equal to the approved appraised value of
the properties, as encumbered by the right-of-way easements, or $3,000. This will occur on or around
September 22. The land-commissioner hearing will follow several months later.
MnDOT still needs to obtain an appraisal and final approval before making an offer to the city for the
release of its easements. MnDOT generally won't order their appraisal until after the city has obtained
ownership on September 22. MnDOT's appraisal process can take up to five months;however,MnDOT
staff indicated that if the city will submit its appraisals for Parcel 1A and 1B for review by MnDOT in-
house appraiser, the appraisal process can be reduced by several months.
MnDOT will review the appraisals submitted by the city to make a determination of the value of the
highway easement. The city will then be required to pay MnDOT for the release of the easement.
Once this process is complete, staff will work to negotiate with the developer a sales price about equal to
the acquisition of the MnDOT easement,parcels 1A, 1B, 3A, the county-owned parcel and the fees
related to the condemnation action.
Financial Impact
None
Attachments
■ Resolution Amending Appraisal Values
■ Parcel Diagram
■ MnDOT Letter of Intent
City of
Elk -�-�
R1VeP Resolution No. 16-
Resolution of the City of Elk River Amending the Authority to Acquire by Eminent
Domain and Approving Amended Appraised Values for Certain Properties Located
at the SE Corner of US Highway 10 &Joplin Street NW
WHEREAS, on June 61h, 2016 the City Council adopted Resolution No. 16-32, a Resolution
Authorizing Acquisition by Eminent Domain and Approving Appraised Values for Properties
Located at the SE Corner of US Hwy 10 &Joplin Street NW;
WHEREAS, in Resolution No. 16-32, the City Council authorized the acquisition of two
properties, referred to as Parcels 1 and 3A, by eminent domain and approved appraised values for
those two properties in the amounts of$9,000 and $21,000 respectively;
WHEREAS, based upon updated information, it has become apparent that Parcel 1 is two
parcels with separate ownerships and has a somewhat larger total area than assumed in its appraisal
and Parcel 3A has a slightly smaller area than assumed in its appraisal;
WHEREAS, the revised legal descriptions and parcel sketch for the three parcels that the
City needs to acquire for its project are attached as Exhibits A and B respectively;
WHEREAS, the City has obtained updated appraisals for the parcels described in Exhibit A
which are based upon an assumption that the existing MnDOT and City right-of-way easements
have been released and these appraisals reflect the following values:
■ Parcel 1A -- $8,200
■ Parcel 1B -- $10,600
■ Parcel 3A -- $16,300
WHEREAS, the City has obtained separate appraisals for the parcels described in Exhibit A
which recognize the presence of existing MnDOT and City right-of-way easements and these
appraisals reflect the following values:
■ Parcel 1A -- $1,000
■ Parcel 1B -- $1,000
■ Parcel 3A -- $1,000
NOW, THEREFORE, BE IT RESOLVED by the City Council (the "Council") of the City of
Elk River,Minnesota as follows:
1. Resolution No. 16-32 is hereby amended by substituting the attached Exhibits A and B for
those in Resolution No. 16-32;
2. For the purposes of Minn. Stat. §117.042, the approved appraised values for the properties
described in the attached Exhibit A shall be as follows:
0 Parcel 1A -- $1,000
■ Parcel 1B -- $1,000
■ Parcel 3A -- $1,000
3. In all other respects, Resolution No. 16-32 and the authority it provides city staff and
Kennedy&Graven,Chartered,remains unmodified.
Approved by the City Council for the City of Elk River this 19"'day of September,2016.
John J. Dietz,Mayor
ATTEST:
Tina Allard,City Clerk
EXHIBIT A
Legal descriptions of the ROW Properties
Parcel 1A
All that part of the Southwest quarter of the Northwest Quarter of Section 32, Township 33 North,
Range 26 West, Sherburne County, Minnesota, lying Southeasterly of a line run parallel with and
112.5 feet southerly of a line described as follows:
Beginning at a point on the center line of High Street, distant 353.5 feet North of its
intersection with the center line of Line Street in the Village of Elk River, according to
the plat thereof now on file and of record in the office of Register of Deeds in and for
Sherburne County; thence run westerly at an angle of 89 degrees 54 minutes with said
center line of High Street (when measured from South to West) for a distance of 545.6
feet; thence deflect to the right at an angle of 26 degrees 01 minutes for a distance of
2,118.7 feet; thence deflect to the left at an angle of 28 degrees 21 minutes for a distance
of 2,251.8 feet; thence deflect to the left on a 2 degree 30 minutes curve, delta angle 28
degrees 12 minutes, for a distance of 1,128 feet; thence on a tangent to said curve for a
distance of 1,459.2 feet; thence deflect to the right on a 2 degree 30 minute curve, delta
angle 30 degrees 51 minutes, for a distance of 1,234.0 feet; thence on tangent to said
curve for a distance of 250 feet and there terminating.
Parcel 1B
That part of the Northwest Quarter of the Southwest Quarter of Section 32,
Township 33 North, Range 26 West, Sherburne County, Minnesota, lying:
Northerly of the Southerly right of way line of Temporary Trunk Highway No. 10, as
same was located and traveled in 1943; and
Southeasterly of a line run parallel with and distant 112.5 feet Southeasterly of the
following described line:
Beginning at a point on the center line of High Street, distant 353.5 feet North of its
intersection with the center line of Line Street in the Village of Elk River, according to
the plat thereof now on file and of record in the office of Register of Deeds in and for
Sherburne County; thence run westerly at an angle of 89 degrees 54 minutes with said
center line of High Street (when measured from South to West) for a distance of 545.6
feet; thence deflect to the right at an angle of 26 degrees 01 minutes for a distance of
2,118.7 feet; thence deflect to the left at an angle of 28 degrees 21 minutes for a distance
of 2827.5 feet; thence deflect left at an angle of 28 degrees 12 minutes for a distance of
2,034.9 feet; thence deflect to the right on a 2 degree 30 minute curve, delta angle 30
degrees 51 minutes for a distance of 1,234.0 feet; thence on a tangent to said curve for a
distance of 250 feet and there terminating.
Parcel 3A
All that part of the West Half of the Northeast Quarter of the Southwest Quarter of Section
32, Township 33, Range 26, Sherburne County, Minnesota, lying between the North line and
centerline of Old U.S. Highway No. 10.
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EXHIBIT B
Parcel Sketch
(Parcels 1A, 1B and 3A)
[see attached]
Minnesota Department mfTransportation
Office mfLand Management—K8S032
,OFTS! 385John Ireland Boulevard
Saint Paul, &1N55155
Date: July 11. 2O1S
Amanda Othoudt. Director
City ofElk River Economic Development
13OS5Orono Parkway
Elk River, MN 55330
RE: Conveyance 2O15-0112 TH1O@Joplin Street inElk River
Dear K8sOthoudt
Regarding the subject conveyance, we are fully committed to convey the highway easement to you in an
expedited manner. MnDOT District 3 (Baxter) office has already given their informal approval for this sale
and vveare finishing upour internal reviews and formal approvals. i
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The City has agreed toobtain the underlying fee onthe subject property. The attached exhibit shows the
property in red and green shapes, (City Parcels 1A and 1 B also known as MnDOT parcels 1 and 2).
Once this office receives confirmation that the acquisition of underlying fee is comp|ete, we will contract
anappraiser todetermine the fair market value ofthe property. Upon completion ofthe appraisal, one |
additional final approval is required. Atthe final approval, K4nDDTwiU send you an offer letter. When
MnDOT receives the check for the conveyance, we will record the quit claim deed.
At this time, we don't anticipate anything unusual or detrimental hindering this conveyance.
If you have any questions or concern, please do not hesitate to call or email; 651-366-3503 or
juseph.pignato@atabs.mn.uo
Sincero|y,
J;�'Eeph Pi nat PE
Office ofLand Management
Attachment: exhibit ufconveyance
cc:
Bryan Dodds, Director, Office nfLand [Nanagement
Jennifer Bailey Matti, Conveyance Supervisor, Office of Land Management
Mike Geortsema. Office ofLand Management
Kevin Schmidt, Right nfWay, yWnDOT D3
AnEqual Opportunity Employer
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