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6.2. SR 03-08-1993 ITEM 6.2. TO: SUBJECT: MAYOR AND CITY COUNCIL PATRICK KLAERS, CITY ~TOR MARCH 5, 1993 ~ CONSIDER LAND EXCHANGE FOR WATER TOWER SITE FROM: DATE: As the City Council is aware, a water tower site has identified within the Rick Foster Hillside Estates area. exact location is in unplatted property to the northeast of land that currently has been platted. been The the . Mr. Foster has suggested that instead of the City purchasing this property and in lieu of the City obtaining the property through the park dedication process, he would like the City Council to consider a property exchange for this water tower site and the City 5.5 acre parcel along Highway 169, north of the MnDOT facility. This exchange seems to make sense from his pOint-of-view as he is not ready to plat the property where the water tower is located and, therefore, this land is currently not available to be obtained through the park dedication process. Additionally, Mr. Foster has platted the property directly north of the City land along Highway 169 and the City property could be combined with this property to make a reasonable residential development pattern. In order for this property exchange to take place, the Council must evaluate a number of issues. First, the Council must conclude that this City land has limited value in spite of being located adjacent to Highway 169. This land is zoned R-lc and does not seem to have commercial possibilities at this time. Additionally, as noted in the 3/1/93 letter from Mr. Foster, the property has a number of drawbacks for development. The second thing the Council must consider if this land exchange is to take place, is the fact that the City would be buying land for the water utility. This would be considered part of the City's contribution to the water department infrastructure. We have indicated to the Water Utilities that we felt confident that we would be able to work with Mr. Foster in obtaining the appropriate site for the water tower, as we felt that this property would be obtained through the park dedication process. ~owever, the timing of platting versus the need for the water tower can become a "chicken and the egg" situation with a lot of discussion on what comes first. . Attached for your information is the 3/1/93 letter from Mr. Foster regarding this proposal and a generalized map showing the location of tqe City site and the water tower site. Also attached, is some information from Terry Maurer regarding items 1, 2, and 3 at the end of page 2 of the Mr. Foster letter. If 720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420 . . . the City Council is concerned about the impression what this type of transaction would have with the general public, then the City can certainly pay cash for the water tower site (or have the Utilities pay cash for the water tower site) and then sell the City property to Mr. Foster as he is the most logical buyer at this time. . . . March 1st, 1993 Mr. Pat Klaers, Administrator City of Elk River 720 Dodge Ave. Elk River, Mn. 55330 RE: CITY PROPERTY - WATER TOWER SITE Dear Pat, I would like to acquire fee title to the City of Elk River property in section 27 lying north of the MnDot facility adjacent to Highway #169. The City of Elk River would like to acquire fee title to a new water tower site in section 26 and access to it. I am suggesting we trade the two parcels, "even trade". Even though the properties are of unequal size, (City 5.6 acres, Foster 3.6 acres including access easement) I feel the exchange is more than fair and in the City's favor for the following reasons: 1. The City property has a 1 acre +/- holding pond in the S.E. corner which will not be developable as lots. 2. There is a 75 foot natural gas line easement running diagonally through the property. 3. The land lying westerly of the gas line appears to have at one time been used as a "borrow pit" as the elevation drops 10-15 feet from the gas line. Because the gas line cannot economically be relocated or lowered this creates a barrier to servicing this area with sewer and water. . . . 4. The property to the south is a MnDot Highway Maintenance Facility and is noisy and unsightly. 5. U.S. Highway #169 lies to the west. I also feel that a water tower on my property will have a negative impact for the following reasons: 1. It will require that I change my original development slightly and cause me to develop in a northeasterly direction rather than easterly as I had originally planned (see attached exhibit). 2. It will probably be necessary to re-design the area near the proposed water tower and I mayor may not lose one or two lots from my original layout. 3. The value of the lots adjacent to the tower could be reduced by as much a $4,000.00 per lot. other considerations I would need are as follows: 1. The City pay for any surveying (other than design and layout) and legal work required. 2. Access road to be cleared and graded at the city's expense. 3. No assessment on these improvements (tower and watermain) until the property is platted. 4. Neutral colors for the tower and landscaping. No outside storage. . . . 5. No trunk assessment on tower land. 6. City of Elk River authorizing a subdivision of the property without platting. The location of the water tower site was made by Terry Mauer, the City's Engineer, and I agree that it is the best and most economical site for the tower to be built. If you would like to discuss this matter further please contact me at #241-0714. Thank-you, ,S.~ae;~(S~ ." FA,/( ~ 'l.C~t.. , c::; . ' Richard C. Foster RCF/ck \.. So <il> -k '3 d &:0 -::::::: . ~ ~ Q ~ -- ~~~ . 31 . . . MAR-_~-93 F~I 13:56 MAIER STEWART & ASSOC. P.01 CONSULTING ENGINEERS Maier Stewart & Associates Inc. March S, 1993 File: 23S..()()4-20 Mr. Pat Klaers, Administrator City of Elk River 720 Dodge A venue NW Elk River, M1'i 55330 RE: WATER TOWER SITE ACQUISITION Dear Mr. Klaers: As you requested, we have reviewed the letter from Mr. Rick Foster regarding the acquisition of the water tower site. Specifically, we have reviewed the first three items listed under Other Considerations on page 2. Based on our review, we would offer the following comments: 1. The City pay for any surveying (other than design and layout) and legal work required. If the developer provides a calculation sheet showing the access easement and the water tower site, as he has indicated he will, this should be sufficient. Prior to establishing the location of the new water tower or the watermain leading to it, our survey crews would always establish or reestablish the easement limits. Therefore, we have no problem with Mr. Foster's proposal on this item. 2. Access road to be cleared and graded at the City's expense. The clearing, grubbing, and grading of the easement (future road right-of-way) is necessary to install the watermain at the proper elevation. However, it certainly benefits future phases of Hillside Estates. Therefore, we believe the developer should, at a minimum, participate in this cost. 3. No assessment on these improvements (tower and watennain) until the property is platted. We do not concur that the tower and watermain should not be assessed until the property is platted. However, there is the issue of sanitary sewer. With the new water tower and watermains, the property still cannot be developed until trunk sanitary sewer is made available from the southwest. It may be reasonable to not assess this property for either 1959 SLOAN PLAce. SUITE 200. ST. PAUL, MINNESOTA 55117 812.774-6021 9800 SHELARO PARKWAY, SUITE 102, MINNEAPOLIS. MINNESOfA 55441 612.546-0432 · Eql,.l~l OppOrtl,.lnity Employer MAR- 5-93 FRX 13:57 MAXER STEWART & ASSOC. P.I2l::2 . Mr. Pat Klaers, Administrator March 5, 1993 Page Two sanitary sewer or water until both are available. It is not reasonable that no assessments are levied until the property is platted, since this could be years after utilities become available. If you have any questions or need additional information, please call. Sincerely, MAJER STEWART & ASSOCIATES, INC. ~P7l/aMt() Terry J. Maurer, P.E. TJM:tp . 004-0508.~ .