7.4. SR 03-15-1993
ITEM 7.4.
SUBJECT:
MAYOR & CITY COUNCIL
PAT KLAERS, CITY ADMINIS~
MARCH 12, 1993 Y ·
CITY PROPERTY - WATER TOWER SITE
TO:
FROM:
DATE:
Per City Council direction, I have contacted the County
Assessor's Office in an effort to get some information on the
value of the City property north of the MnDOT garage along
Highway 169. The County has advised me that this property
increased in value from $3,000 per acre to $5,000 per acre in
1991. This increase was based on recent market sales. The
total valuation of this parcel based on the County Assessor's
records is $25,000.
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This information from the County seems very close to being the
actual market value for the property. The property has limited
commercial value as there is no direct access off of Highway
169. Any commercial activity on this site would require a
rezoning by the City Council, access from Dodge Avenue, and the
operation would have to be compatible to the neighborhood
immediately to the east. In terms of the value of this site
for residential purposes, it must be acknowledged that this
site is not the most desirable with the MnDOT garage being to
the south and the Highway being to the west.
It has been suggested that the City advertise this parcel for
sale. The City could certainly do this, but the two most
logical buyers of this property are the landowners to the south
and north. If the City sold this property to MnDOT, it would,
in effect, be making the MnDOT garage operation a permanent
activity in this area. This may not be consistent with the
long range goals of the City. Other than MnDOT, the most
logical buyer is the property owner to the north which is Mr.
Foster. By incorporating the City property with the property
to the north, the best residential use of the property can be
achieved. By developing the City parcel independent of any
other property, there is very limited residential use that can
be accomplished (three or four lots versus nine or ten lots).
It is not a necessary requirement for the City to advertise
this parcel for sale and the City can directly negotiate with
any individual it deems appropriate.
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The City definitely needs property from Mr. Foster for the
water tower site. The property where the water tower is
proposed to be located is not platted, so, therefore, the City
cannot obtain this property through the park dedication
process. However, the site for the water tower will be
incorporated with other park land as the property is platted.
This will be done in an effort to provide park opportunities in
this vicinity and in an effort to reduce the effect of the
720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420
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water tower on adjacent property values. It seems that two
developed lots (one acre) in this area with municipal utilities
may be of equal value to the City parcel as listed by the
County Assessor's department.
The proposal as requested by Mr. Foster asks for an even
exchange of property. This can be done either through the
exchange of titles or through an actual purchase of each others
property. If this is to take place, the City Council must come
to the conclusion that the City property is of roughly equal
value to the Foster property that the City needs for the water
tower site. Regarding some of the other conditions listed at
the end of Page 2 of the Foster letter, please refer to the
attachment from the City Engineer.
~ 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
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cannot economically be relocated or lowered this creates
a barrier to servicing this area with sewer and water.
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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.
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1
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,
,::3;:i/J~
'/w/c: >;~~
Richard C. Foster
RCF/ck
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_ / j,- ~ ~ ~ ~ CONSULTING ENGINEERS
"""1 Maier Stewart & Associates Inc.
March 5, 1993
IfE'CEI1/
[ /} .A!4e '
00lrn I
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File: 235-004-20
Mr. Pat Klaers, Administrator
City of Elk River
720 Dodge Avenue NW
Elk River, MN 55330
RE: WATER TOWER SITE ACQUISmON
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 watermain) 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, Sf. PAUL, MINNESOTA 55117 612-774-6021
9800 SHELARD PARKWAY, SUITE 102, MINNEAPOLIS. MINNESOTA 55441 612-546-0432 · Equal Opportunity Employer
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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,
MAlER STEWART & ASSOCIATES, n~c.
~Y$~
Terry J. Maurer, P.E.
TJM:tp
004-0508.mar