5.5. SR 09-27-1993
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ITEM 5.5.
TO:
MAYOR & CITY COUNCIL
FROM:
PAT KLAERS, CITY ADMINISTRATOR
DATE: SEPTEMBER 23, 1993
SUBJECT: UTILITIES COMMISSION MEETING
UPDATE
On September 7, 1993, the Utilities Commission considered a
request to reimburse the City $10,000 for the water tower site
in the northeast part of our community. A healthy discussion
took place regarding how the purchase price was determined and
whether or not the Utilities should have been directly involved
in this transaction. The Commission asked for additional
background information on this purchase; on the purchase of the
water tower site just north of the School District office; and
on other water tower sites that are anticipated to be needed in
the next few years. I will plan on attending the next
Utilities Commission meeting to further discuss water tower
land transactions with the Commission.
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One item that the Commission wanted to know more about is
whether or not they would be requested to reimburse the City
for the land where the western water tower will sit next to
Orono Park and Highway 10. As the Council may recall, the
City purchased this highway frontage land from E & 0 Tool a few
years ago as an extension of Orono Park, and this land has
since been assessed for public utilities. Accordingly, the
value of a one acre parcel of park land in this area for a
water tower, well, and discharge pond would be in the $23,000
range.
No request for the Utilities to purchase this land was
discussed by the Council when the discharge pond and well
locations were approved. If the City does desire reimbursement
for this property being taken out of park use, then the City
could deduct this value from the TIF contribution that it plans
to make to the Utilities for the western water tower and apply
this TIF money toward another eligible project.
As far as
no other
location.
Utilities
leave the
future water tower sites are concerned, at this time
public park land has been identified as such a
Also, it is probably best to simply have the
negotiate all future water tower site purchases and
City out of this water department issue.
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P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425