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5.2. SR 01-22-2002Item 5.2. MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor and City Council Michele McPherso Director of Planning January 22, 2002 January Park and Recreation Commission Update There are several items for the City Council to consider from the Park and Recreation Commission's January meeting. They include snowmobiling, the acquisition of LeFavor property, supporting a Sherburne County grant request, approving the 2002 Capital Improvements budget, and an amendment to the Lions Park Center Use Policy. Attachments · January 9, 2002 Park and Recreation Commission minutes · January 17, 2002 Letter to Richard LeFavor · December 3, 2001 Park Land Offer from Richard LeFavor · Resolution No. 02-__ supporting the Sherburne County Grant Application · 2001 - 2010 Park Capital Improvements Budget Snowmobilin~ At the January 9th Park and Recreation Commission meeting and the January 14th City Council meeting, several residents spoke in opposition to trail segments utilized by snowmobilers in order to travel through the City. The Commission listened to the residents' concerns, however, took no action regarding the request by the residents to change the trail segments. There were several members of the River City Snow Riders Snowmobile Club present at the Park and Recreation Commission meeting who also heard the residents' concerns but chose not to speak. While the process to establish the snowmobile trail through the City may not have been perfect, the Commission acknowledged that changes and amendments to the map will need to be made, including a ban on snowmobiling through the City south of 197:h Avenue, except for the Highway 169 right of way. The Commission, however, felt that the map should stand until the end this season, April 15th. Memo to Mayor and City Council January 22, 2002 Page 2 Acquisition of the Richard LeFavor Property_ The Commission discussed at length the pros and cons of accepting the proposal for park land made by Mr. Richard LeFavor. The latest offer was for 70 acres of park land at $546,000, the appraised value (see December 3, 2001 letter). The Commission agreed that there were several reasons for acquiring the property including: The need to land for a regional park facility in the northeast corner of the City, a goal that has been discussed for several years. b. There is a willing seller. c. There are funds available in the Park Dedication Fund for the acquisition. d. This is an area of the City which will see development sooner rather than later. The property could be the cornerstone of a larger park facility that could be expanded through park dedication and/or additional acquisition from other properties. However, despite these very good reasons for acquisition, the Commission did not feel that the land was worth $546,000, as the development community was not interested in acquiring the property. The Commission presented a counter offer to Mr. LeFavor of $300,000 for the 70 acres of land. Mr. LeFavor, in a phone conversation with staff, indicated that he was not interested in selling all 70 acres for $300,000, but that he would be willing to sell half of the land for that cost. Mr. LeFavor has not formally withdrawn his request. Based on the Commission's recommendation, staff recommends that we not pursue acquisition of the Richard LeFavor property at this time. Resolution Supporting Sherburne County Grant Request Sherburne County is applying for a grant through the Minnesota Department of Transportation's Transportation Enhancement Fund for the acquisition of the railroad right-of- way from the northern corporate boundary of Elk River through Livonia Township to the City of Zimmerman. In addition, they are also requesting funds to pave the corridor from County Road 33 in Elk River to the City of Zimmerman. The County has requested that Elk River support this grant request by adopting the attached resolution and agreeing to supply the 20% match required for the cost of paving the trail from County Road 33 to the northern corporate boundary. The cost of paving this portion of the trail is estimated to be $145,200. The City's 20% match would total $29,040. The Commission voted unanimously at their January 9th meeting to recommend that the City Council adopt the attached resolution supporting Sherburne County's grant application. Staff recommends that the City Council adopt the attached resolution supporting Sherburne County's grant application for acquisition of railroad right-of-way and paving of the railroad trail corridor from County Road 33 to the City of Zimmerman. S:\PLANNING\MICHMC\CCREPRTS\JanuaryP&RUpdate.doc Memo to Mayor and City Council January 22, 2002 Page 3 Approve 2002 Capital Improvements Expenditures The following expenditures have been identified and adopted by the Park and Recreation Commission for completion in 2002: Baldwin Park $15,700 Barrington Park 600 YAC Improvements 23,200 Playground - Mississippi Oaks 30,000 Deerfield - hill, fence, landscaping 9,650 Fresno playground 25,000 Lions Park landscape and disc golf 15,500 Riveplace landscaping 11,300 Orono bleachers 30,000 Devine barn 20,000 Prairie seed 2,000 Undeveloped park improvements 10,000 Supplies 5,000 TOTAL $197,950 In addition to the above expenditures recommended by the Commission, staff is recommending an additional $36,000 for the replacement of the wiring and lights in Lions Park. The pedestrian scale lights are many years old and are in great disrepair. Several of the lights are leaning and the wire supplying power to the lights is badly deteriorated. It would not be cost effective to repair the wiring, as water and rodents have worked together to deteriorate the wire. The total for these projects would be $233,950. We anticipate revenues from Trott Brook South and the STC project (if it is approved) to total $388,080, which will replenish the funds. Staff recommends that the City Council approve the proposed 2002 park expenditures. Amendment to Lions Park Center Use Policy Michele Bergh, Recreation Manager, has received a number of requests for the use of Lions Park Center. A number of these requests are for recurring program events such as the River's Edge Business Association monthly meeting, the Mothers of Multiples twice-monthly meetings, etc. In order to balance revenues and expenditures, staff is recommending an amendment to the Lions Park Center Use Policy which would affect nonprofit groups requesting recurring use of the facility two or more times per month. For these types of uses, staff would require a quarterly evaluation of the space available for these groups. Such groups who wish to guarantee their space for more than three months at a time could elect to pay for the use of the space under the Priority 3 user group fee level. This should keep the cost the use of the facility at a minimum for these types of groups. Staff recommends that the Council concur with this amendment to the Lions Park Center Use Policy. S:\PLANNING\MICHMC\CCREPRTS\JanuaryP&RUpdate.doc Park & Recreation Commission Minutes January 9, 2002 Page 2 Open Mike - Use of 193rd Avenue Trail by Snowmobiles Ms. McPherson stated that there have been several telephone calls regarding the snowmobile trail map that was adopted by the City Council in November. A number of those calls have been from residents in the Lafayette Woods/Cherrywood Hills developments which lie north of the 193rd Avenue trail used by snowmobilers. The trail on 193rd Avenue has been identified on the snowmobile map as a trail connection between The Great Northern Trail and Highland Road in order to provide a cross-city link to Highway 169. The trail is also posted as pedestrian use only, as are all city trails. The city owns approximately 60' of right-of-way; there is 24' of pavement within the right-of-way, half of which will be plowed for pedestrian use, thus, leaving the remaining 12' of pavement and approximately 18' of right-of-way for travel by snowmobilers. There were several residents who presented in opposition for the use of this trail by snowmobilers, mostly for safety issues in light of the fact that this trail is used by many pedestrians, including many school-aged children who also utilize the trail to commute to and from school every day. Todd Bauman, resident on Macon Street, was also in opposition of another section of the snowmobile trail which runs along the ditch near his property. He reported that there has been substantial damage to his property, and the snowmobiles ride over the posted speed limit at all hours of the night, and do not stay on the posted trail. He stated that there has been no one in the City to enforce the snowmobile rules [which states that snowmobilers are not allowed to snowmobile after 11 p.m.]. He further stated that there is one police officer in the city who rides a snowmobile and with all the miles of trails in the area, there is no way he would be able to enforce these laws. He suggested two solutions to this concern: Keep the snowmobile trail on the opposite side of the street where a walking path exists and there would be ample space (15-foot span between the walking path and the street) for snowmobilers. Eliminate the trail altogether as a trail currently exists along Highway 10, which is three blocks from the horseshoe trail located along Macon Street. Commissioner Dana Anderson replied that the map is already in effect for this 2001-2002 season, but consideration will be given to the input at tonight's meeting for future adjustment to the map. Ms. Harris, an Elk River resident and college student at Eau Claire, WI, presented information about disc golfing. She gave detailed information describing the sport, providing reasons for having a disc golf course in the community [Lions Park], and including approximate costs for a 9- and 12-hole course. The Commissioner thanked her for the detailed information, and stated they would discuss this topic at a future meeting. Ms. McPherson stated that this topic would be discussed at the Retreat Meeting this weekend, January 12. She also stated that although the Commission did not take any action regarding the snowmobile trail this evening, it will be part of the Park and Recreation Commission update at the January 22, 2002 City Council meeting. POver 13065 0r0no Parkway Elk River, MN 55330 January17,20o2 FILE COPY Richard LeFavor 19928 Industrial Boulevard Big Lake Minnesota 55309 By U.S. Mail and Fax (763-262-6531) Dear Mr. LeFavor: As we discussed last week and on Monday, January 14th, the Park and Recreation Commission considered your offer for 70 acres of park land located in the northeast corner of the City. The Commission feels strongly that this area of the City needs some type of park amenities, in fact these discussions have been occurring for a number of years. They also felt that the property in question could become the foundation of a larger park facility which is a point you and I had discussed. After much discussion, however, the Commission decided that they could not recommend an expenditure of $500,000 for 70 acres of land that is predominantly undevelopable. The7 felt that if developers were uninterested in the property, the City should not purchase the land at such a high amount. The counter offer that the Commission would like to present, and will recommend to the City Council is a purchase price of $300,000 for 70 acres of land, 50% down, the remainder to be paid in five equal installments at a 5 percent interest rate. This recommendation, unless you chose to provide a written withdrawal of your request, will be presented to the City Council at their meeting of January 22, 2002. It has been a pleasure discussing these issues with you and I hope that we can have similar conversations in the future. Sincerely, M~Pherson Director of Planning Phone: 763.441.7420 Fax: 763.441.7425 S:\PLANNING\MICHMC\LETTERS\LeFavor.doc www. ci.elk- river, mn.us City of Elk River Michele McPherson Director of Planning 13065 Orono Parkway Elk River, MN 55330 Dear Ms. McPherson; December 3, 2001 Can you believe it is already December? We first got started in the middle of the summer discussing options for our 70-acre parcel to be considered for a regional park just north of the city of Elk River. Since the first meeting in September 2001 and the city council meeting in November, our aspirations are still to have this land developed into a park. The amenities within the property and the surrounding future developable land make this, in my opinion, the perfect site for a city-wide park. During the first meeting in September there were some issues to our original proposal of $10,000 per acre that have been resolved with the November, 2001 appraisal. The November meeting raised some issues with the depletion of 2/3 of the Park and Recreation's reserve account with a full price cash offer. Depleting 2/3 of the reserve account was never our intention. All along we have proposed structuring an offer that would allow for half of the purchase price down and the balance to be paid over five- years on a contract for deed. Our thoughts have not changed regarding this type of financing consideration. The only concern we have is that the value of the property in this area is appreciating at an accelerated rate. Delaying a decision for even a month or two has some financial ramifications. If the fair market value today is $7,800 per acre and the property is appreciating 10% per year, each month of delay could reflect a cost to one of us of approximately $4,170 per month. So the January workshop couldn't come at a better time. In preparation for the January 5, 2002 workshop and the January 22, 2002 City Council meeting we wanted to give you an idea of what would work out for us and hopefully work out for the city as well. The proposal we would like The City of Elk River to consider is as follows: Purchase Price: Down Payment: Balance Due: Finance Rate: the date of closing) Term: Payments: $546,000 $273,000 $273,OOO 8% (The rate would match the Bank of Elk River's rate on 60-months $ 5,535 (Per-month) When we first made this purchase offer available to the city our intentions were to move back to the original farm where I grew up. Since that time my brother, who had owned the homestead, lost ownership in a final divorce settlement. The farm, which was foreclosed on in February 15,2001, is presently owned by John Plaistad. It can be redeemed on or before February 15, 2002. I do not know my brother's ex-wife's intentions and given up all hope to move back to the site. I am currently working on acquiring some additional land in the immediate area, build a new home and will use some of the proceeds of this sale to finance our company. Thank you for your ongoing support and efforts in this matter. Sincerely; Richard and Dana LeFavor RESOLUTION 02- CITY OF ELK RIVER A RESOLUTION TO SUPPORT A GRANT BY SHERBURNE COUNTY FOR THE ACQUISITION OF ABANDONED RAILROAD CORRIDOR AND FOR THE PAVING OF THE GREAT NORTHERN TRAIL WITHIN THE CITY OF ELK RIVER WHEREAS, the Great Northern Trail is a key component of the City of Elk River's recreation system in that it provides pedestrian and non-motorized vehicle access to and from neighborhoods and recreational facilities, and WHEREAS, the acquisition of additional abandoned railroad corridor will link City of Elk River residents to recreational facilities in other cities and in other parts of Sherburne County, and WHEREAS, the Great Northern Trail provides a key alternative transportation spine through the City of Elk River and paving this trail will improve the experience of alternative transportation, now BE IT RESOLVED, that the City of Elk River act as a supporting sponsor for the project contained in the MN Department of Transportation "Transportation Enhancement Fund" program to be submitted in January 2002 and that Sherburne County act as the Sponsoring agency for the project. BE IT FURTHER RESOLVED, that the City of Elk River provide matching financial support for the portion of the project that pertains to the construction and paving of the abandoned Burlington Northern railroad corridor within the city limits of Elk River, from the northern border of Elk River to County Road 33. Adopted by the Elk River City Council this __ day of ,2002. ATTEST: Stephanie Klinzing, Mayor Sandra Peine, City Clerk S:\PLANNING\RESOLUTI\RailroadCorridor.doc Estimated Park and Recreation Cap~tai Improvements Budget Draft Park Capital Improvement Plan Expenses 20~O-2010 Last update:'Au~t 16, 2001 20~1 Beg 20~2~ Balance $835,60!i~ 2~03 Beg Balance $554,033;$3 B~ $766J37 00 200S~ B~ $1 003,04618 20~ Beg Balaa~ $1~360,130;90 2007 $1;758,807.5! 2~8 Be~ $2 ~5,624:23 ~Be~l Balance Page 1