5.1. SR 07-29-1996 ',ty of
E
ITEM 5.1.
MEMORANDUM
iver
Mayor and City Council
FROM:
DATE:
SUBJECT:
Pat Klaers, City Adminis~~
July 29, 1996
East Elk River Sewer and Water and
Public Informational Meeting
A public informational meeting has been scheduled for July 29, 1996, at Salk
Junior High. The purpose of this public informational meeting is to receive
input from property owners on their desire for trunk utilities to be extended
into their area and to get their reaction to the possible assessment amount
for the benefit of this project. The city sent out notices to 87 different
property owners who own 151 parcels of land. The property owners vary
from very small to very large landowners and the urban district includes
residential, commercial and industrial lands.
The outline for this public information is as follows:
· Mayor Duitsman - Introduction
· City Engineer, Terry Maurer - History of the East River Trunk Utilities
Discussions; Review of Options for a Trunk Project; and Discussion on
Some of the Outstanding Issues
· Peter J. Patchin & Associates, Inc. - Presentation of the Limited Appraisal
on the Market Value of Trunk Sewer and Water
· City Attorney, Peter Beck - Review of Legal Issues Associated with a
Trunk Utility Project
· Public Input
On May 28, 1996, the City Council received an appraisal report by Peter J.
Patchin & Associates, Inc. which concluded that the market benefit of trunk
sewer and water trunk lines into the east Elk River urban service district is
$6,000 per acre for residential and industrial lands, and $8,000 per acre for
commercial lands. This is the report that is scheduled to be presented to the
public.
It must be stressed at this time that there is no trunk sewer and water
project being proposed. The city is only in the discussion stages on various
concepts to provide trunk sewer and water to the eastern Elk River urban
service district. The City Council has previously discussed concepts for both
very small and very large projects to service this area and any east Elk River
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
trunk sewer and water project requires a city contribution. Through these
discussions, the city has reached an understanding for the best overall
conceptual layout for a trunk utility system to service this area. This best
overall general layout begins with the trunk sanitary sewer going "across"
Highway 169 rather than going "down" Highway 169.
It should be noted that obtaining easement for the trunk lines that go to east
Elk River could take anywhere from nine to twelve months. This could be
less if the city receives a petition for a small project, but could be the full 12
months if the trunk pipes have to go across non-petitioning lands to reach a
petitioned area. As noted above, the city has a general idea of the best
location for these lines, but more work needs to be completed in order to put a
final trunk alignment plan in place. The city has recently received aerial
topography for this part of the city to help identify the best trunk alignment.
Directing the City Engineer to prepare a trunk alignment plan can take place
without a public improvement project being ordered.
If the City Council initiated a trunk utility project, it would require a 4/5
Council majority vote. Ultimately, it may be in the best interest of the city
for any trunk project into eastern Elk River to be originated by a property
owner's request and petition. A valid petition for public improvements
requires a 3/2 Council majority vote to be approved. If a valid petition from a
landowner/developer is received and a project ordered by the Council, then
the city by 4/5 Council vote may consider expanding upon this petitioned
project in order to provide services to a larger area.
Attachments:
· Public Informational Meeting Notice
· Letter from Ronald Ebner
· East Elk River Urban Service District Map
· List of Notified Property Owners
· Sections of Patchin Appraisal Report
s:\council\agnm7-29.doc
City of
ELK RIVER TRUHK SAHITARY SEWER AMD WATER
PUBLIC IHFORMATIOHAL MEETIhlG
River
July 17, 1996
Dear Property Owners:
As you may be aware, your property was included within the Urban
Serv/ce District with the recently completed update of the City's
Comprehensive Plan. As you may also be aware, the City Council has been
dealing with the issue of when and how to extend municipal utilities to serve
this area of the City. To help the City Council with their deliberations, they
have scheduled an informational meeting to seek input from the affected
property o~mers. The public informational meeting scheduled with the City
Council is as follows:
Any project involving municipal utilities would involve assessments to
the affected properties. It is important that you provide input to the City
Council as to the timing of these types of improvement. All comments from
the infomational meeting will be used by the City Council in their
deliberations. If you are unable to attend the above-scheduled meeting,
'written comments may be submitted to the City Clerk and entered into the
record of the meeting.
Sincerely,
Sanclra Thackeray
City Clerk
s:hadmin\engineer\east.doc
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
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EAST ELK RIVER URBAN SERVICE AREA
TOP TEN LANDOWNERS
TOTAL
OWNER ACREAGE GREEN ACRES ZONING
1. Cargill, Inc. 379.22 0.0 l l, C3
2. Specht, Doris l. 308.82 308.82 BP, Rle
3. Schulze, Weldon & Marcella 283.78 124.58 Rlc, Rle
4. Cross Enterprises Ltd. 178.63 0.0 Rle
5. Brown, Leroy F. & Ruth 144.74 99.40 Rlc, Rid, Rle
6. Vandenberg, Robert & Bonit 80.00 80.00 Rlc, Rid
7. Holen, Earl H. & Lorraine 76.61 0.0 C3, PUD
8. Plaistad, John W. 75.85 75.85 Rle
9. Froland, Anthony & Carrie 40.00 40.00 Rle
10. Reitsma, Stoffel & Sandra 39.50 39.50 Rle
o
F
2 3~)!000-2606.jul
July 26, 1996
ASSESSMENT ROLL 06/12/96
GREEN TOTAL 2ND
PID # OWNER ACREAGE ACREAGE LISTED
75-135-2305 Deschenes, George & Carol 3.80 3.80
18513 Twin Lakes Road NW
,Elk River, MN 55330
75-135-2310 Industrial Hardfacing 2.24
P.O. Box 303
Elk River, MN 55330
75-135-2315 Deschenes, George & Carol 4.96 4.96
18513 Twin Lakes Road NW
Elk River, MN 55330
75-135-2400 Schulze, Weldon & Marcella 39.45 39.45
10743 181st Avenue NW
Elk River, MN 55330
75-135-2405 Pitcher, Randall K. & Cindy L. 0.93
18649 Twin Lakes Road NW
Elk River, MN 55330
175-135-1400 Schulze, Weldon & Marcella 77.65 77.65
10743 181st Avenue NW
Elk River, MN 55330
75-135-1405 Schulze, Weldon & Marcella 2.35 2.35
10743 181st Avenue NW
Elk River, MN 55330
75-135-3200 Guenther, Ronald L. 10.12
7848 Odean Avenue NE
Elk River, MN 55330
75-135-3205 Deschenes, George & Carol 1.51
18513 Twin Lakes Road NW
Elk River, MN 55330
75-135-3210 Industrial Hardfa¢ing 1.52
P.O. Box 303
Elk River, MN 55330
75-!35-3215 Heath, Robert & Grace 1.85
18409 Twin Lakes Road NW
Elk River, MN 55330
i
MAILING2.WK4 PAGE I 230-220-10
ASSESSMENT ROLL 06/12~96
GREEN TOTAL 2ND
PID # OWNER ACREAGE ACREAGE LISTED
75-135-3216 Slivnik, Joseph & Dorthea 0.64
409 Cloverleaf Pk
St. Cloud, MN 56304
75-135-3300 Hohlen, Earl H. & Lorraine 15.02
39 Main Street
Elk River, MN 55330
75-135-3301 Mulvaney, Louise 28.00
11119 181st Avenue
P.O. Box 218
Elk River, MN 55330
75-135-3305 Hohlen, Earl H. & Lorraine 0.61
39 Main Street
Elk River, MN 55330
75-135-3306 Aust, Allan & Janice 2.00
11039 181st Avenue
Elk River, MN 55330
75-135-3310 Mevissen, James 2.04
11070 181st Avenue
Elk River, MN 55330
75-135-3315 Warden, Delton & Joan 4.33
11020 181st Avenue NW
Elk River, MN 55330
75-135-3400 Schulze, Weldon & Marcella 84.33 84.33 x
10743 181st Avenue NW
Elk River, MN 55330
75-135-3400 Schulze, Tom-RH 84.33 84.33
10813 181st Avenue NW
Elk River, MN 55330
75-135-3405 Christian, Thomas & Diana 2.00
10989 181st Avenue NW
Elk River, MN 55330
75-135-3410 Enron, Inc. 0.17
ATTN: Property Tax Dept.
P.O. Box 1188
Houston, TX 77251
MAILING2.WK4 PAGE 2 230-220-10
ASSESSMENT ROLL 06/12~96
GREEN TOTAL 2ND
PID # OWNER ACREAGE ACREAGE LISTED
75-135-3420 Ebner, Paul A. & Caron 1.50
10994 181st Avenue NW
Elk River, MN 55330
75-135-4200 Schulze, Weldon & Marcella 80.00 80.00
10743 181st Avenue NW
Elk River, MN 55330
75-002-2200 Hohlen, Earl H. & Lorraine 34.54
39 Main Street
Elk River, MN 55330
75-002-2205 Hohlen, Earl Et. Al. 5.46
39 Main Street
Elk River, MN 55330
75-002-2300 Vandenberg, Robert & Bonita 40.00 40.00
10811 181st Avenue NW
Elk River, MN 55330
75-003-1100 United. Power Association 26.35
17845 Highway 10
Elk River, MN 55330
75-002-3200 Price, Thomas N. 6.17
4810 Magnolia Lane N
Plymouth, MN 55442
75-002-3202 Majkrzak, Michael J. 0.70
18260 Yankton NW
Elk River, MN 55330
75-002-3203 Majkrzak, Michael J. 1.69
18260 Yankton NW
Elk River, MN 55330
75-002-3204 Brown, Leroy F. & Ruth 18.11 18.11
10815 175th Avenue NW
Elk River, MN 55330
75-003-4100 Price, Thomas N. 0.72
4810 Magnolia Lane N.
Plymouth, MN 55442
MAILING2.WK4 PAGE 3 230-220-10
ASSESSMENT ROLL 06/12~96
PID # OWNER GREEN TOTAL 2ND
ACREAGE ACREAGE LISTED
75-002-3300 Forfeited land 0.40
State of Minnesota
75-002-3405 Majkrzak, Dean A. 1.59
18260 Yankton St.
Elk River, MN 55330
75-002-3405 Majkrzak, Michael J. 1.59 X
17475 Hwy. 10
Elk River, MN 55330
75-002-3301 Lundquist, Caryn G. 1.00
17445 Hwy 10
Elk River, MN 55330
75-002-3302 Lundquist, Chad 1.22
17445 East Hwy. 10
Elk River, MN 55330
75-002-3303 Kruse, F & Lundquist, L. 12.55
C/.O Riverview Sports & Marine
17445 Hwy. 10
Elk River, MN 55330
75-002-3305 Country Chrysler, Inc. 0.97
5614 Dunlap Avenue North
St. Paul, MN 55126
75-002-3310 Worts, Marlene M. 2.65
5614 Dunlap Avenue North
St. Paul, MN 55126
75-002-3315 Dehn, Kenneth F. and Donna 1.76
19663 Proctor Road NW
Elk River, MN 55330
75-002-3320 Bell, Paul T. & Norine K. 1.37
18270 Fresno St. NW
Elk River, MN 55330
75-002-3400 Lundquist, Lester L. 2.12
17445 Hwy. 10
Elk River, MN 55330
MAILING2.WK4 PAGE 4 230-220-10
ASSESSMENT ROLL 06/12/96
PID # OWNER GREEN TOTAL 2ND
ACREAGE ACREAGE LISTED
75-002-3402 Dehn, Kenneth F. & Donna 1.84
19663 Proctor Rd. NW
Box 325
Elk River, MN 55330
75-002-3403 !L & W Limited Liability Co. 1.60
11061 173rd Avenue
Elk River, MN 55330
75-003-4401 Elk River Motel Prop., Inc. 6.09
17432 Hwy. 10
Elk River, MN 55330
75-521-0110 Elk River Motel Prop., Inc. 2.45
17432 Hwy. 10
Elk River, MN 55330
75-521-0120 Elk River Motel Prop., Inc. 1.90
17432 Hwy. 10
Elk River, MN 55330
75-521-0130 Plaisted, John & Christina 1.70
12750 182nd Ave. NW
Elk River, MN 55330
75-521-0140 R & N Corporation 1.50
225 University Avenue
St. Paul, MN 55103
75-521-0150 R & N Corporation 1.33
225 University Avenue
St. Paul, MN 55103
75-521-0160 R & N Corporation 1.13
225 University Avenue
St. Paul, MN 55103
75-521-0170 R & N Corporation 1.09
225 University Avenue
St. Paul, MN 55103
75-521-0180 R & N Corporation 1.11
225 University Avenue
St. Paul, MN 55103
MAILING2.WK4 PAGE 5 230-220-10
ASSESSMENT ROLL 06/12/96
GREEN TOTAL 2ND
PID # OWNER ACREAGE ACREAGE LISTED
75-521-0210 R & N Corporation 1.40
225 University Avenue
St. Paul, MN 55103
75-521-0220 Second Generation Prop. 1.12
CIO Harry's Auto Supply
224 West 3rd Street
Monticello, MN 55362
75-011-2220 Kemethese Motel, Inc. 6.89
17291 Hwy. 10
Elk River, MN 55330
75-011-2225 Powell, Scott S. 1.00
17219 Hwy. 10 NW
Elk River, MN 55330
75-011-2230 Powell, Scott S. 1.88
17219 Hwy. 10 NW
Elk River, MN 55330
75-011-2240 Powell, Scott S. 1.15
17219 HWY. 10 NW
Elk River, MN 55330
75-011-2245 Kemethese Motel, Inc. 0.69
17291 HWY. 10
Elk River, MN 55330
75-011-2300 Pesola, Scott P. & Penny 5.70
Rte. 2, BOx 221A
Clearwater, MN 55320
75-011-2302 Ebner, Ronald & Norma 1.50
17015 HWY. 10
Elk River, MN 55330
75-011-2305 Powell, Scott S. 6.30
17219 Hwy. 10 NW
Elk River, MN 55330
75-011-2320 Ebner, Ronald & Norma
17015 Hwy. 10
Elk River, MN 55330
MAILING2.WK4 PAGE 6 230-220-10
ASSESSMENT ROLL 06/12~96
Piti # OWNER GREEN TOTAL 2ND
ACREAGE ACREAGE LISTED
75-011-2325 Houle, Gregory A. & Donna 1.06
14917 221st Avenue
Elk River, MN 55330
75-011-2330 Houle Oil Co., Inc. 1.66
17069 Hwy. 10 NW
Elk River, MN 55330
75-011-2335 Ebner, Ronald & C. Norma 0.47
17015 Hwy. 10
Elk River, MN 55330
75-011-2340 !Rousseau, Joann - RH 1.75
17015 Hwy. 10
Elk River, MN 55330
75-011-2340 Ebner, Ronald & C. Norma 1.75 X
17015 Hwy. 10
Elk River, MN 55330
75-011-2345 Minor, Thiry I. 3.63
16848 Hwy 10 NW
Elk River, MN 55330
75-011-2346 Towner, James A. 1.23
22540 Oak Ridge Drive
Rogers, MN 55374
75-011-2400 Cargill, Inc. 56.22
Attn. Property Tax
P.O. Box 5626
Minneapolis, MN 55440
75-011-2401 Moyer, Truman & Dawn 12.00
16807 HWY 10 NW
Elk River, MN 55330
75-011-2402 Houle Oil Co., Inc. 2.03
17069 Hwy. 10 NW
Elk River, MN 55330
75-011-2403 Ebner, Ronald & Norma 4.18
17015 Hwy 10
Elk River, MN 55330
MAILING2.WK4 PAGE 7 230-220-10
ASSESSMENT ROLL 06/12~96
PID # OWNER GREEN TOTAL 2ND
ACREAGE ACREAGE LISTED
75-011-2406 Houle Oil Co., Inc. 2.02
~' 17069 Hwy. 10 NW
\ -_-Ik River, MN 55330
75-011-2407 Houle Oil Co., Inc. 2.02
17069 Hwy. 10 NW
Elk River, MN 55330
75-011-3202 Minor, Jerrold & Thiry 1.19
16848 Hwy 10 NW
Elk River, MN 55330
75-011-3203 Moyer, Truman & Dawn 0.88
16807 HWY 10 NW
PO Box 401
Elk River, MN 55330
75-011-3204 !Minor, Jerrold & Thiry 1.14
16848 HWY 10 NW
Elk River, MN 55330
75-011-3205 Furniture & Things, Inc. 1.21
16820 Hwy 10
Elk River, MN 55330
75-011-3206 Minor, Jerrold & Thiry 1.14
16848 Hwy 10 NW
Elk River, MN 55330
75-011-3210 Kurth, Richard W. 1.82
P.O. Box 176
Elk River, MN 55330
75-011-3215 Wolner, Larry & Wagner, M. 1.90
6941 Southdale Road
Edina, MN 55435
75-011-3216 !Foss, Lawrence J. 1.07
3946 8th Avenue N.
Anoka, MN 55303
75-011-3225 Chase, Stanley H. 1.00
12545 Ridgewood Dr. NW
Elk River, MN 55330
MAILING2.WK4 PAGE 8 230-220-10
ASSESSMENT ROLL 06/12~96
PID # OWNER GREEN TOTAL 2ND
ACREAGE ACREAGE LISTED
75-011-3235 Moyer, Truman & Dawn 0.13
16807 Hwy 10 NW
Elk River, MN 55330
75-011-4100 Cargill, Inc. 55.00
Attn. Property Tax
P.O. Box 5626
Minneapolis, MN 55440
75-011-4300 NSP & UPA 34.68
Property Tax Dept - NSP
414 Nicollet Mall
Minneapolis, MN 55401
75-011-4305 Hetland, Richard 4.32
18810 Boston St. NW
Elk River, MN 55330
75-011-4305 iBerget, Richard D., Sr. 4.32 X
75-011-4306 Hetland, Richard 1.00
18810 Boston St. NW
Elk River, MN 55330
75-011-4306 State of Minnesota 1.00 X
75-011-4400 Cargill, Inc. 40.00
Attn. Property Tax
P.O. Box 5626
Minneapolis, MN 55440
75-010-1101 Kirkeide, Dwight L. & Jane 13.00
11230 173rd Avenue
Elk River, MN 55330
75-010-4100 Pesola, Scott P. & Penny 2.30
Rte. 2, Box 221A
Clearwater, MN 55320
75-011-1203 Lefebvre, Leon & E. 12.00
568 6th Street
Elk River, MN 55330
MAILING2.WK4 PAGE 9 230-220-10
ASSESSMENT ROLL 06/12~96
GREEN TOTAL 2ND
PID # OWNER ACREAGE ACREAGE LISTED
75-011-1300 !Morrell, Larry & Arlyce 22.00
841 Line Avenue NW
Elk River, MN 55330
75-011-2102 Johnson, Keith 1.20
P.O. Box 62
Elk River, MN 55330
75-011-2105 Powell, Scott S. 4.20
17219 Hwy 10 NW
Elk River, MN 55330
75-011-2115 Locher, Landol J., II 0.66
10983 171st Avenue NW
Elk River, MN 55330
75-011-2200 Powell, Scott S. 3.50
17219 Hwy 10 NW
Elk River, MN 55330
75-011-2205 Snyder, Michael & Cheryl 1.28
17119 Hwy 10 NW
Elk River, MN 55330
75-011-2205 First Nat'l Bank of Elk River 1.28 X
75-011-2210 Powell, Scott S. 10.11
17219 Hwy 10 NW
Elk River, MN 55330
75-011-2215 Powell, Scott S. 4.53
;17219 Hwy 10 NW
Elk River, MN 55330
75-012-3300 Cargill, Inc. 18.00
Attn. Property Tax
P.O. Box 5626
MinL~apolis, MN 55440
75-457-0110 Hipsag, Thomas & Marlys 1.02
17665 Polk St. NW
Elk River, MN 55330
MAILING2.WK4 PAGE 10 230-220-10
ASSESSMENT ROLL 06/12/96
PID # OWNER GREEN TOTAL 2ND
ACREAGE ACREAGE LISTED
75-457-0120 Richmar Construction, Co. 1.13
7776 Alden Way
Fridley, MN 55432
75-457-0130 Carpe Kairos LLC 2.20
~9423 W. Hwy 10
'Ramsey, MN 55303
75-0457-0140 Novco, Inc. 2.08
9884 174th Ave. NW
Elk River, MN 55330
75-457-0210 First National Bank of Elk River 1.01
729 Main Street
Elk River, MN 55330
75-457-0220 First National Bank of Elk River 1.00
729 Main Street
Elk River, MN 55330
75-457-0230 Hickman, Larry S. & Florence 2.83
16820 Hwy. 10
Elk River, MN 55330
75-135-4100 Divine, Dick M. & Tammy L. 4.15
10457 181st Avenue NW
Elk River, MN 55330
75-135.4101 Plaisted, John W. 75.85 75.85
P.O. Box 38
Elk River, MN 55330
75-135-4101 Petersen, Wayne & Leanne X
75-136-2400 Phoenix Enterprises LLC 80.00
19230 Evans St.
Elk River, MN 55330
75-136-3300 Froland, Anthony & Carrie 20.00 20.00
10311 181st Ave. NW
Elk River, MN 55330
MAILING2.WK4 PAGE 11 230-220-10
ASSESSMENT ROLL 06/12/96
GREEN TOTAL 2ND
PID # OWNER ACREAGE ACREAGE LISTED
75-136-3301 Froland, Anthony & Carrie 20.00 20.00
10311 181st Ave. NW
Elk River, MN 55330
75-136-3400 Nathe, Joseph H 8, Maude J 11.37
15238 Adams St.
Elk River, MN 55330
75-136-4200 Phoenix Enterprises LLC 30.00
19230 Evans St.
Elk River, MN 55330
75-136-4205 Klous, Daryl J. 10.00
18434 Cleveland St. NW
Elk River, MN 55330
75-136-4300 Phoenix Enterprises LLC 68.63
19230 Evans St.
Elk River, MN 55330
75-136-1300 !Phoenix Enterprises LLC 40.00
19230 Evans St.
Elk River, MN 55330
75-136-3100 Phoenix Enterprises LLC 40.00
19230 'Evans St.
Elk River, MN 55330
75-136-3200 Phoenix Enterprises LLC 40.00
19230 Evans St.
Elk River, MN 55330
75-135-2205 Hagen, Gerald D. 24.00
3969 Plymouth Road S.
Minnetonka, MN 55305
75-135-2205 Deschenes, George & Carol 24.00 X
18513 Twin Lakes Rd. NW
Elk River, MN 55330
75-135-2210 McAIpine, Roger G. & Linda 2.79
18600 Twin Lakes Rd. NW
Elk River, MN 55330
MAILING2.WK4 PAGE 12 230-220-10
ASSESSMENT ROLL 06/12~96
PID # OWNER GREEN TOTAL 2ND
ACREAGE ACREAGE LISTED
75-135-2300 Trushenski, Larry 2.21
18596 Twin Lakes Rd.
Elk River, MN 55330
75-135-3415 Black, Robert & Susan 1.50
10976 181st Ave. NW
Elk River, MN 55330
75-002-2100 Reitsma, Stoffel & Sandra 39.50
10860 181st Ave. NW
Elk River, MN 55330
75-002-2105 Black, Robert & Susan 0.50
10976 181st Ave. NW
Elk River, MN 55330
75-002-2400 Vandenberg, Robert & Bonita 34.00
, 10811 181st Avenue NW
Elk River, MN 55330
75-002-2401 Vandenberg, Robert & Bonita 6.00
10811 181st Avenue NW
Elk River, MN 55330
75-002-3100 Brown, Leroy F. & Ruth 55.95 55.95
10815 175th Ave. NW
Elk River, MN 55330
75-002-3110 Kirkeide, Joseph P. & Yvonne 2.00
10873 175th Ave. NW
Elk River, MN 55330
75-002-3105 Brown, Leroy F. & Ruth 25.34 25.34
10815 175th Ave. NW
Elk River, MN 55330
75-011-1103 N/A
75-011-1201 Eull, Roger & Jean 39.56 39.56
18880 Boston St. NW
Elk River, MN 55330
MAILING2.WK4 PAGE 13 230-220-10
ASSESSMENT ROLL 06/12~96
PID # OWNER GREEN TOTAL 2ND
ACREAGE ACREAGE LISTED
75-011-1401 Cargill, Inc. 53.00
Attn. Property Tax
P.O. Box 5626
Minneapolis, MN 55440
75-011-3400 Specht, Doris I. 77.00 77.00
16330 Hwy 10 NW
Elk River, MN 55330
75-011-4105 Cargill, Inc. 20.00
Attn. Property Tax
P.O. Box 5626
Minneapolis, MN 55440
75-012-3000 Cargill, Inc. 137.00
Attn. Property Tax
P.O. Box 5626
Minneapolis, MN 55440
75-014-1200 Specht, Doris I. 119.63 119.63
16330 Hwy 10 NW
Elk River, MN 55330
75-014-1300 Specht, Doris I. 18.00 18.00
~16330 Hwy 10 NW
Elk River, MN 55330
75-014-2201 Specht, Doris I. 94.19 94.19
16330 Hwy 10 NW
Elk River, MN 55330
75-014-1100 Cargill, Inc. 60.00
Attn. Property Tax
P.O. Box 5626
Minneapolis, MN 55440
MAILING2.WK4 PAGE 14 230-220-10
LIMITED APPRAISAL, SUMMARY REPORT
WATER AND SEWER TRUNK AS:.SgSSMENT
ELK RIVER, MINNES:O~.:.
':~i!i!?' City of Elk River
13065 Orono Parkway
P.O. Box 490
Elk River, MN 55330
PREPARED BY:
Peter J. Patchin & Associates, Inc.
101 West Bumsville Parkway, Suite #200
Bumsville, MN 55337
May 1, 1996
City of Elk River
13065 Orono Parkway
P.O. Box 490
Elk River, MN 55330
ATTN: Mr. Patrick D. Klaers
:iiiil~£!iiii!i~i.'.m:ited Appraisal, Summary Report
.:~iiiiiiiiiiiii! '~iiiiiiii~:' Special Benefit Due to The Extension
:~iii!i!:' .:iiiiiiii!i~:.'~i!ii!- of Water and Sewer Trunks
':~!i!iiii~iiiiii~:'"'%!i~::' Elk River, Minnesota
Dear Mr. Klaers:
We have completed our analysi~:~ii~garding the market benefit of water and sewer trunks to
lands located within the project area in Elk River. The project area is located along and n~ar
U.S. Highway 10 and west of Highway 169 in the southeastern portion of Elk River. The land
types studied were residential, commercial and industrial.
The analysis of this report is limited in both the scope of data researched and the depth of
analysis. An analysis of far greater depth would have to be performed before a complete
appraisal can be rendered. As this is a limited appraisal, we have invoked the Departure
Provision of USPAP. This departure is as follows:
The scope of research and depth of analysis are not
sufficient to be considered a complete appraisal.
This appraisal does not value a specific property, rather it estimates the benefit of trunk sewer
and water lines to properties by class (residential, commercial and industrial).
Also, the benefits indicated in this appraisal are those which would accrue to bare land. Since
many of the parcels along the Highway 10 corridor (southeast of Highway 169) are improved,
specific benefit of sewer and water trunks to improved properties would vary based on
existing improvements (i.e. private wells and septic systems).
In Elk River trunk utilities are understood to convey to following property rights.
Access to municipal water sources and waste water treatment plants.
a. Additional SAC (sewer access charges) and WAC (water access
charges) are assessed upon hook up.
2. Trunk water and sewer lines will be constructed to serve those lands
being assessed.
a. Lateral water and sewer lines will hav....e..ii!ib be developed to serve
most of the land assessed.
b. The cost of lateral water and sewe.:~iil!J:nes is 'ii~ii~ddition to sewer and
water trunk lines and will va~iiilb..a.~ on '~pe of development.
Additionally some delay w:i.!l I~ili~perienced by those property
owners which are furthest fr.'~iit..t~e t:~i~ks.
c. If a property has an a.dj~t'~ii~:'s'~wer and/or water line, it will be
assessed for laterals..ii~n:~!~.~!.it will use the trunks as laterals.
Based on the attached data ~:'ai~'~i~.s.i.~ii~e estimate the market benefit of water and sewer
trunk lines to lands within th~i~iectli~iea, as of May 1, 1996 as follows.
Residential Lands $6,000 Per Acre
Industrial Lands
$6,000 Per Acre
Commercial Lands
$8,000 Per Acre
This limited value analysis has been made in conformity with accepted professional, ethical
and performance standards of real estate appraisal practice. The "Contingent and Limiting
Conditions" section of this report, and should be thoroughly read and understood before
relying on any information or analysis presented herein. If you have any questions or
comments after reading the appraisal, please contact the firm.
The undersigned appraisers hereby certify that we have investigated all information believed
to indicate the value, and that to the best of our knowledge and beliefs, the statements
contained in this limited value analysis, and the opinions expressed herein are correct, subject
to the limiting conditions herein set forth.
Certified to this 1st day of
May, 1996
PETER J. PATCHIN & ASSOCIATES, INC.
Joseph E.
Mi nnes0:t......a..ii~i~rtit~i~. General License #4000911
.:~i? .:!!:. .:.
:~[~i~!i![~::.. .:::::::.
.:~!ii?iii~i/~0ta Certified General License #4000836
· :::::' .i~:::::.
9614 1
SCOPE OF APPRAISAL
This document is a limited appraisal presented in a summary report format. An analysis
of greater depth would be required in order to render a complete and self-contained
appraisal of market benefit to specific properties.
In this report, we have estimated the market benefit of water and sewer trunks to lands
located within the project area. This project area is located along and near U.S Highway
10 and additional lands located westerly of Highway 169, all in the southeast portion of
Elk River. Lands within the project area include the following zoning types:
· Residential
· Commercial
· Industrial
We will estimated the market benefit of trunk development of each property type
(residential, commercial and industrial). The market benefit is estimated on a per acre
basis.
We have not appraised any particular property within project study area. No before or
after value estimate has been made of any of the properties within the project area.
Rather, we have analyzed various sales data in order to isolate the market benefit of the
water and sewer trunks in general.
These sales will be briefly summarized for each property type, along with a brief
overview of our analysis. When selecting comparable sales, we have focused our
attention on recent sales in the following described study areas.
Residential Study Areas:
· Elk River
· Savage
Patchin & Associates, Inc.
Valuation Consultants
9614 2
SCOPE OF APPRAISAL
Commercial Study Areas:
· Elk River
· Highway 10 Corridor Elk River/Ramsey
· Highway 169 Corridor Elk River/Ostego/Hassan/Frankfort
Industrial Study Areas:
· Elk River
· Ramsey
· Rogers/Dayton/Hassan
We have made a drive-by inspection of the accessible portions of the project area.
However, we have not physically inspected the existing parcels which comprise the
project area. The properties involved in the project area represent a diverse mix of
unimproved lands and improved properties. We have made certain assumptions
concerning the highest and best use of these properties which have a direct bearing on
value and benefit. Please see the highest and best use analysis on the following pages.
Patchin & Associates, Inc.
Valuation Consultants.
9614 3
DATE OF APPRAISAL
The effective date of this limited value analysis is May 1, 1996.
PURPOSE AND FUNCTION OF APPRAISAl
The purpose of this appraisal is to estimate the market value of benefit from trunk sewer
and water extension to the fee simple interest of lands within the project area. The
function or use of this analysis is to provide valuation guidance to the client in
determining appropriate trunk assessments.
PROPERTY RIGHTS APPRAISED
The properties will be appraised by estimating the market value of the fee simple estate
of the real estate. For use in this appraisal, the market value of the fee simple estate in
the real estate is subject to the following definition obtained on Page 140 of The
Dictionary. of Real Estate Appraisal, Third Edition, Appraisal Institute.
Absolute ownership unencumbered by any other interest or estate, subject
only to the limitations imposed by the governmental powers of taxation,
eminent domain, police power and escheat.
Patchin & Associates, Inc.
Valuation Consultants
9614 10
HIGHEST AND BEST US[:
Highest and best use is defined in The Dictionary of Real Estate Appraisal, Third Edition,
Appraisal Institute, at Page 171, as follows:
The reasonably probable and legal use of vacant land or an improved
property, which is physically possible, appropriately supported, financially
feasible, and that results in the highest value. The four criteria the highest
and best use must meet are legal permissibility, physical possibility,
financial feasibility, and maximum profitability.
This publication goes on to distinguish the highest and best use as vacant and as
improved, as follows:
Highest and best use of land or site as though vacant. Among all
reasonable, alternative uses, the use that yields the highest present land
value, after payments are made for labor, capital, and coordination. The
use of a property based on the assumption that the parcel of land is vacant
or can be made vacant by demolishing any improvements.
Highest and best use of property as improved. The use that should be
made of a property as it exists. An existing property should be renovated
or retained as is so long as it continues to contribute to the total market
· value of the property, or until the return from a new improvement would
more than offset the cost of demolishing the existing building and
constructing a new one.
In order to determine highest and best use of the properties within the project area, as if
vacant and as improved. The following factors must be considered. They are:
1. Physically Possible
2. Legally Permissible
3. Financially Feasible
4. Maximally Productive
Patchin & Associates, Inc.
Valuation Consultants
9614 11
HIGHEST AND BEST USE
As If Vacant lAnd/Or) As Vacant
The land within the project area is guided and zoned for a variety of uses. Of these land
uses, private development of land is occurring for both residential and commercial uses.
Development of industrial land is currently dominated by municipalities in their efforts
to create property tax base.
Thus, we will make the following observations as to highest and best use.
Residential Land
The residential development lands within the project area is expected to
develop in a progressive manner. Demand for both finished lots and
subdivision lands is reasonably strong and is expected to continue for
the foreseeable future.
The highest and best use of the residentially zoned or guided land is for
orderly development. Residential land is expected to benefit from the
construction of trunk sewer and water. The amount of land being
served appears to be in line with relative demand. Thus, all residential
lands in the project area are expected to experience a special benefit
due to trunk sewer and water extension.
The project area contains both large and small tracts of industrial land.
In Minnesota, due to the property tax structure, construction of
industrial buildings is aggressively sought after by most municipalities.
Cities use a variety of inducements to attract new construction of
industrial buildings.
Public assistance in the development of industrial properties has
become increasingly wide spread. Most companies which are thinking
of moving or expanding, at least examine municipal assistance. Some
companies will even shop for the best overall package.
While many cities have developed their own industrial parks, others
subsidize site purchases, site development costs and utility costs with
tax increment financing. Thus, totally private development of industrial
properties is limited to the following:
Patchin & Associates, Inc.
Valuation Consultants
9614 12
HIGHEST AND BEST USE
As If Vacant/And/Or) As Vacant
1. Strong suburban and Interstate highway markets.
2. Development of land intensive uses which do not
generate large amounts of tax revenue.
3. Development of industrial uses which require outside
storage or other unattractive features.
Industrial uses most sought after by municipalities can be characterized
as follows.
1. Uses completely enclosed in a building, preferably of
masonry construction.
2. Light clean industrial users.
o
Users which construct high value structures create a
significant tax increase (increment) over the value of bare
land. The incremental tax increases of a new building
over the value of a bare site are used by most cities to
subsidize development. This process known as tax
increment financing is the tool by which cities can
provide the most subsidy to a prospective industrial user.
A small building on a large site (land intensive use)
creates a relatively Iow tax increment and is not attractive
to most municipalities.
4. Industrial users which will create a significant number
and/or high paying manufacturing jobs.
Industrial land in Elk River has some appeal even without municipal
subsidies.
Elk River has very good highway access and the completion of Highway
101 to Rogers will increase this appeal. Additionally, Elk River offers an
attractive environment for workers and Sherburne County has relatively
Iow effective tax rates. However, the municipal subsidies offered by
Ramsey and Anoka virtually dictate that similar subsidies will be
required for light industrial development to occur in Elk River.
If municipal subsidies are required in order to sell and develop
industrial sites (lots), then it is not the highest and best use of the land
which drives the market. It is important to understand, when examining
Patchin & Associates, Inc.
Valuation Consultants
9614 13
HIGHEST AND BEST USE
As If Vacant lAnd/Or) As Vacant
highest and best use, that cost does not equal value. This is especially
true when the cost are paid by a third party (City) in order to generate
an unrelated benefit (tax base).
While industrial development is beneficial, to the community by
creating jobs and tax base, the value of properties is driven by supply
and demand in the market. If the market for improved industrial
properties can absorb new development created by municipal subsidies,
then these subsidies will not effect highest and best use. However, if
sales of improved properties do not reflect their depreciated
replacement (cost plus land value), then external obsolescence has been
created by municipal subsidies.
Municipal subsidies can speed up the rate of industrial development
and, in certain cases, cause a user to choose one city over another.
Subsidies cannot, however, alter the long term demand for industrial
properties (land and buildings).
The purpose of this appraisal is to estimate the land value increase
caused by the construction of municipal utilities (sewer and water). For
industrial land, this increase can only be realized by land which has a
reasonable probability of being developed. Without municipal
subsidies, little industrial land in Elk River has a reasonable probability
of being developed in the immediate future.
Thus, the benefit of sewer and water will likely be limited only a
portion of the I-1 zoned lands. In this limited appraisal we will estimate
that portion to be approximately 60 acres of undeveloped industrial
land near 171st Street.
The remaining industrial land in the project area has some long-term
development potential. However, the appraisers observe that long term
demand is clouded by the immense amount of existing and projected
industrial land served with municipal utilities in the Twin Cities
Metropolitan area.
The appraisers see a much greater demand for medium and heavy
industrial sites. The project area contains some ideal land for this type
of development. The screening provided by the rail road, light
industrial land northeasterly of the rail road, and the commercial
corridor along the highway would lessen the negative impacts of such
development, in addition, the existing solid waste facility in the
southerly portion of the project area would be less of a detriment to
medium and heavy industrial users than light industry.
Patchin & Associates, Inc.
Valuation Consultants
9614 14
HIGHEST AND BEST USE
As If Vacant (And/Or) As Vacant
From a value and benefit standpoint, medium or heavy industrial use is
the highest and best use of the majority of the land located in the
project area. The appraisers are aware that this type of development is
not legally possible, due to the I-1 zoning.
Commercial Land
Elk River has seen extensive development of commercial land in the
recent past. This development is driven by three main factors.
Growth of population within the trade area, especially the dense
residential development occurring both east and west of Highway
169. This population growth provides the residential "back up"
required for intense commercial development.
Good highway exposure and a transportation system which is
conducive to commercial enterprise.
3. The availability of municipal utilities, roads and traffic controls.
Most intensive commercial development either favors or
requires municipal utilities. Commercial development lands
and finished sites with utilities sell at a significant premium.
Additionally, municipal utilities are required to create the
density of residential back up necessary to support intensive
commercial development.
bo
Good roads and traffic control add significantly to the appeal of
commercial sites. Developers of commercial properties
frequently pay to upgrade surrounding street infrastructure
because the success of their development depends on it.
Large portions of the commercial land within the project area have
developed without the benefit of municipal sewer and water.
Development of commercial land without sewer and water only occurs
in markets which have very strong highway appeal as in the project
area. We can observe that there already exists strong commercial
demand in this area. Therefore, we conclude that the highest and best
use of the commercial land within the project area is for commercial
development.
Patchin & Associates, Inc.
Valuation Consultants
9614 15
HIGHEST AND BEST US[:
As If Vacant (And/Or) As Vacant
Commercial Land
It is also our conclusion that the value of the commercial land within
the project area will be enhanced by the construction of municipal
water and sewer. Several factors contribute to the enhancement of
value caused by municipal utilities.
1. Commercial users favor served sites over non-served sites and are
willing to pay a premium for served sites.
Less land is required for a site served by municipal sewer and water
than for an unserved site because no on-site private well and septic
system is required.
3. Municipal water supply provides additional fire protection and a
safer supply of potable water.
Safe, efficient and effective disposal of waste water. Increasing
regulation of discharge into the ground has made sanitary sewer
attractive even to land intensive uses such as car dealerships.
Patchin & Associates, Inc.
Valuation Consultants
9614 69
SUMMATION
Based on our analysis of land sales contained in this report, we conclude to benefits in
the following amounts for trunk sewer and water.
Residential Lands
Industrial Lands
Commercial Lands
$6,000 Per Acre
$6,000 Per Acre
$8,000 Per Acre
The estimates of market benefit are very similar and supportive of one another.
The benefit analysis for residential lands was based on a study of land sales in Elk River.
This analysis was supported by an analysis of residential development land in Savage,
Minnesota. Both areas studied had a sufficient depth of data and indicated that
residential development land can bear reasonable assessments for trunk sewer and water
utilities.
The benefit analysis for industrial lands was based on a study of land sales in Elk River,
Ramsey and the Rogers area. These three studies involved more than 40 individual sales
and indicated an overall benefit for sewer and water served industrial land over unserved
land. We do, however, caution that this benefit is contingent on continued City of Elk
River involvement in marketing and developing industrial sites with buildings. Even
with City involvement, this benefit is limited to a small portion of the industrial zoned
land in the projected project area, approximately 60 acres.
Our analysis of commercial lands indicates that there exists a demand for and the price
premium for (sewer and water) served commercial lands and lots. We have concluded
that commercial lands can support sewer and water assessments which reflect a
reasonable cost of serving the land or site. In our analysis we conclude to a benefit of
$8,000 per acre.
These assessments should only be applied to lands which have a reasonable probability
of developing. Lands which do not have a reasonable probability, should either be
assessed in a differred manner or not assessed.
Patchin & Associates, Inc.
Valuation Consultants
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