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4.4. SR 10-21-1996ITEM 4.4. '~ity of MEMORANDUM iver FROM: DATE: SUBJECT: Mayor & City Council Pat Klaers, City October 21, 1996 Gagne Land Donation The city has discussed obtaining land for park and public purposes from Mr. Gagne for a number of years. This potential public land is north of Highway 10, north of the Elk River, along the Waco Avenue alignment. Mr. Gagne has 48.27 acres in this area (see attached maps) and over the years has offered to sell this land to the city. Mr. Gagne has recently advised the city that he is willing to donate this land to the city for park and public purposes. This land gift is subject to City Council approval and acceptance of an appraisal which identifies the value of this property. Additionally, the city will need to have a Phase I environmental audit completed before it formally accepts this property. The audit will need to indicate that there are no environmental concerns on this property. Attached for your review is the September 19, 1996, letter from Mr. Gagne and a summary of the appraisal that was completed by Jerry Smith of Century 21. The Park and Recreation Commission has reviewed this site at a number of meetings. This property was included as part of the 1991 Master Park Plan. In the draft updated Master Park Plan, a park in this vicinity is also identified. In April, 1995, the Commission also evaluated this area as a potential location for recreation fields. Part of this property is in the flood plain and is fiat and open and conducive to the development of recreation fields. If flooding were to take place in this area, there would be limited damage to the recreation fields. Access into this area was one of the major concerns that led the Commission to recommend that this property not be purchased and developed into recreation fields. Nonetheless, the Commission supported obtaining this property if economically feasible for park purposes. Accordingly the Park and Recreation Commission supports this donation. The Planning Commission reviewed this land donation at its September 24, 1996, meeting and unanimously voted to recommend that the City Council accept this gift. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 Recommendation Staff recommends the City Council accept this gift through the adoption of the attached resolution subject to a "clean" Phase I environmental audit. councilXgagnedon.doc LAND INVESTMENT & DEVELOPMENT W. D. (Bill) GAGNE Real Estate Est. 1955 · Industrial. Multiple · Commercial · Residential 1811 Golf View Drive, Buffalo, MN 55313 · (612) 682-0450 September 19, 1996 To: The City of Elk River Real Est. ate Donation for Park Purposes The Richard Deziel and W. D. Gagne families wish to donate certain real property along the Elk River for public park purposes. A copy of a 1971 survey is attached. This donation of real property to the City of Elk River for park purposes is contingent upon an appraisal of the property being at least $150,000 and the current owners being able to get both a Minnesota State and Federal tax deduction in the tax year 1996 of no less than $150.000.00. W. D. Gagn~ 194TH 192ND 191ST 1 gOTH 1B91~ 168~ l~Tn~ 165TH 1 182ND 'ION LAKE City of LOCATION ~j¥~F MAP 13065 Orono Parkway. P.O. Box 490 PARK LAND GIFT (GAGNE) Elk River, MN 55330 195TH 194"1~ lg2ND PARK 191ST I 9OT1-1 1BSTH 167TH I~;TH 185TH 18/."~ 1 182ND 1815T 17gTH Rld F~lc Bpi Rld Single F~mily Reeidenti~l SURVEYOR'S CERTIFICATE FOR; N 88" 38'53"W 0~7' W 4.12 N 88~'38'53" W 726.66 252 -~- Scale o denotes iron - monument 636.90 ¢..,,. .... i, .~ ~ ~-..: .,_..,WOODLAND TRAIl i-:??~ AREA-WIDE ..... l -'i:::i~ i PARK o O 1 ~,-e (~0000000~0~ OO0000C DoOOC )OC)OOC PROPOSED TRAIL ,LEGEND [] EXISTING CITY PARKLAND [] EXISTING NON-CITY PARKLAND [] PROPOSED PARKLAND OR TRAIL ooooo FUTURE NEIGHBORHOOD PARK City of (~,~ Ell/'yRiver COMPREHENSIVE PARK SYSTEM PLAN PREPARED BY: SANDERS AND ASSOCIATES INC LANDSCAPE ARCtI1TECTS ST.PAUL, MN (612)221-0401 o 0 ,0 0 o o o o o FUTU E WHITE DOVE 907 Main Street Elk River, MN 55330 (612) 441-2248 APPRAISALS Appraisal Prepared by White Dove Appraisals FOR: ADDRESS: ATTENTION OF: OWNER/BORROWER: Bill Gagne XXX Waco St. Elk Riverr MN. 55330 To Whom i'[ May Concern: According to your request, I have made a personal inspection, investigation and appraisal for the purpose of estimating the fair market value of the following real property: Length¥~,see Attached Subject to the assumptions and comments with contingent and limiting con- ditions appearing on the subsequent pages, it is my opinion that the fair market value of this property as of ~.,,,e~b,~,- 24r 1996 ..is: $ 168r0.0Q.00 White Dove Appraisals will be pleased to refund the fee for this appraisal should it be materially mistaken. In no event, however, will White Dove Appraisals liability exceed the fee paid by the customer for this appraisal for any such mistakes or otherwise. White Dove Appraisals or this appraiser makes no representation as to the value of the subject property at any time in the future. Employment in and compensation for this report are in no way contingent upon the value of the property as reported and I certify that I have no financal in- terest, present or contemplated in the property being appraised. It has been a pleasure to serve you. prais~f)- White Dove Appraisals LANI~ APPRAISAL REPORT Bill Gagne ~ci,,s, XXX Waco St. N.W Elk River C~umy Sherburne ~,,pt,o. Lengthy-see attached P.ce $ N / A Dale ol S41. - - - Loan Term -- - ? .y,$ Pi'opeiq¥ H,gnl. Ap~i,~ ~ F~ ~ C~ ~ ~ ~ PUU Real EaIIII Taxes $ N / A .. (y~.) L~n cna~ges to ~ ~,a ~y ~llef $ ~ - Cruet ~ms conce~s T T - Len~e,/C.em Bill Gagne ~,.,s 1811 Golfview Dr., Buffilo~ MN..55312 ~u~m V a c a n t n~.,.,~, J e r r y S m i t h m,.~l,~, m A..,,,~, ~-- -- ~ E] u,... [] SuO.,~n [] Bu,lt Up E:]Ove, 75% ~-]2f)~ ~0 7~ ~U~o, 2~ Growm ~t. ~ Fully ~v. ~p.d ~ S,eaay ~Slow ~ 2-4 Flmdy ~ Apl~. ~ ~O ~ CommerCial C..nge ,n Pfe.m Lana U.~ NOt L,kWy ~ L,kmy {') ~ Tak,ng Place (') I') F~om TO P,eaommam ~cuea~y ~ Ow.e, ~ Tenant O -- 5 $ 75,000 Io$ 150,O0~om,nanlVal~S iOOFOOC 2 30 y,s P,~om,n.m Co the Elk River in the City of Elk River, a community of about 13,000 on U.S. lg ways & approximately 30 miles Northwest of the Minneapolis metro 48. 27 Ac..s~ FLO, AC,., p,e~enl ,mp,ovement, [] cio [] ~ ~ cm~dm, m to ~ ~ ~ non q '- 'on the Elk River O~,g,oun0E~t &Tel, / OSlOewi,k USt,ee, L,gm, Jl.~m~,ty~-- MOSt of the landis in the flood zone area. However~there is am le hi h r approximately 4 buildin sites with the b ' ' or individual~ Elk River Elk River mi . Nort DESCRIPTION da.on mkt MLSv21 DOM DESCRIPTION DESCRIPTION DESCRIPTION t ..... 1-96 .12-96 '~'~'-- ual , -..~ ual acres 8acres I +6 2.7acr~ JO% % wd yes no I 'HA I New Constr .! FHA ~ , [']mu,; 39~600 40,700 44,800 o~Sut~ect were also on the Elk River. C~w~m~n~m~nO~m~ e river ut 1 ave a pond on the hack of the lot. ......... i: A tar deve lo ment of the sub ec~. . ~'a.~, ..... h mf Core.nil a~ Go~,l~)~l of App,.,~. __ ~ _ _ ~ · n = C r e s f -~hat there would be an avera ~ u~ ~ w lc wou d be in the flood zone ' · Aeco~cmauon' After consideration opinion that the estimated val ~8,ooo_.p_~zor to u ' ' _'_ ~ ....... , Seot. 4 ,g 96 Io~, .: -- ; ilTIMAT[ THE M~KET V~UE, a~ DEFINED, OF gCT ~OPERTY Smith RESOLUTION 96 -__ A RESOLUTION OF THE CITY OF ELK RIVER A RESOLUTION AUTHORIZING THE ACCEPTANCE OF A GIFT OF REAL PROPERTY FROM W. D. (BILL) GAGNE AND RICHARD J. DEZIEL WHEREAS, the City of Elk River (the City) is a Minnesota Municipal Corporation; and, WHEREAS, the City Council has determined that it is in the best interest of the City to provide adequate public recreational lands as well as land for public improvements such as streets, bridges, etc.; and, WHEREAS, the City has been approached by W. D. (Bill) Gagne and Richard J. Deziel, the owners of the land located within the City and legally described in attached Exhibit A; and, WHEREAS, Mr. Gagne and Mr. Deziel have expressed an interest in conveying the property to the City as a gift; that the gift is based on a charitable donative intent by Mr. Gagne and Mr. Deziel; and that Mr. Gagne and Mr. Deziel are under no coercion to convey the property, but are conveying the property by their own free will; and, WHEREAS, the City has obtained an appraisal by Jerry Smith, MAI, who appraised the property at $168,000 as stated on Exhibit B1 and B2 to this resolution; and, WHEREAS, the City desires to accept the gift of the property from Mr. Gagne and Mr. Deziel to be used for park and public purposes. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Sherburne County, Minnesota, that the property be accepted from Mr. Gagne and Mr. Deziel. Passed and adopted by the City Council of the City of Elk River this 21st day of October, 1996. Henry A. Duitsman, Mayor ATTEST: Sandra A. Thackeray, City Clerk EXHIBIT A That part of the West Half of the Southeast Quarter of the Northwest Quarter of ~ectlon §1, rpownshlp §§, Range 9.8, ~herl~urno ~ounf¥, Minnesota that lies Northerly of the following described line. Beginning at a point on the West line of said West Half of the Southeast Quarter of the Northwest Quarter that is 628 feet North (as measured along said West line) of the Southwest corner thereof; thence Northeasterly to the point on the East line of the said West Half of the Southeast Quarter of the Northwest Quarter that is 787 feet North (as measured along said East line) of the Southeast corner thereof and there terminating. And also: That part of the West Half of the Northwest Quarter of Section 31, Township 33, Range 26, Sherburne County, Minnesota described as follows. Beginning at a point on the North line of said West Half of the Northwest Quarter that is 608 feet East of the Northwest corner thereof; thence South parallel with the West line of said West Half of the Northwest Quarter a distance of 1000.00 feet; thence West parallel with said North line a distance of 225 feet more or less to the center line of the Elk River; thence Southeasterly along the center line of the said Elk River, to an intersection with the East line of said West Half of the Northwest Quarter; thence North along said east line to the Northeast corner of said West Half of the Northwest Quarter; thence West along the North line thereof to the point of beginning. documentXresolutiXexagagne.doc Form 8283 (Rev, 10-95) Name(s) shown on your income tax return EXHIBIT B1 Pa~e 2 IIdenl~fying number 476-18-9714 Wilfred D. & Katherine A. Gagne Section B--Appraisal Summary--List in this section only items (or groups of similar items) for which you claimed a deduction of more than $5,000 per item or group. Exception. Report contributions of certain publicly traded securities only in Section A. If you donated art, you may have to attach the complete appraisal. See the Note in Part I below. I:,~'Till Information on Donated Property--To be corr, pleted by the taxpayer and/or appraiser. 4 Check type of property: [] Art' (contribution of $20,000 or more) [] Real Estate [] Gems/Jewelry [] Stamp Collections [] Art' (contribution of less than $20,000) [] Coin Collections [] Books [] Other 'Art includes paintings, sculptures, watercolors, pdnts, drawings, ceramics, antique fumiture, decorative arts, textiles, carpels, silver, rare manuscripts, historical memorabilia, and other similar objects. Note: If your total art contribution deduction was $20.000 or more. you must attach a complete copy of the signed appraisal. See instructions, A B (a) Description of donated property (if you need more space, attach a separate statement) (d) Date acquired by donor {mo,, yr.) (b) If tangible property was donated, give a brief summary of the overall physical condition at the time of the gift (c) Appraised fair market value L (e) How acquired by donor Donor's cost or (g) For bargain sales, enter adjusted basis amount received See instructions Amount claimed (i) Average trading price deduction of securities Taxpayer (Donor) Statement--List each item included in Part above that is separately identified in thu appraisal as havinq a value of ;500 or less. See instructions. I declare that the following item(s) included in Part I above has to the best of my knowledge and belief an appraised value of not more than $500 ~oer item). Enter identifying letter from Part I and describe the specific item. See instructions. IF Signature of taxpayer (donor) IF Date IF IU~'llllll Declaration of Appraiser I declare that I am not the donor, the donee, a party to the transaction in which the donor acquired the property, employed by, or related to any of the foregoing persons, or married to any person who is related to any of the foregoing persons. And, if regularly used by the donor, donee, or party to the transaction, I performed the majodty of my appraisals dudng my tax year for other persons. Also, I duclare that I hold myself out to the public as an appraiser or perform appraisals on a regular basis; and that because of my qualifications as described in the appraisal, I am qualified to make appraisals of the type of property being valued. I certify that the appraisal fees were not based on a percentage of the appraised property value. Furthermore, I understand that a false or fraudulent overstatement of the property value as described in the qualified appraisal or this appraisal summary may subject me to the penalty under section 6701(a) (aiding and abetting the understatement of tax liability). I affirm that I have not been barred from presenting evidence or testimony by the Director of Practice. Here Tit, e IF / Date of appraisal IF Bus'ness~__///~.~&add ss (' (J,'/~--~ .ro. gj[~.__~L~ , cb~/'p°.)'' ,1 City or town, state, and.~lP code . , ~- It~'Ta.P~ Dorme Acknowled{lment--To be completed by the charitable organization. This charitable organization acknowledges that it is a qualified organization under section 170(c) and that it received the donated property as described in Section B, Part 1, above on · (Date) Furthermore, this organization affirms that in the event it sells, exchanges, or otherwise disposes of the proper[), described in Section B, Part I (or any portion thereof) within 2 years after the date of receipt, it will file Form 8ZSZ, Donee Information Return, with the IRS and give the donor a copy of that form, This acknowledgment does not represent agreement with the claimed fair market value. Name of chantable organization (donee) Employer identification number ,ddress (number, street, and room or suite no.) City or town, state, and ZIP code Authorized signature Title I Date  Pfned on recycled paper Form 8283 (Rev. 10-95) EXHIBIT B2 Pa~e ? Name(s) shown on ~ur income tax return R±chard 3. Dez±el Iden~fying number 470-14-3127 Section B--Appraisal Summary--List in this section only items (or groups of similar items) for which you claimed a deduction of more than $5,000 per item or group. Exception. Report contributions of certain publicly traded securities only in Section A. If you donated art, you may have to attach the complete appraisal. See the Note in Part I below. I:,~'T~II Information on Donated Property--To be completed b,v the taxpayer and/or appraiser. 4 Check type of property: [] Art' (contribution of $20,000 or more) [] Real Estate [] Gems/Jewelry [] Stamp Collections [-] Art' (contribution of less than $20,000) [] Coin Collections [] Books [] Other 'Art includes paintings, sculptures, watercolors, prints, drawings, ceramics, antique furniture, decorative arts, textiles, carpets, silver, rare manuscripts, historical memorabilia, and other similar objects. Note: If ),our total art contribution deduction was $20,000 or more, .you must attach a complete copy of the signed appraisal. See instructions. Description of donated property (if .you need more space, attach a separate statement) (b) If tangible property was donated, give a brief summar~ of the overall physical condition at the time of the gift (c) Appraised fair market value (d) Date acquired (e) How acquired by donor (mo., yr.) by donor (f) Donor's cost or adjusted basis (g) For bargain sales, enter amount received See instructions (i} Average trading price of securities L Taxpayer (Donor) Statement--List each item included in Part appraisal as havinq a value of above that is separately identified in the ;500 or less. See instructions. I declare that the following item(s) included in Part I above has to the best of my knowledge and belief an appraised value of not more than $500 'Der item). Enter identifying letter from Part I and describe the specific item. See instructions. I~ Signature of taxpayer (donor) ~. ~IA~TilIII Declaration of Appraiser Date I dectare that I am not the donor, the donee, a party to the transaction in which the donor acquired the property, employed by. or related to any of the foregoing persons, or married to any person who is related to any of the foregoing persons, And, if regularly used by the donor, donee, or party to the transaction, I performed the majodty of my appraisals dudng my tax year for other persons. Also, I declare that I hold myself out to the public as an appraiser or perform appraisals on a regular basis; and that because of my qualifications as described in the appraisal, 1 am qualified to make appraisals of the type of property being valued. I certify that the appraisal fees were not based on a percentage of the appraised property value. Furthermore, I understand that a false or fraudulent overstatement of the property value as described in the qualified appraisal or this appraisal summar~ may subject me to the penalty under section 6701(a) (aiding and abetting the understatement of tax lia__.bility). I affirm that I have not been parred from presenting evidence or testimony by the Director of Practice. ~re I Signature's_, /~._~_~.~' Tltlel~ ~O~rfM~Y PP ' I~ i,~ .~/--~--~/ 7~-~ Sign . ' ' ~ F~t~ of a ra~sal ~ ~ ~' cr, uslness adc}~ess~(includin~-o?n~ or~'ui.t~'no.)/~, ~ __ .../ ' ' /,~ ' I ....... Idantifvin~.,_.~ ..--..---humidor City or~wn, .state, ar~ ZIP code . ~tx' c ,. g a~T~I~B Donee Acknowled~lment--To be completed by the charitable organization. This charitable organization acknowledges that it is a qualified organization under section 170(c) and that it received the donated property as described in Section B, Part I, above on 1~ [Date) Furthermore, this organization affirms that in the event it sells, exchanges, or otherwise disposes of the property described in Section B, Part I (or any portion thereof) within 2 years after the date of receipt, it will file Form 8282, Donee Information Return, with the IRS and give the donor a cop)/of that form. This acknowledgment does not represent agreement with the claimed fair market value. Name of charitable organization [donee) Employer identJlication number ddress (number, street, and room or suite no.) City or town, state, and ZIP code Authorized signature Title Date Printed on recycled paper