4.0. SR 08-20-2001TO:
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor and Council
Pat Klaers, City Administrator
August 20, 200 I
Executive Session - Deschenes Litigation
Item 4.
Howard Roston, from Maslon, Edelman, Borman, & Brand law f~rm, has been representing
the city on all of the East Elk River land acquisition activities. I have asked Howard to come
to this City Council meeting to provide an update of the acquisition of the George Deschene
property. This property lies just south of County Road 13 at the intersection of the new
street (see attachments). Most of the attached material is from the May 1999 city appraisal
which as completed by Patchin Messner Appraisals, Inc. This is the last remaining city land
acquisition issue related to the East Elk River street project. We are scheduled to go to court
for a jury hearing the week of September 10, 2001 to determine the value of this property.
Due to a number of situations, including illnesses, car accidents, death in families, vacations,
etc; (you name it and it happened), this land acquisition case has seen a series of delays.
Actually, the city has recendy rejected another request by the attorneys for Mr. Deschene for
a further postponement in this case. Each delay seems to cost the city more money, as Mr.
Roston has to reeducate himself and gear up again for the next step in the legal process.
No one at the city is quite sure how we got to this jury hearing point in the acquisition
process. Long ago we agreed to relocation expenses for the family and two businesses that
were on the site. The appraisals for the land value completed by the city and landowner were
reasonably close. Our value ~vas $265,000 and their value was approximately $320,000.
Somewhere along the line - I think it was shortly after when the cul-de-sac disappeared and
with this so did the potential George Deschene business relocation site - the value of the
Deschene property, according to Mr. Deschene, increased significantly. All indications are
that Mr. Deschene now believes that the value of his property is in the $550-600,000 range.
It should be noted that this issue relates to the entire taking of the 10.27 acres, as there is no
reasonable access to the remaining parcel on the east side of the road and this area is
crisscrossed with utility lines, casements, and wetlands.
Howard Roston will be able to answer Council questions as to the status of this case and
review some history as to how we got to this point. Finally, we would like to make one more
attempt to setde this case and Howard will be asking the Council to authorize putting
forward and "offer of judgment." There is a very limited downside to the city for making
this offer and the upside potential is very positive.
9918-A xii
~78'm
SUBJECT ZONING MAP
9918-A xiii
SUBJECT PLAT MAP
9918-A v
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
Fee Owner:
Location:
Date of Appraisal:
Date of Inspection:
Property Appraised:
Property Rights Appraised:
Zoning:
Site Description:
Site Area:
Highest & Best Use:
George and Carol Deschenes
18513 Twin Lakes Road NW
Elk River, Minnesota
April 20, 19~9
March 31, 1999
10.27 acres of land improved with a
single family home.
Fee Simple Market Value
I-1, Light Industrial
Gently rolling site, sloping downward to rear.
Approximately 10.27 Acres
As If Vacant: Industrial Development
As Improved: Continued mixed residential
and industrial use of the existing improve-
ments.
Value Conclusions:
Cost Approach:
Sales Comparison
Approach:
Income Approach:
Final Value Estimate:
$180,000 (Land Value Only)
$270,000
$250,000
$265,000
Patchin Messner Appraisals, Inc.
Valuation Consulta.[~
Visit us on the web at www. HomeTownSource.com
Council delays capping CSAH 13
by Jim Boyle
Staff writer
The Elk Ri~}er City Council
voted 3-2 Monday night to delay
plans to close County State Aid
Highway 13 when the new
CSAH 13 and its ex"tension to
Highway 10 opens.
Residents voiced their opposi-
tion to the plan at a June 19
meeting and more than a dozen
citizens returned to hear the
.council's decision this week..
Mayor Stephanie Klinzing and
council members Larry Farber
and Paul Motin voted to delay
plans to cap the county road
with a cul-de-sac. Instead of
capping the road, the council
.... ;rected staff to have the road
"into the the new County
Road 13 (Tyler Street)· It will
cost an 'extra $60,000.
Council members Daryl
-Thompson and John Dietz voted
'to against the measure. They
sided with City Engineer Terry
Maurer, vcho strongly urged the
council tb continue on with
plans to cap ~he mad after lay-
zng out a variety of reasons for
his recommendation.
Chief among Maurer's conk
cerns is safety and the effect the
the roadway will have on traffic
movements on County Road 12
between old County Road 13
and Highway 169, where a six-
lane intersection will be
installed at the Main Street and
Highway 169 crossing. 'Maurer
is particularly concerned about
the short cutting he expects to
come through the former
Northbound Liquor site.
· This section of County Road 12
zs expected to have 17,000 cars
on it per day, Maurer said.
Paul Motin said he thinks the
id should be capped someday,
.c not now. He suggested wait-
ing until 193rd Avenue is
extended to Tyler Street, which
will provide an alternative east-
west connection between Tyler
and, Highway 169 (193rd
The above map shows where the cul-de-sac on
County Road .13 was proposed. Residents
objected and a 3-2 council majority vOted to
delay capping the road. So instead of construct-
POTENTIAL
GEORGE DESCHENE
BUILDING SITE
Avenue is situated between
Coborn's and Time Out Bar and
Restaurant)..
Mayor Stephanie Klinzing
agreed with Motin.
The majority Said use of the
new county road would provide
relief, and preVent traffic from
heading north to less desirable
alternatives like 197th Avenue,
County Road 91 and County
Road 33 to get to Highway 169.
Meanwhile, residents would
still have the option to use a
shorter route to get to business-
es along Highway 169.
Thompson said the plan to
install the cul-de-sac was done
out of a concern for safety.
Members of the audience chid-
ed him, saying he must not
drive on the east side. of
Highway 169.
built this year.
Maurer says the the construc-
tion of a cul-de-sac on CSAH 13
would force traffic to travel one-
half mile out of the way. He said
leaving the road open would not
be worth the conflicts and con-
fusion it would add to the inter-
section of Main Street and
Highway 169.
Residents argued at open
mike at the June 12 council
meeting that leaving it open
would not draw a parade oftraf-
ftc, but allow locals the opportu-
nity not to have go through the
future home of a lighted inter-
section at County Road 12 and
the new County Road 13.
A crowd had turned out to
make this and other points
related to east-side traffic con-
cerns. People also expressed
concern about the lack of east-
lng a cul-de-sac, city staff has been directed to
have old County Road 13 "T" into the new
County Road 13 (Tyler Street) scheduled to be
(Map courtesy of city of Elk River)
west roadways.
One suggested School Street
be extended to the east through
the Elk Hills housing develop-
ment.
People also expressed concern
over'heavy trucks and increased
trafSc using 197th Avenue
north of Menards to get to the
job site and homes. They called
for restrictions on this and other
roads.
Maurer said someday 193rd
Avenue, where Hillside Estates
is being developed, will "be
extended to the east with a
wide, urban-style road. How far
out is unknown, however,
because Hillside Estates is still
developing and there is a 40-
acre parcel not slated to be
developed at this time.