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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.