Agenda - Council - 06/13/2000 - Laserfiche WebLink

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CASE # CONDEMNATION ACTION TO ACQUIRE INDUSTRIAL LAND By: James E. Norman, City Administrator Background: In 1996, the City, along with Anoka Electric Cooperative (AEC), was in the process of discussing the purchase of a 56.7-acre parcel of property described as the Royal Concrete property owned by L. W. and Diana M. Maken. The property is located in an area to the southwest of the AEC Energy Industrial Park (map of property attached). Negotiations were terminated some time in 1997, and the City Council directed staff to do a feasibility study of the project in 1999. The City Council heard the feasibility study in a work session on March 6, 2000, and it was determined that redevelopment of the property would be financially feasible and staff was directed to begin negotiations with the property owner. Negotiations with the property owners have not yielded a purchase price close to the appraised value of the property and staff will be asking the City Council to consider condemnation to acquire the property. Observations: The City has used condemnation in the past to acquire property for public purpose when negotiations have failed. Property owners are still paid for their property but a process is used to arrive at a fair price. Each part completes independent appraisals and then a judge appoints a committee of three to review the land and arrive at a fair market price. The landowner can then appeal the committee decision to District Court if they are not satisfied with the price they are to be paid. The City has used this process to acquire various well sites, road rights-of-way, industria! land for ponding, senior housing and, more recently, other industrial sites. Since the property owners seem unwilling to negotiate a price that the City feels is a reflection of the market value of the land, the City should proceed to condemnation which will set the price for both 'turtles. Council Action: Motion to authorize the City Attorney to proceed with condemnation if negotiations fail in the acquisition of the 56.7-acre parcel property owned by L. W. and Diana M. Maken. Reviewed by: City Administrator Community Development Director City Attorney Economic Development Consultant CC: 06/13/00 I IRA_FS l l VOL I lusersiCity Shared FileL4 GENDA COUNCIL & COMMISSION1City Councill2OOOtJunelComlemnationRoyalConcreteO613OO. doc 06/09/00 -267-