Agenda - Council - 11/25/2008 - Laserfiche WebLink

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Background: CONSENT # 7 AFFIRMATION OF DIRECTION RECEIVED IN CLOSED SESSION RELATED TO THE ACQUISITION OF REAL ESTATE AT 16600 ST. FRANCIS BOULEVARD, 16601 AND 16651 QUICKSILVER STREET NW, RELATED TO IMPROVEMENT PROJECT #08 -21, CONSTRUCTION OF WATER TOWER #3 By: Tim Himmer, Assistant City Engineer City Council authorized the award of contract for engineering services, and the undertaking of a feasibility study for the construction of a water tower in Elmcrest Park on April 22, 2008. During the site investigation it was found that the soils in the proposed location of the tower were unsuitable for standard construction practices. The cost to construct the tower in the proposed location has increased by approximately $400,000 for the installation of piles to support the structure and carry the load to the underlying suitable soils. Staff worked with our geotechnical consultant on alternative locations in the area that may be more suitable to reduce the additional cost of pilings. Of the alternative locations explored only one came back with favorable results, 16600 St. Francis Boulevard. In addition to having better soils this site is also approximately 10' higher than the previously proposed location within the park, therefore further reducing the overall cost of the tower construction by approximately $100,000. This item was discussed at a Council Work Session on June 24, 2008, and staff was directed to meet with the property owner to gather more information on the potential acquisition. The parcel is owned by Oakwood Land Development and it currently sits vacant, aside from some minor storage in the outbuilding. Staff met with John Peterson, the president. of Oakwood, and he outlined a proposal for Council consideration, which was discussed at a Work Session on October 14, 2008. This proposal included the acquisition of 16600 St. Francis Boulevard, as well as additional land necessary for a permanent access to Elmcrest Park. Council direction at that meeting was to identify potential development scenarios for the property and a funding package. Staff continued negotiations with the property owner and received verbal acceptance of our offer for the entire property at 16600 St. Francis Blvd. and portions of 16601 and 16651 Quicksilver Street. Additional soil borings were completed to confirm the initial favorable results, which resulted in more positive feedback for a couple of tower sites investigated. Oakwood initiated a phase I environmental assessment which identified "no recognized environmental conditions in connection with the site with the exception of the potential for the past use of fuel oil for heating at the farmstead." Council reviewed information in closed session on November 18, 2008 and authorized staff to prepare a purchase agreement for this acquisition. The City will be acquiring approximately 16.6 acres of land at a price of $750,000, which is a dollar amount consistent with the low end of the appraised value of the land. This acquisition will be funded initially through the water utility fund and repaid through private investment, the HRA, and/or the EDA as the Buxton Study and Comprehensive Plan update advance and it becomes clearer what the end uses for the property