Agenda - Council - 12/09/2008 - Laserfiche WebLink

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CONSENT # 8 APPROVE THE PURCHASE AGREEMENTS FOR 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 Background: 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 Apri122,-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 investigated alternative locations to site the proposed tower and only one location in the immediate vicinity came back with favorable geotechnical results, 16600 St. Francis Boulevard. In addition to improved soil conditions thissite 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 Jolzn 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 HR.A, and/or the EDA as the Buxton Study and Comprehensive Plan update advance and it becomes clearer what the end uses for the property will be. This Council direction was affirmed at the regular meeting on November 25, 2008, and staff has completed additional due diligence in preparation of the purchase agreements. Motion• Motion to approve the purchase agreements with Oakwood Land Development, Inc. and Alvin Goebel, as trustee, for their respective parcels as identified in the purchase agreements, subject to City Attorney final review and approval after negotiation of the legal terms with the property owners. Reviewed by: Public Works Director/Principal Engineer CC: 12/9/08 /~ -23-