Agenda - Council - 10/27/2009 - Laserfiche WebLink

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CASE # CONSIDER USE OF !CITY PROPERTY LOCATED AT 16600 ST, FRANCIS BOULEVARD By: Tim Himmer, City Engineer Background: During the process to construct water tower #3 adjacent to Elmcrest Park, the City purchased property at 16600 St. Francis Boulevard, The purchase agreement for this acquisition was approved by Council on December 9, 2008 in the amount of $750,000, which also included additional land for a permanent dedicated access to Elmcrest Park (16,6 acres in all). The entire parcel at 16600 St. Francis Boulevard is approximately 14.2 acres in size, and the water tower site improvements take up about 2.5 acres in the southeast corner. An existing house and garage currently sit in the northeast corner of the lot. This home was constructed in 1952 and is need of various repairs. The property was purchased for a water tower site, access to Elmcrest Park, and future use /redevelopment into an expanded commercial node or other use compatible with the City's zoning requirements. Observations: Since the City does own this property we could consider sale, rental, demolition of the existing structures, or leave well enough alone (potentially as a cold storage location). This item is being brought forward because staff received an inquiry about the status of this property and whether it was for sale. The building official toured the home and determined that septic system upgrades would most likely be needed, in addition to many cosmetic repairs. If the City were to consider selling a portion of the property (existing home site) we would need to subdivide the lot to create a minimum lot size of 2.5 acres, in addition to all the necessary improvements to bring the structures into compliance with building code and increase its marketability. In addition to a permanent dedicated access to.Elmcrest Park, the majority of the discussion during the acquisition process was related to the ultimate end use of the remnant property. Staff presented a few scenarios where the land could be redeveloped into residential (single or multi - family), an expanded commercial node, or mixed use. Any sale of property on this site would cause extreme hardship for future redevelopment, potentially leading to a situation where it would need to be re- acquired. ' The City could consider the option of renting the property, but improvements would be required to increase its marketability, and we would potentially be taking on the responsible of property maintenance as a landlord. In either a sale or rental situation an access point would remain open to St. Francis Boulevard (TH 47), which is contradictory to the City goal of eliminating accesses onto high volume, high speed roadways. Under either the sale or rental options future relocations costs would most likely be required in the event the property redeveloped. Other options to consider include demolition (which would reduce potential liability issues), or use for cold storage by either the City or another user. Staff is looking for direction on the best use for this property at this time. Funding: A funding source will need to be identified for any required improvements once the best course of action is determined. The Water Utility Fund is proposed for the recommended pre -demo assessment.