Agenda - Council - 03/14/2000 - Laserfiche WebLink

Home

CAS # lB AUTHORIZATION TO NEGOTIATE FOR LAND ACQUISITION FOR DEVELOPMENT PURPOSES By: James E. Norman, City Administrator Background: The City Council has been informed during a recent work session that there has been a great deal of development interest for the land immediately west of Sunfish Lake Boulevard, south of C.R. #116 (map attached to case). With the first two industrial parks completely developed, providing land for development purposes has become increasingly difficult. The City's interest in owning land for industrial purposes is a method to deal with the primary obstacle to business expansion/site control. By having control over the type of development allowed within the City limits, the City can focus on quality development. By having the aforementioned control over a site, the City is able to manage the growth of the development and attract the industries which best suit the City's overall conceptual idea. Not only does an industrial park spur economic development by creating jobs, increasing property values and such~ it allows diversification of the property tax dollars such that the tax demand on the residential homestead is not as great. Observations: Negotiations have been initiated through a third party with the property owner of the aforementioned property, however, the property owner has indicated disinterest in sale of the property for development purposes. The City Council could direct staff to continue negotiations or proceed with a condemnation action. The City"has used condemnation in the past to acquire property for public purpose when negotiations have failed. Property owners are still p~aid for the property, but a process is used to arrix~e at a fair price. Each party 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 a 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 right:of-way, industrial land for ponding, the senior housing site, and most recently, condemnation to acquire industrial properties west of K'amsey Boulevard. Since the property owner seems unwilling to negotiate for the sale of the property, the City Council could proceed with condemnation, which would set the price for both parties. Recommendation: TBe City staff and the EDA have ~ecommended that City Council direct staff to either directly negotiate with the'property owner or begin condemnation proceedings to acquire the land west of Sunfish Lake Boulevard. Iq"l