Agenda - Council - 02/22/2011 - Laserfiche WebLink

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CC Regular Session Date: 02/22/2011 By: Jo Thieling Administrative Services Information Title: Consider Resolution Authorizing Acquisition of Tax Forfeit Property Background: The City acquired the North 90 feet of the NW'/ of Section 28, Township 32, Range 25 except that part platted as Armstrong Boulevard in 1978. The purpose of the acquisition was to be for potential right -of -way for County 116 which County road, of course, was eventually constructed south of this parcel. At the time of the RTC Addition plat, the City conveyed the parcel to the RTC developer in exchange for other land in the development. A part of the 90 feet was subsequently platted as Outlot K, RTC 8th Addition ( "O.L.K. "). For some unknown reason RTC, LLC did not include O.L.K. on its mortgage with Community National Bank and thus the City did not acquire it when it acquired the majority of the RTC Additions from Minnwest Bank Central. RTC, LLC has had title to O.L.K. up until the time it became tax forfeit. O.L.K. is adjacent to a larger parcel to the south which is designated for City park purposes and residential purposes. Staff believes a portion of it should be acquired for park purposes and combined with the existing park to the south and a portion acquired for residential purposes to become a part of a residential development to the south. The cost of acquiring O.L.K. except the Westerly 140 feet for Park purposes is $325.00. However, the cost of acquiring the Westerly 140 feet of O.L.K. for residential purposes is considerably more than the park parcel as the law requires the State to sell it for market value. The value is estimated to be $15,000.00, based on the fact that Anoka County has placed a market value on O.L.K. at approximately $1.15 sq /ft. The residential parcel is approximately 12,000 sq /ft in size and thus the estimated $15,000.00 acquisition price. The COR Development Manager estimates that the parcel could be sold for residential purposes in the area of $30,000.00, however, development costs would need to be paid from this amount. The Development Manager encourages the purchase as a good planning acquisition for the purpose of developing the adjacent residential parcels to the south. A sketch plan of how such a development would look is attached. The acquisition process includes having the City adopt the resolutions and present them to Anoka County for its approval and then forwarding the Resolutions together with the required applications to the Department of Revenue for its review, approval, and in the case of the Residential parcel, setting the purchase price. Enclosures: 1. Aerial photo showing subject parcel 2. Description Sketch of the park parcel 3. Description Sketch of the residential parcel 4. Sketch of COR Residential potential developments 5. Park Parcel Resolution 6. Residential Parcel Resolution Item #: 7. 4.