Agenda - Council - 01/12/1999 - Laserfiche WebLink

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I I I I I I I I I I '1 I I I I I i I I EDA # CONDEMNATION ACTION TO ACQUIRE INDUSTRIAL LAND By: Cindy Sherman, Community Development Director Background: As the EDA discussed last month, the City Council authorized staff to negotiate for the purchase of 149.11 acres just west of Ramsey Boulevard and north of Highway #10. The direction provided by the EDA was to continue discussions with the property owner to see if a price could be negotiated. Our original offer was for $10,000 per acre or $1,491,000 to which the property owners countered $3,000,000. Following the last EDA meeting staff made a counter offer of $11,000 per acre, which amounts to $1,640,210. The property owners would not accept this offer, they are asking $3,000,000 and are unwilling to move from that position. Observations: The City has used condemnation in the past to acquire property for public purpose when negotiations have failed. Property owners are still paid for their property but a process is used to arrive at a fair price. Each party completes independent appraisals and then a judge appoints a committee of 3 to review the land and arrive at a fair market price. The landowner can then appeal the committee decision to 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 rights-of-way, industrial land for ponding, and most recently, the Senior Housing site. Since the property owners seem unwilling to negotiate a price that the City feels is a reflection of the market value of the land (as demonstrated in the attached letter) we should proceed to condemnation which will set the price for both parties. Recommendation: Staff recommends the Economic Development Authority recommend to the City Council that staff be directed to begin condemnation proceedings to acquire the 149.11 acres of land owned by BMA Associates. Authority Action: To adopt a motion recommending the City Council authorize the City Attorney to proceed with condemnation if negotiations fail in the acquisition of the 149.11 acre industrial park property located west of Ramsey Boulevard and north of Highway #10. Reviewed by: City Administrator Zoning Administrator Community Development Assistant EDA: 1/12/98 g:\users\cindy\condemnation.doc