Agenda - Council - 02/27/1996 - Laserfiche WebLink

Home

I I By: POLICE FACILITY UPDATE Ryan R. Schroeder, City Administrator CASE Background: At the last meeting, Council authorized proceeding to the bid stage for the Police Office Building. Coincident to proce ~ading toward the hard construction of the building itself is the availability of municipal utilities. These utilities can originate from County Road 5, 153rd Avenue (upon construction of the Brandseth Addition), or from 152nd Avenue or Lane within the Brandseth Addition. Recently, I have suggested that if the City can sell off or develop a portion of the Holasek Addition, the development of that p_ roperty can be used to facilitate the extension of these utilities. A concern regarding such a proposal is the thought that disposal of property might leave the City short of necessary property in the future on this campus. Given this concern, we have proposed disposal of a minor piece of property on the southeast comer of the City campus on the drawing enclosed herein. Shown is an eight lot cul-de-sac that utilizes approximately three acres of land. Also shown on this drawing are: 1. Fire Department Expansion 2. Police Building 3. City Hall Expansion 4. Public Works Bttilding 5. Community Center 6. Excess property and open space It appears from the drawing that we can dispose of this approximate three-acre parcel and still have land sufficient to conduct business in a significantly expanded way on this site. Disposal of this land also allows for connection of a road from Brandseth, through City property, south through three existing rural lots and connecting to the existing Helium Street in the Pondvale Estates subdivision. This proposal does not mandate that the three rural lots be subdivided but provides an opportunity to do so should the owners desire it (currently they do not have that option due to lack of access to utilities). It also does not cause premature urban development of Pondvale Estates but does provide for road connection (with utilities) when that time comes. Council has the option under this proposal to sell/subdivide or to hold. However, we need direction on providing utility aCCess to the Police project. If the proposed subdivision plat receives your positive review, we would work with the contractor in the Brandseth Addition to provide for the appropriate utility work. If Staff is directed to dispose of the property pursuant to this concept, we would also ask to request bids from local developer/builders on their purchase of the property. It is my expectation that we can sell off this property at about $12,000/acre. If we developed it ourselves I believe we could net about $49,000 with a $23,000 lot price which I believe to be conservative (development costs of $76,000; marketing and 3 year holding costs of $26,560; closing costs and fees of $32,000). Any development of sale proceeds would be directed to the Police Building utility costs. Council Action: Motion to approve the concept of disposal of approximately 3 acres within the Holasek Addition pursuant to the above. Motion to direct that Staff advertise for disposal and development of this property. Motion to direct that Staff prepare purchase/development agreements). Reviewed by: City Administrator CC: 02/27/96 the appropriate documents (ordinance authorizing the sale, any