Agenda - Council Work Session - 01/17/2012

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TITLE: Dedicated park land does not belong to the City, but rather is "The property of the dedicator or his successor in interest, in which the City, as trustee for the benefit of the public and not in its own right as such has such an interest as is necessary to enjoy the use thereof as a public [park]" Headley v. City of Northfield 35 N.W.2d 605 (1949). To remove the "park use" designation will require a district court action with notification to the person /entity who dedicated the property, adjacent property owners and the Attorney General's Office. The Attorney General acts somewhat as the caretaker of the public's interest in property held in trust. The court will then decide if the park purpose restriction may be removed, and if so, who is entitled to receive title to the property. Meaning, even if the "park use" designation is removed the courts may still require the parcel to be given back to the original owner. The City Attorney estimates the time for a district court action to remove the park restrictions is six months to one year, the variable depending on who needs to be given notice of the action, the difficulty of notification, plus how much opposition by interested parties may be brought opposing City action. Interested parties include neighbors who may not want to lose the park amenity. A search for heirs or successors could be a very difficult, lengthy and expensive process for little gain since the City will most likely not end up with title to the property unless the City can convince the determined fee owner or entity in title to convey fee title for the property to the City. The City attorney does not recommend the City undertaking this process unless there is an obvious benefit. The estimated cost to go through this process is from $2,000 - $5,000 per parcel. PROCESS /COST OF RETURNING A PROPERTY TO ITS ORIGINAL OWNER (I. E. THE DEVELOPER) : Attorney will review at work session. PROCESS /COST USING LAND FOR WETLAND BANKING: In order to use city owned land for wetland banking, delineation must take place. That is, the City would need to hire a certified consultant to determine the extent of existing wetlands (vegetation, soils, and hydrology) per parcel. After delineation, the City can then entertain the option of banking. Delineation is estimated to cost $1,000- $1,500 per site. Therefore, there should be a significant desire to use a subject property for wetland banking before any further action is taken. Staff is recommending that most of the identified properties not be used for wetland banking for multiple reasons. (1) many parcels are too high in elevation; costs to the City would be significant (2) many parcels are already wetland (3) many parcels are surrounded by developed land and there is no value in banking. NOTE: Properties 06 and 11 are candidates for banking -- depending on how the properties are developed. PROCESS FOR THE CITY TO SELL LAND (CONSIDERING IT IS SELLABLE): In order to sell City owned land a "land sale ordinance" must be passed. This requires two meetings. First a public hearing and introduction to the City Council. Second, a meeting to adopt the "land sale ordinance." Following the second meeting is a 30 day grace period in which the public can petition the adopted ordinance. There are a four (4) parcels Staff would like to discuss in more detail with the City Council. Parcels #22 & #34 are potential properties for quiet title action. Parcel #11 is eligible for sale, but will require right -of -way dedication and platting. Platting of the property could be accomplished by a future developer as part of the development process. Alternatively, the City could choose to plat the developable portion as outlot, reserving the necessary right -of -way, and make available to convey the outlot to a future developer. Finally, Staff would like to discuss the potential sale of a parcel known as Peltzer Park. Recommendation: