Minutes - Council - 11/24/1987 - Laserfiche WebLink

Home

City Engineer Raatikka recommended that the alignment for extension of sewer and water south of Hwy. #10 be revised to follow the Hwy. #10 right- of-way. Councilmember Cox stated that the most advantageous alignment would have been in the future MSA road alignment; in fairness to those affected property owners, changing the alignment should be delayed for a short period so additional negotiations for easements can take place. Motion by Councilmember Cox and seconded by Councilmember Pearson to authorize City Staff to continue negotiations until December 3, 1987 for easements for the extension of sewer and water south of Hwy. #10 in the future MSA road alignment; the figure to be negotiated should be considerably less than the appraised value of $25,000/acre; if negotiations produce no positive results by December 3, 1987, the City Engineer is authorized to emend the feasibility report and move the project forward utilizing the Hwy. #10 right-of-way as the alignment. Further Discussion: Mayor Reimann inquired if this extending sewer and water to the south side of Hwy. #10 includes extending services east. Mr. Raatikka replied that the project only includes services to the south side of Hwy. #10 and then west. Councilmember Cox stated that there have been requests for services to the east and a project of that nature should be placed on the next council agenda. Councilmember DeLuca stated that staff should have more direction to negotiate with other than 'considerably less than $25,000'; through all negotiations, the city has never really made a dollars and cents offer; Councilmember Cox stated that staff should take into consideration that lots in Riverside West have recently sold for approximately $10,000/acre. Mr. Hartley reaffirmed that he and the City Attorney need more refined direction from council with regards to a satisfactory offer. Councilmember Cox stated that sales in Riverside West reflect improved lots selling at $10,000/acre; deducting $5,000 for the cost of improvements results in a raw land value of $5,000/acre based on comparable sales. Mr. Hartley requested that the time period in the motion be extended to December 7 (the day before Council's regular meeting on December 8) and Council agreed. Councilmember DeLuca that a beginning negotiating figure, even if it is law, gives negotiations a starting point. Councilmember Cox noted that with development, developers provide the right- of-way and' pay for the streets and improvements; the improvements in this particular area are being funded by revenues the city obtains from development in another area and any offer above '0' for easements should be considered as a bonus by those property owners. Councilmember Cox referred to the letter from Winslow Holasek submitted during Citizn Input denying he said he would never accept less than $50,000/acre and stated he heard Mr. Holasek make those same comments at public meetings. Councilmember DeLuca stated that staff needs a definite price starting point in order to invite counter-offers. Councilmember Cox replied that the starting point should be $0. Mr. Martley stated that he and Mr. Goodrich will continue to negotiate for easements and report back to Council with a figure that seems to be the most reasonable and acceptable to the property owners; at that point, Council can make a decision. Councilmember Cox stated that the city is trying to come up with an affordable resolution to the situation; this case has the potential to set a precedent for future similar projects. Councilmember Pearson stated that he understands that the property owners City Council/November 24, 1987 Page 9 of 16