Agenda - Council - 04/28/2015 - Laserfiche WebLink

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Meadow Creek Builders, Inc. currently owns the property generally known as 15208 Krypton Ter NW and legally described as Lot 1, Block 1 and Outlot A, MEADOW. The City currently holds a temporary access easement over and across this lot for the primary access to the current Fire Station No. 2 as well as various utilities to serve the current building. The access is no longer needed when Fire Station No. 2 is relocated. The existing utilities would need to be relocated if the City is not to acquire the property. The existing utilities can be used in the construction of Harvest Estates if they remain in their current location. The cost to re -configure the existing utilities the impact Lot 1, Block 1, MEADOW could be as high as approximately $50,000. Additionally, per City Council and Planning Commission direction, the City is also requesting a pedestrian trail connection that would impact Outlot A, MEADOW. Meadow Creek Builders has stated that they would request approximately $15,000 for the City to acquire a trail easement for this purpose. Finally, given the significant discussions regarding the status of the access for Harvest Estates to Nowthen Boulevard, this swap would provide flexibility in future discussions for safety, congestion, and mobility improvements to Nowthen Boulevard. The assessed value of the City Parcel is $49,000. The current assessed value of the combined parcels owned by Meadow Creek Builders is $5,000. Staff believes the low assessed value of the Meadow Creek parcels is due to the existing encumbrances (driveway and utilities). The parcel was allowed to be subdivided as a buildable lot with the understanding that these encumbrances were to be removed, and is noted in the Development Agreement for MEADOW. It is anticipated that Lot 1, Block 1, MEADOW would have a similar assessed value once the encumbrances were removed per the previous agreement. Given the factors above, the flexibility the swap provides in the future, and similar values, Staff recommends approval of the Land Swap Agreement. Additionally, Staff is concerned about re -configuring the utilities now with some uncertainty of future access to Nowthen Boulevard. Staff wants to avoid multiple re -configurations and disruptions to the utilities in this area. Alternative #1: Adopt Land Swap Agreement as presented. This will allow the City to leave the utilities the current location and provides flexibility into the future to determine if a future access to Nowthen Boulevard is warranted. In addition, the only additional cost to the City is the construction of a sidewalk as well as curb and gutter for Lot 21. This would likely be an obligation of the City as seller regardless. This can also be incorporated into final plans of Harvest Estates. Alternative #2: Amend the Land Swap Agreement. This could entail negotiating obligations or sale price. Staff does not believe this is necessary. Alternative #3: Do Not Approve the Land Swap Agreement. This would obligate the City to cover the costs of utilities re -configuration and negotiate a trail easement estimated at $15,000. Additionally, if a future connection to Nowthen Boulevard were desired, this alternative would limit options, leaving only acquisition of the parcel to the south for a future connection. Adopt First Amendment to Purchase Agreement with G S Land, LLC (assignee of N.I.K. Management, Inc.) Exclusion of Parcel The current Purchase Agreement with G S Land, LLC includes Lot 21, Block 1, MEADOW that is subject to the proposed Land Swap Agreement with Meadow Creek Builders, Inc. Lot 21 is being removed from the Purchase Agreement with G S Land, LLC. Both parties are in agreement with this provision and does not materially affect the terms of the remainder of the agreement. Purchase Price Upon survey of the site, actual parcel sizes are now known. Total lot size included in the Purchase Agreement has been determined to be 21.28 acres in size. G S Land, LLC is requesting a reduction of the total purchase price from