Agenda - Council - 04/23/2019 - Laserfiche WebLink

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Multiple development projects were constructed in the COR after the Third Generation plan was adopted and they needed to provide infiltration. However, infiltration is not permitted on their sites. Staff conferred with the LRRWMO and determined that a regional/shared infiltration mitigation basin could be placed in the southeast corner of the COR adjacent to the existing storm water pond. The City collected an infiltration mitigation payment from this project and all subsequent projects in the COR that are in the wellhead protection area. The proposed mitigation area includes an area that was encumbered by drainage and utility easements on the original Ramsey Town Center Plat. The original plat included provision for an emergency vehicle access to Ramsey Boulevard. The route of this access is through the proposed infiltration basin. Since then, a full public roadway has been planned as a result of Highway 10 planning efforts. This route runs along the north edge of the proposed infiltration basin. This connection will be right-in/right-out at Ramsey Boulevard. This route will be constructed in the future when warranted. Part of the infiltration basin is on City owned property and the other part is on PSD owned property. The proposed acquisition will transfer ownership of the portion of the basin on PSD property to the City so that the City can provide perpetual maintenance of the basin. The transfer also includes the proposed right of way for the future road and a remnant piece south of the Medical Examiners building that is too small to develop. Staff has previously been directed by the City Council to negotiate acquisition of the land needed for for stormwater infiltration ponding and road right of way south and east of the Medical Examiner's office. Notification: Notification is not required. Observations/Alternatives: Pricing and Impact The proposed land exchange accomplishes multiple City goals and requirements. First, the exchange allows the City to acquire the land needed for required improvements to the Storm Water Infiltration in the COR which will allow for future development approvals and satisfy previous obligations. Second, under the terms of the Purchase Agreement, PSD LLC is required to construct a commercial/retail project on Parcel 45/Armstrong Retail Site that will result in increased tax base, jobs and addition commercial retail opportunities for Ramsey residents. Although the net cost of the land exchange is $15,680, the projects that will be completed as part of this exchange provide immediate and future benefit to the City of Ramsey. Aside from these secondary benefits to the primary purpose, the primary benefits of this transaction (acquisition of the area for stormwater needs) far exceed the costs of a traditional transaction. Square foot pricing for each parcel is based off of the appraisals received from Certified Appraisal Services (CAS) and both parties have agreed to those per square foot numbers The City is sellling Parcel 45 (Armstrong Retail Site) which is approximately 100,003 square feet. The negotiated sales price is $621,019 which is $6.21 per square foot, which is above the midpoint in the City's approved Deal Range. The City will be acquiring approximately 124,725 square feet owned by PSD LLC. The price of acquisition is $636,698 which is at a blended rate of $5.1048 per square foot. The proposed net cost to the City as a result of this land exchange is $15,680. Need for Ponding for Parcel 45/Armstrong Retail Site and Surrounding Parcels During site development for PSD LLC and engineering review of stormwater requirements it was determined that ponding would be required as part of development on Parcel 45 and surrounding sites west of Armstrong Boulevard. Originally it was conveyed to the developer that ponding would not be required onsite or as part of their project. Engineering staff has developed plan to account for storm water ponding system for Parcel 45 and the surrounding sites as shown on the revised concept. The area to be used for this pond would be a remnant parcel and also include the vacation of a portion of 146th Avenue NW. The estimated cost for the storm water pond system is $50,000. PSD, LLC now understands that ponding is necessary for their project and has agreed to pay for its share of the storm water pond to be constructed for their project. A revised purchase agreement for Parcel 45 has been