Minutes - Public Works Committee - 03/15/2005

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City Engineer Jankowski indicated he met with Mr. Mortenson on February 14, 2005 and provided him a copy of the appraisal and extended an offer to purchase the property for the appraised value. On March 3, 2005 he received a call from Mr. Mortenson in which he stated that he would be proposing a counteroffer to the City's offer during the week of March 7th. Mr. Mortenson has made a counter offer to the City in the amount of $31,500. He explained City Attorney Goodrich has suggested that the county's assessed value for the property be determined. The value listed at the county courthouse is about $6,500. The City would be taking approximately 90% of this parcel, leaving Mr. Mortensen with the parcel that exists on the west side of the county ditch. He advised there are the following options to consider: · Approach Mr. Mortenson with a request for right-of-entry. This would allow the City to use the property for trail purposes while a mutually acceptable agreement is negotiated. If an agreement is not reached the City would go through eminent domain proceedings and the court would set the price for the property. · Turn over the negotiations to specialists · Make a counter proposal for the amount of the county's appraised value · Hire another appraiser Mayor Gamec commented Mr. Mortenson's offer seems completely out of line for this piece of property. Acting Chairperson Cook asked if the request for the waiver of future trail and park fees has been considered. City Engineer Jankowski replied this option was considerably more than the counter offer. The park dedication would have a value of $171,600 and the trail fee would be an additional $42,900. Acting Chairperson Cook stated if the right-of-entry option is utilized they would be required to come to an agreement that works for both parties or proceed to condemnation. The City would then be required to pay whatever amount is determined, which would definitely be more than the $1,500 that was offered. Mayor Gamec suggested it would be better to issue the eminent domain, and negotiations could still be conducted during this process. Acting Chairperson Cook commented he cannot see this property being worth very much, as it is surrounded by parkland. City Engineer Jankowski noted a lot of the property is in the 100-year flood plain and is not very valuable. Public Works Director Kapler inquired if the Committee would agree with the idea of working with the right-of-entry agreement, but also leaving staff the availability to negotiate. If an agreement cannot be reached in the negotiations they could then proceed to eminent domain. This would keep the timeline moving, which is a concern due to the construction season. Public Works Committee/March 15, 2005 Page 6 of 11