Minutes - Public Works Committee - 12/21/1999

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Case #2: Disposition of Surplus Land Acquired for T.H. #47 Highway Project City Engineer Jankowski stated that the City has acquired a number of properties for the purpose of facilitating the T.H. #47 project. After conveying the necessary right-of-way to MnDOT for highway and related purposes, there will be three parcels, which have remaining economic value. Revenue from this surplus property could be utilized to offset the cost of the project. Parcel No. 1 is currently in negotiation for sale to ACCAP. Lord of Life Church has expressed interest in acquiring Parcel No.2. The City has received no inquiries into Parcel No.3. He also noted that the City will want to dedicate the right-of-access onto T.H. #47 to the State before divesting of the property to eliminate the existing and future accesses to the highway. This will enhance the traffic capacity of the highway and increase the safety of the roadway. Once the right-of-access is dedicated, the economic value of the property is largely limited to adjacent properties. Bill Dorn, representing Lord of Life Church, stated that the church needs to make a decision on their ultimate development plans. He explained that they had requested to exchange Parcel #2 with the City for the needed right-of-way, but would be willing to acquire the parcel by trade or sale. He encouraged the City to place the property on the market. City Engineer Jankowski explained in regards to the land exchange, that both parcels have been appraised by the same appraiser and essentially both parcels are appraised within eight to nine thousand dollars of each other with the Lord of Life property appraising higher. Mr. Dom stated that Parcel #2 would have a limited market since it would have limited access to T.H. #47. Councilmember Hendriksen stated that when the initial exploration was made in regards to the land exchange he thought there would be more of a disparity in the value of land. He would not be opposed to exploring the option to sell the property to interested parties, but would need to discuss the issue further with the City Attorney. Councilmember Connolly inquired if Lord of Life would still be interested in a land exchange knowing the appraised value difference. Pastor Blair Anderson, Lord of Life Church, stated that they would have to discuss the issue fitrther with the congregation. Councilmember Hendriksen requested that staff seek advice from the City Attorney and then proceed with his advice. Mr. Dom stated that he would recommend to the congregation to go ahead with a land exchange because they would need the fill that is on parcel #2, which would make the trade fair. Public Works Committee/December 21, 1999 Page 3 of 6