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2. 1. <br /> CC Work Session <br /> Meeting Date: 02/13/2024 <br /> PrimaryStrategic Plan Initiative: Create a positive image for residential neighborhoods,business districts and key <br /> g corridors. <br /> Information <br /> Title: <br /> Review Oak Terrace Land Sale and Development Plan <br /> Purpose/Background: <br /> Staff has been working with City Attorney Knaak and Jonathan Septer, the Oak Terrace Attorney, for the past two <br /> years to bring resolution to a property line dispute between the City and Oak Terrace. City Staff has also been <br /> working with the ownership of the park to work through building related and code enforcement related items not <br /> related to the property line dispute. Progress has been made in this area. This action dates back to City Attorney <br /> Langel and his position,which has been affirmed by Attorney Knaak,that Oak Terrace is trespassing and does <br /> not have any adverse possession rights over public land. Staff previously discussed two options with the Council <br /> relating to the sale of city property to Oak Terrace. Option 1 would be to sell 12,265.7 square feet, which would <br /> bring the property into compliance(removing the encroachment)with the property line dispute and square off the <br /> lot with the adjacent parcel. Option 2 would be to sell 4520.3 square feet,which would only solve the property line <br /> dispute but would create an odd remnant that likely would lead to future encroachment by the park and its <br /> tenants. Entering into an encroachment agreement, rather than a sale,to bring the property into compliance was <br /> also discussed,but it was not the preferred action based on the required monitoring and the likelihood that the <br /> park would spill over past the new area encumbered by an encroachment agreement. Staff has obtained an <br /> appraisal for both Option 1 and Option 2. Staff prefers Option 1. <br /> Oak Terrace prefers Option 1 which would square off the lot, and they are willing to pay the appraisal amount of <br /> $41,100 plus legal costs. As part of this purchase agreement/dispute settlement, Oak Terrace is asking to add six <br /> additional homes onsite to help recoup the cost of the expense of the land acquisition. It also gives them an <br /> opportunity to rearrange a few homes over city services, and to pave more area for parking. Planning and <br /> engineering have reviewed the proposed site plan and home locations and are satisfied with the layout. <br /> Additional easements may be obtained to ensure that City infrastructure is accessible. Staff believes the squaring <br /> off the lot prevents future issues and makes the land to the west more marketable without a small flag remnant <br /> and is supportive of the proposed purchase agreement. It should also be noted that because this action is <br /> considered a dispute settlement,there is an allowance of the expansion of a legal non-conforming (six more <br /> homes)use that has been confirmed by City Attorney Knaak. <br /> If the City Council determines that it would like to recommend Option 1 or 2,the Purchase Agreement would <br /> need to be sent to the Met Council(RALF Division) for review. If the purchase agreement is deemed acceptable, <br /> Staff would bring it back to the City Council for approval at a later date. <br /> Timeframe: <br /> 1 to 2 months <br /> Funding Source: <br /> All proceed from the sale of property would be returned to the RALF program; the City will not receive any <br /> revenue. Legal costs are being placed on the Buyer. <br /> Responsible Party(ies): <br />