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Home My WebLink About5G Purchase and Conveyance of Tax Forfeited PropertyPRIO N U 4646 Dakota Street SE Prior Lake. NM 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: DECEMBER 19, 2011 AGENDA #: 5G PREPARED BY: JERILYN ERICKSON, FINANCE DIRECTOR PRESENTED BY: JERILYN ERICKSON, FINANCE DIRECTOR AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE PURCHASE AND CONVEYANCE OF TAX FORFEITED PROPERTY. DISCUSSION: Introduction The purpose of this agenda item is to consider the acquisition of four properties that have been forfeited to the State of Minnesota due to non - payment of proper- ty taxes and /or special assessments. History Minnesota State Statute 282.01 addresses the classification and sale of forfeited properties. Scott County Taxation Department notified the City on June 10, 2011 of three parcels (parcels #1 -3 below) that had been forfeited to the State of Min- nesota due to non - payment of property taxes. City staff was made aware of two additional parcels (parcels #4 -5 below) per discussions with County staff. On August 1, 2011, the City Council approved a resolution to approve parcel 1 for public auction and hold parcels #2 -5 for further consideration. PID Property Est. Appraised GIS Special Address Market Value Acreage Assess - Value ments 1 25- 436 -0520 3329 Wilds $136,000 $136,000 .45913 N/A Ridge NW (Wilds Ridge and McKenna 2 25- 064 -0033 N/A South of $2,200 $2,200 1.58692 Yes — orig- Rutledge next inal amount to Lakefront $14,740 Pond 3 25- 042 -0230 N/A Red Oaks $100 $100 .55153 N/A Road extended at the point 4 25- 141 -0861 N/A Northwood $3,000 $3,000 6.09614 N/A Road /Butternut Circle 5 25- 903 -0021 N/A Northwood $8,000 $4,800 3.45781 N/A Road /Butternut Circle On August 1, 2011, the City Council approved a resolution to approve parcel 1 for public auction and hold parcels #2 -5 for further consideration. Current Circumstances City Staff met with Cindy Geis, Scott County Director of Property and Customer Services to clarify the costs associated with the four forfeited parcels that were held from public auction if we acquired them for purposes of "storm water or wa- ter management." The council may-recall that each of the parcels is either lake bottom, part of a pond or in a drainage path associated with other public property. The costs are as follows: Pees far i4q irk, 6 Tax Ft�rf i .. r " � " 4 y t 0 11 11 ,.- t� 4�V�T �., I i R r +5 �q, `f' 1101 ;1 *'v"; ' i,+l b ill 1 (�I Purchase Price $ 100.00 $ 100.00 $ 100.00 $ 100.00 State Assurance Fee (3% of Sale Price) 3.00 3.00 3.00 3.00 State Deed Tax (.33% of Sale Price; $1.65 min) 1.65 1.65 1.65 1.65 Conservation Fee 5.00 5.00 5.00 5.00 State Deed Fee 25.00 25.00 25.00 25.00 County Recording Fee 46.00 46.00 46.00 46.00 County Administration Fee 150.00 150.00 150.00 150.00 Sheriff Fee 70.00 70.00 70.00 70.00 Well Certificate (if any) - - - - Total Fee $ 400.65 $ 400.65 $ 400.65 $ 400.65 The need for acquiring these parcels was also confirmed with the Director of Public Works /Natural Resources and the City Engineer. Upon acquisition, the City will receive a Conveyance of Forfeited Land deed that has a 'whereas' clause which states the property is being quit claimed to the City. The state worked with Attorney General and even though the statute refers to a quit claim deeds, the document is titled as a conveyance deed but does con- vey the property through quit claim per the language in the document. The Dept of Revenue states that title is transferred according to law. The city may retain the parcels forever as long as we continue to use them for the purposes specified on the deed. If we choose to dispose of them someday, they must be relinquished to the county who would act as the state's agent and would presumably sell the parcels on the open market unless conveyed to anoth- er public entity for a public purpose. The Planning Commission reviewed the parcels being considered for compliance with the Comprehensive Plan. The November 28, 2011 meeting minutes are at- tached confirming the Planning Commission's actions. Conclusion The City Council should consider adopting a resolution to authorize the acquisi- tion of the parcels #2 -5 in the above chart. Upon authorization, Staff will prepare the necessary paperwork and payment for the acquisition. ISSUES: The special assessments that were levied before the forfeiture for Parcel #2 have cancelled at forfeiture in their entirety. The City has the authority to go through the Special Assessment process again if the property is sold and under private ownership. This is not required, but optional to the City. If the City Council de- 2 cides to not acquire Parcel #2, the Council should consider whether or not to reassess the property. This shortfall in special assessments payments would be covered by debt service tax levies to pay the bond obligations associated with this project. FINANCIAL The chart above shows the charges and fees that would be required to acquire IMPACT: parcels #2 -5. Funds for these acquisitions will be drawn from the Water Quality Fund. ALTERNATIVES: The following alternatives are available to the City Council: 1. Adopt a Resolution Authorizing the Acquisition of Certain Tax Forfeited Prop- erties. 2. Table this item for a specific reason. RECOMMENDED Alternative 1. MOTION: o ir�+ P � u 4646 Dakota Street SE ',Nf -550 t ` Prior Lake, MN 55372 RESOLUTION 11 -xxx A RESOLUTION AUTHORIZING THE PURCHASE AND CONVEYANCE OF TAX FORFEITED PROPERTY Motion By: Second By: WHEREAS, Scott County, in accordance with MS 282.01, has notified the City of certain tax forfeited lands within the City; and WHEREAS, The City staff has reviewed each parcel to determine if the acquisition is necessary for storm water and water management purposes; and WHEREAS, The City Staff has identified four parcels that meet these criteria; and WHEREAS, The acquisition cost which includes purchase price and fees is $400.65 per parcel; and WHEREAS, The special assessments that were levied before the forfeiture for Parcel ID#25- 064 -0033 have cancelled at forfeiture in their entirety; and WHEREAS, Upon acquisition, the City will receive a Conveyance of Forfeited Land deed that has a'whereas' clause which states the property is being quit claimed to the City of Prior Lake. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The staff is directed to complete the required paperwork in order to acquire the following tax - forfeited properties: a. 25- 064 -0033 South of Rutledge next to Lakefront Pond b. 25- 042 -0230 Red Oaks Road extended at the point c. 25- 141 -0861 Near Northwood Road /Butternut Circle d. 25- 903 -0021 Near Northwood Road /Butternut Circle 3. The special assessments that were originally levied against PID #25- 064 -0033 will not be reassessed. 4. Funding for these acquisitions will be drawn from the Water Quality Fund. PASSED AND ADOPTED THIS 19th DAY OF DECEMBER, 2011. YES NO M ser M ser Erickson Erickson Hedberg Hedber Keeney Keene Soukup Souku Frank Boyles, City Manager CADocuments and Settings\cgreen \My Documents \SharePoint Drafts\Acquisition of 2011 Tax Forfeited Parcels - Resolution - 2011.12.19.doc Planning Commission Meeting Minutes November 28, 2011 PLANNING COMMISSION MINUTES MONDAY, November 28, 2011 1. Call to Order: Chairman Phelan called the November 28, 2011, Planning Commission meeting to order at 6:00 p.m. Those present were Commissioners Blahnik, Hite, and Phelan, Community & Economic Development Director Dan Rogness, Planner Jeff Matzke, Finance Director Jerilyn EricksQk and Community Development Assistant Peter Aldritt. 2. Approval of Agenda: MOTION BY HITE, SECONDED BY BLAHNIK TO APPROVE AGENDA AS PRESENTED. , 2011 MEETING VOTE: Ayes, Blahnik, Hite, and Phelan. The Motion 3. Consider Approval of November 14, 2011 MOTION BY HITE, SECONDED BY BLAHNIK TO AP MINUTES AS PRESENTED. n NOVEMBER 14, 2011 MEETING VOTE: Ayes, Blahnik, Hite, and Phelan. 6. N usine of Tax - Forfeited Properties for compliance with the Finance Direct ilyn Eric n presented the purpose of this agenda item is to consider the acquisition of four roes t have been forfeited by the State of Minnesota due to non - payment of property taxes and /o ssessments. The purpose for considering the acquisition of these four parcels is storm water er management. The Planning Commission's function is to review the proposed acquisitions etermine their compliance with the Comprehensive Plan. Commissioner Questions: Blahnik asked if the four parcels appeared to all be adjacent to bodies of water? Erickson responded two of the properties are adjacent to bodies of water. The two next to Northwood Rd. and Butternut Cir. are adjacent to Spring Lake Regional Park but there is a wetland area there. CADocuments and Settings\careen\My Documents \SharePoint Drafts\Acguisition of 2011 Tax Forfeited attachment.docr "' FI °C"' D, ^' NPI 1 Planning Commission Meeting Minutes November 28, 2011 MOTION BY BLAHNIK SECONDED BY HITE TO RECOMMEND THE ACQUISITION OF THE TAX FORFEITED PROPERTIES THAT ARE IN COMPLIANCE WITH THE COMPREHENSIVE PLAN TO CITY COUNCIL VOTE: Ayes, Blahnik, Hite, and Phelan. The Motion carried. 7. Announcements and Correspondence: 8. Adjournment: MOTION BY HITE SECONDED BY BLAHNI VOTE: Ayes, Blahnik, Hite, and Phelan. The The meeting adjou Peter Aldritt, Comm nt. N THE M C\Documents and Settings \cgreen\MyDocuments \SharePoint Drafts\Acquisition of 2011 Tax Forfeited attachment.docLAI 1 FILES4 PLA T'' C 2 250640033 This drawing is neither a legally recorded map nor a survey and is not intended to be used as one. This drawing is a compilation of records, information, and data located in various city, county, and state offices, and other sources affecting the area shown, and is to be used for reference purposes only. Scott County is not responsible for any inaccuracies herein contained. If discrepancies are found, please contact the Scott County Surveyors Office. Map Scale N inch = 622 feet W E_ e. Map Date 5/31/2011 S 250420230 This drawing is neither a legally recorded map nor a survey and is not intended to be used as one. This drawing is a compilation of records, information, and data located in various city, county, and state offices, and other sources affecting the area shown, and is to be used for reference purposes only. Scott County is not responsible for any inaccuracies herein contained. If discrepancies are found, please contact the Scott County Surveyors Office. Map Scale N inch = 458 feet W E Map Date 5/31/2011 S Scott County, MN 26 KMOLLRIDCi E DR NW 3027 3031 300 29113 1 2921 2435 I 2951 2997 211 11 - VAA 18407 3199 law 3189 3182 3124 32471 3183 0 3175 �.� 3147 3171 i� 18499 3124 1 3M 64530 {1). f'4 3 �Py 18845 183Yi 1657t 165M 3121 3133 18833 155 Property Information Parcel ID: 251410861 Year Built: Taxpayer Name: SCOTT COUNTY TAXATION Last Sale Date: Taxpayer Address1: 200 4 AVE W Last Sale Value: Taxpayer Address2: SHAKOPEE, MN 55379 Deeded Acreage: 0 Property Addressl: GIS Acreage: 6.09614 Property Address2: Zoning Classification: School District: 719 Legal Description: SubdivisionName NORTHWOOD Lot O -L Block OOA SubdivisionCd 25141 LYING S OF LINE 350' N OF SW COR OF NW1 /4 EX PLAT Estimated Land Value: $3,000 Plat Name: PLAT -25141 NORTHWOOD Estimated Buildings Value: $0 Block: OOA Total Estimated Market Value: $3,000 Lot: O -L Home Style: Unique Well & Boring No.: Prime Square Footage: Well Depth Drilled: Bedrooms: Well Date Drilled: Bathrooms: This drawing is neither a legally recorded map nor a survey and is not Map Scale intended to be used as one. This drawing is a compilation of records, 1 inch = 240 feet information, and data located in various city, county, and state offices, and other sources affecting the area shown, and Is to be used for reference purposes only. Scott County is not responsible for any inaccuracies herein Map Date contained. If discrepancies are found, please contact the Scoff County Surveyors Office. 7/6/2011 N W +E S Scott Scott County, MN This drawing is neither a legally recorded map nor a survey and is not intended to be used as one. This drawing is a compilation of records, information, and data located in various city, county, and state offices, and other sources affecting the area shown, and is to be used for reference purposes only. Scott County is not responsible for any inaccuracies herein contained. If discrepancies are found, please contact the Scott County Surveyors Office. Map Scale N 1 inch = 165 feet W E Map Date s cou 7/6/2011 S 2421 2435 2951 2967 2879 3327 3341 3M5 ,6427 lam L8N171 =N G1R NV�1 3147 16869 tel71 16'95 16491 ,efi99 16511 16545 16m 16533 Property Information P rcel ID: 259030021 Year Built: Taxpayer Name: SCOTT COUNTY TAXATION Last Sale Date: Taxpayer Address1: 200 4 AVE W Last Sale Value: Taxpayer Address2: SHAKOPEE, MN 55379 Deeded Acreage: 3.2 Property Addressi: GIS Acreage: 3.45781 Property Address2: Zoning Classification: School District: 719 Legal Description: Section 03 Township 114 Range 022 P/O GOVT LOT 5 LYING S OF LINE COM 350'N OF SW COR NW1 /4 EX PLAT OF NORTHWOOD OAKS ESTATES Estimated Land Value: $8,000 Plat Name: Estimated Buildings Value: $0 Block: Total Estimated Market Value: $8,000 Lot: Home Style: Unique Well & Boring No.: Prime Square Footage: Well Depth Drilled: Bedrooms: Well Date Drilled: Bathrooms: This drawing is neither a legally recorded map nor a survey and is not intended to be used as one. This drawing is a compilation of records, information, and data located in various city, county, and state offices, and other sources affecting the area shown, and is to be used for reference purposes only. Scott County is not responsible for any inaccuracies herein contained. If discrepancies are found, please contact the Scott County Surveyors Office. Map Scale N 1 inch = 165 feet W E Map Date s cou 7/6/2011 S