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Home My WebLink About9B - Eminent Domain CITY COUNCIL AGENDA REPORT MEETING DATE: JULY 17, 2000 ~111111\\I~~!~~~~\!j\j\~jj\j\I\\~i~i~~~i~~~i~~~~IIM~~~BIlIII~~~i~~~~i~~i~ii~iii\iii\ii\\\j\\\\j~j~\j!~!:i!~iiiiiiii:iiii\i\\\\!\\\~\~~~~~~~i~:~ii~~~i~~\i~j\::\\j\:!~:~~~:~~~~~i~i~i~i~i~:~:\i::\:j\\:i:\i\:~:~:~i~:~i~i~ii:~iii~:~:~i~iii~i~i~i~i~i~i~i~i~i~i~i~:~i~i~i~i~i~i~i~i~i~i~i~i~i~i~i~i~i:i~i~~~::i:~:!:i:::\i:\\j:i\:i~:ii~iii~ii:~ii:i:i:::i:iij:j:i:i:~i~ii:i:ii~:iii:~:i:i:~i:::ii::::::::::::ii:, PREPARED BY: FRANK BOYLES, CITY MANAGER AGENDA ITEM: CONSIDER APPROVAL OF RESOLUTION OO-XX AUTHORIZING INITIATION OF EMINENT DOMAIN PROCEEDINGS PURSUANT TO MN. STAT. CH. 117 TO ACQUIRE FEE TITLE TO .89 ACRES OF PROPERTY LOCATED AT 16675 FRANKLIN TRAIL S.E. DISCUSSION: History: The City Council is aware that senior housing is an important element of meeting the needs of a growing segment of the Prior Lake population. Accordingly, the City has undertaken study and prepared plans to redevelop and revitalize commercial areas including areas that are available for senior housing. To be effective, senior housing is enhanced when it is proximate to businesses and services which senior use and need. Current Circumstances: The City has been approached by an organization with extensive experience in assisted and market-rate senior housing. This organization has acquired a parcel from Park Nicollet Medical Center for this purpose. To proceed, however, it is necessary for them to assemble a larger parcel which would include the T J Towing property. The T J Towing parcel is approximately .89 acres. I have approached a realtor who represents the Contract "'r r"'\__.J ...._I.J-r of this property, and made an offer to purchase the property. The offer was rejected with no counter-offer. I will be meeting with the Contract Holder before the Council meeting to further discuss this subject. I am very concerned about the public health and safety hazard created by the storage and towing operation on this parcel. The property houses numerous vehicles in various stages of damage due to collisions. In addition to a considerable number of auto parts, rubber tires, batteries and other materials, it is reasonable to assume that battery, transmission, oil, steering and brake fluid have contaminated the property. Conclusion: This property constitutes a blight and potential public health and safety risk. It is my recommendation that the City Council consider adopting a resolution authorizing initiation of an eminent domain proceeding to acquire this property. Such a resolution is attached. 16200 Eagle Creek Ave. SE, Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 1:\COUNCIL\AGNRPTS\2000\0717 _9B.DOC AN EQUAL OPPORTUNITY EMPLOYER Adoption of the attached resolution does not require the Council to condemn the property, but simply authorizes the City Attorney to initiate the process. The property could still be acquired through a negotiated purchase. ISSUES: Eminent domain is not to be taken lightly. However, the staff has attempted to acquire the property through negotiation and failed. A developer has invested in property adjacent to this facility and is prepared to proceed with a project which will help a growing segment of Prior Lake's population and the vitality of our community but requires the land to do so. Even if the project fails, I believe the public is best served by removing this blight and potential public health and safety hazard, and as such, the City has a valid public purpose for acquiring the property. ALTERNATIVES: (1) Adopt Resolution aD-XX authorizing initiation of eminent domain proceedings pursuant to MN Stat. Ch. 117 to acquire fee title to .89 acre of property located at 16675 Franklin Trail S.E., Prior Lake, MN. (2) Defer action pending additional information. RECOMMENDED MOTION: Alternative (1 ). Once the resolution is adopted, the staff will attempt to work with the property owner to determine whether a negotiated sale is possible. If not, the staff would recommend that the City proceed with eminent domain to facilitate an expeditious acquisition and clean-up of this property. Funding for this acquisition is to be provided through tax increment financing. 1:\COUNCIL\AGNRPTS\2000\0717 _9B.DOC . dT WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, RESOLUTION OO-XX Motion By: Second By: the City of Prior Lake has undertaken studies and plans to redevelop and revitalize its commercial areas; and the City of Prior Lake has determined that senior housing is an important element of meeting the needs of a growing segment of Prior Lake's population; and the City Council of Prior Lake believes that the location of senior housing is enhanced when it is in proximity to the businesses and services seniors use and need; and the City of Prior Lake believes that the development and marketability of senior housing and commercial revitalization is impeded by blighted property; and the City Council of Prior Lake believes that economic redevelopment is impeded by property that pose environmental risks; and the City Council of Prior Lake believes that economic redevelopment and revitalization of the downtown area and the development of senior housing in and around the downtown and other business and commercial areas will be enhanced and accelerated by the elimination of property that are blighted and pose potential public health and safety risks; and the City Council of the City of Prior L.ake has determined that one of the roles of government should be to encourage the development of senior housing, encourage economic redevelopment and eliminate potential risks to the public's health and safety from properties that pose potential environmental risks; and the City Council of the City of Prior Lake does hereby determine that it is necessary and for a public purpose to acquire the property described on the attached Exhibit "A" to eliminate blight, eliminate a potential for environmental degradation, eliminate a public safety problem, and provide for senior housing; and the City has been unable to acquire the property through negotiation and purchase. Now THEREFORE, be it resolved by the City Council of the City of Prior Lake that the following are hereby adopted: 1. The recitals set forth above are incorporated herein as if fully set forth. 16200 Eagle Creek Ave, S,E,. Prior Lake. Minnesota 55372-1714 / Ph, (612) 447-4230 / Fax (612) 447-4245 AN EQU,;L OPPORTlF\ITY E:.IPLOYER -,..._-,..,,-,...,,_..'.....-T"'.. ". 2. The City Attorney is authorized to commence eminent domain proceedings pursuant to Minnesota Statute Chapter 117 to acquire fee title to the property described on the attached Exhibit "A". 3. The Mayor and City Manager are authorized to execute all documents necessary in the opinion of the City Attorney to effect the acquisition of the necessary property interests. PASSED AND ADOPTED THIS 17TH DAY OF JULY, 2000. Mader Mader Ericson Ericson Gundlach Gundlach Petersen Petersen vacant vacant YES NO {Seal} City Manager, City of Prior Lake 1:\COUNCIL\AGNRPTS\2000\T JRESO.DOC EXHIBIT "A" Legal Description The West Half of the Southeast Quarter of Section 02, Township 114, Range 22, Scott County, Minnesota, described as follows: Commencing at the intersection of the east line of the west half of the Southeast Quarter of Section 2, Township 114, Range 22, and the southerly right-of-way of County Road 39; thence south 87 degrees, 29 minutes, 19 seconds west 150 feet; thence south 00 degrees, 8 minutes, 19 seconds west 256.44 feet; thence south 89 degrees, 51 minutes, 41 seconds east 149.84 feet to the easterly line of the West half of the Southeast Quarter; thence north 00 degrees, 8 minutes, 19 seconds east 263.38 feet to the point of beginning. Property Address: 16675 Franklin Trail Southeast, Prior Lake, MN General Location: North of and adjacent to Franklin Trail Southeast and east of the service road, 1/2 block east of State Trunk Highway 13. 1:\COUNCIL\AGNRPTS\2000\T JRESO.DOC "'T