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HomeMy WebLinkAbout9B Property Donation Report Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: JULY 10, 2017 AGENDA #: 9B PREPARED BY: CASEY MCCABE, COMMUNITY DEVELOPMENT DIRECTOR PRESENTED BY: CASEY MCCABE AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ACCEPTING THE DONATION OF PROPERTY DESCRIBED AS OUTLOT A, UNIVERSAL ONE ADDITION DISCUSSION: Introduction The purpose of this agenda item is to consider approval of a resolution accepting the donation of real property. History Vitaliy Tereshkov and Lubov Tereshkov purchased Outlots E and F, Markley Lake Woods, in April 2016. Mr. and Mrs. Tereshkov received final plat approval of Universal One Addition from the Prior Lake City Council on June 12, 2017, which combined 0.60 acres of Outlot F, Markley Lake Woods into the lot area of newly created Lot 1, Block 1, Universal One Addition. The remaining area of Outlot F and Outlot E, Markley Lake Woods was replatted into Outlot A, Universal One Addition. Current Circumstances Mr. and Mrs. Tereshkov have no further use for Outlot A, Universal One Addition and have offered to donate the property to the City of Prior Lake. The property is located on the southern edge of Markley Lake, north of Prior Lake Machine, between Welcome Avenue and Industrial Circle. Outlot A, Universal One Addition has a land area of approximately 2.8 acres. Conclusion Minn. Stat. 465.03 allows cities to accept donations by resolution for the benefit of its citizens in accordance with the terms prescribed by the donor. In this case, the property would be donated via warranty deed with no restrictions on its use. ISSUES: City staff has visited the site and would like to ensure the council is fully aware of erosion and stormwater drainage issues on and adjacent to this property that will need to be addressed in the near and long-term. If the City accepts this property donation, the site would require improvements to address stormwater drainage and prevent further erosion. In the future, potentially in connection with a larger compensatory flood 2 storage project, more major repairs may be needed to direct stormwater as well as to repair and stabilize the Outlot’s steep slope. FINANCIAL IMPACT: City staff acknowledges there will be a cost to address the stormwater drainage and erosion issues; however, staff feels this would be a valuable property for the city to own in the future as it will likely be an integral component for long-term compensatory flood storage plans for Markley Lake. By accepting the property donation at this time, the City would not need to acquire this property for flood storage in the future. The property owners have requested the City Manager provide them with a letter indicating the value of this property is $45,000 for tax deduction purposes; $45,000 represents the amount Mr. and Mrs. Tereshkov paid for the property in 2016. When receiving donated property in the past we have provided such a letter which would be approved by the city attorney. ALTERNATIVES: 1. Motion and second to approve a resolution accepting the donation of real property. 2.Motion and second to deny a resolution accepting the donation of real property. 3.Provide direction to staff and continue discussion at a future meeting. RECOMMENDED MOTION: ATTACHMENT: Alternative No. 1. 1.Location Map 2.Universal One Addition Final Plat 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 17-___ A RESOLUTION ACCEPTING THE DONATION OF REAL PROPERTY TO THE CITY Motion By: Second By: WHEREAS, Minn. Stat. 465.03 allows cities to accept donations by resolution for the benefit of its citizens in accordance with the terms prescribed by the donor; and WHEREAS, Vitaliy Tereshkov and Lubov Tereshkov (“Owners”) own real property in the City of Prior Lake (“City”) legally described as Outlot A, Universal One Addition (“Property”); and WHEREAS, Owners desire to donate the Property to the City in fee with no restrictions on its use; and WHEREAS, The Property is adjacent to Markely Lake and is affected by storm water drainage issues. The City will likely incur future costs to address these drainage issues; and WHEREAS, Despite the drainage issues, the donation of the property will benefit the City as it will allow the City to utilize the Property in the future for storm water improvements and other uses beneficial to the public; and WHEREAS, The donation of the Property to the City has no relationship to the comprehensive plan and as such does not require Planning Commission review pursuant to Minn. Stat. 462.356, Subd. 2. 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 donation of the Property is accepted subject to the following contingencies: a. Owners shall provide title work for the Property that is acceptable to the City; b. Owners shall record the Plat of Universal One Addition; and c. The Property shall be transferred by warranty deed with no use restrictions. Passed and adopted by the Prior Lake City Council this 10th day of July, 2017 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager General Location Map Outlot A, Universal One Addition Subject Property