HomeMy WebLinkAbout5F Rolling Oaks Circle Property Acquisition 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: NOVEMBER 20, 2017
AGENDA #: 5F
PREPARED BY: JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER
PRESENTED BY: JASON WEDEL
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING ACQUISITION OF
PROPERTY FOR THE ROLLING OAKS CIRCLE IMPROVEMENT PROJECT
DISCUSSION: Introduction
This agenda item is necessary to approve the acquisition of property for the Rolling
Oaks Circle project. The property acquisition is required for the construction of
storm water improvements related to the project.
History
The City Council approved the plans and specifications and authorized the adver-
tisement for bids for the Rolling Oaks Circle improvement project on July 24, 2017.
Bids were received on August 24, 2017 and the City Council approved the low bid
and entered into a construction contract with Heselton Construction on September
5, 2017 for the project improvements.
Prior to this project, Rolling Oaks Circle was a gravel street and the existing homes
were served by private well and septic systems. The project improvements include
the extension of sanitary sewer and watermain as well as the construction of curb
and gutter and bituminous pavement.
With the improvement of the street it is necessary to construct storm sewer and a
biofiltration basin to collect the storm water runoff from the new roadway and treat it
prior to exiting the project area. This is necessary to meet the requirements of the
City’s storm water regulations and the permit requirements of the Prior Lake Spring
Lake Watershed District. The drainage from this site ultimately discharges into Pike
Lake.
Current Circumstances
There is currently insufficient right-of-way to facilitate the construction of the required
biofiltration basin. It is therefore necessary to acquire property for the construction
of basin.
City staff have been negotiating with Patrick and Margaret Sames who own the
property at 14030 Rolling Oaks Circle to purchase a portion of their property to con-
struct the basin. Their property is located at the low point of the roadway and is the
logical location for this improvement.
2
The proposed acquisition includes purchasing a portion of the property as well as
obtaining a drainage and utility easement over an area on the remaining parcel that
will be retained by the Mr. and Mrs. Sames. Typically the City would purchase all
of the property necessary to construct the improvements. However, the City did not
want to leave the Sames’ with a lot that does not meet the City’s requirements for
width, area, and setbacks which would put them in a situation where they have a
non-conforming lot. As shown on the attached exhibit, Tract B will the lot that will
be retained by the Sames’ which is in conformance with all City requirements for a
single family lot within the R-1 zoning district.
A Project M
Conclusion
Mr. and Mrs. Sames have agreed to the City’s purchase agreement. The next steps
include City Council approval of the purchase agreement and then a closing for the
actual purchase will be scheduled. The creation of the new parcels will be done
assuming that the city council approves agenda item 5M which waive the platting
requirements for the subject lot.
ISSUES: The proposed purchase price for the acquisition was calculated as follows:
After review of recent purchases of vacant land within the City of Prior Lake, the
price per acre paid ranged from $80,000 to $120,000 for residentially zoned prop-
erty. This equates to $1.83 to $2.75 per square foot. Due to this being a fairly small
acquisition, the high point of the range was used at $2.75 per square foot. In addi-
tion, typically the price paid for an easement would be less than an out right pur-
chase since the owner still retains ownership of the property, but it was decided to
use the same $2.75 per square foot for the easement acquisition as well to be con-
servative.
Area (sq. ft.) Price Total
Property purchase 18,871 $2.75 $51,895.25
Easement purchase 3,856 $2.75 $10,604.00
Total $62,499.25
The budget for acquisition included in the feasibility report was $67,200. It was
therefore decided to offer the full $67,200 to expedite the acquisition.
After Mr. and Mrs. Sames reviewed the offer they presented the City with a counter
proposal. They incurred legal costs of $200 to review the proposed purchase agree-
ment as well as appraisal costs of $1,000 for an independent evaluation of the value
of the acquisition. Their counter offer requested that these additional costs be
added to the purchase price making the total purchase price $68,400. This price
was tentatively agreed to and is what is included in the purchase agreement being
presented this evening.
The price also includes some tree removal (but retains existing buffer) as well the
addition of eight conifers to assure year round screening.
FINANCIAL
IMPACT:
Property acquisition was originally estimated to be $67,200. The proposed pur-
chase agreement is for $68,400. The difference of $1,200 will be an additional cost
and is proposed to come out of the City Storm Water fund.
3
ALTERNATIVES: 1) Motion and second to approve a Resolution Authorizing Property Acquistion for
the Rolling Oaks Circle Improvement Project as part of the consent agenda.
2) Motion and second to remove this item from the consent agenda for additional
discussion.
RECOMMENDED
MOTION:
Motion and Second for approval of alternative #1.
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 17-___
A RESOLUTION AUTHORIZING ACQUISITION OF PROPERTY FOR THE ROLLING OAKS
CIRCLE IMPROVEMENT PROJECT
Motion By: Second By:
WHEREAS, On July 24, 2017, the City Council approved resolution 17-120 ordering the Rolling
Oaks Improvement Project; and
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
On September 5, 2014, the City Council approved resolution 17-134 awarding bids
and authorizing the Mayor and City Manager to enter into the City’s standard
construction contract for the Rolling Oaks Improvement Project; and
It is necessary to construct a biofiltration basin to meet the storm water treatment
requirements of the Prior Lake Spring Lake Watershed District as outlined in Permit
#17.04; and
An agreement has been reached with the property owners at 14030 Rolling Oaks
Circle for the acquisition of property and easement in the amount of $68,400; and
The Council finds that the proposed acquisition is for storm water purposes and
has no relationship to the comprehensive plan”
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 City of Prior Lake hereby authorizes property acquisition in the amount of $68,400 for
the Rolling Oaks Improvement Project.
PASSED AND ADOPTED THIS 20th DAY OF NOVEMBER 2017
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager
897897 898 900 902902898900902902 904 905 900905897895 910 905 HIGHW
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