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HomeMy WebLinkAbout05(H) - Resolution Accepting the Donation of Real Property from KRB Development II, LLCCITY COUNCIL AGENDA REPORT ITEM: SH MEETING DATE: PREPARED BY: PRESENTED BY: AGENDA ITEM: June 10, 2025 Paul Moretto, Planner Casey McCabe, Community Development Director Resolution Accepting the Donation of Real Property from KRB Development II, LLC RECOMMENDED ACTION: Approval of a resolution accepting the donation of real property. BACKGROUND: The City of Prior Lake has been approached by the owners of two outlet parcels asking if the city would accept a donation of the property. Minn. Stat. 465.03 states, any city, county, school district or town may accept a grant or devise of real or personal property and maintain such property for the benefit of its citizens in accordance with the terms prescribed by the donor. Nothing herein shall authorize such acceptance or use for religious or sectarian purposes. Every such acceptance shall be by resolution of the governing body adopted by a two-thirds majority of its members, expressing such terms in full. Current Circumstances Staff feels city ownership of both parcels would serve a public purpose and bring long-term strategic value to city operations. City of Prior Lake I 4646 Dakota Street SE I Prior Lake MN 55372 Parcel 1 PIO 255150430 is a 0.58 acre parcel located north of Crecit River Road. This parcel was platted as Outlet D, Markley Lake Woods in 2015 and is owned by KRB Development 11, LLC. Staff supports the acceptance of this donated property as there are sanitary sewer and stormwater utilities beneath the parcel. In addition the property currently functions as an access route to the Public Works facility at 5660 Credit River Road SE. Formal City acquisition would secure this use and prevent potential encumbrances. Item 5H Page 12 Conclusion KRB Development II, LLC is proposing to donate the parcel identified above to the City of Prior Lake with no restrictions on their use. FINANCIAL IMPACT: Staff anticipates a minimal financial impact to existing department budgets related to administrative costs (e.g., legal review, recording fees, etc.) The City of Prior Lake will be responsible for a proportional share of property taxes due from the date of transfer for the remainder of 2025. If the donation is accepted, city staff will submit a property tax exemption form for both parcels for taxes payable in 2026 following the property transfer. ALTERNATIVES: 1.Motion and second, as part of the consent agenda, accepting the donation of real property from KRB Development II, LLC 2.Remove this item from the consent agenda for additional discussion. ATTACHMENTS: 1.Resolution 4646 Dakota Street SE Prior Lake. MN 55372 RESOLUTION 25-_ A RESOLUTION ACCEPTING THE DONATION OF REAL PROPERTY FROM KRB DEVELOPMENT 11, LLC Motion By: Second By: --------- WHEREAS, Minn. Stat. 465.03 states, any city, county, school district or town may accept a grant or devise of real or personal property and maintain such property for the benefit of its citizens in accordance with the terms prescribed by the donor. Nothing herein shall authorize such acceptance or use for religious or sectarian purposes. Every such acceptance shall be by resolution of the governing body adopted by a two-thirds majority of its members, expressing such terms in full; and WHEREAS, KRB Development II, LLC ("KRB") is the owner of real property in the City of Prior Lake legally described as: Out/at 0, Markley Lake Woods, Scott County, MN (PIO 255150430) ("Parcel 1''); and WHEREAS, WHEREAS, WHEREAS, KRB desires to donate the Parcel to the City of Prior Lake at no cost and with no restrictions on their use; and the Prior Lake City Council considered the donation of real property from KRB to the City of Prior Lake on June 10, 2025; and the City Council found acceptance of the Parcel serves a valid public purpose by supporting City infrastructure, enhancing public access to park and maintenance facilities, and providing future opportunities for infrastructure, stormwater, and transportation projects. 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 Council accepts the donation of PIO 255150430 from KRB Development II LLC. 3.The City Manager and City Attorney are hereby authorized to execute all necessary documents and take appropriate steps to accept the property donation. 4.The City Council finds the acceptance of these parcels to be in the public interest. 5.The donation of the Parcel to the City of Prior Lake has no relationship to the Comprehensive Plan, and as such does not require Planning Commission review pursuant to Minn. Stat. 462.356, Subd. 2. Passed and adopted by the Prior Lake City Council this 10th day of June 2025. VOTE Briggs Braid Churchill Lake Hellier Aye □ □ □ □ □ Nay □ □ □ □ □ Abstain □ □ □ □ □ Absent □ □ □ □ □ Jason Wedel, City Manager 2