HomeMy WebLinkAbout05(G) - Authorize City Manager to Identify a Real Estate Agent to Assist with the Disposal of City-Owned Property at 13995 Hidden Lake Trail NE Report
ITEM: 5G
CITY COUNCIL AGENDA REPORT
MEETING DATE: May 12, 2026
PREPARED BY: Casey McCabe, Community Development Director
PRESENTED BY: Casey McCabe
AGENDA ITEM: Authorize City Manager to Identify a Real Estate Agent to Assist with the
Disposal of City-Owned Property at 13995 Hidden Lake Trail NE
RECOMMENDED ACTION:
Authorize the City Manager to identify a real estate agent to facilitate the sale of City-owned
property at 13995 Hidden Lake Trail NE.
BACKGROUND:
On March 10, 2026 the City Council approved a purchase agreement for the City to acquire real
property located at 13995 Hidden Lake Trail NE to accommodate the extension of Marsh Drive
NE between Hidden Lake Trail NE and Pike Lake Trail NE. City staff completed the closing and
acquired the property on March 18, 2026.
On April 14, 2026 the City Council approved a cooperative cost share agreement with Scott
County for the Marsh Drive extension project.
Bolton & Menk has been retained to complete a combined preliminary and final plat of the
approximate 4.67 acre parcel. The final plat will create an approximate 1.75 acre outlot north of
the southerly Marsh Drive NE right-of-way line. This parcel will remain owned by the City of Prior
Lake to facilitate the Marsh Drive extension and may provide future residential development
opportunities. The final plat will also dedicate the necessary CH42 right-of-way to Scott County
and would identify a new parcel of approximately 2.92 acres around the existing home for future
sale.
Staff is requesting the City Council authorize the City Manager to identify a real estate agent to
begin marketing the property prior to the approval and recording of the final plat.
Current Circumstances
Section 111 of Prior Lake City Code addresses disposal of City property and establishes a
process whereby the City may dispose of real or personal property. The City may dispose of real
property in a manner deemed by the City Council to be in the City’s interest; this may include
sealed bids, quotes, direct negotiation, auction, donation, exchange, real estate agent, or any
other method deemed to be appropriate.
When considering the sale of this property, it is staff’s position that due to the complexity of the
planned public improvement project, current platting process and sale of the existing single-family
home, a local real estate agent with expertise in single-family residential home sales and land
development sales is identified.
Conclusion
The City Council is not being asked to approve the sale of the property, only to authorize staff to
identify a local real estate agent to help determine market value, market the property and assist
City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372
Item 5G
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with negotiations. Once a potential purchaser is identified and a purchase agreement is provided,
staff will present the purchase agreement to the city council for consideration and approval.
FINANCIAL IMPACT:
The purchase of right-of-way for the Marsh Drive extension project is identified in the City’s Capital
Improvement Plan (CIP) and the Scott County Transportation Improvement Plan (TIP). Under the
terms of the Scott County cooperative agreement, Scott County will receive 50% of the net
proceeds of any sale of this property.
ALTERNATIVES:
1. Motion and second, as part of the consent agenda, authorizing the City Manager to identify
a real estate agent to facilitate the sale of City-owned property at 13995 Hidden Lake Trail
NE.
2. Remove this item from the consent agenda for additional discussion.