Loading...
HomeMy WebLinkAbout07(A) - Resolution Approving a Public Property Use Change and Authorizing the Disposal of Tax-Forfeited Land Report ITEM: 7A CITY COUNCIL AGENDA REPORT MEETING DATE: September 22, 2026 PREPARED BY: Casey McCabe, Community Development Director PRESENTED BY: Casey McCabe AGENDA ITEM: Resolution Approving a Public Property Use Change and Authorizing the Disposal of Tax-Forfeited Land RECOMMENDED ACTION: Approval of a resolution approving a public property use change and authorizing the disposal of tax-forfeited lands. BACKGROUND: The City of Prior Lake had a $60 million parks and trails bond referendum on the ballot last November which, if approved, would have funded major park upgrades, park enhancements and maintenance needs throughout the city’s park and trail system. The referendum did not advance. The referendum proved beneficial as it initiated many thoughtful conversations throughout the community about park and trail needs. The message received by the City Council and City staff through these conversations and the result of the vote was: 1. The community appreciates and takes pride in the City’s park system. 2. The community recognizes the park and trail maintenance needs. 3. There is a desire for enhancing our parks where appropriate. 4. A referendum is not the way the community wants to fund these improvements. It was with that understanding and in that spirit the City Council and staff evaluated options, other than increasing the tax levy, to fund some of the immediate and high priority park maintenance items as well as reduce ongoing operational costs. One of those options is the sale of underutilized City-owned parcels throughout the community. Current Circumstances The City of Prior Lake acquired several parcels which were previously forfeited to the State of Minnesota for the nonpayment of taxes via Conveyance of Forfeited Lands in 1994. Pursuant to Minnesota Statutes Section 282.01, Subd. 1a, the City of Prior Lake applied to the Commissioner of Revenue for the conveyance of lands to be used for public purposes. The parcels were transferred to the City on September 16, 1994 and the Conveyance of Forfeited Lands was recorded in the office of the Scott County Recorder on November 28, 1994 as Document Nos. 345833 & 345834. Two of the three subject parcels being considered for change of use and disposal as part of this report are located along Shady Beach Trail NE and the third parcel is located along Manitou Road NE. These parcels are vacant and do not have a street address. The Shady Beach Trail parcels are riparian lots generally located on the 14300 block of Shady Beach Trail along the southeast side of the street. These parcels are legally described as Lots 13 & 14, Shady Beach No. 2 (PIDs 250460140 & 250460150) and were conveyed to the City of Prior City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 Item 7A Page | 2 Lake in 1994 for park & stormwater retention purposes. Scott County GIS indicates the two Shady Beach Trail parcels total approximatley 0.7 acres; however, much of the platted land area lies beneath the 904’ ordinary high water level. A property survey is currently being completed to confirm the developable area which staff believes will be around 0.3 to 0.35 acres. There is an existing stormwater pipe located near the northern property line where a drainage and utility easement would need to be dedicated prior to a sale. Staff is recommending both parcels be combined and sold as one single-family residential lot. The Manitou Road parcel has a metes & bounds description and is generally located on the 14900 block along the northwest side of Manitou Road (PID 259260250). This parcel was conveyed to the City of Prior Lake in 1994 for park purposes. The Manitou Road parcel is approximatley 1.81 acres. Staff is recommending this parcel be subdivided into single-family residential lots that are consistent in width and area to the surrounding neighborhood. Although not programmed space, the Manitou Road parcel is identified as being included in the Raspberry Woods Park area in the Park and Trail System Plan within the 2040 City of Prior Lake Comprehensive Plan. An amendment to the comprehensive plan would be required to remove this parcel from the Raspberry Woods Park area prior to disposing of the parcel. When these parcels were conveyed to the City from the Department of Revenue, the conditional use deed included use restriction and reverter language requiring the City to use the land for a public purpose along with a condition that if such use shall cease, the land shall revert to the State of Minnesota. In 2010, Minnesota Statutes 282.01, Subd. 1d.(d) was amended to include language stating a conditional use deed is released from the use restriction and reverter 30 years from the date the deed was acknowledged. More than thirty years has passed since the conveyance document was issued and recorded, so these parcels are released from the use restriction and reverter and are able to be disposed of. Minnesota Statutes 282.01, Subd. 12 identifies a requirement for a governmental subdivision to hold a public hearing if a parcel was acquired for public use and a city later determines to change the use. City staff does not believe the public hearing requirements identified in this subdivision apply in this case since the use restriction and reverter are released; however, in the interests of transparency, the City Council and staff felt it was important to hold a voluntary public hearing to allow for public testimony since the subject parcels have been under City ownership for more than three decades. Disposal of Property Prior Lake City Code Sec. 2-232 identifies the process and methods for disposal of real 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. Conclusion The attached resolution acknowledges the City is removing the identified public purpose criteria of park and stormwater retention for the parcels, authorizes the City Manager to proceed with the disposal of the subject parcels and directs staff to prepare a comprehensive plan amendment for consideration by the planning commission to remove the Manitou Road parcel from the Park and Trail System Plan. Item 7A Page | 3 Should the council wish to proceed with the property sale, staff would request direction on how the council wishes to dispose of the property. When considering the sale of these parcels, staff recommends utilizing sealed bids. Any potential property sale woudl be brought back to the City Council for formal action. FINANCIAL IMPACT: The sale of the subject properties would provide non-tax levy revenue which could be used to advance necessary park improvements throughout the community, place three currently property tax exempt parcels back on the tax roll, create potentially four new buildable residential parcels to enhance the city’s tax base, and decrease maintenance responsibilities for public works staff. ALTERNATIVES: 1. Motion and a second approving a resolution approving a Public Property Use Change, authorizing the City Manager to proceed with the disposal of the subject parcels and directing staff to prepare a comprehensive plan amendment to remove the Manitou Road parcel from the Park and Trail System Plan. 2. Provide direction to staff and continue discussion at a future meeting. ATTACHMENTS: 1. Location Map – Shady Beach Trail Parcel 2. Location Map – Manitou Road Parcel 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 26- A RESOLUTION APPROVING A PUBLIC PROPERTY USE CHANGE AND AUTHORIZING THE DISPOSAL OF TAX-FORFEITED LAND Motion By: Second By: WHEREAS, the City of Prior Lake acquired several parcels which were previously forfeited to the State of Minnesota for the nonpayment of taxes via Conveyance of Forfeited Lands in 1994; and WHEREAS, pursuant to Minnesota Statutes Section 282.01, Subd. 1a, the City of Prior Lake applied to the Commissioner of Revenue for the conveyance of lands to be used for public purposes; and WHEREAS, the parcels were transferred to the city on September 16, 1994 and the Conveyance of Forfeited Lands was recorded in the office of the Scott County Recorder on November 28, 1994 as Document Nos. 345833 & 345834; and WHEREAS, on September 22, 2026 the Prior Lake City Council held a public hearing to consider a resolution approving a public property use change and authorizing the disposal of tax- forfeited lands for three parcels acquired via Document Nos. 345833 & 345834; and WHEREAS, the legal description of the three parcels considered for public property use change and disposal are: Lots 13 & 14, Shady Beach No. 2 (PIDs 250460140 & 250460150) and All that part of Government Lot 1 Section 26, Township 115, Range 22, Scott County, Minnesota, described as follows: Commencing at a point on the Northerly line of Lila Lane in the Plat of Kopp's Bay 2nd Addn, said point at right angles to the Southerly line of said lane at the Northerly corner of Lot 7 in said plat; thence South 62 degrees 48 minutes West 3 feet to the point of beginning; thence North 41 degrees 41 minutes West 376.23 feet; thence South 46 degrees 25 minutes West 130 feet; thence South 36 degrees 33 minutes East 332.09 feet to a point on the Northerly line of Lila Lane; thence North 62 degrees 48 minutes East 165 feet to the point of beginning. All that part of Government Lot 1 Section 26. Township 115, Range 22, Scott County, Minnesota, described as follows: Commencing at a point on the Northerly line of Lila lane in the plat of Kopp's Bay 2nd Addn. said point at right angles to the Southerly line of said lane at the Northerly corner of Lot 7 in said plat: thence South 62 degrees 48 minutes West along said Northerly line 168 feet to the point of beginning: thence North 36 degrees 33 minutes West 332.09 feet: thence South 46 degrees 25 minutes West 119 feet: thence South 39 degrees 45 minutes East 301.3 feet to a point on said Northerly line: thence North 62 degrees 48 minutes East 102.63 feet to the point of beginning (PID 259260250); and WHEREAS, although not programmed space, the PID 259260250 parcel is identified as being included in the Raspberry Woods Park area in the Park and Trail System Plan within the 2040 City of Prior Lake Comprehensive Plan; and WHEREAS, an amendment to the comprehensive plan would be required to remove this parcel from the Raspberry Woods Park area prior to disposing of the parcel; and WHEREAS, when these parcels were conveyed to the city from the Department of Revenue, the conditional use deed included use restriction and reverter language requiring the city to use the land for a public purpose along with a condition that if such use shall cease, the land shall revert to the State of Minnesota; and WHEREAS, in 2010, Minnesota Statutes 282.01, Subd. 1d.(d) was amended to include language stating a conditional use deed is released from the use restriction and reverter 30 years from the date the deed was acknowledge; and WHEREAS, the subject parcels are released from the use restriction and reverter and are able to be disposed of as more than thirty years has passed since the conveyance document was issued and recorded. 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 as if fully set forth. 2. The sale of the subject properties would provide non-tax levy revenue which could be used to advance necessary park improvements throughout the community, place three currently property tax exempt parcels back on the tax roll, create potentially four new buildable residential parcels to enhance the city’s tax base, and result in decreased maintenance responsibilities for public works staff. 3. The City Council hereby approves a Public Property Use Change releasing the subject parcels from the public property use purposes of Parks and Stormwater Retention. 4. The subject parcels are hereby released from the use restriction and reverter language and are able to be disposed of as more than thirty years has passed since the conveyance document was issued and recorded. 5. The City Manager is hereby authorized to proceed with the disposal of the subject parcels. Fomal action of the City Council is required prior to disposing of the subject parcels. 6. City staff is directed to prepare a comprehensive plan amendment for Planning Commission and City Council consideration to remove the PID 259260250 parcel from the Park and Trail System Plan. nd Passed and adopted by the Prior Lake City Council this 22 day of September 2026. VOTE Briggs Braid Churchill Lake Hellier Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ _______________________ Jason Wedel, City Manager C:\\Users\\hsimon\\AppData\\Local\\Temp\\Res. Property Use Change and Disposal of Property_678730\\Res. Property Use Change and Disposal of Property.docx 2 Location Map Shady Beach Trail Parcels (PIDs 250460140 & 250460150) Location Map Manitou Road Parcel (PID 259260250)