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HomeMy WebLinkAbout10A - Pavlish Property MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT DECEMBER 4, 2006 10A STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS CONSIDER APPROVAL OF A REPORT AUTHORIZING STAFF TO INVESTIGATE GRANT FUNDING FOR THE ACQUISITION OF PAVLlSH PROPERTY LOCATED ON PIKE LAKE Introduction The purpose of this agenda report is to update the City Council on the potential for grant funding to acquire the Pavlish Property located on Pike Lake for park land. Historv Over the past 6 months City Staff has met twice with The Trust for Public Land regarding the Pavlish Property located on Pike Lake as shown on the attached figure. The Pavlish Family is interested in selling the land to the Trust to preserve it as a recreational natural area. The attached map shows the Pavlish Property along with nearby City and adjacent parcels. The property is split into two separate parcels that total 30 acres of which 16 acres is upland non- wetland or lake. The Trust works with communities to acquire land at greatly reduced costs to preserve it for public use. The Trust actively pursues grants to provide the necessary subsidies. Once acquired the Trust typically turns the land over to the government entity as a public park. The only caveat is that there are typically restrictions based on the grants utilized for funding as to what the park can be used for. Restrictions similar to those the City has on the Kop Farm property would be expected. The Trust has appraised and obtained a purchase option for the property of $1,875,000 that expires sometime next fall. The Trust initially asked that the City provide approximately $700,000 of the total purchase price. After evaluating our funding sources we informed them that would not be possible. The trust has now requested that the City participate in the purchase by funding between $375,000 and $500,000. The minimum amount of $375,000 is necessary to apply for the grants required to fund the purchase. Current Circumstances The Trust has requested that the City support the pursuit of grants for acquisition of the property. In order to pursue the grants the City Council must support a minimum commitment of $375,000. The City's support is contingent on the outcome of the grant funding applications and a formal agreement. However in order to pursue the grants to determine whether the property can be acquired a resolution authorizing support for the process must be passed as it becomes part of the grant application. City Staff has reviewed the City's Comprehensive Parks Plan and PAR Recommendations and feels the property is worth pursuing to meet several www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 needs identified in those studies. The Pavlish property combined with current City parcels and future park land dedication could provide the City with in excess of 50 acres of passive and active use park that would encompass most of Pike Lake. Additionally the park will be adjacent to the current YMCA Camp. This overall park would include trails, scenic picnic areas, play ground and potentially youth soccer or football fields. The City's Comprehensive Parks Plan previously identified 2 neighborhood parks in this area, one on each side of the lake. Because this park would straddle the lake the City could maximize resources in a single park without enlarging service areas. Additionally the plan identified a neighborhood and community park in the northwest corner of the City that will not be constructed due to development patterns and land ownership. Based on the above review of the plan, a central Community park that would also serve as the neighborhood park for adjacent developments will maximize City funds. Conclusion City Staff believes this opportunity is worth pursuing as it allows the City to acquire park land a greatly reduced price. Even with the development slow- down, land prices continue to increase and opportunities to maximize leverage of City Capital Park Funds for the purchase of land should be pursued. ISSUES: There are several issues related to the pursuit of this property. 1) The City's minimum financial commitment to pursue this project would be $375,000. The City's current CIP does not identify this park acquisition. Where would the City's purchase contribution come from? Staff has reviewed the approved CIP and feels the minimum $375,000 is available without altering the current CIP. 2) Where will funding for development of the park come from? By incorporating the two neighborhood parks into this facility the City would have about $500,000 in funds for initial development of the park facilities. The total cost of development is yet undetermined as the facility amenities have not been determined. 3) Development has slowed down and has impacted the in-coming capital park dedication fees. Staff incorporated some very conservative development rates into our cash flow analyses to determine whether or not the City could meet the minimum contribution requirements. Additionally staff feels that the cost to the City for the land will range from $23,OOOlacre to $31,OOOlacre which is well below the $110,000Iacre to $150,OOOlacre still being paid for land in the area. At this value staff feels the purchase is a very good investment and leverage of City dollars. 4) The grant funds for the acquisition could limit active uses on the property. Because the City will have the opportunity to acquire adjacent land through future park land dedication staff feels any active use restrictions on these parcels can be accommodated on adjacent parcels. FINANCIAL IMPACT: The minimum required City contribution to seek grant funding is $375,000 to obtain 30+/- acres of which 16 acres is developable. City staff is proposing to use Capital Park and Trunk Stormwater funds for the purchase. Because the property involves purchase of property containing portions of the outlet channels and areas where easements are required for the channel the Trunk Stormwater fund can be used. Previously the City has allocated these funds for the purchase of these areas through the Watershed Districts outlet channel improvement project. Staff estimates that $125,000 of the funding could be provided by Trunk Stormwater due to the benefit to the outlet channel. The remaining $250,000 will be funded from the Capital Park fund. Because this park will benefit and provide recreation for new development funds collected from new development can be utilized. Purchase of this park land will not impact the general tax levy as funding will be derived from development fees. Additionally because this park will replace two neighborhood parks a base funding for development will be available in the future. ALTERNATIVES: 1. Accept the report approve a resolution directing staff to work with The Trust for Public Land on grant applications for acquisition of the property with a minimum City Commitment of $375,000. 2. Provide staff alternative direction. 3. Table this item to a certain date in the future. RECOMMENDED Staff recommends alternative number 1 MOTION:; I ;' {If ( (~~j;J ) ~.~ Reviewed by: Frank j~S, City Manager /' "--~/ 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 06-xx CONSIDER APPROVAL OF RESOLUTION AUTHORIZING CITY STAFF TO WORK WITH THE TRUST FOR PUBLIC LANDS ON GRANT APPLICATIONS FOR ACQUISITION OF THE 30.0 ACRE PAVLISH PROPERTY Motion By: Second By: WHEREAS, The Trust for Public Land has secured a purchase option for the 30 acre Pavlish Property, of which 16 acres is upland; and WHEREAS, The Trust for Public Land wishes to partner with the City of Prior Lake to acquire the property using grant funds combined with a City contribution; and WHEREAS, In order to apply for grants to fund the purchase the City needs to commit to a minimum of $375,000 in cost participation; and WHEREAS, This resolution does not constitute a formal agreement but rather support for application of grants to acquire the land; and WHEREAS, If sufficient grants are secured a formal cost share agreement for purchase of the property shall be prepared for City Council consideration; and WHEREAS, Acquisition of this property would provide land when combined with future park land dedication that would address several of the PAR recommendations along with meeting the City's Comprehensive Parks Plan; and WHEREAS, The support of the grant applications provides the City with the opportunity to obtain a 16 acre park at a substantially reduced cost. 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. Staff is authorized to work with the Trust for Public Land on grant applications for land acquisition. PASSED AND ADOPTED THIS 4TH DAY OF DECEMBER, 2006. YES NO Haugen Dornbush Erickson LeMair Millar Haugen Dornbush Erickson LeMair Millar Frank Boyles, City Manager www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 PIKE LAKE AREA PROPERTY OWNERS I CITY OF PRIOR LAKE I PAVLlSH I YMCA Last Updated November 2006 City of Prior Lake Public Works Department X:\Parks\Pike_Lake\Pike_Lake-area.mxd AERIAL IMAGERY IS FROM A SUMMER 2005 FLIGHT FOR U.S. DEPARTMENT OF AGRICULTURE, FARM SERVICE AGENCY (FSA) Feet o 250 .":'h.~ 500 ~ This drawing is neither a legally recorded map nor a survey and is not intended to be used as one. This drawing is a compilation of records, information and data from various city, county and state offices and other sources. This document should be used for reference only. No representation is made that features presented accurately reflect true location. The City of Prior Lake, or any other entity from which data was ~ obtained, assumes no liability for any errors or omissions herein. If discrepancies are found, please contact the City of Prior Lake. ..---? CSAff 42 140TH ST ""-,,, It,'