HomeMy WebLinkAbout5 - Quit Claim Deed for 3.2 Acre Parcel
AGENDA:
REQUESTED BY :
SUBJECT MATTER:
DATE:
Introduction:
BACKGROUND:
DISCUSSION:
"CELEBRATE PRIOR LAKE'S CENTENNIAL - 1991"
5
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER ACCEPTANCE OF QUIT CLAIM DEED FOR A
3.2 ACRE PARCEL
JANUARY 22, 1991
Marquette Bank Lakeville is proposing to
donate to the City of Prior Lake a parcel of
land represented by PID #25 902 080 0 and
#25 902 132 0 that is approximately 3.23 acres
in size and located at the terminus of Cates
Street between Holly Court and st Michaels
Church (see attached subject site map).
The former property owner, CGT Properties
(Schweich) have forfeited their interest under
the mortgage agreement and the real estate has
defaulted back to Marquette. The bank has been
unable to sell the property because of the
delinquent property taxes and assessment
balances.
Public improvements were installed in Cates
Street under Project NO. 86-12 which provided
access in the form of bituminous pavement and
concrete curb and gutter. watermain utilities
were also constructed.
There are a number of alternative uses for the
property if it were to be accepted. A portion
of the land is currently zoned C-1 and should
remain Conservation. The remaining area is
zoned R-1 and is sufficiently large enough to
accommodate 2 single family lots 1f the parcel
was to be subdivided and sold by the city.
A second option would be to develop a park in
this location as a neighborhood park would be
a very functional and appropriate use. There
is a strong need for such a facility in the
neighborhood as indicated by Parks Director
Bill Mangan. The closest existing park area is
Five Hawks school which is basically cut off
by the creek.
The land could also be effectively utilized
and assimilated in as open space adjoining
the existing wetland and thereby designated
within our storm Water Management Plan.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 I Ph. (612) 447-4230 I Fax (612) 447-4245
An Equal Opportunity/Affirmative Action Employer
RECOMMENDATION:
ALTERNATIVES:
BUDGET IMPACT:
Even though the land is being offered under
the guise of a donation and does not include a
purchase price, there is an acquisition cost
in the form of the delinquent property taxes
which must be paid by the City and the removal
of the special assessments.
A summary of the costs associated with the
proposed property transfer is outlined below:
Delinquent Property Taxes
PID # 25 902 080 0
PID # 25 902 132 0
Assessment Abatement
PID # 25 902 132 0
Assessment Balance Removal
PID # 25 902 132 0
$430.38
$4,861.26
$16,584.99
$8,933.74
While the total is in excess of $30,000.00,
keep in mind that the real out-of-pocket cost
is only $5,291.64. The reason is that the
property, at year end, is scheduled for tax
forfeiture sale and at that time the entire
amount of special assessments would be removed
automatically by Scott County as per State
law.
Also, the city retains the authority and right
to re-assess the property and recover its loss
in the event we decide to sell the property at
some future point in time.
City to
Lakeville
our park
minimal in
highest and
served as a
It would seem beneficial for the
accept the offer of Marquette Bank
and to incorporate the land into
system. The actual cost is fairly
view of Staff's opinion that he
best use of the property would be
neighborhood park.
The current raw land market value carried upon
the property tax statement is $13,100. In
light of the fact that the appraised County
selling price would approximate this figure,
the cost today appears to be a bargain.
Therefore, Staff's recommendation is to accept
the quit claim deeds and place the property
into the City of Prior Lake's name.
The alternatives are as follows:
1. Approve the land donation as indicated.
2. Reject the offer as submitted and thereby
continue retention of the land under private
ownership.
There are no monies specifically budgeted for
the payment of the taxes if the Council were
to accept. However, the Council could
authorize the expenditure from the contingency
reserve of 1991.
ACTION REQUIRED:
The following motions would be necessary if
the City Council would concur and accept the
parcel as offered:
Motion #1 -
Approve acceptance of the quit claim deeds
for Parcels #25 902 080 and #25 902 132 o.
Motion #2 -
Authorize payment to the Scott County
Treasurer in the amount of $5,291.64 from
the contingency Fund.
Motion #3 -
Abate the delinquent special assessments on
PID # 25 902 132 0 for the years 1985 thru
1990, including principal, interest and
penalty, in the amount of $16,584.99.
Motion #4 -
Direct Staff to remove the balance of
special assessments for all subsequent
years in the amount of $8,933.74.
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SUBJECT SITE
HERITAGE
1891
COMMUNITY
1991
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M E M 0 RAN DUM
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and Recreatio;~
TO:
FROM:
RE:
Dave Unmacht, City Manager
Bill Mangan, Director of Parks
Holly Court land forfeiture
After reviewing the history on this piece of property, I really
believe that it is in the best interest of the City of Prior Lake
to accept this property as a donation. There are several reasons
why I make this recommendation:
1. I feel it would be wiser for the City to control the destiny
of this property than to have it go under County control for
sale;
2. The City of Prior Lake can accept the property, then sell it
off as surplus property to collect the assessments owed;
3. There is a strong need for a neighborhood park facility
specifically in this neighborhood. There is currently no
public open space serving this older neighborhood. The
closest park area is Five Hawks school and that is south of
the Conservation area;
4. Part of the property is zoned C-1 and should remain
Conservation. However, there would be land available in the
northern part of the parcel that could be subdivided.
I really feel that this property could be used as open space.
While there has not been any pressure from the neighborhood to
develop a park in this location, a neighborhood park would have a
very functional use in this area. I would recommend to you that
we accept this parcel, develop it into usable open space and if
it isn't accepted by the neighborhood, we would exercize our
option of selling off excess property.
~
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 I Ph. (612) 447-4230 I Fax (612) 447.4245