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Home My WebLink About11.B. Discuss the Purchase of MNDOT property by TH 169 & CR 69 (Parcels 37 & 43)V General Business S�coPEE TO: Mayor and City Council Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director DATE: 03/04/2014 SUBJECT: Discuss the Purchase of MNDOT property by TH 169 & CR 69 (Parcels 37 & 43) (D, E) Action Sought Council should discuss this project, provide direction on whether the City is interested or not in pursuing this purchase and what are the next steps if interested. No official action is needed at this meeting, however, for Council to discuss the merits of purchasing MNDOT excess property for future economic development by the City and provide direction. Background MNDOT has excess property near the TH 169 & CR 69 intersection area that can be purchased by the City for economic development. These excess parcels were acquired with the TH 169 project in the 1990's. Excess parcels include the following names and acreages: 1. Parcel 37- 2.83 acres 2. Parcel 43- 23.52 acres 3. Outlot A Valley Mall- 2.1 acres 4. Excess Right -of -way from TH 169 & CR 69 Interchange- 2.99 acres In order for MNDOT to sell the parcels per their rules, MNDOT has come up with different approaches for the different parcels in order to offer them to the City. In disposing of excess property, the State can offer these parcels to the City first and if the City does not want to buy the parcels, then the parcels would go to the open market. Attached to this memo are drawings showing the parcels and Attachment A, which shows the calculation on the purchase price of each parcel including total price. These items will be presented in greater detail at the workshop. For Council discussion, the question will be should the City purchase these parcels for economic development? Excluding Vierling Drive right -of -way, the developable acreage would be approximately 27.60 acres at a price of $1,022,324.10 or $37,040.73 an acre. The TH 169 & CR 69 interchange will be constructed by November 2014 and should be an asset in developing this area. The City would still need to extend sewer and water and permanent Vierling Drive street connection for development to occur. It is estimated that for extension of utilities and permanent street construction, the cost would be around $1,000,000.00. Assembling these parcels will allow the City to oversee a development that the City leaders want to see in this area. The City can package a request for proposal (RFP's) for developers to submit and for the City to review and decide which proposal is the best to accept. MnDOT has indicated they would like to sell the land by August. City Council should discuss on whether this purchase meets the City's goals and whether to have a review of the purchase by the EDAC and Planning Commission for their input on what is the potential development for this area. Council should discuss this project, provide direction on whether the City is interested or not in pursuing this purchase and what are the next steps if interested. Recommendation Staff recommends that the City Council should discuss this project, provide direction on whether the City is interested or not in pursuing this purchase and what are the next steps if interested. In staff s opinion, this is a rare opportunity to assemble land for future development and for the city to oversee and approve a development for this area. Budget Impact Loan from the Sanitary Sewer or Storm Drainage fund or another fund as determined by the Finance Director would be necessary to purchase the property and with the future sale of the property to reimburse the fund where the loan originated. Relationship to Vision This supports Goals D & E: Maintain, improve and create strong partnerships with other public and private sector entities; and deliver effective and efficient public services by a staff of well- trained, caring, and professional employees. Requested Action Council should discuss this project, provide direction on whether the City is interested or not in pursuing this purchase and what are the next steps if interested. Attachments: Attachment A Location May Location May 3 ATTACHMENT A MNDOT LAND PURCHASES PARCEL 43 Original Price $787,596.10 for 23.53 acres City paid $115,000.00 in 1997/1998 $787,596.10 - $115,000.00 $672,596.10 City to purchase 19.65 acres $672,596.10 divided by 23.52 acres = $28,596.78 / acre VIERLING DRIVE RIGHT -OF -WAY (Donated by MnDOT) 3.87 + .30 acres = 4.17 acres 4.17 acres x $28,596.78 = $119,248.58 Purchase Price for PARCEL 43 $672,596.10 - $119,248.58 $553,347.52 OUTLOT A Valley Mall 1sT Addition - Donated back to City PARCEL 37 2.53 acres at $215,000.00 appraised value ($1.95 / square foot) EXCESS ROW (wooded areal 2.99 acres x $1.95 square foot = $253,976.58 TOTAL PURCHASE PRICE: PARCEL 43 $553,347.52 PARCEL 37 $215,000.00 EXCESS ROW (wooded area) $253,976.58 TOTAL $1,022,324.10 V G , 3p66v { I•"-- V L� I :" .• .� rd ' v e _ t --- , r F � /' r Ire � be l*. 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NEI /i —SWI /i 0 2 NF.I /4 -SWIM CITY OF SHAKOPEE *Qp NWI /4 -SWI /4 I -- ' Q,�� „SHAKOPEE At E Iwoo � •••• % / 'u It /• � � Yaws K[1• I /�� SWI /A -SIi I/A auo u.En .• •` .00 SWI /4- SEI /4/ / o a a IppN, SEI /4 -SWI /4 1/ 4-51Y I /4 1 • [-- ♦ � �' � // NECONVEYANCE r WI -SWI /4 ----------- -6 j PMC[[ Y]A ` // �SB�Flierwme K: \OiBn- 250\Caa \Exnlplts�� A WSB Shakopee Town Square @� Mn /DOT R/W Proposed RM Area °' - ' r ib #' Proposed R/W p Mn /DOT R/w 172,430 Sq Ft p Proposed R/W UC k I/ Mn /DOT R/W FF • -._ - Proposed R/W - --- _ _ -' - - Vierling Drive Extension Alternative 3 SHAKOPEF' City of Shakopee, Minnesota September 18, 2012