HomeMy WebLinkAbout10.F.2. Status Report on Land Donation �o. �, � _
CITY OF SHAKOPEE
Memorandum
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: Status Report-Land Donation
DATE: February 8, 2012
Comment:
Introduction:
The purpose of this memo is to provide Council with an update on the prospective
donation of 3.26 acres of land located on 1 St Avenue, east of Marschall Rd.
Background:
In November, the City Council heard a proposal from staff, and Minnesota DNR
regarding the possible donation of land from a private party to a public agency (either the
DNR or City) for a snowmobile trail to go along the river.
After much discussion, the consensus of that Council was that that locatiori would not be
ideal for a snowmobile trail (along CR101). Instead, the Council indicated interest in
acquiring the land for use as a possible economic development site.
Land Parcel: Since November, staff has been working with the donor to try to facilitate
this donation. The 3.26 acres are on three separate parcels. Utilities are available to the
two front parcels, and a lot consolidation would be needed in order to make the entire
property developable with sewer and water. It has also been noted by the prospective
donor that the City would need to provide the adjacent property to the north with an
easement to most fully utilize their property.
There are no assessments or outstanding mortgages on the subject property. It is abstract
property, but the abstracts can't be located. Therefore, the abstracts must be recreated,
and the City's attorney's office will be working on that.
If the City is to acquire this property, it would then be its responsibility for marketing the
parcels. It has also been noted that portions of the property have been used for illegal
dumping in the past, and as the owner it would be up to the City to make sure that the
parcel sta.ys clean.
Snowmobile trail: At the November City Council discussion, the Council indicated a
preference for a snowmobile trail to go through Memorial Park. It was recognized that a
new "foot bridge" across the creek leading from the Mill Pond would be needed to
accommodate the resulting snowmobile traffic.
This has been an issue upon which the Public Works Director has been working. It is
likely that grant money would be needed to construct a snowmobile-ready trail bridge.
Rough estimates have indicated a cost in the vicinity of $250,000.
The DNR should be assured that the City will work diligently to make certain that an
appropriate snowmobile trail location is provided.
Budget Impact:
We have assumed that as the receiving party, the City will be paying the City's legal fees
and closing costs. The closing costs are estimated to be in the $3000 to $5000 range, and
other legal fees are possible. Marketing decisions will also need to be made in the future,
and should be reviewed for recommendations by the EDAC.
Funding for these costs could come from either the EDA Budget, or from Council
Contingency.
Recommendation:
The most recent listing price for the property was nearly $600,000. As an economic
development potential fronting on CR101, we feel that this is a great opportunity for the
City.
We recommend that the Council affirtn its interest in acquiring the 3.26 acres described
above and further authorize staff to proceed with activities to transfer title from the
donor. Once details are finalized, the transfer would come to City Council for final
action.
Relationship to Visioning:
This supports Goa1 D—Maintain, improve, and create strong partnerships with other
public and private sector entities.
Action Required:
If the Council concurs, it should, by motion, direct staff to continue with facilitating the
donation of 3.26 acres of land located north of CR101 and east of Marschall Rd.
,
����
Mark McNeill
MM:cn City Administrator
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