Re: Request for council action/subdivision

Home Browse Search

Request for Council Action continued Page 2 June 19, 1998 Robert and Julie Hanning Request Related to Future Subdivision at 4220 Sixth Avenue North on the number of square feet of land acquired. It is staff s understanding that this is acceptable to the Hannings if they can be assured they are able to subdivide the properly to create an acceptable second lot at some time in the future. The Hannings believe that this cannot occur unless the City allows the area of the second lot to be reduced by the amount of the County's right-of-way acquisition. If the City will not allow the reduced lot area,the Hannings will take the position that their compensation for the right-of-way taking needs to be more than the payment for the 23,000 square feet of land acquired. Rather, it should reflect the taking of a buildable lot, or substantial damages to the homestead lot. Impact of the Right-of-Way Acquisition on the Value of the Hannings' Property Because the right-of-way acquisition is not reducing the total dry buildable area to less than 10 acres, it would be difficult to make the case that the right-of-way acquisition is taking a buildable lot. The Hannings may be able to make the case that the right-of-way taking would cause a subdivision to have a greater negative impact on the existing house. It is not clear what type of value would be placed on this negative impact, since a subdivision prior to the right-of-way acquisition would also have had a negative impact on the existing house. Council Direction At its May 26 meeting, the Council directed staff to determine the exact amount of right-of-way being acquired and to work on a possible subdivision scheme. There also appeared to be some support on the Council to reduce the lot area requirement for the second lot by the amount of the right-of-way acquisition. Impact of Right-of-Way Acquisition on Potential Subdivision Staff has developed a number of options for subdividing the property, both pre-right-of-way acquisition and post-right-of-way acquisition. These are attached. Settlement Agreement There are instances where the City has entered into a settlement agreement with properly owners when the City has acquired right-of-way that has reduced the amount of remaining property to less than the amount required for a buildable lot. The Hannings' situation is different from two perspectives. 1. The City is not reducing the amount of property to less than the amount required for two lots. 2. 'The City is not the party acquiring the property and is not the party involved in the condemnation process. The City has an interest in this process because the property is in Orono, and because the City will pay 50%of the right-of-way acquisition costs.