05-13-2019 Council Work Session Packet

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CITY OF ORONO MEMORANDUM DATE: May 13, 2019 TO: Mayor Walsh, City Council members FROM: Jeremy Barnhart, AICP, Community Development Director RE: Crystal Bay Road Lake lots The City of Orono owns 4 parcels between the platted portion of Crystal Bay Road and the Lake. Periodically, staff receives inquiries from property owners wishing to purchase one of these lots. These inquiries expanded in number this winter when 3407 Crystal Bay Road was for sale, and the advertisement suggested potential buyers contact the city to inquire about dock rights. More recently, a realtor contacted the administrator regarding the parcels. This winter, observing the placement of private property, including at least one dock, on the city lots, city staff sent a letter to all four adjacent property owners advising them to remove their private property. Two of these owners ignored the letter, there is one dock installed, and another stored on shore as of May 3, 2019. There is substantial, complicated history on the properties, summarized in a 2011 staff memo, attached at Exhibit C. ■ These four lots are subject to bathing and boating rights (Rights) potentially provided to the property owners of 4 plats, illustrated on the attached Exhibit B. ■ Title examination to fully understand the reach of these Rights has not been completed; in 2011, the cost was estimated at $25-30,000 ■ The Rights would not be extinguished on the sale of the lots, meaning the buyer would necessarily have sole use of the lake shore. ■ It is unknown if property owners (assuming adjacent owners) could place docks, as it may impact the boating and bathing rights. In 2011, staff identified a number of options. More detailed explanation of these options can be found on page two of Exhibit C: 1. Sell the lots. Though the process (to who, how much, etc.) would need to be determined. 2. Do nothing. Do not resolve the ownership/ reach question. 3. Determine reach of Rights. Have title work completed. This item is not included in the 2019 budget. 4. Require Dock removal. Enforce the placement of private property on city land.