Hanning Subdivision Possibilities

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To: Mayor and Council From: Mike Gaffron, Senior Planning Coordinator ,. Date: October 21, 1999 Subject: Update on Co. Rd. 6 Right-of-Way Acquisition: Hanning Property Zoning District: RR-1A, Single Family Rural Residential, 5 acre Background Council may recall that a portion of the Hanning property at 4220 Co. Rd. 6 was acquired for the reconstruction of County Road 6 west of Highway 12. The Hanning's appealed the County's compensation offer of$24,300 to the Condemnation Commission. The Commission awarded an amount of $37,158 as the value of the land taken; however, the commission also awarded an additional $125,000 that would be payable only if the Hanning's apply for a subdivision within 365 days of the commission's action and the subdivision is denied. The Hanning's have appealed this award to the District Court, claiming the taking resulted in damages totaling$154,850. The County has cross-appealed,claiming the damages are no more than $24,300. The Hanning's recently applied for a subdivision, but staff concluded their application was incomplete and requires that wetland delineation and septic testing information be provided to make the application complete. The application is on hold indefinitely waiting for the additional information, and the 60/120 day clock has not started. Area Credit Proposal Hennepin County, represented by Attorney Lisa Berg (who is also representing the City's 50% financial interest in the outcome) is handling this appeal process. At a pre-trial conference on October 18, Berg determined that the City's and County's shared risk may be decreased substantially (i.e. by$125,000 presumably)by agreeing to giving the Hanning's permanent area credit for the land that was taken. Berg indicates that the judge stated he would look at this matter quite differently if the City commits to granting dry buildable area credit for the portion of property taken for road, which would mean there is no substantial difference between the "before" and "after" status of the property in terms of subdividability. Also,the judge has suggested that because the City is forcing the Hanning's to subdivide their property now in order to protect their future property rights,that the City should be paying all of their subdivision costs.