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1 .a:— <br />To:Mayor and City Council <br />From: Ron Moorse, City Administrator ij^^ <br />Date: November 8,2002 7 <br />Subject: Outstanding Issue Related to the Purchase Agreement Regarding the City-Owned <br />Parcel on Kelley Parkway <br />The key outstanding issue related to the purchase agreement for the sale of the City property at <br />the comer of Kelley Parkway and Old Crystal Bay Road is whether the City ’s requirements <br />regarding the granting of easements for sidewalks and trails should result in a reduction in the <br />price of the property. <br />ISSUE; Public sidewalks will be located partially within the property and <br />partially within the Kelley Parkway right-of-way. The City should obtain an <br />easement over the portion of sidewalk outside the r-o-w, as it will serve the <br />public. Buyers have suggested that if they have to give an easement for the <br />sidewalk or have it within the property, the purchase price should be reduced to <br />reflect this. <br />ISSUE: Our discussions with MnDOT some weeks ago suggested they will not <br />approve construction of a trail in their right-of-way. It would have to ^ located <br />within the property. Staff has suggested we obtain an easement along the south 10' <br />of the propert)' for the trail, ‘just in case’, .\pplicants don ’t want this due to <br />probable proximity to treatment rooms. The buyers want to reduce the purchase <br />price of the property because of the easement. <br />Staff Recommendation <br />A developer is responsible for meeting the requirements of the City regarding <br />trails and sidewalks. If the applicant was purchasing this property from a private <br />party, the amount of land needed for trails and sidewalks would not be eliminated <br />from the total size of the lot when calculating the cost of the lot. The Dahlstrom <br />development is providing r-o-w for sidewalks and trails, as well as a public street <br />The City is not paying for this r-o-w. The city should not reduce the price of the <br />land to reflect the trail and sidewalk easements. <br />The City has already reduced the price of the property to reflect the existing trail <br />along Old Crystal Bay Road. This was based on the buyers not being aware that <br />the trail encroached into the parcel. The granting of necessary easements for the <br />remaining trails and sidewalks is the responsibility of the developer, and should <br />not affect the purchase price of the property.> 1