HomeMy WebLinkAbout10-14-2019 Council Work Session PacketOrono City Council
Special Work Session
Monday, October 14, 2019
Council Chambers 6:00 p.m.
AGENDA
1. Receive and Discuss proposals to purchase City Parcels on Crystal Bay Road.
a. Proposals:
i. William L. Wolfson, 3407 Crystal Bay Road proposal to purchase
PID: 1711723430115 for $50,000
ii. Yousry Elshazaly, 3415 Crystal Bay Road proposal to purchase PID:
1711723430117 for $50,000.
iii. Scott A. Brown, 3435 Crystal Bay Road proposal to purchase PID:
1711723430119 for $50,000.
iv. Jon and Kelly Eiss, 3445 Crystal Bay Road proposal to purchase PID:
1711723430123 for $50,000.
Annual:
• Budget: Part of June, All of July, August and October.
• City Administrator & Police Chief Update (3 times per year for 15 minutes)
Previous Work Session Topics
September 23, 2019
• Slope Stabilization
• Minnetonka Beach Water Services Agreement Discussion
• Dakota Trail Extension Update
August 26, 2019
• Budget
• Department Mission/ Vision/ and Goals
• City Owned Properties (Policy) (added 6-24)
• Marinas
CITY OF ORONO MEMORANDUM
DATE: October 14, 2019
TO: Mayor Walsh, City Council
FROM: Dustin Rief, City Administrator
RE: Receive and Discuss proposals to purchase City Parcels on Crystal
Bay Road
At its meeting on September 9, 2019, the City Council adopted a process for receiving proposals for
sale or purchase of property. The first step identified is to bring the proposer and proposal before the
council in a work session setting to gauge the Councils willingness to proceed. If the Council is agreeable
to move forward in the process of the sale strategy for the negotiations can be discussed in a closed
session. If the council does not agree to move forward in the process then staff will do no further research.
On September 30, 2019 staff received four offers to purchase 4 city owned lots on Crystal Bay Road.
These lots are adjacent to the proposers' lots on Crystal Bay Road. A request for a special work session
was requested by Staff and the offers were sent to the council via email on September 30, 2019 for
preliminary information. The special work session was requested to facilitate a reasonable response, due
to planned Council discussion priorities, the next available regular workshop is November 25th
Proposals:
1. William L. Wolfson, 3407 Crystal Bay Road proposal to purchase PID: 1711723430115 for
$50,000
2. Yousry Elshazaly, 3415 Crystal Bay Road proposal to purchase PID: 1711723430117 for
$50,000.
3. Scott A. Brown, 3435 Crystal Bay Road proposal to purchase PID: 1711723430119 for $50,000.
4. Jon and Kelly Eiss, 3445 Crystal Bay Road proposal to purchase PID: 1711723430123 for
$50,000.
A map of the parcels in question is below as well as one depicting current City infrastructure impacting
the parcels in question.
Questions to address to provide staff with further guidance on proceeding.
1. Does the City want to entertain selling the above mentioned parcels to the adjacent property
owners?
a. Things to consider:
i. City infrastructure, need for easements
ii. bathing and boating right issue and its potential impact to 80 plus parcels in the
Navarre area,
iii. And a change in City philosophy of selling city owned lakeshore parcels.
b. If the Council needs more information regarding any issues surrounding the properties
before a decision can be made, please indicate the information needed and staff will bring
back at a future date to discuss.
2. Additional questions were raised by council members, and include notification to those holding
bathing and boating rights and potential for deferment of sale proceeds to annual taxes. The
emails are attached for reference.
If the Council is interested in selling the parcels a discussion on terms should be deferred to a closed
session held for that purpose.
City Infrastructure impacting the parcels in question is below: Water main in Blue, Sewer Main in Brown
Exhibits:
A. Offer to purchase land — Orono, MN 3407 Crystal Bay Rd
B. Offer to purchase land — Orono, MN 3415 Crystal Bay Rd
C. Offer to purchase land — Orono, MN 3435 Crystal Bay Rd
D. Offer to purchase land — Orono, MN 3445 Crystal Bay Rd
E. Re Additional Work Session email
F. Re Additional Work Session email - 1
Attn:
City Administrator Dustin Rief
City of Orono
2750 Kelley Parkway
Orono, MN 55356
RE: Consideration to sell city owned land located PID:1711723430115 adjacent to 3407 Crystal Bay Rd.
Dear Mayor, Councilpersons and City Staff,
I respectful request your consideration as I offer to purchase the following parcel known
as PID:1711723430115 adjacent to my property located at 3407 Crystal Bay Rd.
The purpose of this sale would be to transfer, clarify and remedy property rights issues and to
purchase of the parcel thru the conveyance of a quite claim deed.
Offer Price: $50,000
Subject to a mutually acceptable purchase agreement, title work and conveyance of a quite
claim deed. Closing fees shall be split in a customary manner between buyer and seller.
Closing to be scheduled asap.
Please let me know if you need more information or have any questions.
Thank you in for your time and consideration.
William L. Wolfson
3407 Crystal Bay Rd.
Attn:
City Administrator Dustin Rief
City of Orono
2750 Kelley Parkway
Orono, MN 55356
RE: Consideration to sell city owned land located PID: 1711723430117 adjacent to 3415 Crystal Bay Rd.
Dear Mayor, Councilpersons and City Staff,
I respectful request your consideration as I offer to purchase the following parcel known
as PID:1711723430117 adjacent to my property located at 3425 Crystal Bay Rd.
The purpose of this sale would be to transfer, clarify and remedy property rights issues and to
purchase of the parcel thru the conveyance of a quit claim deed.
Offer Price: $50,000
Subject to a mutually acceptable purchase agreement, title work and conveyance of a quite
claim deed. Closing fees to be split in a customary manner between buyer and seller.
Closing to be scheduled as soon as possible.
Please let me know if you need more information or have any questions.
Thank you in for your time and consideration.
Yousry Elshazaly
3415 Crystal Bay Rd.
Orono,MN
Attn:
City Administrator Dustin Rief
City of Orono
2750 Kelley Parkway
Orono, MN 55356
RE: Consideration to sell city owned land located PID: 1711723430119 adjacent to 3435 Crystal Bay Rd.
Dear Mayor, Councilpersons and City Staff
I respectful request your consideration as I offer to purchase the following parcel known
as PID: 1711723430119 adjacent to my property located at 3435 Crystal Bay Rd.
The purpose of this sale would be to transfer, clarify and remedy property rights issues and to
purchase of the parcel thru the conveyance of a quit claim deed.
Offer Price: $50,000
Subject to a mutually acceptable purchase agreement, title work and conveyance of a quite
claim deed. Closing fees to be split in a customary manner between buyer and seller.
Closing to be scheduled as soon as possible.
Please let me know if you need more information or have any questions.
Thank you in for your time and consideration.
Scott A. Brown
3435 Crystal Bay Rd.
Orono,MN
Attn:
City Administrator Dustin Rief
City of Orono
2750 Kelley Parkway
Orono, MN 55356
RE: Consideration to sell city owned land located PID: 1711723430123 adjacent to 3435 Crystal Bay Rd.
Dear Mayor, Councilpersons and City Staff
I respectful request your consideration as I offer to purchase the following parcel known
as PID: 1711723430123 adjacent to my property located at 3435 Crystal Bay Rd.
The purpose of this sale would be to transfer, clarify and remedy property rights issues and to
purchase of the parcel thru the conveyance of a quit claim deed.
Offer Price: $50,000
Subject to a mutually acceptable purchase agreement, title work and conveyance of a quite
claim deed. Closing fees to be split in a customary manner between buyer and seller.
Closing to be scheduled as soon as possible.
Please let me know if you need more information or have any questions.
Thank you in for your time and consideration.
Jon and Kelly Eiss
3445 Crystal Bay Rd.
Orono,MN
From:
Victoria Seals
To:
Dustin Rief
Cc:
Denny Walsh; Soren Mattick
Subject:
Re: Additional Work session
Date:
Wednesday, October 2, 2019 9:11:23 PM
Attachments:
imaae002.i)na
I don't have a problem discussing but from what I understand those across the street have the
same bathing rights as everyone else in the area. I think it is bad business to not let those
know that could potentially buy it also. We don't have to agree on this but I think it would be
in the cities best interest to be as transparent as possible. If the city chooses not to we as
council can always let them know also. I would prefer not to go that route but this feels like
we are purposely not alerting them.
Victoria
Sent from my iPhone
On Oct 2, 2019, at 3:07 PM, Dustin Rief <drieaci.orono.mn.us> wrote:
Victoria,
I chatted with Soren about this today and if we transfer via quit claim deed those rights
do not go away. I think there is merit is discussing whether or not to contact all of the
potential individuals who have rights. If that is something the council as a whole would
like, my plan would be to have the attorney's office research and identify the parcels
that maintain those rights, then set a public hearing date and mail a post card for
notification. Soren did express that there may be a possibility that those rights have
expired, but that is not something I would recommend the City make a judgment on.
Cordially,
Dustin J. Rief
City Administrator
<image002.png>
City of Orono
2750 Kelley Parkway
Orono, MN 55356
Phone: 952-249-4600
Fax: 952-249-4616
Email: drief&ci.orono.mn.us
Web: http://www.ci.orono.mn.us/
From: Victoria Seals
Sent: Tuesday, October 1, 2019 11:03 PM
To: Denny Walsh
Cc: Dustin Rief; Soren Mattick
Subject: Re: Additional Work session
Agreed I think I'm struggling with is if there are other individuals that have similar rights
they should know there may be an opportunity.
Sent from my iPhone
On Oct 1, 2019, at 8:09 PM, Denny Walsh <dwalsh2l@ci.orono.mn.us> wrote:
I believe we all agreed that we would hear anyone out if they want to make an
offer for property/easements etc... that the city owns and the best place to
start with the information that they are presenting is at a work session to see if
we have any interest in having an open discussion at a public event
thereafter.
Dennis Walsh
Orono Mayor
612.414.5055
From: Victoria Seals
Sent: Tuesday, October 01, 2019 9:03 PM
To: Dustin Rief
Cc: Denny Walsh; Soren Mattick
Subject: Re: Additional Work session
I guess my question is why do those 4 have anymore right then anyone
else? Do they have the same bathing rights as the other neighbors? If
that is the case it feels like we are trying to sneak this through. Not very
transparent....
Sent from my iPhone
On Oct 1, 2019, at 1:16 PM, Dustin Rief <driefPci.orono.mn.us> wrote:
Victoria,
I was not planning on notifying any of the other
property owners that may have interest in the bathing and
boating rights without council guidance. The property list for
this action would be delineated by Soren's office to ensure
the review meets all of the legal stuff (Not my expertise or
Jeremy's). My understanding is the bathing and boating
rights would go with the properties unless everyone
relinquishes those rights, Soren will provide more
information as we proceed. I am requesting the additional
work session because the October work session is full with
time sensitive items and I do not feel a response 60 days
from the request is appropriate for the proposers. I could
place the entire thing on the agenda and we can handle it
that way, but the last guidance we got for the sale of public
property was to bring it to work session first. I envision the
process happening as follows:
October 14: Proposals received at work session; each
proposer has opportunity to present their proposal
October 14: If council decides to move forward with sale; we
would discuss negotiations/strategy for the sale in closed
session.
October 28th if possible: Research work around bath and
boating rights would ensue as well as easement related
information etc. This would all be brought back to the
council in closed session prior to acceptance of any offers.
October 28: If councils still feels comfortable with moving
forward to sell the parcels, I would request that the council
provide guidance regarding negotiations/sale price
October 29 through end of negotiations: Staff would
conduct negotiations and outline stipulations with proposers
As Completed: Final negotiated agreement would come
forward to council for vote to accept negotiated offer
Cordially,
Dustin J. Rief
City Administrator
<image003.png>
City of Orono
2750 Kelley Parkway
Orono, MN 55356
Phone: 952-249-4600
Fax: 952-249-4616
Email: drief anci.orono.mn.us
Web: http://www.ci.orono.mn.us/
From: Victoria Seals
Sent: Monday, September 30, 2019 6:11 PM
To: Dustin Rief; Denny Walsh
Subject: Re: Additional Work session
I assume the city has or will notify everyone who has bathing
rights on those parcels?!?
Soren - if we do sell the land doesn't the bathing rights go
with it?
Dustin - who is asking this to be on special work session?
Seems like it should wait it's turn in line.
Thanks
Victoria
Sent from my iPhone
On Sep 30, 2019, at 2:00 PM, Dustin Rief
<drief(@ci.orono.mn.us> wrote:
Each offer is for the property owner directly
adjacent across the road
Cordially,
Dustin J. Rief
City Administrator
<image002.png>
City of Orono
2750 Kelley Parkway
Orono, MN 55356
Phone: 952-249-4600
Fax: 952-249-4616
Email: drief a&ci.orono.mn.us
Web: http://www.ci.orono.mn.us/
From: Victoria Seals
Sent: Monday, September 30, 2019 2:58 PM
To: Dustin Rief
Cc: Denny Walsh
Subject: Re: Additional Work session
Who are these 4? Are they one of 40(not sure
if that is the right number) that have rights? I
think all of them need to be made aware of this
if that is the case.
Just to be clear I don't think we should sell
regardless. It is like Pandora's box over there.
Victoria
Sent from my iPhone
On Sep 30, 2019, at 2:15 PM, Dustin Rief
<drief(@ci.orono.mn.us> wrote:
Mayor and Council,
I have received 4 offers for
property parcels owned by the
city on Crystal Bay Road.
Currently, our next work session is
not scheduled until October 28th
and it is already full. I would like
to add a 1 hour work session to
October 14th meeting to be more
responsive to the requests. At this
meeting each of the proposers
will have the opportunity to make
a pitch for their respective
proposals. Any back and forth
discussion should be limited to
adding insight. If the council
wants to consider the sale there
will also be a closed session
scheduled for this evening as well
to discuss the particulars of the
proposals and the pricing. If the
guidance is to not sell the
property then the closed session
will not be needed.
Cordially,
Dustin J. Rief
City Administrator
<image003.png>
City of Orono
2750 Kelley Parkway
Orono, MN 55356
Phone: 952-249-4600
Fax: 952-249-4616
Email: drief e_ci.orono.mn.us
Web:
http://www.ci.orono.mn.us/
From:
Dustin Rief
To:
Matt Johnson
Subject:
RE: Additional Work session
Date:
Wednesday, October 2, 2019 10:32:03 AM
Attachments:
image003.ong
image001.g_ng
Matt,
To be honest I don't exactly know, but will ask if there is anything legally preventing that. I don't
think it would be best practice to go that route, but I will ask Soren about the legalities so we know.
Cordially,
Dustin J. Rief
City Administrator
elk
City of Orono
2750 Kelley Parkway
Orono, MN 55356
Phone: 952-249-4600
Fax: 952-249-4616
Email: driefoci.orono.mn.us
Web: http://www.ci.orono.mn.us/
From: Matt Johnson
Sent: Wednesday, October 2, 2019 10:24 AM
To: Dustin Rief
Subject: Re: Additional Work session
Can the city assess the purchase price of these lots to the property owners?
Get Outlook for iOS
On Tue, Oct 1, 2019 at 4:14 PM -0500, "Dustin Rief" <drief(@ci.orono.mn.us> wrote:
Matt,
There is no push to get it done other than to be responsive to the requestors. Our October
Work Session is full and items on there are time sensitive in order to meet the Fee Schedule
adoption timeline on December 9. So in an effort to be responsive and follow the work session
requirement of the procedure I am requesting an additional work session. I did not think that
responding to the proposals on November 25 was fair or effective for the proposing party. If
meeting at the work session does no work I can add it to the council agenda at the end.
Cordially,
Dustin J. Rief
City Administrator
1
U -t
City of Orono
2750 Kelley Parkway
Orono, MN 55356
Phone: 952-249-4600
Fax: 952-249-4616
Email: driefoci.orono.mn.us
Web: http://www.ci.orono.mn.us/
From: Matt Johnson
Sent: Tuesday, October 1, 2019 3:57 PM
To: Dustin Rief
Subject: Fwd: Additional Work session
What about this application justifies a special work session? Is there a deadline?
Get Outlook for iOS
---------- Forwarded message ----------
From: "Matt Johnson" <miohnson(@ci.orono.mn.us>
Date: Tue, Oct 1, 2019 at 3:56 PM -0500
Subject: Re: Additional Work session
To: "Matt Johnson" <miohnson(@ci.orono.mn.us>
What about this situation justifies a special work session? Is there some sort of deadline.
Get Outlook for iOS
On Mon, Sep 30, 2019 at 2:54 PM -0500, "Matt Johnson" <miohnsonCcDci.orono.mn.us> wrote:
Forward me the offers.
Thanks
Get Outlook for US
On Mon, Sep 30, 2019 at 2:15 PM -0500, "Dustin Rief' <drief(@ci.orono.mn.us> wrote:
Mayor and Council,
I have received 4 offers for property parcels owned by the city on Crystal Bay Road.
Currently, our next work session is not scheduled until October 28th and it is already full. I
would like to add a 1 hour work session to October 14th meeting to be more responsive to
the requests. At this meeting each of the proposers will have the opportunity to make a pitch
for their respective proposals. Any back and forth discussion should be limited to adding
insight. If the council wants to consider the sale there will also be a closed session scheduled
for this evening as well to discuss the particulars of the proposals and the pricing. If the
guidance is to not sell the property then the closed session will not be needed.
Cordially,
Dustin J. Rief
City Administrator
fi c`
`AF;
11'`
City of Orono
2750 Kelley Parkway
Orono, MN 55356
Phone: 952-249-4600
Fax: 952-249-4616
Email: drief a&ci.orono.mn.us
Web: http://www.ci.orono.mn.us/