HomeMy WebLinkAbout11-14-2002 Council Work SessionCouncil Worksession
5:30 p.m. Thursday, November 14,2002
Orono City Council Chambers
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To:Mayor and City Council
From: Ron Moorse, City Administrator ij^^
Date: November 8,2002 7
Subject: Outstanding Issue Related to the Purchase Agreement Regarding the City-Owned
Parcel on Kelley Parkway
The key outstanding issue related to the purchase agreement for the sale of the City property at
the comer of Kelley Parkway and Old Crystal Bay Road is whether the City ’s requirements
regarding the granting of easements for sidewalks and trails should result in a reduction in the
price of the property.
ISSUE; Public sidewalks will be located partially within the property and
partially within the Kelley Parkway right-of-way. The City should obtain an
easement over the portion of sidewalk outside the r-o-w, as it will serve the
public. Buyers have suggested that if they have to give an easement for the
sidewalk or have it within the property, the purchase price should be reduced to
reflect this.
ISSUE: Our discussions with MnDOT some weeks ago suggested they will not
approve construction of a trail in their right-of-way. It would have to ^ located
within the property. Staff has suggested we obtain an easement along the south 10'
of the propert)' for the trail, ‘just in case’, .\pplicants don ’t want this due to
probable proximity to treatment rooms. The buyers want to reduce the purchase
price of the property because of the easement.
Staff Recommendation
A developer is responsible for meeting the requirements of the City regarding
trails and sidewalks. If the applicant was purchasing this property from a private
party, the amount of land needed for trails and sidewalks would not be eliminated
from the total size of the lot when calculating the cost of the lot. The Dahlstrom
development is providing r-o-w for sidewalks and trails, as well as a public street
The City is not paying for this r-o-w. The city should not reduce the price of the
land to reflect the trail and sidewalk easements.
The City has already reduced the price of the property to reflect the existing trail
along Old Crystal Bay Road. This was based on the buyers not being aware that
the trail encroached into the parcel. The granting of necessary easements for the
remaining trails and sidewalks is the responsibility of the developer, and should
not affect the purchase price of the property.> 1
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It is also impoitant to note that the City took the initiative to resolve the wetland
issue, which requited signiHcant expenditures by the City.
When the developer made an offer on the parcel, he set a price for the parcel
based on being able to construct an adequately sized building on the site that met
City requirements. The City requirements include the provision of sidewalks and
trails to serve the development. The parcel continues to be sufllcicnt to meet the
needs of the developer, as well as the requirements of the City. Rather than tiying
to And reasons for reducing the price of the property, the price should remain
where it currently is.
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