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Home My WebLink About2-22-2023 Regular Meeting Amended CITY OF FALCON HEIGHTS Regular Meeting of the City Council City Hall 2077 West Larpenteur Avenue AGENDA - AMENDED February 22, 2023 at 7:00 P.M. NOTE: THIS MEETING WILL BE HELD BY WEB CONFERENCE* A. CALL TO ORDER: B. ROLL CALL: GUSTAFSON____ LEEHY___ MEYER ___ WASSENBERG ____ WEHYEE___ STAFF PRESENT: LINEHAN___ C. APPROVAL OF AGENDA D. PRESENTATION E. APPROVAL OF MINUTES: 1. February 1, 2023 City Council Workshop Meeting Minutes 2. February 8, 2023 City Council Regular Meeting Minutes F. PUBLIC HEARINGS: G. CONSENT AGENDA: 1. General Disbursements through: 2/15/23 $314,899.99 Payroll through: 2/15/23 $22,859.54 Wire Payments through: 2/15/23 $15,577.74 2. City License(s) 3. Falcon Heights City Hall - Ramsey County Polling Place Agreement 4. Accept the Resignation of Scott Phillips from the Planning Commission 5. Accept the Resignation of Martin McCleery from the Environment Commission 6. Accept the Resignation of Laure Campbell from the Community Engagement Commission 7. Accept the Resignation of Matthew Chernugal as Public Works Maintenance Worker 8. Order Proposed Ruggles Pathway Easement Vacation Public Hearing 9. Pay Request: Center for Values-Based Initiatives Deliverable #2 10. Appointment of Jake Anderson to the Planning Commission 11. Appointment of Jared Mehlhaff to the Environment Commission H: POLICY ITEMS: 1. Approval of Acquisition of Real Property from the University of Minnesota for Community Park - 2050 Roselawn Avenue I. INFORMATION/ANNOUNCEMENTS: J. COMMUNITY FORUM: Please limit comments to 3 minutes per person. Items brought before the Council will be referred for consideration. Council may ask questions for clarification, but no council action or discussion will be held on these items. K. ADJOURNMENT: *You can participate in the meeting by clicking the following Zoom link: https://us02web.zoom.us/j/84002221564 Toll Free Number: 1-507-473-4847 Webinar ID: 840 0222 1564 BLANK PAGE 3 City of Falcon Heights, Minnesota City Administrator’s Determination Regarding Conducting Meetings by Telephone or Other Electronic Means As the City Administrator of the City of Falcon Heights (the “City”) I find as follows: a.The snow emergency declared by Governor Tim Walz for Wednesday, February 22nd will make in- person attendance at our regularly scheduled City Council Meeting hazardous. b.Minnesota Statutes, section 13D.021 authorizes cities to meet by telephone or interactive technology if it is determined that meeting in person is not practical or prudent because of a health pandemic or an emergency declared under Minnesota Statutes, chapter 12. c.I have the consulted with the City’s Mayor, Randy Gustafson, regarding the current situation. Based on the above findings, I determine as follows: 1.Due to the current state of emergency, complying with the provisions of Minnesota Statutes, Chapter 13D, would threaten the health safety and welfare of City officials, City staff, and the public. 2.Due to the current state of emergency declared under Minnesota Statutes, Chapter 12, it is not practical or prudent for the City Council to conduct in-person meetings on February 22nd, 2023. 3.All meetings of City Commissions shall comply with the requirements of Minnesota Statute, section 13D.021. Dated: Wednesday, February 22nd, 2023 Jack Linehan City Administrator City of Falcon Heights, Minnesota 4 Notice of State of Emergency Hybrid Electronic Meeting NOTICE for Meeting pursuant to Minn. Stat. § 13D.021 City of Falcon Heights, MN City Council Meeting Notice of Meeting by Telephone or Interactive Technology NOTICE IS HEREBY GIVEN that the City Council of the City of Falcon Heights will hold a regular meeting on Wednesday, February 22nd, 2023 at 7:00 p.m. at City Hall - 2077 Larpenteur Avenue, Falcon Heights, Minnesota, 55113. In accordance with the requirements of Minn. Stat. Section 13D.021, Jack Linehan, the City Administrator, has determined that an in person meeting in not practical or prudent because of a health pandemic or an emergency declared under Chapter 12 of the Minnesota Statutes. Because of the Governor’s emergency declaration, it has been determined that attendance at the regular meeting location by members of the public is not feasible for all attendees. Therefore, some or all the City Council members may be participating by telephone or interactive technology. Members of the public may monitor the meeting by attending in person or by interactive technology by clicking the following Zoom link: https://us02web.zoom.us/j/84002221564 Toll Free Number: 1-507-473-4847 Webinar ID: 840 0222 1564 5 BLANK PAGE 6 CITY OF FALCON HEIGHTS City Council Workshop City Hall 2077 West Larpenteur Avenue MINUTES February 1, 2023 6:30 P.M. A.CALL TO ORDER: 6:37 p.m. B. ROLL CALL:GUSTAFSON__X__ LEEHY___ MEYER _X__ WASSENBERG_X__ WEHYEE_X__ STAFF PRESENT: LINEHAN__X__ SORENSEN__X__ C.POLICY ITEMS: 1. State Fair Policies Task Force Discussion Jack Linehan, the City Administrator, states the September public forum and online survey – October workshop discussed a task force with residents and having the state fair and the University of Minnesota on the task force. The Council decided to hold off on the task force until 2023. Linehan states that if the Council wants to change or create an Ordinance, there will have to be public hearings. Linehan asks what the procedure should be for the applications. Council Member Wassenberg states that the Council wants applicants that want to do this and needs a diverse pool of applicants. Council Member Wehyee states that the task force needs a spot reserved for the University of Minnesota. Council Member Meyer asks whether the Council would want the Sheriff's Office in attendance. Mayor Gustafson states we should offer a spot to the Sheriff's office and state fair police. Limit law enforcement to one spot on the task force. Council Member Wassenberg says the task force should be around ten people. Linehan states we can always have organizations come in as guest speakers. Council Member Wehyee states to keep in mind the power dynamic of the panel. Talking about the voting powers of the panel and each group. Linehan states that organizations don't have to have a vote on the task force, just a voice in the discussion. 7 Mayor Gustafson states that any recommendation or policy change must go to the Planning Commission and the Council. Council Member Meyer asks if there would have to be an agreement or a memorandum of understanding. Linehan states yes, there would be a memorandum of understanding and that a few administrative policies talk about the State Fair, such as all of the State Fair guidelines. All State Fair policies are not ordinances, so they do not have many teeth. The attorneys recommended adopting the administrative manual as an Ordinance. Mayor Gustafson suggests making clearer on the parking Ordinance on paved surfaces. Linehan states survey data revealed majority support for not being able to park cars in people's yards. Council Member Wassenberg says parking tickets should be more than they are. Mayor Gustafson states we should make certain expectations for the task force. The Council will implement the policies that the task force recommends then we will see how they work. The task force expires at the end of 2023. Council Member Wehyee states the Council is busy around that time with other City businesses, such as the budget. Linehan states that Council should formally create this task force and create a sunset clause to extend the task force for another six months to implement more changes if needed. Council Member Wehyee states we need to set a goal that we are looking for so we know if we have met them or not. Linehan states the task will have to meet twice a month and a time commitment if a council member is on there. Council Member Meyer states that a few council members could be on the task force. Mayor Gustafson states that the task force could discuss the different categories that residents have submitted to the City. Council Member Wassenberg suggests the structure of the task force, such as having a chair and the task force's goals. Mayor Gustafson asks would the task force elect a chair or should the Council appoint a chair. He thinks they should elect a chair. Council Member Wassenberg, maybe we should elect a chair or ask if they want to be the chair, vice chair, and secretary on the application. 8 Linehan states these will be public meetings and that timing will be difficult. The Council will have to approve this task force, send out applications next Thursday, and hopefully have applicants on the 22nd. Council Member Meyer states there should be an option for availability for people to put on the application. Council Member Wassenberg says the time and day of the meetings should be on the application also that it is good for more people from the community to be in the task force than from organizations that will be a part of the organization. Linehan states the benefit of having seven members is that a quorum is easier to achieve than five. Council Member, Wassenberg's other option is that the State Fair, University of Minnesota, and the Ramsey County Sheriff's Office won't be members of the task force, just expert voices that the task force calls in to speak. Linehan states that if the task force suggests a temporary policy, wait until 2024 for a permanent solution. The Council decides that if a resident wants to be an officer on the task force, they will have the option of that on the interest form. Also, there will be no more than seven task force members. The task force will meet every week for six weeks and sunset on December 31, 2023, unless extended by the city council. The task force will address the question of life that Falcon Heights residents as impacted by the state of Minnesota fairgrounds events. Recommended topics include parking, safety, and commerce. Linehan asks how we approve these members. Mayor Gustafson says the Staff can start recruiting members for the task force in the newsletter for this next week. Council Member Wassenberg states if Linehan gets more than seven, send it to the Council. Then the Council will rank the applicants for the task force. Council Member Wehyee says it would be safer for the Council to review the applicants. Linehan states that Staff will send out the form Thursday of next week by the Wednesday of the following week. Initial appointments will be the Feb 22nd. Mayor Gustafson asks if the Council can put the applications out before establishing the task force because it would give us five more days to gather applications. Linehan says that he thinks that the City can do that. Sending out the application is okay because we don’t have an obligation if the task force isn’t approved. 9 2. THC Licensing Discussion Linehan states that the City of Falcon Heights currently has a moratorium for THC stores and sales. The moratorium is in place to allow the City time to review the potential effects of THC stores and to put regulations in place to mitigate any potential effects. The sale of THC only recently became allowed, and most cities do not have regulations. At the December meeting of the Planning Commission, a subcommittee was formed to review the new state regulations and draft an ordinance. The subcommittee met in January and prepared the attached draft relating to licensing businesses selling cannabinoid products. This draft is based on the subcommittee’s recommendation to model the provisions on the City of Elk River’s ordinance and the City of Falcon Heights’ current requirements for licensing establishments selling tobacco. At their January meeting, the Planning Commission reviewed this draft and voted to move forward with a recommendation to the City Council. Council Member Wassenberg suggests rewording the Ordinance in a few areas. Linehan states that the City would not license CBD but would license THC because there is a societal impact with THC. Council Member Wehyee asks for the denial of getting a license in state law reference number 2. Linehan states what the City is licensing would be grounds to deny them getting a license. Council Member Wehyee says it seems counterproductive to penalize people who sold marijuana before the laws changed. Could the City put an exception for marijuana in the Ordinance? Linehan states that the City could take away that whole part of the Ordinance. Mayor Gustafson states the City put a fine into this to penalize if they don’t get a license. Linehan states the City can deny if they have outstanding property tax to the City and is not sure they can deny if they have an outstanding balance with another agency. Council Member Wassenberg states we should define employee. Council Member Wehyee was wondering if the City does compliance checks. 10 Linehan says a group through Ramsey County does tobacco compliance checks. However, there isn’t a plan for THC yet through Ramsey County. Linehan states, generally, the City spells out who exactly will be doing it, but sometimes we just say City because it is an entity that the City hires to carries it out. Council Member Wassenberg asks if we are obligating ourselves to compliance checks. Linehan states that he believes there is a carryover from the tobacco Ordinance. Sometimes things may seem redundant, but the City has to spell them out because of due process. Staff can also expand the definition of cannabinoids. Council Member Wassenberg asks if their license is revoked would they get a refund of some kind. Linehan states that is a question for the attorneys, and there is an appeal process. Mayor Gustafson says in the Ordinance for tobacco licensing if they get revoked, they don’t get their money back. Council Member Wehyee asks if they can reapply if revoked. Mayor Gustafson says they would have to wait a year. Council Member Meyer asks if we should change the distance to how close it can be to the school is 1,000 feet. Linehan states they would need a business license and a cannabinoid license. Linehan asks the Council if they want staff to look at it and bring it back to a workshop or have the Planning Commission review it again. Mayor Gustafson states that staff can clean it up, and the Council can review it. D. ADJOURNMENT: 9:35 p.m. Council Member Meyer motions to adjourn the meeting; approved 4-0. 11 DISCLAIMER: City Council Workshops are held monthly as an opportunity for Council Members to discuss policy topics in greater detail prior to a formal meeting where a public hearing may be held and/or action may be taken. Members of the public that would like to make a comment or ask questions about an item on the agenda for an upcoming workshop should send them to mail@falconheights.org prior to the meeting. Alternatively, time is regularly allotted for public comment during Regular City Council Meetings (typically 2nd and 4th Wednesdays) during the Community Forum. _______________________________ Randall C. Gustafson, Mayor Dated this 22nd day of February, 2023 _________________________________ Jack Linehan, City Administrator 12 BLANK PAGE 13 CITY OF FALCON HEIGHTS Regular Meeting of the City Council City Hall 2077 West Larpenteur Avenue MINUTES February 8, 2023 at 7:00 P.M. A. CALL TO ORDER: 7:00 p.m. B. ROLL CALL: GUSTAFSON__X__ LEEHY_X__ MEYER _X__ WASSENBERG __X__ WEHYEE_X__ STAFF PRESENT: LINEHAN_X__ C. APPROVAL OF AGENDA Council Members Wehyee and Leehy motion to approve the agenda; approved 5-0 D. PRESENTATION 1. League of Women Voters – ADA Study Results Bonnie Koch from the League of Women Voters states that the LWV did a two-year long ADA study. The study looked into the compliance level of the five cities according to the section of the Americans Disabilities Act that guarantees access to public buildings and sites. Specifically, the study examined compliance policies, administration, and physical accessibility of residents who are mobility challenged to government buildings, polling locations, and city recreational venues. The steps of the study included contacting the City Administrators and asking specific compliance questions, reviewing City developed documents and the City website, and in-person visits by committee members to all buildings and park facilities to document all ADA specific requirements. Koch thanked Mayor Gustafson because he was the City of Falcon Heights’ contact person. During the study, the LMV also contacted the Ramsey County Elections Administrator and the Minnesota Disability Council website because there are some slight differences from the federal requirements. The LMV did an individual study analysis of each city. The study concluded that, fortunately, most of the cities in the area met almost all of the ADA requirements. Those they didn't meet, could easily improve non-compliance areas with some modifications and limited financial investment. The study found that most cities have non-compliance, predominantly in parking situations in parks, and, in a few instances, polling locations. Also, cities should improve their website access to ADA policies, and cities should include residents with disabilities in oversight planning and visionary groups to understand their needs better. In response to the ADA study, the LMV developed four positions. First, support ADA compliant opportunities for resident participation in city government, including early public participation in the decision-making process and open appointment for advisory committees. Second, support ADA compliant, safe, non-motorized pathways with costs assessed areawide. Third, support city government compliance with the ADA requirements in administrative policy and access to and use of City owned, leased buildings, voting precincts, and recreational locations. Fourth, support compliance by city governments with ADA requirements for identification of ADA coordinators and grievance procedures and ease of access on city websites. 14 Council Member Wehyee asks what the added value of adopting an official compliance policy is. Koch says that part of it is size and that technically, the City of Falcon Heights is a smaller staff and does not have to have one, but beyond that, its message to the residents is it’s an issue of importance to the City. Council Member Wehyee asks if Koch can speak to what is in the City of Maplewood's grievance process. Koch states that she did not work with the City of Maplewood during the study and is unsure of the answer to that question. However, she will consult with the person that works with the City of Maplewood and get an answer for Council Member Wehyee. Council Member Wehyee asks if Koch has any ideas on increasing the representation of people with disabilities on the City Commissions. Koch says that is something that needs to be discussed. Getting the word out into the community without a local paper is difficult. Koch thinks there must be a conversation on improving communications with Falcon Heights residents. Council Member Wehyee asks what the support of the LMV looks like in practice. Koch states that the LMV can do what the City needs. For example, the LMV can speak on a specific topic, provide written support or do whatever the City thinks would be helpful. Council Member Meyer asks about the difference between an official compliance policy and a compliance plan. Koch says that the LMV found that some of the city's planning is in their comprehensive plans and mentions ADA. Those are plans, but they are not specifically written down policies. Council Member Wehyee states that the difference might be that a policy might be more enforceable, and a plan is more of a declaration of sorts. Jack Linehan, the City Administrator, says from the Staff perspective for plans, the City has both the comprehensive plan and adopted the most recent ADA recommendations for engineering standards. Whenever the City is redoing roads or sidewalks, the City follows those recommendations. Linehan mentions that one of the things about the compliance policy is that it is required at certain organizations of a certain size that they have a compliance policy as part of that it does require additional funding and action by the City. When this was instituted, there was concern from small organizations, and knew these small organizations couldn't retrofit everything that was not in compliance and gave some leeway for the smaller cities. Council Member Leehy states that there is always room for improvement and thinks it has been mentioned that the time to implement are during upgrades. That is the biggest key to planning when any upgrades are considered. Going from most recent to latter, is that recently there was a Council Member that was blind. Having that disability and to see all of the aspects that Staff and the Council did to make sure that the former Council Member had what she needed to accomplish her role. Until the time comes for the upgrade, then bringing those things to attention is beneficial. 15 Koch states that all the Cities in the study are aware and looking forward. E. APPROVAL OF MINUTES: 1. January 25, 2023 City Council Regular Meeting Minutes Council Member Meyer motions to approve the minutes; approved 5-0 F. PUBLIC HEARINGS: G. CONSENT AGENDA: 1. General Disbursements through: 2/2/23 $119,902.44 Payroll through: 1/31/23 $23,915.01 Wire Payments through: 1/31/23 Bond Principal & Interest Payments $267,350.00 Payroll Taxes/Payments $16,141.97 2. City License(s) 3. Establishment of Falcon Heights State Fair Policies and Procedures Review Task Force 4. Accept the Resignation of Administrative & Communications Coordinator Brennan Sorensen Council Member Leehy motions to approve the consent agenda; approved 5-0 Mayor Gustafson and Council Member Wehyee thank Brennan Sorensen for his work at the City. Mayor Gustafson states that the interest for the State Fair Task Force is online and wants as many people as possible from the community to sign up. Council Member Leehy motions to amend the disbursement through 2/2/23 $119,902.44; approved 5-0 H: POLICY ITEMS: 1. Falcon Heights Book Club – Appeal to Waive Rental Fee for Use of Conference Room at City Hall in 2023 Linehan states that The Falcon Heights Book Club was proposed by the City Council and formed in 1996. Laura Kuettel was a Council Member at the time and became an active participant and leader of the monthly book club. The Falcon Heights Book Club has previously asked for the rental fee waived so that they could meet each month for one hour in the Conference Room at City Hall without charge. City policy states that the City Council must hear any consideration for waiving rental fees. The Falcon Heights Book Club is asking the Council to waive the $100 annual rental fee so that they may use the Conference Room in 2023 without charge. Council Member Wassenberg asks whether the Book Club has paid a fee to the City. Linehan states that Staff's understanding from looking at old emails this rearose last year. Last year, the Falcon Heights Book Club was looking to return and reached out to the Assistant to the City Administrator at that time, and it was forwarded to the City Administrator. It was denied and had to go to the Council for it to be waived. 16 Council Member Wassenberg asks if there are any marginal costs to waiving the fee. Linehan states no; Staff provides them with a key, and all rentals will pay a damage deposit. Council Member Meyer asks whether the City has ever charged a different rate for the conference room. Linehan states there is a different rental rate. Essentially if they didn't get the annual rate for being one of the organizations that the City lists, they would go over the $100 probably in two to three meetings $100 is a major discount over the fees the City charges. Council Member Wassenberg asks if the Council were to grant this exemption for this group, are there other groups that would fall into the same category? Linehan states that it could. Council Member Meyer states rather than having the limit be twice a year for a free pass. What if the Council changed that to something like once a month for groups like this? Mayor Gustafson states it would be particularly for the conference room. Council Member Leehy states that she favors looking at this as a case by case instead of expanding it. Council Member Meyer states that it is a service to the community to have these civic groups such as this a part of Falcon Heights and favors waiving this fee. Mayor Gustafson states that the fee only applies for this year rather than next. After that, they would have to come to Council again next year. Council Member Wehyee states he is now more inclined to change the policy. Council Member Wassenberg states that the council should waive the fee for this year and then change the current policy at a later date. Mary Ward, 1811 Moore St., states that she has been a resident of Falcon Heights for 40 years and has been a member of this book club for ten years. It is a great service to offer to the Falcon Heights community. Council Member Leehy asks how did Mary hear about the Book Club. Also, is there a maximum number of participants? Mary states the Roseville review had an ad for the Club, and now it is just word of mouth. In years past, the City website had the books that the Book Club was reading, but now that is not the case. Generally, it's about eight people. Mayor Gustafson states the City will be able to help the Book club by promoting what they are reading on the website and newsletter. Council Members Leehy and Wassenberg motion to the rental fee for the Falcon Heights Book Club; approved 5-0 17 I. INFORMATION/ANNOUNCEMENTS: Council Member Wassenberg states he attended his first Parks and Recreation Commission meeting. The Commission discussed summer programming and how to increase familiarity with all Falcon Heights Parks. Council Member Meyer is excited about the Environment Commission on Monday, where they will elect officers. A guest speaker is coming who is an expert on city planning. Mayor Gustafson states that the Community Engagement Commission will be meeting next Wednesday. There is a new vacancy on the Commission, so if people are interested, please join. Linehan states Community Park Update Progress is continuing toward the city’s purchase and renovation of Community Park. The University Board of Regents will consider authorization of the sale at their February Board of Regents meeting. A public hearing is planned for the February 28th Planning Commission meeting to review the proposal to subdivide the existing 40-acre parcel to facilitate the sale of the 15.5-acre park parcel. Spring Newsletter Staff is working on the Spring 2023 newsletter mailed to all Falcon Heights residents. We anticipate it will be sent out in late February or early March. The edition includes summer recreation programming, city updates, and important seasonal reminders. Parks Winter Programming Reminder: NEW – Breathwork Classes – February 16th through March 23rd on Thursdays at 7:00 p.m. AARP Foundation Tax Aide Preparation Volunteers will be available at City Hall every Thursday from February 16th through April 13th, from 9 a.m. to 2 p.m., for free of charge tax assistance for taxpayers who are over 50 and have low to moderate income. We are getting many calls and still have openings, while some other area AARP classes have filled up. Appointments are by appointment only. Call or email Assistant to the City Administrator Kelly Nelson at kelly.nelson@falconheights.org or at 651-792- 7617 to reserve your appointment. State Fair Task Force Interest forms are available for the State Fair Policies and Procedures Review Task Force. Maximum of seven voting members, comprised of residents. Five applications have been received so far. Applications are open through February 15th, depending on if enough applicants are selected. Appointments anticipated February 22nd, with the committee meeting every Tuesday at 6:30 March through April. Contracted Law Enforcement Satisfaction Services As part of our consultant’s study on law enforcement contract options, a survey was sent to 100 random addresses in Falcon Heights to collect additional data. We are collecting responses through February 20th. J. COMMUNITY FORUM: Please limit comments to 3 minutes per person. Items brought before the Council will be referred for consideration. Council may ask questions for clarification, but no council action or discussion will be held on these items. 18 K. ADJOURNMENT: 8:15 p.m. Council Member Wehyee motions to adjourn the meeting; approved 5-0 _______________________________ Randall C. Gustafson, Mayor Dated this 22nd day of February, 2023 _________________________________ Jack Linehan, City Administrator 19 BLANK PAGE 20 21 22 23 24 25 26 27 28 29 30 BLANK PAGE 31 Item Approval of City License(s) Description The following individuals/entities have applied for a Tree Contractors License for 2023. Staff have received the necessary documents for licensure. 1. Upper Cut Tree Service 2. Morgan’s Tree Service N/A Attachment(s) N/A Action(s) Requested Staff recommends approval of the City license applications contingent on background checks and fire inspections as required. Meeting Date February 22, 2023 Agenda Item Consent G2 Attachment N/A Submitted By Kelly Nelson Assistant to the City Administrator 32 BLANK PAGE 33 Item Ramsey County - Polling Place Agreement Description The City received a request the use of City Hall as a polling place for the 2023 Election Season. The Election dates for City Hall is listed on the polling place agreement attached. Budget Impact N/A Attachment(s) • Ramsey County Polling Place Agreement Action(s) Requested Staff recommend approval of attached resolution and authorize the City Administrator to execute all necessary documents. Meeting Date February 22, 2023 Agenda Item Consent G3 Attachment Agreement Submitted By Jack Linehan, City Administrator 34 90 Plato Blvd. WestSaint Paul, MN 55107Phone: (651) 266-2171www.ramseycounty.us 2023 Polling Place Agreement Other: Polling Place Falcon Heights City Hall 2077 Larpenteur Ave. W. Falcon Heights, MN 55113 Falcon Heights City Hall agrees to provide their site to Ramsey County for the following election(s): General Election — 11/07/2023 Special Elections — We will notify you if a special election is necessary for 2023. Notes •Ramsey County Elections will be conducting in person site visits to all Ramsey County polling locations in 2023,beginning the week of March 6, 2023. Your site visit date is 3/7/2023 at 11:00. If you are unable to keep thisappointment, please notify Brenda Leifeld to reschedule via email or phone at 651-266-2215.•If your organization requires a facilities use agreement, please send that document along with the completed pollingplace agreement to brenda.leifeld@ramseycounty.us by April 10, 2023. Please complete and return this agreement to the Elections Office promptly. In completing and signing this document, the polling place contact agrees to: •properly heat and light the location from 5:30 a.m. until the work of the election judges is complete. •ensure the building is open at 5:30 a.m. on Election Day and that no other activities will interfere with the votingprocess. •provide for secure storage of voting materials prior to and following Election Day. Is there any construction planned for the above-named polling location for 2023? Yes No If yes, specify where and when __________________________________________________________________ On-site contact: Kelly Nelson / Jack Linehan If the building is not open at 5:30 a.m. on Election Day, list any individuals with keys to open the facility: (provide phone numbers that are reachable at 5:30 a.m.) ________________________________________________________________________________________________ Emergency contact: Other: Kelly Nelson / Jack Linehan Voting room/location: Other: Council Chambers Secure equipment storage location: Other: conference room Instructions for delivery personnel: _________________________________________________________________ Representative: __________________________________________________ Signature: ______________________________________________________ Representing: Falcon Heights City Hall 35 BLANK PAGE 36 Item Resignation of Scott Phillips from the Planning Commission Description Scott Phillips was appointed in 2020 and has been a great addition to the commission. Staff would like to thank Scott for his commitment and time while wishing him well in future endeavors. Budget Impact N/A Attachment(s) • Resolution 23-11 Resignation of Scott Phillips from PC Action(s) Requested Staff recommend approval of attached resolution, accepting the resignation of Scott Phillips from the Planning Commission. Meeting Date February 22, 2023 Agenda Item Consent G4 Attachment Resolution 23-11 Submitted By Hannah Lynch, Community Development Coordinator 37 CITY OF FALCON HEIGHTS COUNCIL RESOLUTION February 22, 2023 No. 23-11 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - RESOLUTION ACCEPTING THE RESIGNATION OF SCOTT PHILLIPS FROM THE FALCON HEIGHTS PLANNING COMMISSION WHEREAS, the City appointed Scott Phillips as a member of the City of Falcon Heights Planning Commission in 2020; and WHEREAS, on February 13, 2023 Mr. Phillips communicated his intent to resign his duties from the Commission effective immediately; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Falcon Heights, Minnesota: 1. That the resignation is accepted by the City Council of the City of Falcon Heights. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Moved by: Approved by: ________________________ Randall C. Gustafson Mayor GUSTAFSON ____ In Favor Attested by: ________________________ MEYER Jack Linehan LEEHY ____ Against City Administrator WEHYEE WASSENBERG 38 BLANK PAGE 39 Item Resignation of Martin McCleery from the Environment Commission Description Martin McCleery was appointed in 2017 and again in 2020 and has been a great addition to the commission. Staff would like to thank Martin for his commitment and time while wishing him well in future endeavors. Budget Impact N/A Attachment(s) • Resolution 23-12 Resignation of Martin McCleery from EC Action(s) Requested Staff recommend approval of attached resolution, accepting the resignation of Martin McCleery from the Envrionment Commission. Meeting Date February 22, 2023 Agenda Item Consent G5 Attachment Resolution 23-12 Submitted By Hannah Lynch, Community Development Coordinator 40 CITY OF FALCON HEIGHTS COUNCIL RESOLUTION February 22, 2023 No. 23-12 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - RESOLUTION ACCEPTING THE RESIGNATION OF MARTIN MCCLEERY FROM THE FALCON HEIGHTS ENVIRONMENT COMMISSION WHEREAS, the City appointed Martin McCleery as a member of the City of Falcon Heights Environment Commission in 2017 and again in 2020; and WHEREAS, on February 15, 2023 Mr. McCleery communicated his intent to resign his duties from the Commission effective immediately; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Falcon Heights, Minnesota: 1. That the resignation is accepted by the City Council of the City of Falcon Heights. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Moved by: Approved by: ________________________ Randall C. Gustafson Mayor GUSTAFSON ____ In Favor Attested by: ________________________ MEYER Jack Linehan LEEHY ____ Against City Administrator WEHYEE WASSENBERG 41 BLANK PAGE 42 Item Resignation of Laure Campbell from the Community Engagement Commission Description Laure was appointed in 2021 and has been a great addition to the commission. Staff would like to thank Laure for her commitment and time while wishing her well in future endeavors. Budget Impact N/A Attachment(s) • Resolution 23-13 Resignation of Laure Campbell from CEC Action(s) Requested Staff recommend approval of attached resolution, accepting the resignation of Laure Campbell from the Community Engagement Commission. Meeting Date February 22, 2023 Agenda Item Consent G6 Attachment Resolution 23-13 Submitted By Brennan Sorensen, Administrative & Communications Coordinator 43 CITY OF FALCON HEIGHTS COUNCIL RESOLUTION February 22, 2023 No. 23-13 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - RESOLUTION ACCEPTING THE RESIGNATION OF LAURE CAMPBELL FROM THE FALCON HEIGHTS COMMUNITY ENGAGEMENT COMMISSION WHEREAS, the City appointed Laure Campbell as a member of the City of Falcon Heights Community Engagement Commission in 2021; and WHEREAS, on February 2, 2023 Laure communicated her intent to resign her duties from the Commission effective immediately; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Falcon Heights, Minnesota: 1. That the resignation is accepted by the City Council of the City of Falcon Heights. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Moved by: Approved by: ________________________ Randall C. Gustafson Mayor GUSTAFSON ____ In Favor Attested by: ________________________ MEYER Jack Linehan LEEHY ____ Against City Administrator WEHYEE WASSENBERG 44 BLANK PAGE 45 Item Resignation of Matthew Chernugal from the position of Public Works Maintenance Worker Description Matthew Chernugal has submitted his letter of resignation effective March 3rd, 2023. Matthew has accepted a position with the City of St. Paul as a Water Operator. Matthew started with the City in the summer of 2021 as a part-time Laborer. In November, the City Council created the full-time position of Maintenance Worker and promoted Matthew in to the position. We thank Matthew for his service to Falcon Heights, and wish him well in his next chapter. Budget Impact N/A Attachment(s) • Resolution 23-14 Appointment of Matthew Chernugal to Public Works Maintenance Worker. • Letter of Resignation. Action(s) Requested Staff recommend approval of attached resolution accepting the resignation of Matthew Chernugal from the position of Public Works Maintenance Worker with an effective date of March 3, 2023 Meeting Date February 22, 2023 Agenda Item Consent G7 Attachment Resolution 23-14 Submitted By Jack Linehan, City Administrator 46 CITY OF FALCON HEIGHTS COUNCIL RESOLUTION February 22, 2023 No. 23-14 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - RESOLUTION ACCEPTING THE RESIGNATION OF MATTHEW CHERNUGAL FROM THE POSITION OF PUBLIC WORKS MAINTENANCE WORKER FOR THE CITY OF FALCON HEIGHTS WHEREAS, on November 9, 2022, Matthew Chernugal was promoted from part-time Laborer to full-time Public Works Maintenance Worker; and WHEREAS, the position was offered to and accepted by Matthew Chernugal; WHEREAS, Matthew Chernugal has submitted his letter of resignation effective March 3, 2023. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Falcon Heights, Minnesota: 1. Accept the resignation of Matthew Chernugal from the position of Public Works Maintenance Worker. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Moved by: Approved by: ________________________ Randall C. Gustafson Mayor GUSTAFSON ___ In Favor Attested by: ________________________ MEYER Jack Linehan LEEHY ___ Against City Administrator WASSENBERG WEHYEE 47 48 BLANK PAGE 49 Item Call Public Hearing for Proposed Vacation of Ruggles Pathway Right-of-Way Description The public right-of-way for a pathway connecting to Ruggles Street, between Pascal Street and Holton Street, was dedicated with the plat of BARTHEL VILLAS. The right-of-way is labeled in the plat as “WALK.” Currently, no improved surface has been installed as a pathway. The area is maintained by the adjacent residents as part of their lawn. Local residents walk through the area; however, it does not meet American’s with Disabilities Act (ADA) standards. At the November 9th City Council meeting, Council discussed potentially vacating the pathway right-of-way. The item was tabled for further discussion. As the City received a signed letter from the four adjacent property owners impacted by the easement, it triggers the vacation of right-of-way public hearing process. The public hearing will provide a noticed venue for the proposal to vacate the pathway right-of-way. The attached resolution calls for a public hearing to consider the vacation on March 22, 2023. Notice will be posted, published in the official newspaper and mailed to all property owners within the plat. Budget Impact No significant impact is anticipated. Attachment(s) • Resolution • Signed Letter Requesting Vacation Action(s) Requested Approve the resolution Setting a Public Hearing on the Proposed Vacation of Ruggles Pathway (Between Pascal Street and Holton Street) for March 22, 2023. Meeting Date February 22, 2023 Agenda Item G8 Attachment Resolution, Letter Submitted By Stephanie Smith, Interim City Engineer 50 CITY OF FALCON HEIGHTS COUNCIL RESOLUTION February 22, 2023 No. 23-15 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - RESOLUTION NO. RESOLUTION SETTING A PUBLIC HEARING ON THE PROPOSED VACATION OF RUGGLES PATHWAY (BETWEEN PASCAL STREET AND HOLTON STREET) WHEREAS, the Council pursuant to Minnesota Statute § 412.851 desires to consider the vacation of Ruggles pathway right-of-way between Pascal Street and Holton Street described as follows and depicted in Exhibit “A”: All of the right of way which is labelled as “WALK” on the plat named Barthel Villas; said “WALK” was dedicated to the public by the said plat of Barthel Villas; said “WALK” being bounded as follows: On the North by Lots 9 and 26, Block 1, said plat of Barthel Villas; On the South by Lots 10 and 25, Block 1, said plat of Barthel Villas; On the East by the West right of way line of Holton Avenue; On the West by the East right of way line of Pascal Avenue; All in Ramsey County, Minnesota. (herein after described as “Pathway Easement”); NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Falcon Heights, Minnesota as follows: 1. The City Council will consider the vacation of such Pathway Easement and a public hearing shall be held on such proposed vacation on the 22nd day of March, 2023, in the City Hall located at 2077 West Larpenteur Avenue, Falcon Heights at 7:00 p.m., and 2. The City Clerk is hereby directed to give published, posted and mailed notice of such hearing as required by law. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Moved by: Approved by: Randy Gustafson Mayor 51 GUSTAFSON ____ In Favor Attested by: LEEHY Jack Linehan MEYER ____ Against City Administrator WASSENBERG WEHYEE 52 Exhibit A 53 54 55 BLANK PAGE 56 Item Approval of Pay Request #2 for Center for Values-Based Initiatives Description Staff released an RFP for Police Contract Analysis and Consulting Services on July 15, 2022. The RFP closed on August 15, 2022. The RFP was marketed widely online and staff reached out to local and national firms that specialize in this service. The city received interest from three qualified bidders. One bidder declined to submit, citing workload / staffing constraints as they were starting up their firm. In total, the city received two proposals from consultants: one from a local retired law enforcement executive, and one from a national police consulting firm. The City Council reviewed the proposals during workshops on 9/14 and 9/21. The majority of the council preferred the proposal that was submitted by the Center for Value-Based Initiatives (CVBI), and the contract was approved 9/28/22. CVBI has so far submitted draft deliverables for items #1 and #2 of the RFP. As per the agreement, acceptance of the draft deliverables triggers pay for the services. The cost for deliverable #2 is $7,500 per our contract. The final deliverable #3 and full report is expected in March. Budget Impact Funds are budgeted for the deliverable. Attachment(s) •Contract •Invoice Action(s) Requested Staff would recommend approval of the attached invoice to pay CVBI $7,500.00 per our contract. Meeting Date February 22, 2023 Agenda Item Consent G9 Attachment Contract, Invoice Submitted By Jack Linehan, City Administrator 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 Invoice TO: City Administrator – Jack Linehan 2077 West Larpenteur Avenue Falcon Heights, MN 55113 PROJECT: Professional Services Agreement with the City of Falcon Heights SUBJECT: Scope of Work – Workload Analysis Invoice No: 23003 DATE: February 15, 2023 Overview of Scope of Work (SOW) Deliverable 2 As noted in the professional service agreement, Deliverable 2 includes: Determine the City’s current police services utilization using data from the Ramsey County Sheriff’s Office, including considerations of number of responding units needed by call type, the number and frequency of outside agency assistance required, caller initiated versus officer initiated activities, effect of community policing on discretionary patrol time and the time necessary to conduct proactive police activities, and the amount of time necessary to handle police calls and activities from inception to completion. The above work on SOW Deliverable 2 was completed on February 15, 2023. The total fee for these services is $7,500. Thank you for the opportunity to serve the City of Falcon Heights. Respectfully, Matthew Bostrom, Ph.D. President Center For Values-Based Initiatives 87 BLANK PAGE 88 Item Appointment of Jake Anderson to the Planning Commission Description City Staff and the Planning Commission Chair have interviewed and recommend Jake Anderson for the Planning Commission. Jake Anderson is a newer resident of Falcon Heights and wants to become more active in the community. Jake has non-profit experience with affordable housing and his ideas and skillset will be valuable in helping to guide the future development of Falcon Heights. Budget Impact N/A Attachment(s) • Commission Application • Resolution 23-16 Appointment of Jake Anderson to the Planning Commission Action(s) Requested Staff recommends approval of attached resolution appointing Jake Anderson to the Planning Commission. Meeting Date February 22, 2023 Agenda Item Consent G10 Attachment Application and Resolution 23-16 Submitted By Hannah Lynch, Community Development Coordinator 89 From: Falcon Heights, MN Sent: Thursday, January 26, 2023 9:45 AM To: FH Mail Subject: *NEW SUBMISSION* City Commission Application Caution: This email originated outside our organization; please use caution. City Commission Application Submission #: 2207984 IP Address: 75.146.163.137 Submission Date: 01/26/2023 9:45 Survey Time: 24 minutes, 34 seconds You have a new online form submission. Note: all answers displaying "*****" are marked as sensitive and must be viewed after your login. Please complete form below. Starred items are required. Press submit button to complete your application. Date and Time 01/26/2023 12:00 AM Full Name Jake Anderson Full Address 1700 Albert Street North Falcon Heights, MN 55113 USA Phone 5172900278 Additional Phone Email ander1jp@gmail.com How Long At Above Address? 2 Years In Which Capacity Would You Like to Serve? City Planning Commission What is the Reason You Would Like to Serve? 90 While there are many reasons that I wish to serve, three in particular drive my decision to apply. 1) To learn more about my new city that I have come to love. 2) I have a 4 year old daughter and a son on the way who will soon be attending Falcon Heights Elementary. I wish to model my believe in the strong commitment to public service. 3) To build community with community. I believe that land use is essential in creating an inclusive and thriving neighborhood. List Prior (Previous) Public Service While I have worked in several different capacities in the non-profit sector including the arts and affordable housing, this would be my first position in public service. Other Relevant Background (Other Comments) I currently serve as a fundraiser for Project for Pride in Living, an affordable housing and career training non-profit. Thank you, Falcon Heights, MN This is an automated message generated by Granicus. Please do not reply directly to this email. 91 CITY OF FALCON HEIGHTS COUNCIL RESOLUTION February 22, 2023 No. 23-16 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - RESOLUTION APPOINTING JAKE ANDERSON TO THE PLANNING COMMISSION WHEREAS, the Planning Commission shall be the municipal planning agency authorized by Minnesota Statutes § 462.354, subd. 1; WHEREAS, the Planning Commission serves in an advisory capacity to the City Council on all policy matters relating to City planning, zoning, and land use; WHEREAS, City Staff and Commission Chair have interviewed, and the Mayor has reviewed, Jake Anderson’s application and recommend appointment to the Falcon Heights Planning Commission. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Falcon Heights, Minnesota: 1. That the appointment of Jake Anderson to the Falcon Heights Planning Commission is approved and adopted by the City Council of the City of Falcon Heights. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Moved by: Approved by: ________________________ Randall C. Gustafson Mayor GUSTAFSON ____ In Favor Attested by: ________________________ LEEHY Jack Linehan MEYER ____ Against City Administrator WEHYEE WASSENBERG 92 BLANK PAGE 93 Item Appointment of Jared Mehlhaff to the Environment Commission Description City Staff and the Environment Commission Chair have interviewed and recommend Jared Mehlhaff for the Environment Commission. Jared Mehlhaff is a newer resident of Falcon Heights and wants to help shape future projects in the commission. Jake has state government and data processing experience and his ideas and skillset will be valuable in helping to assess and advise on policy related to environmental concerns facing Falcon Heights. Budget Impact N/A Attachment(s) • Commission Application • Resolution 23-17 Appointment of Jared Mehlhaff to the Environment Commission Action(s) Requested Staff recommends approval of attached resolution appointing Jared Mehlhaff to the Environment Commission. Meeting Date February 22, 2023 Agenda Item Consent G11 Attachment Application and Resolution 23-17 Submitted By Hannah Lynch, Community Development Coordinator 94 From: Falcon Heights, MN Sent: Friday, January 13, 2023 2:07 PM To: FH Mail Subject: *NEW SUBMISSION* City Commission Application Caution: This email originated outside our organization; please use caution. City Commission Application Submission #: 2184705 IP Address: 66.41.133.97 Submission Date: 01/13/2023 2:06 Survey Time: 19 minutes, 39 seconds You have a new online form submission. Note: all answers displaying "*****" are marked as sensitive and must be viewed after your login. Please complete form below. Starred items are required. Press submit button to complete your application. Date and Time 01/13/2023 02:07 PM Full Name Jared Mehlhaff Full Address 1770 Simpson St. Falcon Heights, MN 55113 USA Phone 9527974876 Additional Phone Email jared.mehlhaff@gmail.com 95 How Long At Above Address? 1.5 years In Which Capacity Would You Like to Serve? Research, data collection, and data analysis are my specialties that I have 10+ years of experience in and where I could be the most useful and helpful. What is the Reason You Would Like to Serve? My area of expertise could be helpful in gathering information and performing any analysis that could help shape future projects in the commission. I can also advise on technology-related aspects to the commission. List Prior (Previous) Public Service Currently working as a data analyst for the Department of Human Services Office of Inspector General. Took part in a research competition on water quality in the metro area where we collected data from various departments, researched methodology, and finally presented this to a large group of data experts from the community where my partner and I achieved first place in the graduate division. (link: http://minneanalytics.org/diving-into-water- data-the-outcomes-of-minnemudac/) Other Relevant Background (Other Comments) Bachelor of Science in Economics, Masters of Science in Data Analysis; 10+ years of research, data collection, coding, data analysis, and data science in manufacturing, education, and human services. Mentored young students through the Minds Matter program in the Twin Cities. LinkedIn Page: https://www.linkedin.com/in/jared- mehlhaff-2881a494/ Thank you, Falcon Heights, MN This is an automated message generated by Granicus. Please do not reply directly to this email. 96 CITY OF FALCON HEIGHTS COUNCIL RESOLUTION February 22, 2023 No. 23-17 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - RESOLUTION APPOINTING JARED MEHLHAFF TO THE ENVIRONMENT COMMISSION WHEREAS, the Environment Commission serves in an advisory capacity to the City Council on all policy matters relating to energy use, air quality, recreation and aesthetic appreciation, green infrastructure, water, solid waste, and environmental education; WHEREAS, City Staff and Commission Chair have interviewed Jared Mehlhaff and recommend appointment to the Falcon Heights Environment Commission. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Falcon Heights, Minnesota: 1. That the appointment of Jared Mehlhaff to the Falcon Heights Environment Commission is approved and adopted by the City Council of the City of Falcon Heights. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Moved by: Approved by: ________________________ Randall C. Gustafson Mayor GUSTAFSON ____ In Favor Attested by: ________________________ LEEHY Jack Linehan MEYER ____ Against City Administrator WEHYEE WASSENBERG 97 BLANK PAGE 98 Item Approval of Acquisition of Community Park Property – 2050 Roselawn Avenue Description The City of Falcon Heights has leased the Community Park property from the University of Minnesota since 1973 for a nominal cost of $1 per lease renewal. The current lease agreement is set to expire December 31, 2024. As the park building has been in need of a major renovation, the City and the U of M have been working together on the sale of the park property. The U of M and the City of Falcon Heights each hired a commercial appraisal firm to determine the value of the park property. The two appraisals ranged from a fee simple valuation of $1.25 to $2 per square foot, or $790,000 to $1,260,000. The City initially offered $850,000 for the property, which was rejected by the University. Both parties settled on a sale price of $1.625 per square foot, or the average of the two appraisals. As part of the sale negotiations, it was determined that the 14.5 acre parcel was closer to 15.6 acres, which increased the total estimated sale price to $1,107,127.00. The actual square footage and total sale price will be determined by the final ALTA survey conducted on the property. The City additionally will pay all closing costs associated with the sale. The U of M Board of Regents authorized the sale on February 10th By approving this resolution, it will allow the City Administrator to work with the City Attorney to finalize the sale. The next step in the process is a public hearing at the February 28th Planning Commission meeting to subdivide the property, which the sale is contingent upon. If the subdivision is approved, the City Council will need to ratify the subdivision at a March meeting. The U of M and the City are working towards a March/April close on the property. Included in the sale agreement and resolution is the legal description of the property. Landform LLC, who was hired in January to conduct an ALTA survey of the property, is expecting delivery of the updated legal description Meeting Date February 22, 2023 Agenda Item Policy H1 Attachment(s) •Resolution 23-18 •Valbridge Appraisal Letter •Diversified Real Estate Services, Inc. Appraisal Submitted By Jack Linehan, City Administrator 99 early the week of February 20th. The resolution will be updated with the final legal description once received. Budget Impact Included in the capital budget is $1.5 million for the acquisition and sitework required at Community Park. The City has been carefully saving for this acquisition for years. Attachment(s) •Resolution 23-18 •Valbridge Appraisal Letter •Diversified Real Estate Services, Inc. Appraisal Action(s) Requested Staff recommend approval of attached resolution and authorize the City Administrator, Mayor and City Attorney to execute all necessary documents in the facilitation of the real property acquisition. 100 CITY OF FALCON HEIGHTS COUNCIL RESOLUTION February 22, 2023 No. 23-18 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - RESOLUTION APPROVING ACQUISITION OF REAL PROPERTY FROM THEUNIVERSITY OF MINNESOTA WHEREAS, the City currently leases property from the University of Minnesota for the city park known as Community Park; WHEREAS, the City proposes to enter into a Purchase Agreement (“Agreement”) with the University of Minnesota for the purchase of property that it currently leases for the Community Park together with additional real property legally described in Exhibit A attached hereto (“Property”); WHEREAS, the City has received and reviewed the proposed Agreement for the acquisition of the Property to be entered into by and between the City and the University of Minnesota; WHEREAS, the Planning Commission has reviewed the proposed acquisition of the Property at its regular meeting on October 26, 2022 and has found that such acquisition is in conformance with the City’s Comprehensive Plan as supported in Resolution 22-49; WHEREAS, the City Council finds that the acquisition of the Property is in the public’s interest and furthers the aims and purposes of the City. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Falcon Heights, Minnesota, as follows: 1. The Agreement is hereby approved. 2.The City Attorney and City staff are authorized to finalize all documents necessary to complete the acquisition of the Property. 3.The Mayor and City Administrator are authorized to execute any and alldocuments necessary and required under the terms of the Agreement to effect the acquisition of the Property. ADOPTED by the Falcon Heights City Council on February 22, 2023. 101 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Moved by: Approved by: ________________________ Randall C. Gustafson Mayor GUSTAFSON ____ In Favor Attested by: ________________________ MEYER Jack Linehan LEEHY ____ Against City Administrator WEHYEE WASSENBERG 102 Exhibit A Legal Description of Property (to be provided February 22, 2023) 103 255 E. Kellogg Boulevard, Ste. 102A St. Paul, Minnesota 55101 valbridge.com Nathan Hansen 651-370-1475 nhansen@valbridge.com October 20, 2021 Kelley Brandt Director: Transactions and Operations, CCIM University of Minnesota 319 15th Avenue Southeast Minneapolis, MN 55455 RE: Addendum to Restricted Use Appraisal Report to Reflect Undevelopable Condition Land Parcel 2050 Roselawn Avenue West Falcon Heights, Ramsey County, MN 55108 Dear Kelley Brandt: In a report dated September 15, 2021, we completed a restricted appraisal of the Land Parcel located at 2050 Roselawn Avenue West, Falcon Heights, Ramsey County, MN 55108. The purpose of the appraisal was to estimate the 'as-is' market value and market ground rent of the subject property. The client and intended user for the assignment was University of Minnesota. This letter is considered an addendum to the noted report and is intended to be used only in conjunction with the report. This letter is deemed invalid without the original report. The purpose of this letter is to consider the value of the subject property under the condition that the future use of the property is to be continued park usage. To develop our opinion of value under this condition, we analyzed comparable sales of land that is unusable for development, or with significant barriers to development. We analyzed 5 sales of land that fit this criterion within the subject market, the details of which are retained in our workfile. The comparable land sale parcels ranged in size from 0.48 to 2.55 acres, with prices ranging from $1.08 to $2.21 per square foot. Given the subject’s relatively large size compared to these sales, it is our opinion that a value for the subject near the bottom of the range is appropriate. Given the data points and considering the characteristics of the subject property, our opinion of value under this condition is $1.25 per square foot of land, or $790,000 (rounded), which is equivalent to 6.25% of the subject’s market value. This appraisal is subject to the same assumptions and limiting conditions as the original appraisal. Valbridge Property Advisors | Minneapolis – St. Paul Brian Ambuel Associate Appraiser MN Appraiser Trainee 40629616 Nathan Hansen Managing Director MN Certified General 20302614 104 10 South Fifth Street · Suite 1001 · Minneapolis, MN 55402 · 612.349.9275 · 612.349.7488 fax Real Estate Appraisal Presented in a Restricted Report Format Which Estimates the Market Value Of The Fee Simple Interest In the FALCON HEIGHTS COMMUNITY PARK Located at 2050 Roselawn Avenue West Falcon Heights, Minnesota 55113 DRESI File #: 22145 Prepared For Mr. Jack Linehan City Administrator City of Falcon Heights 2077 West Larpenteur Avenue Falcon Heights, Minnesota 55113 Date Report Was Completed: June 30, 2022 Date of Physical Inspection: June 17, 2022 Effective Date of Appraisal: June 17, 2022 Prepared By DIVERSIFIED REAL ESTATE SERVICES, INC. Ryan L. Bauer, MAI, MN-20318393 Timothy L. Klein, MAI, MN-20584809 Diversified Real Estate Services, Inc. D Diversified Real Estate Services, Inc. D 105 DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 1 June 30, 2022 Mr. Jack Linehan City Administrator City of Falcon Heights 2077 West Larpenteur Avenue Falcon Heights, Minnesota 55113 Re: Real estate appraisal presented in a restricted report format which estimates the market value of the fee simple interest in the 14.50-acre Falcon Heights Community Park located at 2050 Roselawn Avenue West, Falcon Heights, Minnesota 55113. Dear Mr. Linehan: As requested, we have prepared a market value real estate appraisal presented in a restricted report format. The Falcon Heights Community Park consists of 14.50 acres and is currently part of a larger 40.55-acre parcel of land, which is owned by the University of Minnesota. The City of Falcon Heights has been leasing the 14.50-acre site from the University of Minnesota since December 31, 1973 for use as a park. The rental rate is $1.00 per year. Per the lease agreement, the term of the lease is for one year with automatic one year renewals ending on December 31, 2024. The lease allows either party to terminate the lease for any reason on any December 31st during the term upon not less than 1 year prior written notice to the other party. All on-site improvements are the property of the City of Falcon Heights. The City of Falcon Heights is interested in acquiring the site from the University of Minnesota at market value for continued use as a community park. As a result, the purpose of this appraisal is to estimate the as is fee simple market value of the subject 14.50-acre site. The subject property was inspected on June 17, 2022, which is the effective valuation date. The scope of work used in completing this appraisal is also summarized in the attached report. Based upon an inspection of the property and the careful consideration of the factors which influence market value, it is our opinion that the subject property has the following as is fee simple market value as of the effective valuation date on June 17, 2022. AS IS FEE SIMPLE MARKET VALUE CONCLUSION AS OF JUNE 17, 2022 ONE MILLION TWO HUNDRED SIXTY THOUSAND DOLLARS ....................................... $1,260,000 No personal property, fixtures, or intangible items that are not real property were included in the opinion of market value. The exposure time and marketing time are estimated to be 18 months or less. Diversified Real Estate Services, Inc. D Diversified Real Estate Services, Inc. D 106 DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 2 City of Falcon Heights June 30, 2022 Page Two It should be noted that this letter of transmittal does not qualify as an appraisal, and the reader is directed to the following report for the supporting data, analyses, and conclusions which support the value estimate. This appraisal report is contingent upon the assumptions and limiting conditions submitted within this report. The reader should note the following extraordinary assumptions and hypothetical conditions, and that their use may have an effect on the assignment’s results. Extraordinary Assumptions 1. As of the date of inspection, the subject site was part of a larger tract of land containing 40.55 acres. According to the lease agreement provided between the University of Minnesota and the City of Falcon Heights, the Falcon Heights Community Park has a land area of 14.50 acres or approximately 631,620 square feet. If the subject site area if found to be different than 14.50 acres, the market value conclusion set forth in this appraisal report may be subject to change. 2. According to the lease agreement, the subject on-site improvements are considered to be the property of Falcon Heights. At the request of the client, only the underlying land value for the subject 14.50-acre site is considered. The on-site improvements are not considered in the valuation analysis. If the on-site improvements are to be considered, the market value conclusion may be subject to change. 3. The market value conclusion set forth in this appraisal report assumes that the cost to subdivide the subject 14.50-acre site from the larger 40.55-acre site will not exceed $5,000. If the cost to legally subdivide the subject 14.50-acre site from the larger 40.55-acre site is found to be significantly different, the market value conclusion set forth in this appraisal report may be subject to change. Hypothetical Conditions The market value conclusion set forth in this appraisal report does not rely upon any hypothetical conditions. This appraisal report has been prepared in compliance with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute and is specifically intended to meet the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP), OCC 12, Part 34, Appraisal Standards. It should be noted that this appraisal assignment was not based on a requested minimum valuation or the approval of a loan. Information in this report was gathered from sources believed to be reliable, but it is not guaranteed. Possession of this report, or a copy thereof, does not carry with it the right of publication nor may it be used for any purpose except that for which it was requested without previous written consent of the appraiser and, in any event, only with the proper qualifications. 107 DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 3 City of Falcon Heights June 30, 2022 Page Two Please contact us if there are any questions after reading this appraisal report. DIVERSIFIED REAL ESTATE SERVICES, INC. DIVERSIFIED REAL ESTATE SERVICES, INC. Ryan L. Bauer, MAI Timothy L. Klein, MAI MN Certified General Real Property MN Certified General Real Property Appraiser License #20318393 Appraiser License #20584809 108 CERTIFICATION DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 4 We certify that, to the best of our knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions and conclusions. We have no present or prospective interest in the subject property and no personal interest with respect to the parties involved. Ryan L. Bauer, MAI, and Timothy L. Klein, MAI, have not performed services as appraisers, or in any other capacity, regarding the subject property within the three-year period immediately preceding acceptance of this assignment. We have no bias with respect to the subject property or to the parties involved with this assignment. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Appraisal Institute’s Code of Professional Ethics & Standards of Professional Appraisal Practice, which include the Uniform Standards of Professional Appraisal Practice. Ryan L. Bauer, MAI, inspected the subject property on June 17, 2022. Timothy L. Klein, MAI, did not inspect the subject property. No one provided significant real property appraisal assistance to the person(s) signing this certification. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, Ryan L. Bauer, MAI, and Timothy L. Klein, MAI, completed the continuing education program for Designated Members of the Appraisal Institute. Ryan L. Bauer, MAI, and Timothy L. Vergin, MAI, certify that they have the appropriate knowledge and experience to complete the appraisal assignment. The appraisers have completed numerous appraisals of similar properties and are familiar with the subject market and geographical area. Therefore, the appraisers certify competency with regards to this assignment. Ryan L. Bauer, MAI Timothy L. Klein, MAI MN Certified General Real Property MN Certified General Real Property Appraiser License #20318393 Appraiser License #20584809 109 TABLE OF CONTENTS DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 5 ITEM PAGE LETTER OF TRANSMITTAL ___________________________________________________________ 1 CERTIFICATION _____________________________________________________________________ 4 TABLE OF CONTENTS _______________________________________________________________ 5 ASSUMPTIONS AND LIMITING CONDITIONS _____________________________________________ 6 LOCATION MAPS ____________________________________________________________________ 9 AERIAL PHOTOGRAPH ______________________________________________________________ 11 SUBJECT PHOTOGRAPHS ___________________________________________________________ 16 SUMMARY OF SALIENT FACTS AND CONCLUSIONS _____________________________________ 17 SCOPE OF WORK __________________________________________________________________ 20 PROPERTY RIGHTS APPRAISED _____________________________________________________ 21 DEFINITION OF MARKET VALUE ______________________________________________________ 22 SALES COMPARISON APPROACH ____________________________________________________ 23 ADDENDA _________________________________________________________________________ 34 QUALIFICATIONS OF APPRAISERS SUBJECT PHOTOGRAPHS ZONING MAP FLOOD ZONE MAP LEASE AGREEMENT DEMOGRAPHICS 110 ASSUMPTIONS AND LIMITING CONDITIONS DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 6 This appraisal report has been made with the following assumptions and limiting conditions: 1.No responsibility is assumed for legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2.The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3.Responsible ownership and competent property management are assumed. 4.The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 5.All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6.It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. This includes, but is not limited to, mold within a building. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 7.It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been stated, defined, and considered in the appraisal report. 8.It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based. 9.It is assumed that the utilization for the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 10.The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 11.Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event only with properly written qualifications and only in its entirety. 12.The appraiser herein by reason of this appraisal is not required to give further consulting, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. 13.Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. 111 ASSUMPTIONS AND LIMITING CONDITIONS DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 7 14.Unless otherwise noted in this report, no adverse environmental conditions were observed by the appraiser. This appraisal assumes there are no environmental hazards or pollutants existing either in the buildings or in the soil. The cost to cure any environmental contaminants has not been considered in this appraisal report. We have not been provided with an environmental assessment of the property and therefore, we have no knowledge of any environmental hazards. 15.We have not made a specific compliance survey and analysis of this property to determine whether it is in conformity with the Americans with Disabilities Act (ADA) of January 26, 1992. It is possible that a compliance survey of the property could reveal that the property is not in compliance with ADA. If so, this fact could have an effect upon the value of the property. Since we have no direct evidence relating to this issue, we did not consider noncompliance with the requirements of ADA in estimating the value of the property. Should any ADA suits be filed against the property, the value set forth in this appraisal may be subject to change. 16.The appraisal assumes that all existing, pending, or potential levied special assessments, as well as any delinquent taxes, are paid in full. 17.Unless otherwise stated, this appraisal report does not consider any possible impact on the market value of the subject property resulting from any potential condemnation proceedings being brought forth through the eminent domain process. This includes, but is not limited to, any pending condemnation and/or any rumor or speculation of condemnation. Should the property be subject to any condemnation or speculation thereof, the valuation indications set forth in this appraisal may be subject to change. Extraordinary Assumptions An extraordinary assumption is defined by the Uniform Standards of Professional Appraisal Practice (2020- 2021 Edition, The Appraisal Foundation, page 4) as: An assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. Comment: Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market conditions or trends; or the integrity of data used in an analysis. 1.As of the date of inspection, the subject site was part of a larger tract of land containing 40.55 acres. According to the lease agreement provided between the University of Minnesota and the City of Falcon Heights, the Falcon Heights Community Park has a land area of 14.50 acres or approximately 631,620 square feet. If the subject site area if found to be different than 14.50 acres, the market value conclusion set forth in this appraisal report may be subject to change. 2.According to the lease agreement, the subject on-site improvements are considered to be the property of Falcon Heights. At the request of the client, only the underlying land value for the subject 14.50-acre site is considered. The on-site improvements are not considered in the valuation analysis. If the on-site improvements are to be considered, the market value conclusion may be subject to change. 3.The market value conclusion set forth in this appraisal report assumes that the cost to subdivide the subject 14.50-acre site from the larger 40.55-acre site will not exceed $5,000. If the cost to legally subdivide the subject 14.50-acre site from the larger 40.55-acre site is found to be significantly different, the market value conclusion set forth in this appraisal report may be subject to change. 112 ASSUMPTIONS AND LIMITING CONDITIONS DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 8 Hypothetical Conditions A hypothetical condition is defined by the Uniform Standards of Professional Appraisal Practice (2020-2021 Edition, The Appraisal Foundation, page 4) as: A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Comment: Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. The market value conclusion set forth in this appraisal report does not rely upon any hypothetical conditions. 113 LOCATION MAPS DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 9 MINNESOTA STATE MAP Subject N 114 LOCATION MAPS DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 10 REGIONAL MAP N Subject 115 LOCATION MAPS DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 11 AREA MAP N Subject 116 AERIAL PHOTOGRAPH DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 12 AERIAL PHOTOGRAPH PROVIDED BY GOOGLE EARTH N 117 SUBJECT PHOTOGRAPHS DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 13 SOUTH VIEW OF SUBJECT PROPERTY AS SEEN FROM ROSELAWN AVENUE WEST 118 SUBJECT PHOTOGRAPHS DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 14 VIEW OF THE COMMUNITY GARDEN VIEW OF THE TENNIS COURTS 119 SUBJECT PHOTOGRAPHS DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 15 VIEW OF THE BASKETBALL COURTS VIEW OF THE BASEBALL FIELD 120 SUBJECT PHOTOGRAPHS DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 16 VIEW OF THE SOCCER FIELD VIEW OF THE PLAYGROUND Additional photographs are located in the Addenda. 121 SUMMARY OF SALIENT FACTS AND CONCLUSIONS DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 17 SALIENT FACTS Property Name/Type: Falcon Heights Community Park Property Address: 2050 Roselawn Avenue West, Falcon Heights, Minnesota 55113 PID Numbers: Part of 16-29-23-32-0057 Legal Description: Per the lease agreement, the legal description for the subject property is as follows: The North 925 feet of that part of the SW ¼ Section 16, Township 29, Range 23, lying West of the westerly line of Block 2, Falcon Woods, the westerly line of block 5, Falcon Woods No. 2, and said westerly line extended in a southerly direction, according to the plats thereof on file and of record in the office of the Register of Deeds in and for Ramsey County, Minnesota, subject to the rights of the public over any portion thereof for highways, consisting of about 14.5 acres, more or less. Date of Value Estimate: June 17, 2022 Date of Inspection: June 17, 2022 Property Owner: University of Minnesota Value Appraised: As Is Market Value Property Rights Appraised: Fee Simple Interest Marketing and Exposure Time: For the subject, a marketing and exposure time of 18 months or less is considered to be reasonable. AEMV and Real Estate Taxes: The subject 14.50-acre site is part of a larger 40.55-acre (1,766,392 sf) tract of land owned by the University of Minnesota. The 40.55-acre property is tax exempt. The assessor’s estimate of market value for taxes payable in 2022 (as set on January 2, 2021) for the 40.55-acre property is as follows: Payable 2022 AEMV (as set on 1/2/21) Land: $12,364,700 Improvements: $ 154,300 Total: $12,519,000 The assessor’s estimate of market value for taxes payable in 2023 (as set on January 2, 2022) for the 40.55-acre property is as follows: Payable 2023 AEMV (as set on 1/2/22) Land: $12,364,700 Improvements: $ 790,800 Total: $13,155,500 The assessor’s estimate of market value for the 40.55 acres of land only for both years is $12,364,700 or $7.00 per square foot. 122 SUMMARY OF SALIENT FACTS AND CONCLUSIONS DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 18 History: The subject property is part of a larger 40.55-acre tract of land owned by the University of Minnesota. The City of Falcon Heights has been leasing the 14.50-acre subject site from the University of Minnesota since December 31, 1973 for use as a community park. The rental rate is $1.00 per year. Per the lease agreement, the term of the lease is for one year with automatic one year renewals ending on December 31, 2024. The lease allows either party to terminate the lease for any reason on any December 31st during the term upon not less than 1 year prior written notice to the other party. All on-site improvements are the property of the City of Falcon Heights. The City of Falcon Heights is interested in acquiring the site from the University of Minnesota at market value for continued use as a community park. The subject property has not sold in the past three years and is currently not pending sale nor listed for sale. Property Description: The subject property consists of the 14.50-acre Falcon Heights Community Park located at 2050 Roselawn Avenue West in Falcon Heights, Minnesota. The site is rectangular in shape and is located in the southeast corner of the intersection of Roselawn Avenue West and Cleveland Avenue North. The topography of the site is generally level to rolling with a small pond located in the southwest corner of the site. Access to the site is provided by two curb cuts off Roselawn Avenue West. All municipal utilities are readily available to the site. ` The subject site is improved with a 60-stall parking lot, a warming house, a community garden, playground equipment, walking trails, tennis courts, basketball courts, a baseball field, and a soccer field. Improvements on the site are owned by the City of Falcon Heights. The warming house is reportedly in poor condition and the City of Falcon Heights intends to eventually renovate the building. Zoning: The subject property is zoned P1/R1 – Public Land, Reverts to Single Family. In general, all public (city, state, school district, state fair, University of Minnesota, and other) land owned and operated for public purposes is zoned for what may be the most appropriate private use should the land be sold, or otherwise transferred from public ownership and/or use. According to the City of Falcon Heights, the subject 14.50-acre site will continued to be used as the Falcon Heights Community Park and as a result, no other uses are permitted at this time. Census Tract Number: #0419.00 123 SUMMARY OF SALIENT FACTS AND CONCLUSIONS DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 19 Flood Plain Status: According to the National Insurance Rate Map Community Panel number 27123C 0085 G, dated June 4, 2010, the subject property is located in Flood Zone X. Flood Zone X is described as an area outside the 100- and 500-year flood plain. Highest and Best Use: As vacant: The highest and best use of the subject site as though vacant is for its current use as a park. As Is Fee Simple Market Valuation Summary as of June 17, 2022 Cost Approach: Not Applied Sales Comparison Approach: $1,260,000 Income Capitalization Approach: Not Applied AS IS FEE SIMPLE MARKET VALUE CONCLUSION AS OF JUNE 17, 2022 ONE MILLION TWO HUNDRED SIXTY THOUSAND DOLLARS ....................................... $1,260,000 124 SCOPE OF WORK DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 20 According to the Uniform Standards of Professional Appraisal Practice, it is the appraiser’s responsibility to develop and report a scope of work that results in credible results that are appropriate for the appraisal problem and intended user(s). Therefore, the appraiser must identify and consider: ● the client and intended users; ● the intended use of the report; ● the type and definition of value; ● the effective date of value; ● assignment conditions; ● typical client expectations; and ● typical appraisal work by peers for similar assignments. SCOPE OF WORK Client: The City of Falcon Heights Intended User(s): The City of Falcon Heights Intended Use: Potential acquisition Effective Date of Value: June 17, 2022 Type of Value: Market value as defined in this report. Interest Appraised: Fee Simple USPAP Compliance: This appraisal conforms to the Uniform Standards of Professional Appraisal Practice as set forth by the Appraisal Foundation. Type of Appraisal Report Restricted report format in accordance with the Uniform Standards of Professional Appraisal Practice Standard Rule 2-2. Per USPAP, a Restricted Report format limits the use of this report to the client as the rationale used in arriving at the opinions and conclusions set forth is this report may not be understood properly without additional information contained in the appraisers’ work file. Competency Rule: Ryan L. Bauer, MAI, and Timothy L. Klein, MAI, certify that they have the appropriate knowledge and experience to complete this appraisal assignment competently. The appraisers have extensive real estate appraisal background in both education and practical appraisal experience and have appraised numerous similar properties. In addition, the appraisers are familiar with the subject market and geographical area. Therefore, the appraisers certify competency in regard to this assignment. Property Identification: The subject property has been identified by its street address and legal description. The on-site improvements are considered to be the property of the City of Falcon Heights and as requested have not been considered in the valuation analysis. 125 SCOPE OF WORK DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 21 Inspection: The subject property was inspected by Ryan L. Bauer, MAI, on June 17, 2022. An inspection of the neighborhood and surrounding market was also completed at that time. Photographs taken during the inspection are included in the addenda of this report. Timothy L. Klein, MAI, did not inspect the subject property. Market Area/Market Conditions: The market area and the market conditions which influence the market area were researched and documented throughout this report. Highest and Best Use Analysis: The highest and best use as vacant was completed for the subject property. Physically possible, legally permissible, and financially feasible uses were considered, and the maximally productive use was concluded. All of the exhibits, photographs, and contents of this appraisal report are the original work of Diversified Real Estate Services, Inc. unless otherwise stated. Approaches Used In the Valuation Analysis In appraisal practice, an approach to value is typically included or omitted based on its applicability to the property type being valued and the quality and quantity of information available. The three traditional approaches to value include the Cost Approach, the Sales Comparison Approach, and the Income Approach. As the subject of this appraisal is essentially vacant land, only the Sales Comparison Approach was completed. The scope of this appraisal assignment has not been limited other than by the assumptions and limiting conditions presented herein. Our findings are presented in a restricted report, which by definition has limited detail regarding our conclusions. PROPERTY RIGHTS APPRAISED The subject property is encumbered by a lease agreement. The lease term is only for one year expiring on December 31, 2022. The tenant (the City of Falcon Heights) is interested in acquiring the site in fee. As a result, the fee simple interest is appraised. The fee simple estate as defined in The Dictionary of Real Estate Appraisal, Seventh Edition, is as follows: Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. (Page 73) 126 DEFINITION OF MARKET VALUE DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 22 The Dictionary of Real Estate Appraisal, Seventh Edition, (Pages 118-119), has several definitions of market value. The following definition of market value is used by agencies that regulate federally insured financial institutions in the United States. The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: •Buyer and seller are typically motivated; •Both parties are well informed or well advised, and acting in what they consider their best interests; •A reasonable time is allowed for exposure in the open market; •Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and •The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994). 127 SALES COMPARISON APPROACH DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 23 The Sales Comparison Approach to value technique is a method which can be used to estimate the market value of a property by making a comparative study of recent sales or for which offers to purchase have been made. A major premise of the Sales Comparison Approach is that the market value of a property is directly related to the prices of comparable, competitive properties which have similar utility to that of the subject property. The systematic procedure for applying the sales comparison approach as laid out in the 15th Edition of The Appraisal of Real Estate, published by the Appraisal Institute, (page 355), is as follows: 1. Research the competitive market for information on properties that are similar to the property being appraised and that have been sold recently, or were listed for sale, or are under contract. Information on agreements of sale, options, listings, and bona fide offers may also be collected. The characteristics of the properties such as property type, date of sale, size, physical condition, location, and land use constraints should be considered. The goal is to find a set of comparable sales or other evidence such as property listings or contracts as similar as possible to the subject property to ensure they reflect the actions of similar buyers. Market analysis and highest and best use analysis set the stage for the selection of appropriate comparable sales. 2. Verify the information by confirming that the data obtained is factually accurate and that the transactions reflect arm's-length market considerations. Verification should elicit additional information about the properties such as buyer and seller motivations, economic characteristics (if the property is income-producing), value component allocations, and other significant factors as well as information about the market to ensure that comparisons are credible. 3. Select the most relevant units of comparison used by participants in the market (e.g., price per acre, price per square foot, price per front foot, price per dwelling unit, price per lot or proposed lot, price per room) and develop a comparative analysis for each unit. The goal is to define and identify a unit of comparison that explains or mirrors market behavior. 4. Look for differences between the comparables being considered and the subject property using all appropriate elements of comparison. Then adjust the price of each comparable, reflecting how it differs to equate it to the subject property or eliminate that property as a comparable. This step typically involves using the most similar properties and then adjusting for any remaining differences. If a transaction does not reflect the actions of a buyer who would also be attracted to the subject property, an appraiser should be concerned about comparability and the wisdom of relying on that comparable as a basis for comparison. 5. Reconcile the various value indicators produced from the analysis of comparables into a value indication from the sales comparison approach. A value can be expressed a single point estimate, as a range of values, or in terms of a relationship (e.g., more or less than a given amount). 128 SALES COMPARISON APPROACH DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 24 As discussed throughout this report, the subject property is a 14.50-acre site which is currently part of a larger 40.55-acre tract of land owned by the University of Minnesota. The 14.50-acre subject site is leased to the City of Falcon Heights for use as a community park. The lease is short term in nature and the City of Falcon Heights is interested in acquiring the 14.50-acre site in fee for continued use as a community park. The site is zoned P1, Public Land and the highest and best use of the site is for its continued use as a park. Per the lease agreement, the on-site improvements are the property of the City of Falcon Heights. As a result, this Sales Comparison Approach does not consider any on-site improvements and only considers the underlying 14.50 acres of land guided for a park use. When researching comparable sales, we have focused on land sales which were purchased for use as a park. These sales are rare and are most often acquired by government entities, which are the primary buyers of parkland. Methods used for finding comparable sales include our in house database, shared appraiser databases, county records, and the eCRV data base provided by the Minnesota Department of Revenue. The eCRV database allows users to filter sales based upon the type of land use (such as a park) and contains records going back to October 2014. Based upon our research, there have been very few parkland sales in recent years which are considered to be similar to the subject. The comparables which are considered to be most similar to the subject are slightly dated, but are the best indictors of market value for the subject site. The comparable land sales used in this analysis are considered to be the best comparable sales as of the completion date of this report, keeping in mind the highest and best use of the subject site. The following Sales Comparison Approach for the subject property consists of a factual summary chart outlining characteristics of the comparable sales and the subject property, a location map reflecting the location of the comparable sales and the subject property, write-ups of each of the comparable sales, a brief summary of the adjustments made in the analysis, and a chart which illustrates the adjustments and how they have been applied. The following page sets forth the factual summary chart. 129 SALES COMPARISON APPROACH DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 25 Factual Summary Chart Price No.Site Location Month Year Sale Price PSF Zoning Comments 1 Parkland 11 2020 $720,000 Square Feet 659,680 $1.09 Park 8680 Rebecca Park Trail Rockford, MN 2 Sever's Fall and Winter Festival 4 2019 $2,058,000 Square Feet 2,613,600 $0.79 Urban 3121 West 150th Street Business Shakopee, MN Resereve 3 Regional Park 6 2018 $571,000 Square Feet 363,129 $1.57 General 18135 Margo Avenue North Rural Scandia, Minnesota 4 Unity Park 10 2016 $60,000 Square Feet 29,600 $2.03 Parks and 1716 Marion Street Open Roseville, MN Space 5 Weber Woods Park 6 2016 $1,681,813 Square Feet 623,010 $2.70 R-1 3940 France Ave. S. St. Louis Park and Edina, MN 6 Owasso Ballfields 4 2016 $875,000 Square Feet 183,187 $4.78 Parks and 2659 Victoria Street North Open Roseville, MN Space 7 Prairie Ridge Park 4 2010 $3,518,812 Square Feet 2,857,536 $1.23 BCD XXXX Manning Avenue South Woodbury, MN Falcon Heights Community Park 6 2022 --Square Feet 631,620 --Public 2050 Roselawn Avenue West Land Falcon Heights, MN Sale Date COMPARABLE PARK LAND SALES FACTUAL SUMMARY CHART Site Area SubjectAcres 8.34Acres Acres 14.50 The site was purchased for the inclusion into a regional park. Approximately 1.25 acres or 15% of the site is wetlands. The site was purchased for use as the Owasso Ballfields. The site is used as a community park. Approximately 1 acre of 7% of the site area is wetlands. The site was purchased by Three Rivers Park District with the intend to preserve the land for park use. Some on-site improvements.Acres 15.14 The buyer agreed to continue to use the site for the location of the Sever's Fall and Winter Festival.Acres 60.00 The site was purchased for use as parkland. Approximately 1 acre or approximatley 2% of the site area is wetlands.Acres 65.60 The site was purchased for use as a neighborhood park.Acres 0.68 The City of Minneapolis sold Weber Woods Park in two separate simultaneous transactions to the Cities of Edina and St. Louis Park for continued use as a park. Acres 14.30 4.21 130 SALES COMPARISON APPROACH DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 26 Location Map COMPARABLE PROPERTY SALES LOCATION MAP N Subject 131 SALES COMPARISON APPROACH DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 27 COMPARABLE SALE WRITE-UPS (7 Pages) 132 DRESI# 5450 COMPARABLE SALE # 1 Location/Property Type Property ID#3211924220002Type Of Land Use Parkland Intended Use Parkland Address 8680 Rebecca Trail City, State Rockford, Minnesota Physical/Site Information Sales Information Zoning Park Utility Access Not Available Soil Conditions Assumed Stable Topography Generally Level to Rolling Site Area (SF)659,680 Site Area (Acres) 15.14 Sale Date November 2, 2020 Buyer Three Rivers Park District Seller Gaylord L. Ahrens Sale Price $720,000 Buyer Exp. After Sale $0 Total Sale Price $720,000 Price Per SF $1.09 Price Per Acre $47,556 Financing Cash Equivalent Marketing Time (Months) Not Available Interest Transferred Fee Simple Verification CREV Comments The site was purchased by the Three Rivers Park District with the intent to preserve the land for park use. There are some on-site improvements which include an older single-family home and outbuilding. The buyer had an appraisal completed indicating a market value of $720,000. 133 DRESI# 5238 COMPARABLE SALE # 2 Location/Property Type Property ID#079330112, 079340011Type Of Land Use Commercial Intended Use Sever's Fall and Winter Festivals Address 3121 West 150th Street City, State Shakopee, Minnesota Physical/Site Information Sales Information Zoning UBR Utility Access All Available Soil Conditions Assumed Stable Topography Generally Level Site Area (SF)2,613,600 Site Area (Acres) 60.00 Sale Date April 1, 2019 Buyer River Valley Partners, LLP Seller Breeggemann Family, LP Sale Price $2,058,000 Buyer Exp. After Sale $0 Total Sale Price $2,058,000 Price Per SF $0.79 Price Per Acre $34,300 Financing Cash Equivalent Marketing Time (Months) Not Available Interest Transferred Fee Simple Verification Deed, CREV, Seller Comments The site is the location of Sever's Fall and Winter Festivals. The site is guided for future commercial/industrial development. However, the buyer and seller agreed to the sale as slong as the buyer continues to use the site for the Sever's Fall and Winter Festival. 134 DRESI# 5452 COMPARABLE SALE # 3 Location/Property Type Property ID#3203220440010, 3203220440011 3203220440012 Type Of Land Use Parkland Intended Use Regional Park Address 18135 Margo Avenue North City, State Scandia, Minnesota Physical/Site Information Sales Information Zoning General Rural Utility Access Not Available Soil Conditions Assumed Stable Topography Generally Level to Rolling Site Area (SF)363,129 Site Area (Acres) 8.34 Sale Date June 26, 2018 Buyer Washington County Seller Carol and Thomas Bofenkamp Sale Price $571,000 Buyer Exp. After Sale $0 Total Sale Price $571,000 Price Per SF $1.57 Price Per Acre $68,465 Financing Cash Marketing Time (Months) Not Available Interest Transferred Fee Simple Verification CREV Comments The seller approached the buyer to sell for inclusion into the County Regional Park. The buyer had an appraisal which set the sale price. 135 DRESI# 5453 COMPARABLE SALE # 4 Location/Property Type Property ID#1329923440021Type Of Land Use Parkland Intended Use Unity Park Address 1716 Marion Street City, State Roseville, Minnesota Physical/Site Information Sales Information Zoning Park and Open Space Utility Access All Available Soil Conditions Assumed Stable Topography Generally Level to Sloping Site Area (SF)29,600 Site Area (Acres) 0.68 Sale Date October 14, 2016 Buyer City of Roseville Seller Marion Street/The Brittanys, LLP Sale Price $60,000 Buyer Exp. After Sale $0 Total Sale Price $60,000 Price Per SF $2.03 Price Per Acre $88,235 Financing Cash Marketing Time (Months) Not Available Interest Transferred Fee Simple Verification County Records, CREV Comments The site was purchased for use as a neighborhood park and was marketed for sale. 136 DRESI# 5454 COMPARABLE SALE # 5 Location/Property Type Property ID#0702824110001, 0702824140001Type Of Land Use Parkland Intended Use Weber Woods Park Address 3940 France Avenue South City, State Edina, Minnesota Physical/Site Information Sales Information Zoning R-1 Utility Access All Available Soil Conditions Assumed Stable Topography Generally Level with Some Lowlands Site Area (SF)623,010 Site Area (Acres) 14.30 Sale Date June 29, 2016 Buyer Cities of St. Louis Park and Edina Seller City of Minneapolis Sale Price $1,681,813 Buyer Exp. After Sale $0 Total Sale Price $1,681,813 Price Per SF $2.70 Price Per Acre $117,609 Financing Cash Marketing Time (Months) Not Available Interest Transferred Fee Simple Verification CREV, County Records, Publications Comments Weber Woods Park is a 14.30-acre park, of which 9.53 acres of the site is located in the city of Edina and 4.77 acres of the site is ocated in the city of St. Louis Park. The seller, which was the city of Minneapolis, approached the cities of Edina and St. Louis Park about their interest in acquiring the park for its continued use as a park for $1.5 million. In June 2016, the city of Edina acquired the 9.53 acre portion of the site for $1,072,000 or $2.58 psf. At the same time, the city of St. Louis Park acquired the 4.77 acre portion of the site for $609,813 or $2.93 psf. The total acquistion price was $1,681,813 or $2.07 psf. The city of Edina agreed to the restriction that the 9.53 acres they acquired will continue to be used as park and open space into the foreseeable future. The city of St. Louis Park did not agree to this stipulation for the 4.77 acres they acquired and, therefore, paid a higher price psf. 137 DRESI# 5455 COMPARABLE SALE # 6 Location/Property Type Property ID#022923340026Type Of Land Use Parkland Intended Use Owasso Ballfields Address 2659 Victoria Street North City, State Roseville, Minnesota Physical/Site Information Sales Information Zoning Parks and Open Space Utility Access All Available Soil Conditions Assumed Stable Topography Generally Level Site Area (SF)183,187 Site Area (Acres) 4.21 Sale Date April 20, 2016 Buyer City Roseville Seller United Properties Residential, LLC Sale Price $875,000 Buyer Exp. After Sale $0 Total Sale Price $875,000 Price Per SF $4.78 Price Per Acre $207,838 Financing Cash Marketing Time (Months) Not Available Interest Transferred Fee Simple Verification County Records, CREV Comments The site was purchased for use as the Owasso Ballfields. 138 DRESI# 1304 COMPARABLE SALE # 7 Location/Property Type Property ID#102821420002Type Of Land Use Parkland Intended Use Prairie Ridge Park Address Manning Avenue South City, State Woodbury, Minnesota Physical/Site Information Sales Information Zoning BCD Utility Access All Available Soil Conditions Assumed Stable Topography Generally Level Site Area (SF)2,857,536 Site Area (Acres) 65.60 Sale Date April 28, 2010 Buyer City of Woodbury Seller Dale Properties Sale Price $3,518,812 Buyer Exp. After Sale $0 Total Sale Price $3,518,812 Price Per SF $1.23 Price Per Acre $53,640 Financing Cash Marketing Time (Months) Not Available Interest Transferred Fee Simple Verification Seller, Purchase Agreement Comments 40.39 acres were sold to the city with the remaining 25.21 acres to be transferred by granting a conservation easement to be followed by granting title for parkland dedication requirement for the proposed development. 139 SALES COMPARISON APPROACH DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 28 Summary of Adjustments The comparables used in this analysis must be adjusted to account for differences with the subject property. These adjustments are applied to the comparables as a percentage adjustment. If a comparable is considered superior to the subject property, it is adjusted downward. If a comparable is considered inferior to the subject property, it is adjusted upward. The unit of comparison used in this analysis is the sale price per square foot of land area. The adjustments which have been applied are discussed as follows. Property Rights Conveyed Adjustment: The fee simple interest in the subject site is being appraised. The comparable sales were fee simple sales. Therefore, none of the comparables require a property rights conveyed adjustment. Financing Adjustment: All of the comparable land sales used in this analysis were purchased with cash or cash equivalent financing. Therefore, none of the comparables were adjusted for financing. Conditions of Sale Adjustment: The conditions of sale adjustment accounts for any unusual conditions of sale which may have impacted the sale price. None of the comparables require a conditions of sale adjustment. Expenditures After Sale Adjustment: The expenditures after sale adjustment accounts for any necessary buyer paid expenditures immediately after the sale. To the best of our knowledge, none of the comparables require an expenditures after sale adjustment. Market Conditions Adjustment: The market conditions adjustment accounts for changing market conditions between the sale date of the comparables and the effective valuation date. The best determination of a market conditions adjustment is made by analyzing sales which have sold and resold on the open market in recent years. None of the comparables have sold and resold in recent years. Over the last several years, land prices for well located sites have been increasing. Although it is difficult to derive a market conditions adjustment for parkland, other sites intended for commercial development have been increasing over time at a rate of approximately 2% to 5% Therefore, it is reasonable to assume that parkland has also been experience some appreciation, but likely at a lesser degree. For this analysis, we have concluded to an annual appreciation rate of 1.00%. The following chart sets forth the market conditions adjustment calculations. #1 #2 #3 #4 #5 #6 #7 Subject Month of Appraisal 6 6 6 6 6 6 6 Subject Year of Appraisal 2022 2022 2022 2022 2022 2022 2022 Comparable Month of Sale 11 4 6 10 6 4 4 Comparable Year of Sale 2020 2019 2018 2016 2016 2016 2010 Number of Months Difference 19 38 48 68 72 74 146 Mulitplied by: Monthly Adjustment Factor 0.08%0.08%0.08%0.08%0.08%0.08%0.08% Percentage Adjustment 2%3%4%5%6%6%12% MARKET CONDITIONS ADJUSTMENT CALCULATIONS SUMMARY 140 SALES COMPARISON APPROACH DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 29 Preliminary Price: Located later in this section is the adjustment summary chart. On that chart there is a column identified as preliminary price. This represents the original sale price adjusted for property rights conveyed, financing, conditions of sale, expenditures after sale, and market conditions. These adjustments are applied to adjust the comparables to current economic conditions. The remaining sale price adjustments are applied to the preliminary adjusted sale price. Size Adjustment: Typically, a larger parcel of land will sell for a lower price per square foot as compared a smaller parcel of land, with all else being equal. The subject site has a land area of 14.50 acres. The comparables range in size from 0.68 to 15.14 acres. Based upon our analysis, this trend is generally supported. Comparables #1 and #5 are of relatively similar size as compared to the subject site and have not been adjusted for size. Comparables #2 and #7 are significantly larger in size as compared to the subject site and have been adjusted upward by 10% for size. Comparables #4 and #6 are smaller in size as compared to the subject site and have been adjusted downward by 20% and 5%. respectively. The size adjustment is based on a 5% per doubling in size, rounded. Zoning/Use Adjustment: The subject property is zoned Public Land and is used as a community park. According to the City of Falcon Heights, the subject property will continue to be used as a public park in to the foreseeable future. Comparable #1 was purchased by the Three Rivers Park District and is zoned for a park use. This comparable does not require a zoning/use sale. Comparable #2 is a 60-acre tract of land which is zoned Urban Business Reserve. The UBR district is essentially a holding or preserving district for land that is eventually intended to be developed with commercial and industrial type uses. The site has historically been used as the location of the Sever’s Fall and Winter Festivals. The seller was motivated to sell the property to the eventual buyer as the buyer agreed to continue to use the site for this limited type use. In our opinion, comparable #2 does not require a zoning/use adjustment due to the limitation of the use of the site to the Severs Fall and Winter Festivals. Comparable #3 is zoned General Rural and was purchased by Washington County for the inclusion into a regional park. Given the proposed use of this comparable for parkland, no adjustment is necessary. Comparable #4 was purchased by the City of Roseville for use as a neighborhood park. The site is zoned Parks and Open Space. This comparable does not require a zoning/use adjustment. Comparable #5 is the 14.30-acre Weber Woods Park, of which 9.53 acres of the site is located in the City of Edina and 4.77 acres of the site is located in the City of St. Louis Park. The site is zoned R-1. The seller, which was the City of Minneapolis, approached the City of Edina and the City of St. Louis Park to acquire about their interest in purchasing the park for its continued operation as a park for $1.5 million. In June 2016, the City of Edina acquired the 9.53-acre portion of the site located in the City of Edina for $1,072,000 or $2.58 per square foot. At the same time, the City of St. Louis Park acquired the 4.77-acre portion of the site located in the City of St. Louis Park for $609,813 or $2.93 per square foot. The total acquisition price was $1,681,813 or $2.70 per square foot. The City of Edina agreed to the restriction that the 9.53-acre portion of the site they acquired will continue to be used as a park or open space into the foreseeable future. The City of St. Louis Park did not agree to this stipulation for the 4.77-acre portion of the site they acquired and therefore paid a slightly higher price per square foot. In summary, the price per square foot paid by the City of Edina at $2.58 per square foot for 67% of the site restricted to a park type use is 12% lower than the price paid by the City of St. Louis Park at $2.93 per square foot for 33% of the site that is zoned R-1 and has no restrictions in place. Therefore, this comparable has been adjusted downward by 5%, rounded, for zoning/use (12% x 33%). Comparable #5 is the Owasso Ballfields which is zoned Parks and Open Space. This comparable sale does not require a zoning/use adjustment. 141 SALES COMPARISON APPROACH DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 30 Comparable #6 is a 65.60 acre site which is zoned BCD but was purchased by the City of Woodbury for a parkland use. This comparable does not require a zoning/use adjustment. Topography Adjustment: The subject site has a generally level to rolling topography with a small pond accounting for approximately 7% of the site area. The comparables have varying topographies, some of which are wooded with some wetlands. Ponding and wetlands, as well as wooded areas are not considered to be a detriment for parkland and as such, there is no discernable adjustment to be made for varying topographies between the subject and the comparables. Improvements Adjustment: On-site improvements may have an impact on the sale prices. For the subject, only the underlying land is considered as the on-site improvements are owned by the City of Falcon Heights and are not considered in this appraisal. Comparable #2 through #7 were reportedly land only sale transactions with no on-site improvements. These five comparables do not require an improvement adjustment. Comparable #1 was improved with an older single-family home and outbuilding. Overall, it is our opinion that these improvements have minimal contributing value and as such, comparable #1 has been adjusted downward by 5%. Location Adjustment: The location adjustment considers the micro and macro locational differences which may exist between the subject site and the comparable land sales. This adjustment has been determined based upon an analysis of demographics for the subject and each of the comparables, as well as access and surrounding land uses. The following chart sets forth 3-mile demographics for the subject and the comparables. The subject property has a good location in the City of Falcon Heights, which is centrally located in the Twin cities metropolitan area. The site has good access and identity, with a strong surrounding population base. Comparable #1 is located in Rockford, Minnesota, which is a more rural area on the western edge of the Twin Cities metropolitan area. The site does have some frontage along the Crow River. In our opinion, this comparable has a significantly inferior location as compared to the subject due to its more rural location further from the core of the Twin Cities metropolitan area and has been adjusted upward significantly for location differences. Comparable #2 is located in Shakopee, Minnesota, in an area which has minimal surrounding development and a smaller overall population base. This comparable is also considered to have an inferior location as compared to the subject due to its more rural location further from the core of the Twin Cities metropolitan area. As a result, comparable #2 has also been adjusted upward significantly for location. Median HH Average HH #Population Households Income Income 1 19,340 7,010 $106,400 $141,070 2 35,417 12,139 $99,825 $122,193 3 7,176 2,842 $113,841 $151,210 4 328,715 129,409 $61,636 $81,975 5 165,712 76,483 $98,167 $148,058 6 79,723 32,769 $82,899 $109,009 7 80,326 29,084 $125,161 $161,942 Subject 119,835 48,761 $74,295 $98,138 3-MILE RADIUS DEMOGRAPHICS 142 SALES COMPARISON APPROACH DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 31 Comparable #3 is located in Scandia, Minnesota in a rural setting adjacent to Big Marine Lake. The area has low surrounding population and household counts but strong median and average household incomes. In our opinion, comparable #3 has an inferior location as compared to the subject given its rural location further from the core of the Twin Cities metropolitan area and has been adjusted upward. Comparable #4 is Unity Park located in Roseville, Minnesota. The area has strong population and household counts but lower median and average household incomes. This comparable is considered to have an inferior location as compared to the subject and has been adjusted upward for location. Comparable #5 is the Weber Woods Park located in the Cities of Edina and St. Louis Park, Minnesota. The area has strong population counts and household counts as well as strong median and average household incomes. This comparable is considered to have a superior location as compared to the subject property and has been adjusted downward for location. Comparable #6 is the Owasso Ballfields located in Roseville, Minnesota. The area has a good population and household base and strong median and average household incomes. This comparable is considered to have a superior location as compared to the subject property and has been adjusted downward for location. Comparable #7 is located in Woodbury, Minnesota. The surrounding population base is lower than that for the subject, average and median household incomes are higher. In our opinion, the subject property has a superior location in comparison given that the City of Woodbury is further from the core of the Twin Cities metropolitan area. Therefore, this comparable sale has been adjusted upward for location. Net Adjustment: The net adjustment is the total of the size, zoning/use, topography, improvements, and location adjustments used in this analysis. The net adjustment is applied to the preliminary adjusted price of the comparable land sales to determine the final net adjusted price. The following chart illustrates the individual land sales adjustments used in this analysis. 143 SALES COMPARISON APPROACH DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 32 Adjustment Summary Chart Sale Property Conditions Expend.Market Prelim Zoning/Net Adj. Price Rights Financing of Sale After Sale Conditions Price Size Use Topography Improvements Location Net Sale Price #PSF Conv. Adj.Adj.Adj.Adj.Adj.PSF Adj.Adj.Adj.Adj.Adj.Adj.PSF 1 $1.09 0%0%0%0%2%$1.11 0%0%0%-5%100%95%$2.16 2 $0.79 0%0%0%0%3%$0.81 10%0%0%0%100%110%$1.70 3 $1.57 0%0%0%0%4%$1.63 0%0%0%0%25%25%$2.04 4 $2.03 0%0%0%0%5%$2.13 -20%0%0%0%10%-10%$1.92 5 $2.70 0%0%0%0%6%$2.86 0%-5%0%0%-25%-30%$2.00 6 $4.78 0%0%0%0%6%$5.07 -5%0%0%0%-20%-25%$3.80 7 $1.23 0%0%0%0%12%$1.38 10%0%0%0%10%20%$1.66 Average $2.03 $2.18 Range $0.79 To $4.78 $1.66 To $3.80 Spread $3.99 $2.14 COMPARABLE PARK LAND SALES ADJUSTMENT SUMMARY CHART 144 SALES COMPARISON APPROACH DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 33 Sales Comparison Approach Value Conclusion Before the adjustment process, the comparables indicated actual sale prices ranging from $0.79 to $4.78 per square foot, with an average of $2.03 per square foot. After applying all of the sale price adjustments, the comparables indicate an adjusted value range from $1.66 to $3.80 per square foot, with an average of $2.18 per square foot. Six of the seven comparable sales indicate a tighter adjusted sale price range from $1.66 to $2.16 per square foot, with an average of $1.91 per square foot. Comparable #5 is the best indictor of market value for the subject site given its similar size, its similar use and its location near the core of the Twin Cities metropolitan area. This comparable sale has an adjusted sale price of $2.00 per square foot. Based upon this analysis, the subject site can support an as is fee simple market value of $2.00 per square foot as of the date of inspection on June 17, 2022. Division Costs As of the date of inspection, the subject site was part of a larger 40.55-acre site. Therefore, the costs to divide the subject 14.50-acre site from the larger 40.55-acre site must be deducted from the value indication. The cost to legally divide, plat, and record the subject 14.50-acre site is estimated at $5,000. The following sets forth the as is fee simple market value for the subject site as of the date of inspection on June 17, 2022. AS IS FEE SIMPLE MARKET VALUE CONCLUSION AS OF JUNE 17, 2022 ONE MILLION TWO HUNDRED SIXTY THOUSAND DOLLARS ....................................... $1,260,000 Market Value Indication $2.00 Multiplied By: Land Area (SF)631,620 Market Value Indication $1,263,240 Less: Division, Platting and Recording Cost ($5,000) As Is Fee Simple Market Value Indication $1,258,240 Rounded To $1,260,000 LAND VALUE CONCLUSION 145 ADDENDA DIVERSIFIED REAL ESTATE SERVICES, INC. #22145 Falcon Heights Community Park, Falcon Heights, Minnesota Page 34 ADDENDA 146 ADDENDA QUALIFICATIONS OF RYAN L. BAUER, MAI Mr. Bauer has been employed with Diversified Real Estate Services, Inc. since February 2002 and became a partner in 2017. In 2020, Mr. Bauer became the Chief Executive Officer. Member of the Appraisal Institute with an MAI designation Active North Star Chapter Member Mr. Bauer has completed real estate appraisals on property types which include industrial, retail, offices, churches, mixed-uses, convenience stores, day care facilities, subdivisions, vacant land, hospitals, assisted living, and other specialty use type properties. The specific purpose for these appraisals have included mortgage financing, tax abatement proceedings, potential sales and purchases, condemnation, rent analysis, feasibility analysis and partial interests. Throughout the years employed with Diversified Real Estate Services, Mr. Bauer has completed appraisals in several states, including Minnesota, North Dakota, South Dakota, Wisconsin, Iowa, and Florida. Mr. Bauer has also served as an expert witness at commissioner’s hearings. EDUCATION Graduate of the University of Nebraska – Lincoln with a Bachelor of Science Degree in Finance. Topics of study included real estate management, marketing, and advanced finance applications. PROFESSIONAL REAL ESTATE STUDIES Completed the required real estate appraisal courses offered at Century College. Course 410: Standards of Professional Practice, Part A (USPAP) Course 420: Standards of Professional Appraisal Practice, Part B (USPAP) Course 310: Basic Income Capitalization Course 520: Advanced Income Capitalization Course 530: Advanced Sales Comparison and Cost Approaches Course 540: Highest and Best Use and Market Analysis Course 550: Advanced Applications BUSINESS EXPERIENCE Diversified Real Estate Services, Inc., Minneapolis, Minnesota: CEO/Principal/Shareholder/ Appraiser/Analyst, February 2002 to Present. Tena Companies, St. Paul, Minnesota: Mortgage Loan Auditor and Support Technician, May 1999 to January 2002. PROFESSIONAL AFFILIATIONS Designated MAI Member of the Appraisal Institute Certified General Real Property Appraiser, State of Minnesota, ID #20318393 Certified General Real Property Appraiser, State of North Dakota, CG-21879 Certified General Real Property Appraiser, State of South Dakota, 1469CG Former Member of the Board of Directors of the North Star Chapter of the Appraisal Institute 147 ADDENDA QUALIFICATIONS OF RYAN L. BAUER, MAI (continued) CURRENT APPRAISAL LICENSE 148 ADDENDA QUALIFICATIONS OF TIMOTHY L. KLEIN, MAI Mr. Klein is a graduate of St. Cloud State University with a Bachelor of Science Degree in Real Estate with an appraisal emphasis. He successfully completed an internship with Diversified Real Estate Services, Inc. in the winter of 2006 and joined the firm as an associate appraiser in May of 2006. In 2020, Mr. Klein became a Partner. EDUCATION Graduate of St. Cloud State University with a Bachelor of Science Degree in Real Estate. Education emphasis was on commercial appraisal. Topics of study included commercial real estate appraisal, single-family residential appraisal, real estate finance and investment, real estate law, real estate property management, real estate principles, urban and regional economics, and construction technology. PROFESSIONAL REAL ESTATE STUDIES Completed the following real estate appraisal courses offered by the Appraisal Institute: Advanced Income Capitalization 7-Hour National USPAP Course Business Practices and Ethics General Appraiser Report Writing and Case Studies Advanced Concepts & Case Studies General Appraiser Market Analysis and Highest & Best Use Completed the Demonstration of Knowledge Requirement BUSINESS EXPERIENCE Diversified Real Estate Services, Inc., Minneapolis, Minnesota: Principal/Shareholder/ Appraiser/Analyst, May 2006 to present. Diversified Real Estate Services, Inc., Minneapolis, Minnesota: Appraisal Intern, January 2006 to May 2006. Mr. Klein has completed real estate appraisals of all types of real estate including multi-family residential, mixed-use multi-family residential, vacant commercial and multi-family residential land, single-family subdivisions, commercial subdivisions, single-family homes, residential and commercial condominiums, retail, office, medical office, industrial, elderly housing, hotels, mixed use properties, specialty use properties, partnership cash flow analysis, and fractional interest valuations. PROFESSIONAL MEMBERSHIPS Licensed Appraiser, State of Minnesota, Certified General Real Property License #20584809 Designated Member of the Appraisal Institute Member of the Board of Directors of the North Star Chapter of the Appraisal Institute Member of the St. Cloud State Real Estate Alumni Association. Past board member for the St. Cloud State Real Estate Alumni Association. 149 ADDENDA QUALIFICATIONS OF TIMOTHY L. KLEIN, MAI (continued) CURRENT APPRAISAL LICENSE 150 ADDENDA SUBJECT PHOTOGRAPHS 151 SUBJECT PHOTOGRAPHS South view of the subject property as seen from Roselawn Avenue West. Southeast view of the subject property as seen from the intersection of Roselawn Avenue West and Cleveland Avenue North. View of the parking lot. View of the warming shelter. View of the community garden. Interior view of the warming shelter. 152 SUBJECT PHOTOGRAPHS View of the tennis courts. View of the basketball courts. View of playground equipment. View of playground equipment. View of the soccer field. View of the baseball field. 153 SUBJECT PHOTOGRAPHS View of playground equipment. View of the walking trail. View of the walking trail. View of playground equipment. View of open space and a picnic table shelter. View of the pond on-site. 154 SUBJECT PHOTOGRAPHS West view of Roselawn Avenue West. East view of Roselawn Avenue West. South view of Cleveland Avenue North. North view of Cleveland Avenue North. 155 ADDENDA ZONING MAP 156 157 ADDENDA FLOOD ZONE MAP 158 National Flood Hazard Layer FIRMette 0 500 1,000 1,500 2,000250 Feet Ü SEE FIS REPORT FOR DETAILED LEGEND AND INDEX MAP FOR FIRM PANEL LAYOUT SPECIAL FLOODHAZARD AREAS Without Base Flood Elevation (BFE)Zone A, V, A99With BFE or DepthZone AE, AO, AH, VE, AR Regulatory Floodway 0.2% Annual Chance Flood Hazard, Areasof 1% annual chance flood with averagedepth less than one foot or with drainageareas of less than one square mileZone X Future Conditions 1% Annual Chance Flood HazardZone X Area with Reduced Flood Risk due to Levee. See Notes.Zone X Area with Flood Risk due to LeveeZone D NO SCREENArea of Minimal Flood Hazard Zone X Area of Undetermined Flood HazardZone D Channel, Culvert, or Storm Sewer Levee, Dike, or Floodwall Cross Sections with 1% Annual Chance 17.5 Water Surface Elevation Coastal Transect Coastal Transect Baseline Profile Baseline Hydrographic Feature Base Flood Elevation Line (BFE) Effective LOMRs Limit of Study Jurisdiction Boundary Digital Data Available No Digital Data Available Unmapped This map complies with FEMA's standards for the use of digital flood maps if it is not void as described below.The basemap shown complies with FEMA's basemapaccuracy standards The flood hazard information is derived directly from theauthoritative NFHL web services provided by FEMA. This mapwas exported on 6/23/2022 at 1:57 PM and does notreflect changes or amendments subsequent to this date andtime. The NFHL and effective information may change orbecome superseded by new data over time. This map image is void if the one or more of the following map elements do not appear: basemap imagery, flood zone labels, legend, scale bar, map creation date, community identifiers, FIRM panel number, and FIRM effective date. Map images for unmapped and unmodernized areas cannot be used for regulatory purposes. Legend OTHER AREAS OF FLOOD HAZARD OTHER AREAS GENERAL STRUCTURES OTHER FEATURES MAP PANELS 8 B 20.2 The pin displayed on the map is an approximatepoint selected by the user and does not representan authoritative property location. 1:6,000 93°11'27"W 45°0'7"N 93°10'50"W 44°59'42"N Basemap: USGS National Map: Orthoimagery: Data refreshed October, 2020 159 ADDENDA LEASE AGREEMENT 160 161 162 163 164 165 166 167 168 169 170 171 172 173 ADDENDA DEMOGRAPHICS 174 175 176 177