10-01-2018 Council Work Session Packet

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WS – Item 4 WORK SESSION STAFF REPORT Work Session Item No. 4 Date: October 1, 2018 To: City Council From: Michael Grochala, Community Development Director Re: 77th Street Realignment – 7685 Lake Drive Parcel Background In 2002, in conjunction with the construction of the MarketPlace development (Target/Kohl’s), a new signalized intersection was created at Marketplace Drive and Lake Drive. At the same time the existing 77th Street/Lake Drive intersection was converted to a right-in, right-out only intersection. In consideration of the access closure the City envisioned the potential future realignment of 77th Street, west of Lake Drive, with the new Market Place intersection. In 2007, as part of a potential redevelopment plan for City owned property, a feasibility study was completed for realigning 77th. The realignment was intended to restore full access to Lake Drive for properties northwest of the 77th/Lake intersection. Additionally, the project would aid in development of City owned properties north of 77th Street and properties to the south. The study identified the properties that would need to be obtained to complete the improvements. One of the properties is a single family home immediately adjacent to the intersection. Staff has recently been contacted by the owner of the property inquiring as to the City’s interest in the property. As mentioned, the extension of 77th is both a transportation improvement as well as a potential economic development catalyst. Staff is proposing acquisition of the property at this time to obtain control of the property. This would eliminate one major impediment to redevelop and/or transportation improvements in the future. The house would likely be demolished. The acquisition would be eligible for municipal state aid funding. Use of the proceeds from the property sale to the American Legion could also be considered for this purpose. If the council would like to proceed staff recommends preparation of an appraisal for the property. The owner has not provided an asking price at this time. The current county market value is $131,000. Total taxes payable in 2018 are $1,324.00. EDAC Recommendation EDAC recommended pursuing acquisition of the property at its September 6 meeting.