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HomeMy WebLinkAbout04/03/1995 Park Board Packet CITY OF LINO LAKES PARK BOARD MEETING MONDAY, April 3, 1995 6 :30PM 1. Call to Order and Roll Call 6:30pm 2 . Approval of Minutes from March 6, 1995 6:35pm 3 . Open Mike 6:40pm 4 . Updates and Old Business A. Park Update/Master Planning/Base Mapping 6:45pm B. Behms Century Farms 7:15pm C. Playground Inspection 7:45pm D. Athletic Complex Update 8:00pm E. Friends of the Park 8:10pm F. Recreation Programs/Earth Day Update 8:20pm G. Rice Lake Estates Update 8 :35pm 5 . New Business A. Adopt-a-Park (Lino) 8:45pm 6. Schedule Next Park Board Meeting 8:50pm 7 . Adjourn 8:55pm All times are approximate. Please call Sandie at 464-5562, Extension 176, if you cannot attend this meeting. r C I T Y O F JINO LAW MM Date: March 28, 1995 From: Marty Asleson To: Park Board Members Subject: Pre-Park Board Field Meeting Please meet at the City Hall Park playground area at 5:45pm for our pre-park board field meeting this month. h PARK, RECREATION AND FORESTRY DEPARTMENTS 7204 LAKE DRIVE,LINO LAKES,MINNESOTA 55014 (612)464-5562 CITY OF LINO LAKES PARK BOARD MEETING MONDAY, MARCH 6, 1995 The March 6, 1995, City of Lino Lakes Park Board meeting was called to order at 6:35pm. Roll call was taken, members present were George Lindy, Chair, Sharon Lane, Pam Taschuk, Amy Donlin and Betty Piper. Also present were Marty Asleson, Park, Recreation, and Forestry Coordinator, Barry Bernstein, Recreation Program Supervisor, and Sandie Wood, Recording Secretary. Absent were Ken Johnson and Joe Schmidt. APPROVAL OF FEBRUARY 6, 1995 MINUTES: Sharon Lane made a motion to approve the February 6, 1995 minutes, Amy Donlin seconded the motion. Minutes were approved with no additions or corrections. OPEN MIKE: There was no one present to speak under Open Mike. IMPACT FEES: Marty explained that impact fees were brought up at the last meeting. John Powell had attended a conference and Marty read general comments that John had sent to him by memo. Marty said we would have no legal basis for imposing impact fees and would definetly be challenged. Amy wanted to know if this was because of the Dolan decision. Marty responded that was one case study but there were others that had been tried on "reasonable portion" and "reasonable relationship" . He said the law was intended to provide for open space in developments on the basis of a new subdivision being created. He went on to discuss commercial/industrial dedication requirements that are in the cities ordinance. He said there is nothing documented to show "reasonable portion" and "reasonable relationship" between commercial development and recreational use. Sharon had questions on commercial development dedication. Marty said it was based on square footage of a commercial building. Sharon asked, if a company expands, do they have to pay more dedication fees? Marty said yes. ADA UPDATE: Marty gave background information on what had transpired with ADA since Becky left. He said Julee Quarve- Peterson was hired to do a self evaluation. This evaluation includes facilities, programs and services. Marty said he had given these manuals to staff to review. John Powell, Pete Kuegel and Jean Viger reviewed these manuals to critique them. Julee had a training session, with staff and the ADA Committee, in February. He said the transition plan lists facilities on different park 1 CITY OF LINO LAKES PARK BOARD MEETING MONDAY, MARCH 6, 1995 sites in the City with issues, costs, site priorities, and issue priorities listed. Some of these costs may or may not reflect accurate costs for these facility upgrade needs. Marty continued by saying The Americans with Disabilities Act requires the city to allow the public the opportunity to participate in the planning process to make the city' s policies, programs, services and benefits available to everyone. Marty said he was going to meet with the ADA Compliance Committee on March 8th, to review the manuals and go over what needs to be done to start meeting the requirements. He said this policy will have to be adopted by the City Council. Marty then discussed the ADA Recreation Consortium. He told the committee that he has been working with neighboring communities to form a consortium. He has sent out resolutions, to surrounding communities, to get them to commit to this program. If we get enough communities involved we could possibly hire another ADA Coordinator. George felt the costs in the report were unrealistic because the dollars have not been budgeted. George wanted to know where or what is the funding source to do these modifications. Marty could not answer his question because this has not been discussed. Amy wanted to know if we are under a time frame when all of this needs to be done. Marty said it was already supposed to have been done, we are behind schedule. Pam asked if we could be fined for not having this completed. Marty felt as long as we were showing progress we would be ok. Sharon wanted to know who the enforcing agency is. Marty said there is a Federal Compliance Agency but generally the only time they contact someone is if they have received a complaint against them. The compliance agency encourages people to work out the problem with the local agency before contacting them. George wanted to know what the board should be doing when planning neighborhood parks. Marty responded access trails, resilient surfaces, and transfer points on playground equipment are all typical elements that are of higher priority. There was additional discussion on resilient surfaces, whether the city has received any complaints from local residents on park access, budgeting for new neighborhood parks, handicap accessible 2 CITY OF LINO LAKES PARK BOARD MEETING M DNDAY, MARCH 6, 1995 restrooms, signage, and what transfer points are. Sharon asked if all parks have to be accessible to everyone or only 2-3 parks. Marty said because the city does not have the money to do all parks maybe we should do only 1-2 high usage parks first. He thought the ADA Committee should look at this and place priorities. Marty told the board that he had a some disability terminology literature that he will mail to the members. JOINT CITY COUNCIL/PARK BOARD MEETING: George stated he felt the city council will be supportive in procuring land for the athletic complex. George said he and Marty will be looking at alternative parcels of land. Marty said he and Michael Krech have been working together on other parcels of land that may fit the needs of this facility. Marty told the board that he will be writing a grant to help fund this facility. Amy asked what the dollar amount was on the grants that were awarded last year. Marty was not sure. Pam and Sharon said they would like to see the two boards meet quarterly or a couple of time a year. Marty did not think it was possible to meet quarterly but maybe twice a year was possible. NEIGHBORHOOD MEETINGS UPDATE: George gave an update on the Brandywood meeting. He said it was a conceptual meeting with about 20 residents. They agreed to spend the money to have a master plan drawn. George has talked to Jeff from Brauer and Associates about this plan. He said Jeff will work on an hourly basis to draw this plan. George said it was very important to have alot of the preliminary work done to help minimize Jeff' s time. It will be necessary to meet with Jeff periodically but maybe 2 or 3 neighborhood groups could meet at one time to maximize Jeff' s time. Marty talked about trail crossing. George said the residents are willing to build a boardwalk but the wetland would have to be defined. George said each neighborhood group agrees that they do not want formal ballfields in their park. Marty says he tries to get each group to visualize what their kids are going to be doing ten years from now so they can somewhat plan for future needs. Marty talked about the Rice Lake Estates neighborhood meeting. Marty, Mary Sarrion, City of Circle Pines, and Barry Bernstein attended the meeting on February 17 . He said about 50 residents also attended the meeting. He continued by saying drawings, 3 '~ CITY OF LINO LAKES PARK BOARD MEETING NOONDAY, MARCH 6, 1995 depicting the nature of the two lots that were dedicated, were presented. He said a request for wetland exemption was presented to the Rice Creek Watershed and he received a response that the two lots met the exemption qualifications. Marty went on to say the parcels would need to be presented to the Rice Creek Watershed Board for approval but it was decided to wait until approximately June to revisit this issue. Marty put milars on the overhead to show the M-5 (Pheasant Hills) , N-13 (BrandyWood) , N-10 (Birchwood Acres, Parkgrove, Pine Ridge) and Rice Lake Estates Park facilities. Pheasant Hills Preserve: Marty explained that he had received a letter from Homer Tompkins authorizing the budget for park development to be between $18, 000 and $30, 000. Marty said the developer said to go ahead and use $1800.00 to develop a master plan, and they would pay for it. Amy said this developer should be recognized for his generosity. Wenzel Farms neighborhood group met on February 21 to gain consensus and develop a budget. He reminded the board that $15, 000 was allocated for the development of the park. A basic concept plan was generated and changes made in response to neighborhood interest. Marty said they are presently working on refining cost and priorities for this park. They are talking about doing fundraising and cost matching with Friends of the Park. Marty talked about the resilient surface areas and said he might have a source for pea rock. He might abe able to get enough to do 3 or 4 sites. The Birchwood Acres/Parkgrove/Pine Ridge group wanted a scaled drawing for presentation purposes. He explained that he is working on this with OSM and Brauer. He said the residents expressed concerns about ballfields, buffering, wetland areas, and the location of hard court play areas. Marty had enclosed a Project Track Sheet #95-01 on City Hall Park. He talked about having to move the playground structure but was uncertain if it was possible because of its age. Marty discussed the costs estimate to do the work at this park. He said he has been soliciting help from the Forest Lake Hockey Association. He will put a request in to the Circle-Lex Lions and the Centennial Fire District for monetary donations. George had questions on base map preparation. He wanted to know how they are prepared, if they are done onsite. Marty said someone visits the site and uses a combination of the site vision and aerial topography maps and then either hand draws them or 4 CITY OF LINO LAKES PARK BOARD MEETING NOONDAY, MARCH 6, 1995 puts it in a cad system and mechanically draws them. Marty said it is easier and cheaper to do it in a cad system. Pam asked if this was something that should be brought up at neighborhood meetings to see is someone in the area can help draw base maps. Marty said it could be done but felt the residents would say something if they had the experience in this. George asked how long it takes to do a base map. Marty said usually a week but it depends on whether it is being done for free or for a fee. He also asked if base maps could be generated for future parks. Marty commented that you would almost have to wait until you knew what area it would include. George asked Marty to research the cost of base mapping. Pam asked if developers do base maps. Marty said they do all kinds of mapping and it is very expensive for them. George said maybe we could get the developer to do inkind labor as part of their park dedication or pay the developer to finish grade the parcel. He said we would then have base map information such as elevations, finish grade, boundaries and a prepared portion of ,.� land with known drainage. NEIGHBORHOOD PARK LIAISONS: Marty explained George is liaison for the Brandywood Park group, Joe Schmidt has Baldwin Lake and Quailridge, Pam Taschuk' s area is Shores of Marshan and Sharon Lane is liaison for Wenzel Farms. Marty said Ken, Amy and Betty have not been assigned to an area yet. Amy said she would like the Birchwood Acres area and Betty said she would like to attend a few neighborhood meetings before being assigned an area. TRAPPERS CROSSING UPDATE: Marty said he and Mary Kay Wyland will be meeting with Roger Hokanson about the Trappers Crossing development. He said it may be on the next Park Board meeting agenda. FRIENDS OF THE PARK UPDATE: George said all the neighborhood park groups have been told about Friends of the Park so they will probably be getting a lot of phone calls. Marty said that was good because they are looking for new members. Marty went on to say that the Friends of the Park Committee is in the process of writing a cover sheet for their criteria. He also reported that they had received a donation from Target Industries. RECREATION FOCUS COMMITTEE UPDATE: Barry discussed the latest brochure that came out the first week of March. He went over 5 CITY OF LINO LAKES PARK BOARD MEETING MONDAY, MARCH 6, 1995 some of the new things that had been done in the brochure this time. These changes were upon recommendation from the Recreation Focus Committee. Barry said the next Recreation Focus Committee meeting will be March 9, 1995 at the Park and Recreation Office. OTHER: Quad City Earth Day Celebration - Marty talked about the Quad City Earth Day Celebration that will be held at the Wargo Nature Center on Saturday, April 22, 1995. Jackie Constant is the Co-Chair for the event this year. He said the committee is very large and the planning is going well. Some of the things that are planned this year are a wildlife art show, a recycling trailer, tree sale, Aveda may be doing a "Taste of Aveda" and haircuts, Anoka County is going to be involved, and a bike auction by the Lino Lakes Police Department may be done. Conferences - Marty said he and Councilperson Andy Neal went to a MRPA Community Park Policing Conference. It was a very good conference on park patrol policing. Marty said he also attended a State Bicycle and Trails Conference. He said Minnesota groups are starting to get organized as far as trails and hook-ups. Marty said there might be enough people in Anoka County to start a Trails Committee. Amy wanted to know if there would ever be horse mounted officers on the trails. Marty said Dave Pecchia is working on this idea. NEW BUSINESS: There was no new business to discuss. NEXT MEETING: The next meeting will be April 3, 1995, 6:30pm at City Hall. ADJOURNMENT: A motion was made by Pam Taschuk, seconded by Sharon Lane to adjourn. The meeting was adjourned at 8 :36pm. 6 w n MEMORANDUM Date: March 28, 1995 From: Marty Asleson To: Lino Lakes Park and Recreation Board Subject: Friends of the Parks Information Please find attached a copy of two documents from Friends of the Parks. Martha Walmsley has indicated that she would like this information delivered with the packets in April, and that she would attend the meeting in May. F MAR-28-95 TUE 8: 16 CPf ENG FAX NO. 6125822830 P. 02 &' �tENaps erdfi. Friends of the Lino Lakes C� of THE �> Parks Foundation PARKS 1189 Main Street Lino Lakes, MN 55014 LINO LAKES Grj aT_ t A plication Process The Friends of the Lino Lakes Parks Foundation is a not-for-profit orgrc!iz<!tio ! cruiLa;cd to raisin- funds to support, enhance end dc\•clop parks in the City of Lino Lakes. Peric:iliciril;, f,.r:-Lne 311ows, the Roard of Directors.:wa:ds Or-!:its !o specific projects that enhance the Lino Lakes Park syslcm Donations to Fricnds of the Parks art tax deductible and Friends of the Darks is exempt froin paying steles tax. The first step in applying for a grant is to develop a detailed plan for the propo<�-d park with Marty Asleson Marty is employed by the City of Lino Lakes in the Parks and Recreation depar:mex he plan must be approved by the Park Board and you 'arc responsible for getting any necessary permits. Complete and submit Lie Grant Application, The Friends of the Parks Board will review your application w;thin 60 days of the tiine it is complete. Each application will be judged on its own merits The Board may award a grant of matching funds of up to$2000. Grant offers are valid for 90 days. y If your project is awarded a ;rant,Friends of the Parks will match your donation ',Ip to the atnOUTIt awarded. if you provide us wi;I; donors' n3n;es and addresses, along with the ainounts, we v�i =end receipt= for their tax-deductible gifts. Friends of the Parks will select items from your detailed plan that total the sum of your donation and our grant. Friends of the Par s must be billed for these items. Billing, scheduling and delivery should be arranged through Marty Friends of the Parks accepts no responsibility for coordutati.r;g or schediding wore and we will not accept delivery of any purch3scd items. Friends of the Parks reserves the ri_h, to attach plaques or other forilts of recognition to the iterns we purchase, mends of the Parks will donate all p!r:h:ucu items to the City of Lino Lykes. KIP,, tut u; 1 r t l 1 ENG FAX NO. 6125822830 P. 03 & cooAe ���° �xtt=tray rd1,� Friends of the Lino Lakes OF THE Parks Foundation PARKS 1189 Main Street Lino Lakes, MN 55014 LINO LAKES i 4 Grant Application The Friends of the Lirro Lakcs Parks Foundation is a not-for-profi(organization dcr',ica'c:i to rriS110 funds tct" a support, enhance and deveh-g)parks in the City of Liao Lakes. Periodically, as furdlri-,.',lbws, the Board Directors awards grants to specific projects that enhance the Lino Lakes Park system. Interested parties should submit a letter of application addressing each of these items. 1. Provide a detailed description of the project. • Where is the park located? • Who ow;ts the property? • Describe the park as it cutTently exists. Describe the changes you propose for the park(play round equipment,excavation/grading, construction,etc:). Include a drawing and a budget. • List the suppliers and'contractors, along with bids and/or estimated costs. Attach copies of any brochures, correspondence,estimates,etc that will give us a breAdown of the projected coats. 2. Now many people use the park? 3. How much of the total project will you supply(include money,labor, donations ci`pods and services)" , s 4 How much of the total project are you asking Fricads of the Parks to supply? 5. Attach a not; from the Park Board showing that your project has been approved. Please provide a contact's name, address and phone number, and submit your application to Georgia HerTick, President Friends of tht• Parks 6527 Pheasant Run Lino Lakes, NfN 55014 �- • FV. �..h•L Applications are reviewed by the Friends of the Parks Board. The Board ,%fill contact you with a decision wit 60,° days of the time your application is complete. Applicants may be asked to appear before tie Friends of!lie Flies Board to discuss the proposed project. s -_ Fib AGENDA ITEM STAFF ORIGINATOR: Marty Asleson DATE: April 25, 1995 TOPIC: Lund Property Trail Consideration BACKGROUND Please refer to the memorandum from Mary Kay Wyland and other information referring to this request to donate land to the City of Lino Lakes, for the purpose of a trail location. This would be an excellent trail location because it would be located directly across the street from Shenandoah Park. The only existing trail access off of the Park Grove Development to Arrowhead Drive is about a quarter of a mile to the east via the old Fox Trail stub. When the trail was initially installed running along the south side of the houses on the south side of Arrowhead Drive, people were using the Lund Property for access to the Park and we had to install a fence to discourage encroachment. In my opinion this would be a good trail connection to acquire. We have met with the Rice Creek Watershed on the site and it was discussed that the culvert extension that would be needed for this extension would be allowed, that it would not exceed the 400 square feet allowable fill, and that a letter and simple sketch would be needed for approval. Please find Michael Kreck's memo on the costs for this work. We would also have costs for grading and rocking this trail in. This cost should not exceed $500. OPTIONS 1. Acquire the Lund property by donation. Use Dedicated Park Dollars to accomplish Legal and mechanical work. 2. Do not accept this donation RECOMMENDATION Option 1 n - Memorandum - Date: Tuesday, April 25, 1995 To: Marty Asleson From: Michael Krech NKVJ !� Subject: Lund Property Park Trail Costs The cost to prepare the Lund site for a park trail includes clearing brush and small trees, extending a reinforced concrete pipe 30 feet, and adding 100 cubic yards of fill to the ditch to bring it up to the surrounding grade. The cost for this is approximately $3000 using a time and material basis. Once this is completed approximately 150 feet of gravel and bituminous park trail can be placed. MEMORANDUM TO: Mary Kay and other interested parties FROM: John and Joyce Lund DATE: March 28, 1995 SUBJECT: The 32 feet on the westerly side of the creek at 480 Arrowhead Drive, as a possible trail site connecting the southerly trail and Shenandoah Park on the north side of Arrowhead Drive It is our desire to have this possible transaction done decently and in order - and at no cost to us. We have investigated the following issues. If there is anything else we should know, please draw it to our attention. 1) Dick Kilian, Four Star Realty, gave us counsel as what documents to have in our possession when we sell our remaining property. 2) McKenzie Metro Appraisals. John Dale will do two appraisals - one on the remaining property, on which our home is located, and a second on the other property, which may be transferred to City ownership. Estimated cost is $400. 00. 3) OSM did the original survey. We have spoken to Brian Bourassa and he thinks OSM can do two surveys, one on the remaining property and one on the other property for $400.00. This price will also include two property stakes driven to mark our new westerly property line. 4) Huntington Mortgage Company, Theresa Davis from the partial release department. The cost to transfer information is $250. 00, (application is attached) . Upon examination of the surveys and appraisals a determination will be made if any monies must be paid to satisfied the mortgage on the remaining property. 5) Todd Smith, the Anoka County Assessor estimates the price of the other property to be between $1, 000. 00 _ and $2 , 000. 00. 6) Marilyn Anderson, Clerk, will do the proper recording of the remaining and other property at the Anoka County Courthouse. 7) Our insurance company does not insure land, assuming it can not be destroyed. 8) The title company will not be involved, unless the City would reqire a title search. 9) Mr. Hawkins, City Attorney will draw up a quit claim deed. There will be no closing. 10) We would like to have a document stating the remaining property conforms to the R1 standards of the zoning in the Shenandoah subdivision. 11) We understand we may deduct the appraisal amount from our 1995 income tax. 12) Our abstract will be updated upon the sale of the remaining property. ALL COSTS ARE ESTIMATES The Huntington Mortgage Company 7575 Huntington Park Drive Huntington Columbus Ohio 43235 Mortgage Direct Telephone Number Company March 20, 1995 John A Lund Joyce A Lund 480 Arrowhead Dr Lino Lakes MN, 55014 RE: FIIC Loan 162222-4 I have enclosed an application for the Partial Release of Mortgage. To begin the partial release process please return the completed application for partial release with the following items: Partial Release fee of $250.00 Copy of the Sales Contract Plat drawing illustrating the entire property with the proposed portion to be released highlighted. Appraisal of the remaining property with separate appraisal for the parcel or portion to be released Should you have any questions regarding this matter, please contact our office at 1-800-323-4695 or 614-480-6633 . Sincerely, �IIE�AZZOL I�; kresa A. Davis Assumption Specialist III AS502/TAD A subsidiary of The Huntington National Bank MBMORA�iDDM TO: Marty Asleson FROM: Mary Ray Wyland DATE: April 23, 1995 SUBJECT: Lund Property, 480 Arrowhead Drive Joyce and John Lund would like to dedicate/donate the westerly 32 ' X 133 ' of their property at 480 Arrowhead Drive to the City of Lino Lakes for Park Trail purposes. There is an existing ditch which physically separates this 32 ' strip of property from the balance of their 114 ' lot (the total frontage is 1461 ) making maintenance difficult. The Lund property is immediately south of Shedandoah Park with a trail running along the rear property line. This 32 ' strip of park land would make an excellent connecting trail to the park. Mr. and Mrs. Lund are willing to donate this property to the City in exchange for the following items: 1. A new certificate of survey indicating the new property line. Approximate cost $400. 2 . An appraisal of the property to facilitate a partial mortgage release. Approximate cost $400. 3. A mortgage release for their lender. Approximate cost $250. 4. Miscellaneous recording fees with Anoka County. Approximate cost $25.00. TOTAL COST TO FACILITATE DONATION: $1, 075. City staff has deferred this matter to the Park Board for their consideration. Our City Attorney, Bill Hawkins, has indicated that an appraisal and mortgage release may not be necessary. The release would hold the City harmless should the Lund's default on their mortgage. If there is no default there is no problem. If there is a default, the City could lose the trail to the mortgage company. When the Lund property changes hands, this mortgage liability problem will be eliminated as a new mortgage would not cover the park trail property. The Lund's would prefer to have the appraisal and mortgage release completed at this time. Our Engineering Department has roughly calculated the cost to prepare the area for a trail. This would involve clearing brush, extending a reinforced concrete pipe 301 , and adding 100 cubic yards of fill to the ditch. 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T 6 2S. 2fx 27 �28 7 g 9 6 7 12 2 3 4 56 i l : 10 - I I to 9 9 8 I4 / J 2 4 6 8 9 t2 10 9 4 5 7 1 4 5 2 . �lb6f a ? 131.4L) / e 9 10 II p�/VE 1 8 9 t 2 3 C `I`r n ? 19 I 15 14 13 _ 4 g t 2 3 4 4 PA 9 1 11 12 - 2 11 10 5 6 1 2 3 � 3 2 Y 9 g 1 4 � P 1 N"E I qt l 7 9 8 6 5 1 1 8 9 10 11 12 = 14 15 M 7 12 10 7 S W 13 1617 i3 66 6cwr 7 9 i 2 2 3 ; 8 i0 11 t 2 3 5 6 3 4 5 A D ' S 1N N 2 .PAP K 1 6 1 ^ HIORANDUM Date: February 17, 1995 From: Marty Asleson To: Lino Lakes Park and Recreation Board Subject: Information on Financing Parks Issues Please find enclosed a copy of the Land Appraisal for the Recreation Complex, A-3 site. I have also included a synopsis of this analysis and other information relating to this project, A letter from Springstead laying out a bond referendum scenario, and a compilation of issues for the upcoming Park Board/ City Council Work-session next Wednesday at 6:30 PM. The Board was going to meet at 6:15 to formulate thoughts on this meeting. n JOINT CITY COUNCIL/PARK BOARD WORK SESSION FEBRUARY 22, 1995 AGENDA 1. Funding —Over all sources * Leasing * Bond Referendum * General Fund * Reserve Funds * Gift and Grants * Other 2 . Timing of projects in reference to provide adequate quality review by Boards. 3. Revenue producing investments - ie. golf course 4 . Adequate open space 5. Community center/athletic complex/city hall - overall capitol facility direction. 6. Trails * Dead end trails * Trail expansion in north side of city 7. Neighborhood park needs and regional city leisure needs. 8. Maintenance needs to keep up with growth. 9. Other S P R I N GST E D 120 South Sixth Street Suite 2507 PUBLIC FINANCE ADVISORS Minneapolis, MN 55402.1800 (612) 333-9177 Fax: (612) 349-5230 Home Office 85 East Seventh Place 16655 West Bluemound Road Suite 100 Suite 290 Saint Paul, MN 55101-2143 Brookfield, WI 53005-5935 (612) 223-3000 (414) 782-8222 Fax: (612) 223-3002 Fax: (414) 782-2904 6800 College Boulevard Suite 600 Overland Park, KS 66211-1533 (913) 345-8062 Fax: (913) 345.1770 1850 K Street NW Suite 215 Washington, DC 20006-2200 (202) 466-3344 February 14, 1995 Fax: (202) 223-1362 Mr. Martin D. Asleson, Park Director Lino Lakes City Hall 1189 Main Street Lino Lakes, MN 55014-2123 Re: Proposed Bond Referendum Dear Mr. Asleson: We have prepared for your consideration proposed bonding schedules for $2,000,000, $3,000,000, $4,000,000, and $5,000,000 together with the resulting estimated tax impact. Since these bonds would be authorized pursuant to a referendum, the impact is based on Estimated Market Value rather than the traditional tax capacity. The City has a current Estimated Market Value of $435,100,000 which, at 2%, yields a debt limit of$8,702,000. The proposed range is well within this limit, the upper range of which would use up about 60% of your capacity. We understand the City is exploring the potential of purchasing land now for future development. The estimated cost differential between now and seven years from now is about 300%; it would certainly be an advantageous decision. However, there are certain constraints which must be considered when using bond proceeds to finance project costs. Federal arbitrage rules and regulations set forth specific guidelines as to the timing and expenditure of bond proceeds. Generally, proceeds must be spent within three years from the date of issue. In the event they are not spent, the remaining proceeds would be restricted as to investment at a rate not exceeding the nominal rate of the bonds issued to finance the project. In addition, and perhaps more onerous, the proceeds must be reasonably expected to be spent within that three-year period of time. I have discussed your proposal with Dave Kennedy at Holmes & Graven, bond counsel to the City, and he does not believe the proposal to bond now to acquire property seven years in the future would permit the issuance of tax-exempt bonds. I believe the City has the authority to purchase land on a Contract for Deed basis, but I understand the limitation for that instrument is for five years. We understand the future cost of land is based on speculation not only as to the developability of the property but also as to the extension of the MUSA line. Those factors are not guaranteed and therefore, you may be able to negotiate an intermediate price acceptable to both sides. City of Lino Lakes, Minnesota February 14, 1995 Page 2 There is also the politically unpopular method of condemnation and we recognize this would generally be used as a last resort method of land acquisition. While the concept has significant merit, the implementation with the use of bond proceeds has significant drawbacks. As an alternative, if the City could "find" some undesignated funds to leverage, the plan might become a little more attainable. We are not aware of any current investment vehicles which would yield a 300% growth in seven years; a broker or investment advisor would be the appropriate contact for that. I would be happy to discuss this information further with you and/or the Park Board at your convenience. Sincerely, Gerard B.Y� aWn o Vice President mmc /Saint Paul Office Enclosures City of LA Lakes, Minnesota G.O. Park Bonds Estimated Impact on Local Taxpayers $2,000,000 Issue $3,000,000 Issue $4,000,000 Issue $5,000,000 Issue Tax Tax Tax Tax Estimated Rate Dollars Rate Dollars Rate Dollars Rate Dollars Market Applied of Tax Applied of Tax Applied of Tax Applied of Tax Value (a) Increase (b) Increase c Increase d) Increase $40,000 0.043% $17 0.065% $26 0.086% $34 0.108% $43 $50,000 0.043% $22 0.066% $33 0.086% $43 0.108% $54 $75,000 0.043% $32 0.065% $49 0.086% $65 0.108% $81 $85,000 0.043% $37 0.065% $55 0.086% $73 0.108% $92 $100,000 0.043% $43 0.065% $65 0.086% $86 0.108% $108 $125,000 0.043% $54 0.065% $81 0.086% $108 0.108% $135 $150,000 0.043% $65 0.065% $98 0.086% $129 0.108% $162 $200,000 0.043% $861 0.065% $130 0.086% $172 0.108% $216 NOTES: Calculation of tax rate per $1,000 of Estimated Market Value (EMV): (a) Average local levy of$188,121 divided by the 1994/95 EMV of$435,100,000= $0.43 per$1,000 of EMV. (b) Average local levy of$282,295 divided by the 1994/95 EMV of$435,100,000= $0.65 per$1,000 of EMV. (c) Average local levy of$376,033 divided by the 1994195 EMV of$435,100,000= $0.86 per$1,000 of EMV. (d) Average local levy of$470,079 divided by the 1994/95 EMV of$435,100,000= $1.08 per$1,000 of EMV. Prepared 10-Feb-95 by SPRINGSTED Incorporated F:\DATA\L\LINOPK.WKi City of Lino Lakes, Minnesota Prepared 10-Feb-95 $2,000,000 G.O. Park Bonds, Series 1995 By SPRINGSTED Incorporated Dated: 10- 1-1995 SCHEDULE A Mature: 2- 1 First Interest: 8- 1-1996 Total Market Year of Year of Principal 105% Value Levy Mat. Principal Rates Interest & Interest of Total Tax Rate (1) (2) (3) (4) (5) (6) (7) (8) 1995 1997 20,000 5.059/6 159,139 179,139 188,096 0.043 1996 1998 60,000 5.155/6 118,344 178,344 187,261 0.043 1997 1999 65,000 5.25% 115,254 180,254 189,267 0.043 1998 2000 65,000 5.35% 111,841 176,841 185,683 0.043 1999 2001 70,000 5.450/6 108,363 178,363 187,281 0.043 2000 2002 75,000 5.50% 104,548 179,548 188,525 0.043 2001 2003 80,000 5.55% 100,423 180,423 189,444 0.044 2002 2004 85,000 5.60% 95,983 180,983 190,032 0.044 2003 2005 85,000 5.70% 91,223 176,223 185,034 0.043 2004 2006 90,000 5.80% 86,378 176,378 185,197 0.043 2005 2007 100,000 5.900% 81,158 181,158 190,216 0.044 2006 2008 105,000 6.000/6 75,258 180,258 189,271 0.044 2007 2009 110,000 6.10% 68,958 178,958 187,906 0.043 2008 2010 115,000 6.15% 62,248 177,248 186,110 0.043 2009 2011 125,000 6.20% 55,175 180,175 189,184 0.043 2010 2012 130,000 6.25% 47,425 177,425 186,296 0.043 2011 2013 140,000 6.30% 39,300 179,300 188,265 0.043 2012 2014 150,000 6.35% 30,480 180,480 189,504 0.044 2013 2015 160,000 6.35% 20,955 180,955 190,003 0.044 2014 2016 170,000 6.359/6 10,795 180,795 189,835 0.044 TOTALS: 2,000,000 1,583,248 3,583,248 3,762,410 Bond Years: 25,841.67 Annual Interest: 1,583,248 Avg. Maturity: 12.92 Plus Discount: 27,000 Avg. Annual Rate: 6.127% Net Interest: 1,610,248 T.I.C. Rate: 6.247% N.I.C. Rate: 6.231% Avg. Market Value Rate 1994 Taxable Market Value: 435,100,000 Total Levy (Average of Levy Years: 1995-2014) Column 7 188,121 0.043% Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. Prepared by: SPRINGSTED Incorporated (10-Feb-95) F:\DATA\L\UNO2.WK1 City of Lino Lakes, Minnesota $3,000,000 G.O. Park Bonds, Series 1995 Dated: 10- 1-1995 SCHEDULE B Mature: 2- 1 First Interest: 8- 1-1996 Total Market Year of Year of Principal 105% Value Levy Mat. Principal Rates Interest & Interest of Total Tax Rate (1) (2) (3) (4) (5) (6) (7) (8) 1995 1997 30,000 5.05% 238,740 268,740 282,177 0.065 1996 1998 90,000 5.15% 177,540 267,540 280,917 0.065 1997 1999 95,000 5.259/6 172,905 267,905 281,300 0.065 1998 2000 100,000 5.359/6 167,917 267,917 281,313 0.065 1999 2001 105,000 5.45% 162,567 267,567 280,945 0.065 2000 2002 110,000 5.50% 156,844 266,844 280,186 0.064 2001 2003 120,000 5.55% 150,794 270,794 284,334 0.065 2002 2004 125,000 5.60% 144,134 269,134 282,591 0.065 2003 2005 130,000 5.70% 137,134 267,134 280,491 0.064 2004 2006 140,000 5.80% 129,724 269,724 283,210 0.065 2005 2007 145,000 5.90% 121,604 266,604 279,934 0.064 2006 2008 155,000 6.00% 113,049 268,049 281,451 0.065 2007 2009 165,000 6.10% 103,749 268,749 282,186 0.065 2008 2010 175,000 6.15% 93,684 268,684 282,118 0.065 2009 2011 185,000 6.20% 82,921 267,921 281,317 0.065 2010 2012 200,000 6.25% 71,451 271,451 285,024 0.066 2011 2013 210,000 6.30% 58,951 268,951 282,399 0.065 2012 2014 225,000 6.35% 45,721 270,721 284,257 0.065 2013 2015 240,000 6.35% 31,433 271,433 285,005 0.066 2014 2016 255,000 6.35% 16,193 271,193 284,753 0.065 TOTALS: 3,000,000 2,377,055 5,377,055 5,645,908 Bond Years: 38,795.00 Annual Interest: 2,377,055 Avg. Maturity: 12.93 Plus Discount: 40,500 Avg. Annual Rate: 6.127% Net Interest: 2,417,555 T.I.C. Rate: 6.248% N.I.C. Rate: 6.232% Avg. Market Value Rate 1994 Taxable Market Value: 435,100,000 Total Levy (Average of Levy Years: 1995-2014) Column 7 282,295 0.065% Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. Prepared by: SPRINGSTED Incorporated (10-Feb-95) F:\DATA\L\UNO3.WK1 City of Lino Lakes, Minnesota $4,000,000 G.O. Park Bonds, Series 1995 Dated: 10- 1 -1995 SCHEDULE C Mature: 2- 1 First Interest: 8- 1 -1996 Total Market Year of Year of Principal 105% Value Levy Mat. Principal Rates Interest & Interest of Total Tax Rate (1) (2) (3) (4) (5) (6) (7) (8) 1995 1997 40,000 5.05% 318,244 358,244 376,156 0.086 1996 1998 120,000 5.15% 236,663 356,663 374,496 0.086 1997 1999 130,000 5.25% 230,483 360,483 378,507 0.087 1998 2000 135,000 5.35% 223,658 358,658 376,591 0.087 1999 2001 140,000 5.45% 216,435 356,435 374,257 0.086 2000 2002 150,000 5.500/6 208,805 358,805 376,745 0.087 2001 2003 155,000 5.55% 200,555 355,555 373,333 0.086 2002 2004 165,000 5.60% 191,952 356,952 374,800 0.086 2003 2005 175,000 5.709/6 182,712 357,712 375,598 0.086 2004 2006 185,000 5.80% 172,737 357,737 375,624 0.086 2005 2007 195,000 5.90% 162,007 357,007 374,857 0.086 2006 2008 210,000 6.00% 150,502 360,502 378,527 0.087 2007 2009 220,000 6.100/. 137,902 357,902 375,797 0.086 2008 2010 235,000 6.15% 124,482 359,482 377,456 0.087 2009 2011 250,000 6.20% 110,029 360,029 378,030 0.087 2010 2012 265,000 6.25% 94,529 359,529 377,505 0.087 2011 2013 280,000 6.30% 77,966 357,966 375,864 0.086 2012 2014 300,000 6.35% 60,326 360,326 378,342 0.087 2013 2015 315,000 6.35% 41,276 356,276 374,090 0.086 2014 2016 335,000 6.35% 21,273 356,273 374,087 0.086 TOTALS: 4,000,000 3,162,536 7,162,536 7,520,662 Bond Years: 51,623.33 Annual Interest: 3,162,536 Avg. Maturity: 12.91 Plus Discount: 54,000 Avg. Annual Rate: 6.126% Net Interest: 3,216,536 T.I.C. Rate: 6.247% N.I.C. Rate: 6.231% Avg. Market Value Rate 1994 Taxable Market Value: 435,100,000 Total Levy (Average of Levy Years: 1995-2014) Column 7 376,033 0.086% Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. ram. Prepared by: SPRINGSTED Incorporated (10-Feb-95) F:\DATA\L\UNO4.WK1 City of Lino Lakes, Minnesota $5,000,000 G.O. Park Bonds, Series 1995 Dated: 10- 1-1995 SCHEDULED Mature: 2- 1 First Interest: 8- 1-1996 Total Market Year of Year of Principal 105% Value Levy Mat. Principal Rates Interest & Interest of Total Tax Rate (1) (2) (3) (4) (5) (6) (7) (8) 1995 1997 50,000 5.05% 397,807 447,807 470,197 0.108 1996 1998 150,000 5.15% 295,830 445,830 468,122 0.108 1997 1999 160,000 5.25% 288,105 448,105 470,510 0.108 1998 2000 170,000 5.35% 279,705 449,705 472,190 0.109 1999 2001 175,000 5.45% 270,610 445,610 467,891 0.108 2000 2002 185,000 5.50% 261,072 446,072 468,376 0.108 2001 2003 195,000 5.559/6 250,897 445,897 468,192 0.108 2002 2004 210,000 5.60% 240,074 450,074 472,578 0.109 2003 2005 220,000 5.70% 228,314 448,314 470,730 0.108 2004 2006 230,000 5.80% 215,774 445,774 468,063 0.108 2005 2007 245,000 5.90% 202,434 447,434 469,806 0.108 2006 2008 260,000 6.00% 187,979 447,979 470,378 0.108 2007 2009 275,000 6.10% 172,379 447,379 469,748 0.108 2008 2010 295,000 6.15% 155,604 450,604 473,134 0.109 2009 2011 310,000 6.209/6 137,461 447,461 469,834 0.108 2010 2012 330,000 6.25% 118,241 448,241 470,653 0.108 2011 2013 350,000 6.30% 97,616 447,616 469,997 0.108 2012 2014 375,000 6.35% 75,566 450,566 473,094 0.109 2013 2015 395,000 6.35% 51,753 446,753 469,091 0.108 2014 2016 420,000 6.35% 26,670 446,670 469,004 0.108 TOTALS: 5,000,000 3,953,891 8,953,891 9,401,588 Bond Years: 64,541.67 Annual Interest: 3,953,891 Avg. Maturity: 12.91 Plus Discount: 67,500 Avg. Annual Rate: 6.126% Net Interest: 4,021,391 T.I.C. Rate: 6.247% N.I.C. Rate: 6.231% Avg. Market Value Rate 1994 Assessed Valuation: 435,100,000 Total Levy (Average of Levy Years: 1995-2014) Column 7 470,079 0.1080/. Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. Prepared by: SPRINGSTED Incorporated (10-Feb-95) F:\DATA\L\UNO5.WK1 Purchasing options Athletic Complex Total acres: 82.50 Sewer District 5 Background Appraisal Completed January 11, 1995 Two approaches were taken: Market Data Approach Subdivision Approach Market Data looked at a survey of sales of land in Lino Lakes. Adjustments were made for factors such as location, availability of utilities, topography, and time of sales. Subdivision Development attempts to look at the subject property from the perspective of a potential developer on the site. The value is indicated by estimating the total revenue that the site will generate upon development. An assumption was made here that a developer would require a 20 % return on sales in order to be motivated to assuming the risks associated with development. Conclusions: Market Data Approach Value: $250,000 or $3000 per acre. Subdivision Approach Value: $350,000 or $3900 per acre. Property owners perception of land value based on what developers have indicated land is worth: $12,000 per acre. Allen company indicated that the only way that a developer would pay this fee for the land would be on a contingency contract based on sewer and water availability. Sewer and water availability are 5-7 years away. Property owners do not need the money and are willing to wait. options: Cannot pay more then the appraised market value , or a negotiated compromise on this, based on council directive. Bond Referendum; however bond proceeds to finance project costs usually have to be spent within 3 years from the date of issuance. The thought here was to use bond proceeds or other available city monies to invest in a interest bearing account to reach an acceptable land value to the property owners at the end of a seven year period. Contract for deed; one-fifth down, where there is a five year payment schedule, interest is paid on the unpaid balance at 6% per year with at tax exempt status. At an agreeable price. Lease the land with the option to purchase land at end of lease. At that time the land would probably be valued at the $12,000 per acre. We would loose our timing advantage. Eminent Domain Look for another parcel of land. Very time consuming and costly. MARKET VALUE APPRAISAL SOUTH ATHLETIC COMPLEX SITE Lino Lakes, Minnesota Prepared for Marty Asleson Park, Recreation, Forestry Coordinator City of Lino Lakes 7204 Lake Drive Vino Lakes, MN 55014 January 11, 1995 r"� l-H—E AT T zN COMPANY �! 2516 Fourth Avenue North Anoka,Minnesota 55303 Malcolm B.Allen(1923- 1989) Real Estate Appraisal Service Malcolm B.Allen,Jr. (612) 421-4970 January 11, 1995 Marty Asleson Park, Recreation, Forestry Coordinator City of Lino Lakes 7204 Lake Drive Lino Lakes MN 55014 re: South Athletic Complex Lino Lakes, Minnesota Dear Mr. Asleson: As you requested, we have made an appraisal of the above . referenced property for the purpose of estimating its market value as of the effective -date hereof. Enclosed herewith is our complete appraisal presented in the form of a summary. .report. On the basis of an inspection of the property and careful consideration of the many factors that influence value, it is our opinion that the value of the subject, under the assumptions made herein as is more particularly set out in the report is: TWO HUNDRED FIFTY THOUSAND DOLLARS ($250,000.00) we submit our appraisal containing a description of the property appraised, a summary of the definitions relevant to the conclusions and a portion of the calculations, data and analyses used in reaching the conclusions. Information relied on herein was gathered from sources believed to be reliable, but it is not guaranteed. Yours truly, THE ALLEN COMPANY Malcolm 8. Allen, Jr. Certified General Real P operty Appraiser 4003031 r1 South Athletic Complex Site City of Lino Lakes, Minnesota TABLE OF CONTENTS Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Function. . . . . . . . . . . . . . . . . . . . . 1 Scope. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Effective Date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 .Property Rights Appraised. . . . . . . . . . . . . . . 3 Definition of Market Value. . . . . . .. . 3 OwnershipInformation. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Legal Description . . . . . . 4 Tax Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Regional Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 7 Cityof Lino Lakes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Description of Subject Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Zoning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . 13 Highest and Best Use Analysis. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 14 The Appraisal Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Direct Sales Comparison Approach. . . . . . . . . .. . . . . . . . . . . . . . . . . 21 Subdivision Approach. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Severance Damage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Reconciliation and Final Value Estimate. . . . . . . . . . . . . . . . . . . . . . 31 Certification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Addenda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Addenda r� South Athletic Complex Site City of Lino Lakes, Minnesota PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the market value of the subject property as of the effective date hereof and subject to the assumptions and limiting conditions herein. FUNCTION OF THE REPORT This Summary Appraisal Report is intended to assist the City of Lino Lakes, Minnesota in connection with its proposed acquisition of the subject property. SCOPE OF THE APPRAISAL The scope of this appraisal has been to inspect the subject property and to analyze land use patterns in the surrounding area to determine the highest and best use for the property. From the highest and best use determination we have estimated the value of the subject property using generally accepted appraisal methods as are more fully discussed elsewhere in this report. Among the sources contributing to the data in this report are: non-confidential data in our files; publicly available reports pertaining to cities and regions of the metropolitan area; surveys and analyses conducted by local and national real estate firms; Page 1 South Athletic Complex Site �•, City of Lino Lakes, Minnesota published and private secondary data; other real estate appraisers; public officials; real estate brokers and developers; real estate buyers and sellers; relevant materials provided by the City of Lino Lakes. The scope of this appraisal did not include commissioning any environmental studies to determine the presence of any hazardous substances on the site. Nor did it include consulting with a qualified soils engineer to determine existing soil properties. We have assumed that no environmental hazards exist on the site and that the soil conditions are suitable for use of the property in accordance with its highest and best use, except as otherwise set out herein. The conclusions and opinions resulting from our analysis are submitted as a Summary Appraisal Report as defined by the Uniform Standards of Appraisal Practice as promulgated by the Appraisal Foundation. DATE OF THE APPRAISAL This appraisal estimates the value of the subject as of December 23, 1994, based upon market and economic conditions then prevailing. The property was inspected on several occasions including December 23, 1994. The report was signed and prepared as of the date on the preceding cover letter. Page 2 South Athletic Complex Site City of Lino Lakes, Minnesota PROPERTY RIGHTS APPRAISED This report estimates the value of a fee simple interest in the real estate. A fee simple estate is: Absolute ownership unencumbered by any other interest or estate; subject only to the limitations of eminent domain, escheat, police power and taxation. DEFINITION OF MARKET VALUE Market Value as used in this report is: 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: - 1. Buyer and seller are typically motivated; 2. Both buyer and seller are well informed or well advised, and acting in what they consider their best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in cash or in terms of financial comparable thereto; and 5. 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. STATEMENT OF OWNERSHIP According to the real property records of Anoka County, Minnesota, the subject property is owned by two different people. The westerly portion of the subject property is owned by Ester J. Noren, and the easterly portion is owned by Donald Lundgren. The particular ownership, as it appears is set out in the descriptions below. n Page 3 South Athletic Complex Site City of Lino Lakes, Minnesota LEGAL DESCRIPTION OF THE SUBJECT The subject property is legally described as: P.I.N. : 33-31-22-42-0003: (Noren) The Northwest Quarter of the Southeast Quarter of Section 33, Township 31, Range 22, Anoka County, Minnesota, except the North 330 feet thereof and also except that part thereof taken for road; subject to easements of record. This tract reportedly contains 29.31 acres. P.I.N. : 33-31-22-43-0001: (Noren) The Southwest Quarter of the Southeast Quarter of Section 33, Township 31, Range 22, Anoka County, Minnesota, subject to easements of record. This tract reportedly contains 38.32 acres. P.I.N. : 33-31-22-41-0002: (Lundgren) The South 38 acres of the NE 1/4 of the SE 1/4 of Section 33, Township 31, Range 22, Anoka County, Minnesota except the right of way and subject to a certain easement to Rural Coop Power dated 6/24/63. This tract reportedly contains 36.28 total acres. Only a portion of this tract is considered part of the subject as is more particularly described below. P.I.N. : 33-31-22-44-0001: (Lundgren) The SE 1/4 of the SE 1/4 of Section 33, Township 21, Range 22, except that part thereof described as follows: Commencing at the SW corner of said 1/4,1/4, thence east along the south line Page 4 South Athletic Complex Site City of Lino Lakes, Minnesota thereof 538 feet to the point of beginning; thence continuing east along said south line 150 feet; thence north at right angles 200 feet; thence west at right angles 150 feet; thence south at right angles 200 feet to the point of beginning; also except a 50 foot strip of land run across said 1/4, 1/4 and being 25 feet in width on each side of the following described centerline: Beginning at a stake on the east line of said. 1/4 1458 feet north of the SE corner thereof, thence south 52 degrees 27 minutes west 2416.1 feet to a stake on the south line of said 1/4, 1/4 680.2 feet east of the SW corner thereof and there terminating; except the road and subject to easements of record. This tract reportecdly contains 39.31 acres. only a portion of this tract is considered part of the subject. property as is more particularly described below. TAX INFORMATION Noren Property P.I.N. : 33-31-22-42-0003: 1994 Real Estate Tax payable $ 253.53 Assessor's Estimate of Value $ 56,100.00 P.I.N. : 33-31-22-43-0001: 1994 Real Estate Tax payable $327.49 Assessor's Estimate of Value $ 76,800.00 Page 5 South Athletic Complex Site City of Lino Lakes, Minnesota Total 1994 tax payable $581.02 Total Estimated Market Value $132,900.00 Lundgren Property P.I.N. : 33-31-22-44-0001 1994 Real Estate Tax payable $298.19 Assessor's Estimate of Value $ 47,300.00 P.I.N. : 33-31-22-41-0002 1994 Real Estate Tax payable $326.20 Assessor's Estimate of Value $ 24,500.00 Total Tax Payable $624.39 Total Assessed Value $71,800.00 Page 6 South Athletic Complex Site City of Lino Lakes, Minnesota REGIONAL DESCRIPTION General Information The Minneapolis/St. Paul metropolitan area is located in the southeast quadrant of the state of Minnesota near the confluence of the Minnesota and Mississippi Rivers. It is approximately 250 miles south of Canada and 150 miles north of Iowa. The average elevation of the area is 900 feet above sea level. The "Twin Cities" is one of the largest commercial/urban centers in .the Midwest. Its Standard 'Metropolitan Statistical Area (SMSA) has been made up of ten counties including: Anoka, Carver, Chisago, Dakota, .Hennepin, Ramsey, Scott, Washington, and Wright Counties in Minnesota and St. Croix. County in Wisconsin. The Bureau of the Census recently announced that the SMSA is being expanded to include Sherburne County and parts of Stearns County in Minnesota and portions of two additional counties in Wisconsin. This is indicative of the general trend to growth and expansion in this market area. The central business districts of Minneapolis and St. Paul are approximately 10 miles apart and share a common international airport. Each city maintains its own identity and economic base although much of their business and industry is interrelated. The Twin Cities are the major commercial, industrial and financial center in the upper Midwest. Its trade area extends to western Wisconsin, Iowa, upper Michigan and the Dakotas. There Page 7 South Athletic Complex Site City of Lino Lakes, Minnesota are 17 industrial corporations among the Fortune 500 and 13 sales oriented corporations among the Forbes 500 with headquarters in the area. Economic and demographic data indicates patterns of growth and indicates generally the soundness of an areas economy. Most of these studies are provided by the Metropolitan Council of the Twin Cities Area. The Metro Council is an area wide governing body designed to coordinate planning issues and to address significant problems in its area of jurisdiction. the specific economic and demographic studies are beyond the scope of this report, but generally they indicate a sound economic base which appears to be somewhat insulated from national economic trends. The studies indicate a predicated steady population and economic growth for the area into the next century. A beltline freeway system provides good access to and transportation for all areas of the Twin Cities. Major highways serving this area include: A. Interstate Highway 35, a major north/south highway connecting the Twin Cities with Duluth on the north and Interstate 90, Interstate 80, Kansas City and San Antonio to the south. B. Interstate Highway 94 is the major link between the two central business districts and connects the Twin Cities with Chicago to the east and Fargo and Billings on the west. C. U.S. Highway 169 is a north/south route from Oklahoma to the U.S. /Canada border, passing through the western suburbs of the Twin Cities. D. U.S. Highway 212 is and east/west road Page 8 South Athletic Complex Site ,r1 City of Lino Lakes, Minnesota extending from Minneapolis to Yellowstone National Park in Wyoming, passing the western suburbs. E. U.S. Highway 61 is a north/south road connecting Thunder Bay, Ontario with the Quad Cities area in Iowa and passing through the eastern suburbs of St. Paul. F. Interstate Highway 494/694 is the major freeway route looping the Twin Cities. City of Lino Lakes The City- of Lino Lakes is located in the southeast quadrant of Anoka County, Minnesota. . The City is bordered by Blaine on the west, Ramsey County on the south, Washington n County on the east and Columbus Township on the north. The City has a reported population in 1992 of 10,002 indicating an increase of 13.6 percent over the 1990 census. Lino Lakes issued 378 building permits in 1993 for construction of 378 dwelling units valued at $401-840,800. The City issued permits for construction of 208 dwelling units valued at $22,578,000 in the first 11 months of 1994. Lino Lakes is considered to be •one of the fastest developing northern tier suburbs. Interstate Highways 35E and 35W bisect the City. These freeways provide good access to all areas of the greater metropolitan area. State Highway 49 ( Hodgson Road) and County Road 14 (Main Street) are other major roadways in the City. Page 9 South Athletic Complex Site City of Lino Lakes, Minnesota A large portion of the central area of the City occupied by the Rice Creek Chain of Lakes County Regional Park Reserve. This area is major recreational facility with hiking trails, nature areas, lakes and a county golf course. Page 10 South Athletic Complex Site City of Lino Lakes, Minnesota DESCRIPTION OF THE SUBJECT PROPERTY Site Analysis Area The Noren property contains approximately 67.63 acres, based upon the figures used for assessment by the Anoka County Assessor's office. We are informed that the total area of the Athletic complex is 82.5 acres. That would leave 14.87 acres to be obtained from the Lundgren property. The portion of the Lundgren property lies west of the existing wetland called Cedar 'Lake .and south of County Ditch No. '25. This area is depicted on the enclosed half section map. Absent an actual survey and legal description of the land to be acquired from Lundgren, we will assume its area to be 14.87. acres as set out above. Soils and Topography We have not been provided nor reviewed soil test results for the subject. We have review wetlands maps at the City of Lino Lakes, Anoka County, the Army Corps of Engineers and the Department of Natural Resources. Each of these entities has jurisdiction over various wetlands pursuant to state and federal legislation. It is our understanding that the City of Lino Lakes has delineated the wetlands on the subject and incorporated the results of the delineation into the Concept Plan for the Lino Lakes Athletic Complex prepared by Brauer & Associates, Ltd. A copy of that Concept Plan is included in Page 11 South Athletic Complex Site City of Lino Lakes, Minnesota the addenda. As is indicated, there are three main areas of wetlands, two along the western boundary of the site and the third in the northeast quadrant of the site. The site is mostly open and at or near the grade of the two adjoining roadways. Anoka County Ditch No. 25 (branch) crosses the northerly portion of the subject. The Soil Survey of Anoka County, Minnesota prepared by the United States Department of Agriculture Soil Conservation Service in cooperation with the University of Minnesota Agricultural Experiment Station indicates that the predominate soils appearing on the subject are Loamy Wet land, Hayden Fine Sand and Braham. Loamy..fine sand. While this survey is not specific enough to make a determination of the suitability of any particular site, it gives a good indication that most of the site would be suited to typical suburban development. Easements and Encroachments A Northern States Power Company easement bisects the site from the south west to the northeast. Its location is indicated on the enclosed half section map. It is not considered to cause material difficulties in using the site in accordance with its highest and best use. Utilities The subject property is not served with municipal water or sanitary sewer service. 'Storm drainage is natural and via a ditch system. It has access to telephone, electric, and Page 12 �-. South Athletic Complex Site City of Lino Lakes, Minnesota natural gas. The subject is currently located outside the Metropolitan Urban Service Area (MUSA) as defined by the Metropolitan Council of Governments. The MUSA is the area selected for urban type development by the provision of sanitary sewer. Zoning The subject site is currently zoned R, Rural, by the City of Lino Lakes zoning ordinance as depicted on the official Lino Lakes zoning map. A copy of the relevant portion of that map is included in the addenda. This district is intended to, among other things 1) preserve land for agricultural Use;:. 2) maintain "open space" within and *near urban areas; and 3) guide development of urban and rural areas along an orderly design to preserve continuity and efficiency of service. The current minimum lot size in this district is 10 acres with a minimum width of 330 feet. A copy of this portion the City of Lino Lakes ordinance is included in the addenda. Improvements The subject site is unimproved. Page 13 �. South Athletic Complex Site City of Lino Lakes, Minnesota HIGHEST AND BEST USE The highest and best use for a property is that use which will yield the highest present value for the property. It is that use, selected from other reasonable, probable and legal uses, that results in the highest value for the property. Criteria for determining highest and best use include: 1. The use must be legal and in compliance with zoning, building and other regulatory requirements, or logical and probable extensions of existing requirements. .2. The use must be within the realm of .probability and not merely speculative. 3. Demand for such use must exist. 4. The use must be profitable and provide the highest net return from the property for the longest possible time as compared to other likely uses. In appraisal practice, the concept of highest and best use is the premise.upon which value is based. The most obvious potential use of the subject is for development for single family residential purposes. The area just north of the subject is currently under development. The sheer number of recent building permits indicates that demand for such a product is strong. Further, the extensive development that has occurred indicates that such development is economically possible. The second, third and fourth ^ criteria set out above are clearly met by this use. Whether Page 14 �. South Athletic Complex Site City of Lino Lakes, Minnesota the first criteria can be met is a difficult analysis. The key issue is whether the site can be brought into the MUSA thereby giving it access to sanitary sewer that would allow development into urban size lots. We are informed by officials at the City of Lino Lakes that there are no current plans to expand the MUSA to include the subject property. Bringing the site into the MUSA would require a petition from the property owner to the City, a petition from the City to the Metropolitan Council and a favorable response. Also, the City's comprehensive plan would need to be amended and the site zoned to the desired use. At this point, it is our opinion that the likelihood of these things happening on a current basis is remote. Absent an actual attempt to bring about single family development on the site, it is impossible to say with certainty that it could not occur. Much of the.required action is political and it is impossible to predict the outcome of such proceedings. The alternative uses available to the site that could be considered to be a highest and best use are many and are included as allowed uses in the enclosed copy of the zoning ordinance. We have considered each of the these allowed uses. Each of the potential uses, in our opinion, amounts to no more than an interim use pending expansion of utilities to the site and allowing urban density single family residences. Given ^ its size, it is highly unlikely that it is a viable single Page 15 ,.� South Athletic Complex Site City of Lino Lakes, Minnesota agricultural site. It is possible that it could be combined with a remote -farm operation and achieve the required economies of scale. The subject has been used for agriculture recently. It appears that a corn crop was planted on the site during the last growing season. The value to be attributed in that scenario does not result in the highest return to the property for the longest period. We have considered the desirability of dividing the subject into 10 acre minimum homesites. While demand may exist for such a use, the return to the site is would disqualify this as the highest and best use. Based upon the foregoing, and in consideration of the above information, it is our opinion that the. highest and best use for the subject site is to hold the land as unimproved pending the petition for municipal utilities and development for urban single family residential purposes. The MUSA is currently located approximately 1/4 mile north of the north line of the subject property. Demand for urban-type building lots remains strong in this area. Much of the land suited for this type of development within the City has been absorbed and developed. It is logical to assume that demand of retail product and the desire of the City for development will continue and that ultimately the MUSA will expand to all suitable areas of the City. Officials at the City of Lino Lakes have informed us that the subject is not included in Page 16 South Athletic Complex Site City of Lino Lakes, Minnesota current plans for expansion of the MUSA. The area of the subject is defined as Class 5, meaning that expansion of utilities to the area is at least five years away. Given these considerations, for purposes here, it is assumed that the subject property could be included within the urban service area, and re-zoned to the appropriate district within five years. Page 17 �.� South Athletic Complex Site City of Lino Lakes, Minnesota THE APPRAISAL PROCESS , The estimate of value in the appraisal process is generally derived through application of three basic approaches to value: the Cost Approach, the Income Approach, and the Market Data Approach. The Cost Approach is an appraisal technique that is based upon the proposition that an informed purchaser would pay no more for the subject property than the cost of producing a substitute property with the same utility as the subject property. The indication of market value in the cost approach is obtained by adding the estimated value of the land to the estimated replacement cost of the improvements less any . r depreciation accrued. to the improvements. In this instance, the Cost Approach has no application as the subject property is unimproved. The Income Approach yields an indication of value by analyzing the subject property in terms of its ability to produce a net annual income over its economic life. This method views the subject from the perspective of a potential investor seeking a return of capital relative to the risks associated with the investment. In this area, vacant land does not typically produce any income except in rare cases. Any income produced from a site such as the subject would not be commensurate with its highest and best use. Even if the highest and best use of the site was determined to be for Page 18 South Athletic Complex Site City of Lino Lakes, Minnesota agriculture, it is our experience that the rental rates in this area for farm land are less than its market value as such. Therefore, the Income Approach is not relevant to this analysis. The Market Data Approach, or Direct Sales Comparison Approach, is based upon the principle of substitution, which .states "when a property is replaceable in the market, its value tends to be set by the cost of acquiring an equally desirable substitute property assuming no significant delay in making the substitution." Under this approach, value is estimated by comparing the subject property to other similar properties that have .sold under circumstances of an arms length transaction. Adjustments are made to the comparable sales to account for material differences between the subject and the comparable sale. Items such as time of the sale, location, topography, ultimate utility, and financing are typically considered in the adjustment process. The Market Data Approach to value is applied to the subject below. Finally, a fourth approach to value may be relevant to the analysis of vacant land that is or may be suited to development. The Subdivision Approach, also referred to as the Development or Anticipated Use Approach can be instructive when the highest and best use for the subject may ultimately be for development purposes. Value is indicated in this approach by analyzing the gross retail proceeds potential of Page 19 South Athletic Complex Site City of Lino Lakes, Minnesota the property if developed according to a presumed development plan. All costs associated with such a development are estimated and deducted from the potential gross proceeds. Finally, the developer's profit is deducted, and the result is discounted to yield the indication of value for the raw, undeveloped land. The Subdivision Development Approach is applied to the subject site below. Page 20 South Athletic Complex Site City of Lino Lakes, Minnesota MARKET DATA APPROACH We have conducted a survey of sales of land in the City of Lino Lakes that are considered to be comparable to the subject. We have relied upon sales believed to be arms length transactions that are representative of the market value for that type of property in this area. Since no two properties are ever truly identical, we have made adjustments to the sales data relied upon to account for material perceived differences in between the sale and the' subject property. Adjustments were made for factors such as location, availability of utilities, topography, and time of sale. Details regarding the•most pertinent sales relied upon are reported below. Page 21 South Athletic Complex Site City of Lino Lakes, Minnesota Sale No. 1 Location: Lino Lake, Minnesota Legal: P.I.N. 05-31-22-42-0002 05-31-22-42-0006 Size: 55.25 acres Sale price: $430,000.00 Unit price: $7,782 per acre Date of Sale: April, 1993 Buyer: Kociscak Seller: KS Reatly Co. Sale No. 2 Location: Lino Lakes, MN Legal: P.I.N. : 12-31-22-44-0001 12-31-22-43-0001 Size: 70.70 acres Sale Price: $100,000 Unit Price: $1,414 per acre Date of Sale: March, 1994 Buyer: Rehbein Seller: Zaiger Page 22 South Athletic Complex Site City of Lino Lakes, Minnesota Sale No. 3 Location: Lino Lakes, MN Legal: P.I.N. : 18-31-22-33-0003 ; 0005 18-31-22-34-0004 size: 12.14 acres sale price: $232,000 unit price: $19,110 per acre date of sale: Aprils 1994 Seller: GM Development Buyer: Willow Ponds. Ltd. Sale No. 4 Location: Lino Lakes, Minnesota Legal: P.I.N. : 28-31-22-31-0025; 0010 Sale price: $125,200 Size: 10.35 acres Unit price: $12,096 per acre Date of Sale: March, 1994 Seller: Miers Buyer: Hokanson Development Page 23 ,.` South Athletic Complex Site City of Lino Lakes, Minnesota Sale No. 5 Location: Lino Lakes, Minnesota Legal: P.I.N. : 31-31-22-14-00005 Sale Price: $280,000 Size: 20 acres Unit Price: $14,000 Date of Sale: August, 1993 Seller: Lehman Buyer: R-Properties, Inc. Sale No. 6 Location: Lino pekes, Minnesota Legal: P.I.N.: 32-31-22-23-0002 Sale Price $136,000 Size: 10 acres Unit Price: $13,600 Date .of Sale: February, 1994 Seller: Miller and Lavelle Buyer: R. Carlson & Associates Page 24 South Athletic Complex Site City of Lino Lakes, Minnesota This set of data clearly demonstrates the value added to a property as the result of its inclusion in the MUSA and the availability of municipal utilities. All but Sale No. 2 are within or partially within the MUSA. Sale No. 2 is zoned R, as is the subject and it lies east of Interstate 35E. As such, it is' considered to be comparable to the subject as of . the effective date hereof. However, it is our opinion that Sale No. 2 does not have as great a future development potential as does the subject. We have attempted to account for this in the adjustment process. After adjustment of the comparables, and after consideration of -the .time value of the investment pending its utility under its highest and best use, the market data relied upon indicates a per unit value for the subject site of approximately $3,000 per acre. Indicated Value of Subject Site 82.50 acres @ $ 3,000 per acre $ 247,500.00 rounded to $ 250,000.00 Page 25 South Athletic Complex Site City of Lino Lakes, Minnesota SUBDIVISION DEVELOPMENT APPROACH This method of estimating value attempts to view the subject property from the perspective of a potential developer of the site. In short, value is indicated by estimating the total revenue that the site will generate upon development. From the total revenue, all costs associated with the development and sale of the ultimate product are deducted, including a reasonable amount of profit to the developer. The present value of the remainder represents the present value of the subject- land as undeveloped property. At our request, the City of Lino Lakes staff provided us with a sketch of a potential subdivision' of the subject property. That plan proposes to divide the property into residential building lots under the criteria set out for developments within the R-1 zoning district. The sketch represents how the subject-might be developed when and .if municipal utilities were available to it. We have reviewed this plan and believe it to be a reasonable proposed future development for the site. The sketch plan indicates that the site could be divided into a minimum of 152 complying lots. The Subdivision Approach to Value is applied to the subject below. Gross Proceeds Based upon our review of the above mentioned sketch plan and a survey of single family residential lots within the City Page 26 South Athletic Complex Site City of Lino Lakes, Minnesota of Lino Lakes, we have estimated the potential gross proceeds available from the subject as follows:. 50 lots @ $40,000 $ 2,000,000.00 50 lots @ $35,000 $ 1,750,000. 00 25 lots @ $29,900 $ 747,000.00 27 lots @ $23,900 S 645,300.00 Total $ 5,142,800.00 As is set out above, it appears that the subject will not be included within the MUSA for at least 5 years. For purposes here, we have assumed the best case scenario of utilities becoming available in year 5 and the subdivision being completed and lots available and absorbed completely in years 5 and 6. We have estimated development expenses based upon current costs reported by the City of Lino Lakes for improvement assessments in recent development. Other costs were estimated based upon -our recent experience with subdivisions in the northern metropolitan area. We have assumed that a developer would require a 20% return on sales in order to be motivated to assuming the risks associated with the development. This is on the low end of the returns that developers require based upon our experience. Details regarding the allocation of the potential revenue and costs to the year incurred are shown on the chart included in the addenda. Also shown in the chart is the present worth factor ^ to be applied to the net revenues in the given year. This Page 27 South Athletic Complex Site City of Lino Lakes, Minnesota calculation results in the annual contribution to the present value of the land. These are summarized below: Year 1: -$ 20,698.00 Year 2: -$ 16,500.00 Year 3: -$ 14,992.00 Year 4: -$ 13,629.00 Year 5: $ 78,635.00 Year 6: $ 308,369.00 total $321,185 Indicated Value of Raw Land rounded to $320,000.00 $320,000 / 82.5 acres $3,878.79 rounded to $3,900 per acre n Page 28 South Athletic Complex Site City of Lino Lakes, Minnesota SEVERANCE DAMAGE In addition to considering the value of the property, in every analysis of a potential partial taking by an entity with the power of eminent domain, severance damage must be considered. This analysis is applicable only to the Lundgren portion of the subject property. Severance damage is defined as any diminution of the market value of the remainder parcel resulting from the taking _ and the construction of the proposed improvements. Severance .damage is measured. as the difference between: 1. The market value of the remainder parcel when considered as part of the total property, and 2. The market value of the remainder parcei when considered as an independent real estate entity after the partial taking and after construction of the planned improvements. Several factors to be considered when analyzing severance damage include: 1. Change in size. 2. Change in drainage. 3. Change in shape. 4. Change in highest and best use. 5. Impairment of light, view, access or use. 6. Change in cost of development or improvement. 7. Change in relative grade. In summary, any impact on the remainder parcel resulting Page 29 South Athletic Complex Site City of Lino Lakes, Minnesota from the taking and construction of the improvements is property considered as a potential element of severance damage. In our view, the remainder property owned by the Lundgrens will be left in substantially the same position as it was before the taking. A vast majority of the remainder is designated as Cedar Lake. The remaining high land has good frontage along the north side of County Road J. Considering the criteria above, we have concluded that the value and utility of the remainder of the portion of the subject owned by the Lundgrens will not be negatively impacted by the proposed acquisition., . Therefore, no severance damage should be considered. Page 30 �r South Athletic Complex Site City of Lino Lakes, Minnesota RECONCILIATION AND FINAL ESTIMATE OF VALUE The final step in a real estate appraisal is the reconciliation of the various value indications into a single estimate of value for the subject property. In this appraisal, two appraisal methodologies were applied. The following values were indicated and are -available for reconciliation. Market Data Approach $ 250,000.00 Subdivision Approach $ 320,000.00 The Market Data Approach best considers the actions of buyers and sellers in the market place. The validity of this approach rests upon the quality of the market data available for analysis. The Subdivision Approach attempts' to view the property from the perspective of a potential developer of .the property. Here we have relied upon a potential division of the site prepared by the City. This potential development plan may or may not be the most efficient or oost effective available. The development costs were estimated based upon experiences . with similar density developments in the City and elsewhere in the northern metropolitan area. We have attempted to account for the fact that as of the date hereof, it appears that development of the site cannot occur within the next five years. We have attributed all development expenses to the ^ first years were revenues could be generated. All of the Page 31 South Athletic Complex Site City of Lino Lakes, Minnesota timing and cost estimates were on a "best case" scenario. Therefore, the value indicated by this approach in this case is the highest value assuming that every facet of the development happens in the most favorable time frame. For example, if lots could not be first sold in year five, but in year 6, the value would be lower. In all likelihood, the carrying costs are conservative. In sum, due to the extended nature of the projections, we have not placed as great a weight on this analysis as we would if the project were ready for development on a current basis. Therefore, based upon the foregoing and after careful consideration of the.many factors that influence value, it is n our opinion that the market value of the subject property as of the effective date hereof is: Two Hundred Fifty Thousand Dollars ($250,000.00) r� Page 32 South Athletic Complex Site City of Lino Lakes, Minnesota .CERTIFICATION I certify that to the best of my knowledge and belief that: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions and conclusions are my personal, unbiased professional analyses, opinions and conclusions. 3. I have no present nor prospective interest in the property that is the subject of this report and I have no personal interest nor bias with respect to the. parties involved. 4. My compensation and employment in not contingent upon the reporting of a predetermined value or direction in value that favors.•the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. 5. My analyses, opinions and conclusions were developed and this report has been prepared in conformity with the. Uniform Standards of Professional Appraisal Practice as I understand them. 6. I have made a personal inspection of the property that is the subject of this report. 7. No one, other than those listed herein, provided significant professional assistance. to the person signing this report. 8. I have the appropriate knowledge of the specific market and relevant experience appraising properties similar in size and complexity to the property appraised to complete this assignment with competence. Malcolm B. Allen, Jr. Page 33 South Athletic Complex Site City of Lino Lakes, Minnesota ASSUMPTIONS AND LIMITING CONDITIONS The findings, estimates, opinions, conclusions and information in this report is, unless otherwise set forth in the report, subject to the following assumptions and limiting conditions: 1. The Appraiser assumes .no responsibility for legal matters. The legal description furnished or obtained from public sources is assumed to be correct. Title is assumed to be marketable. Unless otherwise set out in the report, the fee simple interest in the property is appraised and all existing liens and encumbrances.have been disregarded and the property s appraised as if free and-clear, responsibly owned and operated. 2. All structures and improvements are assumed to be in compliance with community zoning and building code . requirements. -All engineering and design is. assumed to be correct. We Assume no responsibility for structural defects in any improvements. They -are assumed to be in good working order unless otherwise specified. 3. It is assumed that there are no hidden or unapparent conditions in or on the property., its improvements and soils that impact upon its value. The appraiser is not qualified to detect such conditions and the client is advised to retain appropriate experts if any such condition is suspected to exist. 4. Improvements described as "proposed" or "under construction" .are considered as though satisfactorily completed in substantial conformance with plans and specifications and .in a workmanlike manner. 5. It is assumed that any improvements are situated within the property boundaries and that no encroachment nor trespass exists. 6. Except as may otherwise be set out in the report, the appraiser is unaware of the presence of any environmental hazard or hazardous material on the property or the improvements. The existence of such materials or conditions, unless otherwise noted in the report, was not considered, but may have a substantial impact upon the conclusions set out herein. The appraiser is not qualified to detect such substances or conditions and the client is encouraged to seek expert consultation if such conditions are expected. The presence of asbestos, urea-formaldehyde, toxic material or Page 34 South Athletic Complex site City of Lino Lakes, Minnesota other potentially dangerous materials or waste may affect the value of the property. 7. Written consent of the appraiser is required to publish all or any part of the report and no individual or entity in entitled to rely on the contents hereof except those set out in the report. 8. Information in the report is gathered from sources believed to be reliable. However, the accuracy of the information cannot be guaranteed. 9. We are not required to give testimony, or consultation by reason of this appraisal unless arrangements are made separately with the appraiser. Page 35 South Athletic Complex Site City of Lino Lakes, Minnesota QUALIFICATIONS OF THE APPRAISER THE ALLEN COMPANY 2516 Fourth Avenue North Anoka, Minnesota 55303 PROFESSIONAL ORGANIZATIONS Anoka County Board of Realtors Associate Multiple Listing Service CERTIFICATION Certified General Real Property Appraiser Minnesota Certification Number 4003031 GOVERNMENT- CLIENTS SERVED Qualified and appeared as Expert Witness . in various Courts 1. Anoka bounty 2. Hennepin County . 3•. Washington County 4. Denver County, Colorado 5. United States Bankruptcy Court for Minnesota Served. as Condemnation Commissioner for Anoka County, Minnesota on matters. of highway right of way, drainage easements, utility easements, and parks. Appraised for: Anoka County Highway Department; Anoka County Park Department; Cities of Anoka, Andover, Champlin, Lino Lakes, Blaine, Oak Grove, Burns Township, Ramsey, Elk River, Rosemount. SELECTED PRIVATE CLIENTS SERVED. Minnesota State Bank First National Bank of Anoka Twin City Federal First Bank Coon Rapids Citizen's State Bank of Big Lake The Bank of Elk River First National Bank of Elk River ^ Northeast State Bank Page 36 South Athletic Complex Site City of Lino Lakes, Minnesota Prudential Relocation Company Hakanson Anderson Associates, Inc. Anoka Hennepin School District No. it Art Goebel Ford, Inc. The Harstad Companies Contractors Cooperative Finance Company Local Oil Company EDUCATION Received Juris Doctorate degree from University of Denver College of Law, Denver, Colorado, 1983. Received B.S.B.A. in business administration from University. of Denver, Denver, Colorado, 1980. Mr. Allen has been the sole owner of the Allen Company, Real Estate Appraisal service since January, 1989. The Allen Company was founded in 1947 by his father and serves as an umbrella entity that covers a variety of real estate related activities including appraisal, management and development. r-� Page 37 e = v r t �Elm��e■�rL.� PM f v .-� South Athletic Complex Site City of Lino Lakes, Minnesota ZONING MAP NAU • �y ------- ::•.. :��';fC'••tieM,��t�'6i `_ -t tip..`'•.•.. '•+^.�i Lt ..;i. ♦� �is.. s j�,-SFr:•.;.a ::i::1:=::� •i;��„ t Nh— i;: t,r.: •t t�7'�..CAsf K-; tS.� •- r .rf:. T�yt r Ja' :y�.cl�! ..:... i.; v?•y-ts awi 4. :%ice'=':�' �:iS'�c,3'•.:-:. r'e - ��;' *;:�-; _ v"J •��••� t+ Y= �tDV. ' •�.J�}�.L•i'"�i.`:'�Jf •\�•'t�w 1.i-- `IT.�iiJw i�! ---- ! -j . y 1000-- 1100 - - 1200 Ow 1400 Page 30 South Athletic Complex Site City of Lino Lakes, Minnesota PLAT MAP CITY OF LINO LAKES T.31 N. - mzz.vv. PART OF CIRCLE PINES - CENTERVILLE -` COLUMBUS P6Is \f , �� 7La. a « P,f 3 u ti yI S /C 20 LZ Add �{Al(•AlY1vR'L 1 fL y - jr n p J 2l].fY i AMAS .... I 2/7.14 b ^ �� Hen! I IfdJG �Ad. .LWwel t ,Jjuh LN IY /!f •. ..,....� I 't' ti ti.n.,url ✓.L'`s ; G./ ,s YLr 'f•,r• .._. t.,✓ !S Ey. NJ! 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RICE LAKE 1 657n d 01.23 7Z2 mfy �v�r iO1 F:f J' Ad &-W WAU �L Ee.7v7L s vtaa�l"by A"w +yr�—N.K T O� ,'U. LAST "�yl LBLyrf LINO —zzr- ta''v ; ;,n. ] jr�r� A 7 •/7AwX -Lz 3/21 ,i7 ,ya,.a. L�wefr• i p d�7) Ex. a ,1 I: ��ff � / n ,LnLf �n`7+r aaaf Ifflt G w ✓ lzq. 9/ S L^* 1 Iw' idiiv� .I�WR .G. J ArdLpJ 7_4,.- �y M R.Pat •1 ttIla4L L.IW 4zN • ': \ •i 77SP r.N .,.�fr.e7 c.HdO. :f T_ !S Yl aAtObHN kiXr/ i oah r r ! ao J Kos s I:ii� tJ ! " snb ^«9" 77M .� n. p .Msz LA[E p lla7 NuOLL. flieuYlL rS- - ti f:•M�iG La!t0 1GaFid1ioY M • « •a = s•=`: r+I� ;•,- ' t Nla Aud L K/rLr AO i1+ Lf. 7 DX,b4�p y jS E. .•, :s b '�'�R p J/57./!/L` ;'"Ly°Y X cE zLrw ] P.sf I woo 1;® Avca m KSr, =r , 't. LAKES 'I ' R /0 /.M- Mwn 1:.., a • t i l/4'E [wtL •b _ 7.l •`Ai 8 ° rn ;i•1„ f*"f«f asss ;! �`..Lr"a, i ,yfy. .n t!w �.s• asa,3 : � rN •.:, ( A'd Key -- N ..,•s 4,y t 0 rZIX m:l . .fab I ; .won A Lord A, 743 -••a te [ALt r^ Ks. is 27•1 w.n J. LE4nLjAe,1.5 _ 1 It Page 31 South Athletic Complex Site City of Lino Lakes, Minnesota SECTION.MAP M y-----_ CEjVTER LAiVVE 7-5 tr viol ref_. �Coa:,ry Hiroo r _ l � AK I \ {r t 1 < r'<, i.l:;. ,��:: x:�{may �}t:t� :§��•:�k`.`•+ - i-vz ! ..1 rt'•1.: - _ i :.1 nth - ,� .� � _ a.,. 0 3. c fi per,',.-•� Pt s 7� dxe. p �. u+.7' r'• f •. N.ik y r \- !1/ y. .: .'t.. ', '1' /:. /J r:+44 ,. �.��c. [F'� � 04ndld •Y J r �iy • &e' . 0 x Ask 225' 36 •n 225' 360' YZ SOCF RI SOC RI WAM ti Y h _ INEIGHBORHOO�• YOUTH i ® ; YOAERZK UTH • (275' ') social 5' 360' 225' 360' u � 09C RI v -Vri N u v BASE a .(27Y) ® ALL 0 to 134 X COMBIHATION MBINATION PICNIC:SH -V a N BALL FIELD i ®® i L,IELD CHIC SHELF Rf1NAR►UNG V LAY O O i-�i dews (WI G SKA ING) 41 ®®®®® o m O .00 -- -- O +1 COMBINA, r ~�MBIHATION -'i I BALI.FIELD ; ; BALLFIELD u TRAIL LINK (3001) ; ®® ; (300') ® ® MULTIPUIE BUILDING CONCEPT PLAN LINO LAKES ATHLETIC COMPLEX ;I, BRAUER & ASSOCIATES, LTD. i, g'4 •,• 3y�.. a .d S I f � . •• r(i Tr ` ��• ,^fir' •f •n�.• s*;if �< �� Ike.• fir I tt,. 1` �°`{,,� >,.t .�,'�};i`�./ `'AtiYTChIAn�t'.�1T S�.•: �� ! �'� �l a 1• 11•S+.i 1.��.! il� sl'-;►t�^.a� �V r•�:J,,ts;j��FI'��,t �j'�; + •�, ) 1 1 I 1 k pity �••�},�j�� �i, �' �, >t �1,P N i• , •f , ,�C � _�) � ter ) s��w ;'�y+ '~�(�F1j� j'#",. '- �� ,� at f `. I,� 1•L,1 �rSY !t .� ,•1';N% 1 .1 J1 1, i� Subd. 2. "R" Rural District. (1) Purpose. This district is designed and intended to aid in guiding development toward 'fulfillment of the Comprehensive Plan and to serve the following functions. (A) To preserve productive land for agricultural use. (B) To maintain "open space" within and near to urban areas (C) To help guide development of urban and rural areas along an orderly design to preserve continuity and efficiency of service. (D) To provide a method by which the urban farm can be guided so as to control urban sprawl and still conserve land in an economic status until such time as the need is present for an amendment to the Comprehensive Plan. (E) To reduce the possibilities of rural-urban conflicts in establishing types and levels of service, methods of financing the services and needs. . To maintain an acceptable per capita cost for such services as sanitary sewer, water, police, fire, road maintenance, school transportation, and others is a necessity. (2) Lot and Yard Requirements (A) Minimum lot size: 10 acres ' (B) Minimum lot width: 330 feet (C) Setbacks: (The greater of the following: ) (i) From streets: (A) Residential Street: 30 feet (B) Collector or arterial street: 40 feet (ii) Front Yard: 30 feet (iii)Rear Yard: (A) Principal Bldg. : 30 feet (B) Accessory Building: 30 feet City of Lino Leta Z00mc OrdMAWC ADOPTED 7113M 66 (iv) Side Yard: (A) Principal Building: 10 feet (B) . Accessory Building: 5 feet (3) Building Requirements (A) The minimum outside dimension, floor area for single-family dwellings shall be as follows: 3 Bedroom Rambler 1050 square feet 2 Bedroom Rambler 1010 square feet 1 1/2 Story 980 square feet Split Foyer/Entry 980 square feet Split Level - 3 level minimum 980 square feet 2 Story 850 square feet (B) All basementless dwellings in this district shall be required to provide an additional 100 square feet of floor area to house utilities. (C) All dwellings shall have a double garage. (4) Height Regulations. No building shall be erected or structurally altered to exceed. thirty (30) feet. These regulations shall not apply to barns, silos, or other farm buildings. (5) Permitted Uses. In 'the Rural (R) District, no building or land shall be used and no building shall be erected, converted, or structurally altered, unless otherwise provided herein, except for one or more of the following uses. (A) Single-family detached dwellings (B) Public parks (C) Golf courses (D) Agriculture, gardening and sod farming (E) Temporary stands for the sale of agricultural products produced on the premises (see Section 4. Subd. 7. (10) (F) Stock raising, dairying, and stables in accordance with City Code Section 503 (G) Commercial greenhouses and nurseries City of Lino Lakes Zoning Ordmaox ADOPTED 7113M �'� 67 (H) Home occupations as provided in Section 4, Subd. 4 (I) Day care nurseries (14 or less persons) (J) Transmission towers/radio, television and other similar towers up to fifty-five (55) feet in height (6) Conditional Uses. The following are conditional uses in the "R" District. (A) Airports, public (B) Airports, private (C) Cemeteries (D) Churches (E) Elementary schools (F) Day Care Nurseries (15 or more persons) (G) Wild game farms (H) Gun clubs (I) Dog kennels (see City Code Sections 502 and 607) r (J) Feedlots (K) Commercial riding stables (L) Commercial horse breeding operation (M) Commercial boarding stables (N) Livery stables (0) Horse arena (P) Public buildings (Q) Transmission towers/radio, television and other similar towers over fifty-five (55) feet in height and less than two hundred (200) feet in height (R) Earth Sheltered Homes Cuy of LIDO take.Zoning Or k"o; ADOPTED 7113192 68 item year 1 year 2 year 3 year 4 year 5 year 6 proceeds $ 0 $ 0 $ 0 $ 0 $2,598,300 $2,544,500 loan fee $ 2812.50 interest $ 18,750 $ 18,750 $ 18,750 $18,750 $ 18,750 $ 0 principal $187,500 R/E tax $1,205.41 1,205.41 1,205.41 1,205.41 1,205.41 1,205.41 engineering/ $ 76,000 survey soil testing $15,200 platting and $ 76,000 grading signage/light $25,000 park fee $25,000 utilities/ $1,463 000 . $1,425,000 streets/curb landscaping $ 3,800 $3,800 sales and ad $51,966 $50,890 (2%) deed tax $ 8,575 $ 8,400 developers $ 519,660 $508,900 profit (20%) net/present val -22,768/.90909 -19,966/.82645 -19,955/.75131 -19,955/.68301 126,644/.62092 546,300/.56447 contributory - 20, 689 - 16,500 -14,992 -13,629 78,635 308,369 value