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HomeMy WebLinkAbout09/24/1990 Council MinutesCOUNCIL WORK SESSION SEPTEMBER 24, 1990 Mayor Bisel call a work session of the City of Lino Lakes Council to order at 5:40 P.M., Monday, September 24, 1990. Council Members present: Kuether, Bohjanen. Council Members absent: Neal, Reinert. City Planner, John Miller; Engineer, Darrell Schneider; Administrative Assistant Dan Tesch and Clerk - Treasurer Marilyn Anderson were also present. The purpose for the work session was to discuss the Gary Uhde development options for the land south of the Correctional Facility. Mr. Miller explained that Mr. Uhde is considering developing this parcel for R -1 residential housing and possibly some multi - family housing. He noted that one concern facing Mr. Uhde is the two and one half (2 1/2) acre lots to the north of this parcel that face Marvy Street. Nearly every landowner wishes to sell the south portion of their lot to Mr. Uhde to develop. The one holdout recently had a fire at his home and now there is the possibility that he may also be willing to sell the south portion of his lot. Mr. Schumacher, City Administrator and Mr. Miller recently met with Mr. Uhde to discuss how the south portions of these lots could be acquired by Mr. Uhde. Mr. Uhde has suggested that the City aid him in his acquisition by doing a "friendly condemnation" procedure. A purchase price has been agreed upon by both Mr. Uhde and the landowners and the landowners are willing to sell. This procedure would allow Mr. Uhde to obtain title to the property without negotiating with the mortgage company of each landowner. Mr. Uhde feels that this is the most expeditious procedure and the least costly. The question of whether to proceed with a "friendly condemnation" would be a matter of Council policy and this is the reason Mr. Uhde is here this evening. Mr. Uhde has prepared a letter to Mr. Schumacher outlining the three (3) options he has for the purchase of a portion of these lots. Option A - Requires the purchase of approximately twelve (12) acres of land from the Marvy Street residents. The City would participate by using the "friendly condemnation" proceedings and the funding of the purchase of the property, about $120,000.•00. Payment to the City would be as follows: 1. Better utilization of land. 2. Better utilization of trunk sewer & water. 3. More hook up fees for the City. 4, More lots, homes and tax base. 5. Better design flexibility for streets and community. 6. More buffer from freeway for Marvy Street PAGE 1 1 1 COUNCIL WORK SESSION SEPTEMBER 24, 1990 residents. 7. Opportunity for Marvy Street residents to maximize their return on their land. The disadvantage to the City would be that the City must participate. Mr. Uhde's letter also outlined the dollars added to the tax base of the City, the dollars realized in additional hook up fees and area charge fees. Option B. Develop Mr. Uhde's twenty four (24) acre parcel independent of the purchase of the Marvy Street property and run a street east -west on Outlots A & B. This will allow each Marvy Street resident to subdivide the southern portion of their lots into two (2) lots. Advantages: Allows Marvy Street residents to subdivide their property and sell lots. Also the City does not have to participate in the purchase of the land. Disadvantages: Marvy Street residents do not want an assessment. These assessments may be excessive due to the width of the lot. There would be poor utilization of property and sewer and water facilities. There will be poor street design and the loss of mature trees on Outlot C. Mr. Uhde's letter also outlines the tax base, additional hook up and area charge fees for this option. Option C. Mr. Uhde will develop his property totally independent of the Marvy Street residents with his own streets and access. Advantages: The City does not have to participate. Disadvantages: Poor utilization of land, south portion of Marvy Street lots would be landlocked, poor utilization of utility services and poor street design. Mr. Uhde's letter also outlines the tax base, additional hook up and area charge fees for this option. Mr. Miller noted that this property is not now in a TIF district. However, if this type of financing was approved, the TIF district would be amended. Council Member Bohjanen said he would like to be sure development happens and that eventually the City would get all its investment returned. Council Member Kuether said PAGE 2 1 3 COUNCIL WORK SESSION SEPTEMBER 24, 1990 that she would like to see all of the numbers on this matter including what the City would have to fund and what the City would get back. Mr. Uhde said that he is not looking at making any profit if Option A is selected. His benefit would be a better development. He explained that whatever direction the development is to take, he wanted the support of the Council for efficiency and proper approach. Mr. Uhde gave the Council a copy of a letter to him from Gary Stout. This letter contains further defined figures for Option A. for investment costs and return on investment. The total one -time return could be 141 %. Mr. Uhde explained that he has brought this matter before the Council to explore Council reaction. He would like some indication of what the Council is willing to do with this matter. He noted Option B would be acceptable to him, but felt Option A was the most important to the City. Mayor Bisel told the Council that they will have to make a decision as to whether or not they wish to be in the land business. Mr. Uhde said he did not want to be involved in this acquisition because it is to slow and he wanted to be in and developing the property in the spring. He asked if the Council decided Option B was the best plan, could the City guarantee that the 1/3 to 1/2 mile of street would be constructed. The Council told Mr. Uhde that they would meet soon and give him their reaction to his proposals. POLICE DEPARTMENT - SQUAD CARS Police Chief Campbell told the Council that the State of Minnesota and Hennepin County bidding process has been given to Superior Ford. To get in on this bidding process, squads must be ordered by October 1, 1990. This creates problems since the 1991 Lino Lakes Budget will not be finalized until later in 1990. Chief Campbell also told the Council that he has checked with Polar Chevrolet and may be able to acquire two (2) new 1990 Chevrolet squad cars at the 1990 bid price. This would enable his department to maintain the same fleet of squads through our service inventory the Public Works Department keeps on hand for maintenance of the squads. Chief Campbell told the Council that there may be a mileage savings on the present cars by acquiring the new squads earlier than planned. The Council expressed concern that there may be a time in the future when they may be asked to fund four (4) new squads instead of two (2) new squads in a PAGE 3 1 1 COUNCIL WORK SESSION SEPTEMBER 24, 1990 particular year. Mayor Bisel told Chief Campbell that this matter would be considered under New Business on the regular agenda. Council Member Bohjanen moved to adjourn at 6:23 P.M. Council Member Kuether seconded the motion. Aye. These minutes were considered, corrected and approved at a regular Council meeting on October :, 1990. ari y G. An erson, Clerk - Treasurer Harold L Mayor PAGE 4