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Item No: 6C Meeting Date Jan. 22, 2024 Type of Business: Council Business City Administrator Review: of Mounds View Staff R To: Honorable Mayor and City Council From: Nyle Zikmund, City Administrator Scott J. Riggs, City Attorney Item Title/Subject: R9866 and R9867 - Long Lake Woods Second Addition (Development Agreement and Tax Forfeited Land Acquisition) Introduction: Since at least 2019, the City has been working with a group of property owners and developer Marty Harstad to extend Greenwood Drive north of Sherwood Road and create an infill development consisting of single-family lots to be tentatively named Long Lake Woods Second Addition (the "Project"). The City Council has been supportive of the Project, including recently the adoption of Resolution 9799 (Aug. 28, 2023) authorizing acquisition of specific real property interests needed for the Project by negotiation or eminent domain. Discussion: Although a development agreement for the Project was reviewed and approved in February of 2020, that document was never finalized due to Project delays that were caused by various reasons. Since 2020, details related to the Project have evolved and become more refined. As such, the development agreement has similarly evolved into an updated form which is presented for approval. The agreement has been negotiated with the developer and approval is recommended by staff, including legal counsel. Additionally, in conducting title research related to the Project, it was discovered that a small strip of property which had been assumed to be existing right-of-way is in fact owned by the State of Minnesota via historic tax forfeitures. The property is a 30-foot strip, approximately 548 feet long, which is believed to have been reserved by the State for the future extension of Greenwood Drive. The City needs this strip of property in order to construct the Project as designed. Because the City proposes to use the property for constructing public improvements — a public street and related utilities — the City is eligible to obtain a conditional deed to the property at no cost other than the nominal transactional fees involved. If the application is approved, the City would need to pay the application fees and would obtain the deed. The City would then have three years to construct the public improvements (or facilitate such construction through a private developer) to satisfy the condition. If the improvements are not constructed, ownership of the property would revert back to the State. MU210-262-928001.v2