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Agenda Item: I.2 <br />CITY OF HUGO <br />MEMORANDUM <br />TO: Bryan Bear, City Administrator <br />FROM: Emily Weber, Community Development Assistant <br />SUBJECT: Rich Kettler — Proposed Property Donation <br />DATE: October 31, 2019, for the City Council meeting on November 4, 2019. <br />1. BACKGROUND: <br />Rich Kettler is proposing to donate two lots totaling 5.94 acres to the City of Hugo. The <br />properties are located north of 1401h Street North and west of Fenway Boulevard North. <br />2. OVERVIEW OF PROPERTIES: <br />Kettler Construction gained final plat approval from the City Council in August 2002 for Fenway <br />Place, a 34 unit twin home development located west of Fenway Avenue North and north of <br />140th Street North. The development includes two outlots, Outlot A and Outlot B, that were <br />planned as future phases but were not approved for development. Outlot A is 3.94 acres and staff <br />has noted that there is a significant amount of wetlands on the property and potential <br />development is very limited on site. Outlot B is 2.17 acres, shows wetlands on site, has an <br />infiltration pond and a lift station on site, and also has a portion of upland. Staff has noted that <br />access to both properties would require the construction of 1401h Street North. <br />Rich Kettler, the property owner, is proposing to donate Outlot A and Outlot B to the City of <br />Hugo for a non -determined use. Staff did a site visit on the property and did not note any <br />concerns. <br />Outlot A has an estimated market value of $118,200 and Outlot B is valued at $31,800 per <br />Washington County assessor's office. The table below shows the remaining amount due for 2019 <br />property taxes, which would be required to be paid by the City should the property donation be <br />accepted. The City would also be responsible for paying property taxes in 2020. Since the <br />property values are remaining the same in 2020, the total estimated property taxes for both <br />parcels is $2,169. Overall, the City would be responsible for paying $3,295.32 in property taxes <br />for 2019 and 2020 on the proposed donated properties. After 2020, the City can apply to be tax <br />exempt for these two properties. <br />