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<br /> Mayor Woodburn <br /> and Council Members Hanson, Winiecki, <br /> . Sather and Hicks <br /> June 2 , 1987 <br /> Page 2 <br /> Dave MacMillan, the attorney for Ramsey County, he pointed out <br /> to me that if the Kennas or any other developers'would come <br /> to the County with a sufficiently large cash offer to purchase <br /> part of the easement there would be the potential that the County <br /> might accept such an offer. <br /> With this understanding, it probably would be best for <br /> the City at this point to not abandon the condemnation as we <br /> have not received the corrunissioners' valuation. I believe the <br /> corrunissioners cannot put a very high market value on a parcel <br /> that is completely covered by a highway easement precluding <br /> any residential development. Thus the City is in a position <br /> to pick the property up at what we hope is a modest price. <br /> If the corrunissioners come in with an exorbitant valuation, you <br /> are aware we have the right of appeal to the District Court <br /> and that we would have the option at that time to abandon the <br /> condemnation. By pursuing the condemnation the City would also <br /> have much greater freedom in its use of the parcel ~or open <br /> space or for some development as a City park consistent with <br /> the highway easement. <br /> . To summarize the testimony of the experts regarding the <br /> value of Lindey's parcel. Gordon Elmquist, our appraiser, indicated <br /> that he thought the value of the property might by $5,000 if <br /> covered with a highway easement, $37,500 if there was one buildable <br /> lot and $50,000 if two buildable lots were present. Mr. Tansey, <br /> the Kenna's appraiser, testified that the 42,875 square feet <br /> which lie northwest of the service road had an approximate value <br /> of $2.48 per square foot for a total of $l06,330. He then testified <br /> .that because he believed that Ramsey County and the Kennas would <br /> have to work together in order to develop the parcel that the <br /> value of the property would be reduced 50 percent and that he <br /> testified the value of the parcel was $53,000. In cross examination, <br /> it was brought out that if Ramsey County decided not to allow <br /> development then it is really not a 50/50 basis but more a lOO <br /> percent for Ramsey County and 0 for the Kennas which Mr. Tansey <br /> did accept. Both Mr. Elmquist and Mr. Tansey were in a somewhat <br /> difficult position because there really aren't any comparables <br /> for sales of properties burdened by highway easements that they <br /> were aware of. Thus both appraisers indicated that their approach <br /> to valuation was somewhat speculative due to the particular <br /> circumstances of this parcel. <br /> If the council should decide to abandon the condemnation <br /> at the June 8 meeting, I would appreciate irrunediate notice of <br /> that fact so as to serve the appropriate pleadings on all parties <br /> before June lO. As set out in the letter above, it is my <br /> . recommendation that ~ not take this step until we have heard from <br /> the corrunissioners what they determine the value of the property <br /> to be. <br /> ---~ <br />