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ARDEN HILLS CITY COUNCIL WORK SESSION—JULY 199 2010 8 2.B Trinity Lutheran &Hazelnut Park(continued) City Administrator Klaers indicated the City would only be purchasing parcels A and B. Parcel C would be used as shared parking and an easement would be required between both parties. Councilmember Holden felt Parcel A was absolutely necessary. The Council agreed. City Planner Beekman indicated Parcel B was critical to the church maintaining their green space requirements. The City would need to work through these issues if the site were to sell. She noted the church was also very close to the impervious surface limits as well. Councilmember McClung questioned if the City could own the property with the church receiving credit for the green space. City Planner Beekman explained the City had two options; one would be to grant them a green space easement over that property. The downside would be the City would lose some property rights as the owners. However, this would lower the value of the property and could lower the price. The second option would be to do a minor subdivision with a variance application. The City would grant the variance and the church would be a legal non-conforming use. Mayor Harpstead suggested the City continue conversations with the church expressing the limitations of the site. City Planner Beekman stated that the church had indicated it was not interested in subdividing and developing the site for housing. The offer to the City was for park land alone. Councilmember Holmes stated the property had an asking price of$280,000, but the City felt it was worth even less. She questioned how the church would respond to an asking price of$3.00 per square foot. City Planner Beekman was uncertain as to how they would respond, but the City has explained there were limited development options for these parcels. Mayor Harpstead requested Staff run the numbers, present an offer closer to $174,000 including unlimited access to the parking lot and that the City speak with the church further in September. He did not want to see the City negotiate back and forth as the site was not able to be developed. If the church did not allow the City to continue to use the parking, an easement could be suggested. Councilmember McClung agreed with the $174,000 property value. Councilmember Holmes indicated she felt$174,000 was too low.