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2005-11-02 P&R Packet
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2005-11-02 P&R Packet
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<br /> <br />tervi[[e <br /> <br />1880 ;Main Street, Cettten;i[f.!, !fibY 55038 <br />651-429-3232 or <F<VL 651-429-8629 <br /> <br />'Esta.611shed- 1857 <br />October 21,2005 <br /> <br />Memo to Council and Park Board: <br /> <br />On October 20, 2005, Jolm Meyer and 1 met with representatives of S1. Paul Regional Water <br />Services, Steve Schneider-General Manager, Bill Tschida-Unit Supervisor and Matt Anfang- <br />Board Member. We discussed the outstanding question of the City OfCenterville purchasing <br />the surplus property south of the water pumping station on Centerville Lake. <br /> <br />As you know, we were not getting anywhere with them in trying to buy the northerly portion of <br />the property (1601 Lamott) due to their contention that the remaining parcel would be <br />diminished in value if we created a park on the portion we have been considering. As an <br />alternative, we discussed purchasing the entire surplus property, which is basical1y two lots. <br />Their appraisal indicated a "ready to build" residential value of$336,000 each for a total value <br />of $672,000. It is clear that tbey would need to do certain things to m.ake the lots ready to <br />build, including relocating a watermain and removal of an existing dwelling. The cost ofthose <br />two items is roughly $60,000 for the pipe relocation and $30-$40,000 for the removal of the <br />dwelling. That would net the Water Board around $572,000. <br /> <br />We suggested that the City OfCenterviUe might be willing to purchase all of the property for <br />$500,000. After some discussion, they thought they could support a "split the difference" price <br />of $536,000. They also agreed that they will accept one-third down ($178,667) and two equal <br />annual payments of one-third each witb interest at 6% on the outstanding balance. They will <br />provide a title insurance commitment at their expense. The City OfCenterville would need to <br />do the demolition at its expense, but could probably get a better cost if rolled together with the <br />demolition on the East Block 7 redevelopment. <br /> <br />The Water Board will retain easements on the pipeline in its current location, but will work <br />with us if the City later decides to relocate the pipelines and will adjust the easements <br />accordingly. They will retain the flowage easement along the shoreline, but the City will have <br />ownership of the land to the ordinary high water mark. The only conditions that they <br />expressed were that they would want to see the home torn down within a reasonable time after <br />the city takes possession (six months+-) and that the property not be used as a "dog park" <br /> <br />This is a very nice piece of property and one that the City should probably not allow to get <br />away. The opportunity to get public access lake fro.ntage in the city will soon pass and may not <br />ever present itself again. The payment schedule would offer a chance to see what park fees <br />will be available over the next year or so and if the city decided it could 110t afford to keep the <br />entire parcel, a lot could be sold and the City could recover at least half its costs. <br /> <br />Dallas Larson, City Administrator <br />
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