2005-10-26 CC Packet - Laserfiche WebLink

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ervi[[e 1880 ;,Wain Street, Ccntcroille. 'M'N 55038 651-429-3232 or <F~ 651-429-8629 'Esta6[L4ied"lB57 October 21,2005 Memo to CouIlcil arid Park Board: On October 20,2005, John Meyer and I met \\<,th representatives ofSt. Paul Regional Water Services, Steve Schneider-General Manager, Bill Tschida-Unit Supervisor and Matt Anfang- Board Member. We disc\.lssed the outstanding question of the City OfCenterville purchasing the surplus property south of the water pumping station on Centerville Lake. As you know, we were not getting anywhere with them in trying to buy the northerly portion of the property (1601 Lamott) due to their contention that the remaining parcel would be diminished in value if we created a park on the portion we have been considering. As an alternative, we discussed purchasing the entire surplus property, which is basically two lots. Their appraisal indicated a "ready to build" residential value of $336,000 each for a total value of $672,000. It is clear that they would need to do certain things to make the lots ready to build, including relocating a watermain and removal of an existing dwelling. The cost of those two items is roughly $60,000 for the pipe relocation and $30-$40,000 for the removal ofthe dwelling. That would net the Water Board around $572,000. We suggested that the City OfCenterville might be willing to purchase all of the propeIty for $500,000. After some discussion, they thought they could support a "split the difference" price of$536,000. They also agreed that they will accept one-third down ($178,667) and two equal annual payments of one-third each with interest at 6% on the outstanding balance. They will provide a title insurance commitment at their expense. The City Of Centerville would need to do the demolition at its expense, but could probably get a better cost if rolled together with the demolition on the East Block 7 redevelopment. The Water Board wiII retain easements on the pipeline in its current location, but will work with us if the City later decides to relocate the pipelines and will adjust the easements accordingly. They will retain the flowage easement along the shoreline, but the City will have ownership of the land to the ordinary high water mark. The only conditions that they expressed were that they would want to see the home torn down within a reasonable time after the city takes possession (six months+-) and that the property not be used as a "dog park." This is a very nice piece of property and one that the City should probably not allow to get away. The opportunity to get public access lake frontage in the city will soon pass and may not ever present itself again. The payment schedule would offer a chance to see what park fees will be available over the nexi year or so and if the city decided it could not afford to keep the entire parcel, a lot could be sold and the City could recover at least half its costs. Dallas Larson, City Administrator 3~