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The property was originally purchased as high ground for a gravity feed water distribution system serving the City of St. Paul. Over time, the method of water transmission has gone to a forced feed system with the underground reservoir serving only Roseville and Arden Hills. The property to be sold has been surplus for sometime. It represents an opportunity for the City of Roseville to preserve the area for open space and general park use, consistent with our Parks Master Plan. POLICY OBJECTIVES The Parks and Recreation Master Plan does reference these parcels as an important element in the City's passive park and green space plan. Further, the City's Infrastructure Committee has supported the purchase of the Water Authority property, with revenues from Communication Tower leases. The Water Authority property represents unique environmental habitats which are not found elsewhere in the City of Roseville. Therefore, the Water Authority property serves not only as a neighborhood amenity, but as an important community-wide asset. Parts of the property can be used for active recreational use (e.g. ballfields, playgrounds, etc.). However, most of the property is anticipated for use for passive green space and a series of trails, including a sub-regional trail linking to the "Gateway Regional Trail". FINANCIAL IMPLICATIONS The method of financing this acquisition would be from revenues from communication tower leases. As high ground, this site is an excellent location for communication towers to serveJhe Larpenteur and Highway 36 corridors. On the Council agenda for April 14 are two such tower leases for this site, which pay a significant portion of the acquisition costs on a 20 year term. The City anticipates other leases in the near future. The initial purchase is proposed to be financed from the City's Construction l1eserv'e Infrastructure Bond Fund. The Construction Reserve Infrastructure Bond Fund would be made whole by payments from tower antenna leases. STAFF RECOMMENDATIONS The significant remaining issue is the final sale price. The question yet unresolved is the percentage discount for the retention of the property for park purposes. The property has been appraised by the Water Authority and City for its redevelopment for residential (R- 1 )purposes in the amount of credit to the City for restricting its use for park only and is thought to be some'iv'here bet'v't'een 20 and 35 percent ($725,600 to $939,200). If the issue cannot be resol'led, '..\'e would continue this discussion until a futur~ Council meeting. This 20 percent deduct could be paid to St. Paul should the City wish to remove this restriction. Staff recommends this purchase. it being consistent with the Parks Master Plan and upon recommendation of the Infrastructure Committee. COUNCIL ACTION REQUESTED Motion to approve the purchase of the Water Authority described in the attached map for an amount of $725,000, to be funded by a loan from the Construction l1eserv'e Infrastructure Bond Fund account, with loan repayment from communication tower lease revenues.