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CR 05-006 Sale of City Property Interlachen January 4, 2005 Council Report 2005-006 REQUEST FOR SALE OF CITY OWNED PROPERTY - SOUTH END OF INTERLACHEN ROAD Proposed Action Staff recommends adoption of the following motion: Move to declare the 42 foot by 75 foot parcel at the south end of Interlachen Road as surplus property, and to direct staff to advertise for bids for the sale of the property. Adoption of this motion will authorize the sale of this city owned property. Overview In the 1950's, the City of Hopkins acquired a number of parcels along the old streetcar right-of- way on the south side of Interlachen Park. Over the years various parcels were declared surplus and sold to a variety of individuals. The City continues to be the owner of the subject parcel. There are utilities buried under the parcel, and therefore, the City has an interest in maintaining ownership and/or an easement for the maintenance of these utilities. In the 1960's the City received a petition from Mr. A.M. Kessinich and Mr. L.O. Swanson to dispose of the subject parcel, as well as a small parcel immediately east of the subject parcel. The Council did declare both parcels to be surplus and authorized the sale of the parcels. For reasons staff was not able to determine, the subject parcel was not purchased, while the adjacent parcel was. Because of the amount of time that has elapsed, staff is recommending that the City Council approve the attached Resolution declaring the property surplus. Primarv Issues to Consider . Is the property surplus . Are there buyers for the property . What is the impact of selling the property . What process needs to be followed in order to proceed with the sale? Supportine Documents . Analysis of issues . Property Description . Resolution 2005-03 d a s A. Genellie ting City Manager " Financial Impact: $ Budgeted: Y IN Related Documents (CIP, ERP, etc.): Notes: Source: Council Report 2005-006 Page 2 Analysis of Primary Issues . Is the property surplus? The City currently uses this property for the placement and maintenance of utilities, Should the property be determined to be surplus and sold, staff would recommend that easements be maintained across the parcel in such dimensions so as to retain the ability to maintain and replace utilities as needed. Surface use of the property could be given to surrounding property owners, and thus, sale of the property is feasible as long as the purchaser understood the need to maintain utilities. It is, therefore, unlikely that any structures could be built upon this property if it was sold. In spite of this use, the property does seem to have value to the surrounding property owners and if declared surplus, the City would likely gain revenue through its sale. . Are there buyers for the property? The subject property is on the southern end of lnterlachen Road. Staff is aware of several interested parties. . What is the impact of selling the property? Assuming the City retains easements on the property, the mostly likely use of the property will be for access to other properties, or simply an addition to existing properties on either side of the subject parcel. Disposing of the property will not diminish the City's interest, assuming the easements are maintained, but could provide value to surrounding properties by either increasing the lot size or providing access. Sale of the property would result in revenue for the City, in that there appears to be value to the property if attached to surrounding properties. . What process needs to be followed in order to proceed with sale? The City Council has the authority upon a four-fifths vote of the Council, to determine the property to be surplus and to consider and establish a fair and reasonable market value for the property. The final step is to determine the method upon which to sell. Staff intends to follow the same procedure that was used to sell the property at 130 19th Avenue South in 1997. Staff will seek sealed bids for the property. Neighbors and interested parties will be directly notified of the sale. In addition, a notice will be placed in the official newspaper and on the City's web site. Persons interested in purchasing the property will have until February 11, 2005 to submit sealed bids. The City Council will retain the option of rejecting all bids. City Property at the southern most point of Interlachen Road. Legal description: The North 75 feet of the Northeast Quarter of Section 30, Township 117, Range 21; except that part thereof lying between the Easterly and the Westerly boundary lines extended Southerly across said North 75 feet of said Northeast Quarter of Block 16, F.A. Savage's Interlachen Park; and except that part of above described property lying between the Easterly and the Westerly boundary lines extended Southerly across said North 75 feet of said Northeast Quarter of Block 15, F.A. Savage's Interlachen Park; and except that part thereoflying between the East line of Block 13, F.A. Savage's Interlachen Park and the West line of Block 14, F.A. Savage's lnterlachen Park, extended Southerly across said North 75 feet of said Northeast Quarter. Easements: The City currently has utility easements over the entire property. The City is willing to give up easements on the northwest comer of the property, an area approximately 34' by 34'. Additional questions regarding easements should be addressed to Steve Stadler, (952) 548-6350. Zoning: The parcel is zoned residential (R1 C). However, due to the size of the parcel, it is not considered a buildable lot. Additional questions regarding zoning and land use should be directed to Nancy Anderson (952) 548-6342. ----- - II ,,' " / -/" . < . / /,,, ./ ,,' ,~ ,,/' '. . ;' /.... ~ . ,," ,,/ ~. ( / I ,," ."" " I / .; .J ;'. .. "/ / / "I ~ ~~:- ... /.///..'< ~ /, //,"'/.,~///. ~ / / . /1 / /1/11' I. I / , I / /1 o .r 19 c.: .,. o ." '4 ( 9 I ) r<'\ CfI "" 16 ( :8) ......, lO -i vi o "'4 IS w'"'>> .&2 // // / ,;/, ''//./ / ~:,<,''''''~:<.'<'. /.-,',,:/5 ~ ~ ..I t N \ 1 t:it7 E~~M-+S r / II( Oo<-~~ No. 1+10C>80 37"3 'In. t;'~.: Area of existing easement to be given up ~ CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION NO. 2005-03 A RESOLUTION DECLARING CERTAIN REAL ESTATE OWNED BY THE CITY OF HOPKINS AS SURPLUS PROPERTY AND ORDERING AND AUTHORIZING THE SALE THEREOF. WHEREAS, the City of Hopkins is the present owner of the following described premises situated in the City of Hopkins, viz: The North 75 feet of the Northeast Quarter of Section 30, Township 117, Range 21; except that part thereof lying between the Easterly and the Westerly boundary lines extended Southerly across said North 75 feet of said Northeast Quarter of Block 16, F.A. Savage's Interlachen Park; and except that part of above described property lying between the Easterly and the Westerly boundary lines extended Southerly across said North 75 feet of said Northeast Quarter of Block 15, F.A. Savage's Interlachen Park; and except that part thereoflying between the East line of Block 13, F.A. Savage's Interlachen Park and the West line of Block 14, F.A. Savage's Interlachen Park, extended Southerly across said North 75 feet of said Northeast Quarter. WHEREAS, said property was originally part of the streetcar right-of-way and is no longer necessary for any public purpose. NOW, THEREFORE, it is hereby resolved by the City Council of the City of Hopkins, as follows: 1. That the above described premises be and the same are hereby defined and declared to be surplus property no longer necessary for the City, or public use. Adopted by the City Council ofthe City of Hopkins this 4th day of January 2005. By Gene Maxwell, Mayor ATTEST: Terry Obermaier, City Clerk