PURGHASE OF LAND FROM THE CITY
83- 405
COUNCIL LETTER NO
MEETING OF August 22, 1983
RE: CONSIDER PURCHASE OF LAND FROM CITY OF HOPKINS ADJACENT
TO OPERATIONS AND MAINTENANCE AREA
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
In 1978, during the discussion of the facility plan in the Operations
and Maintenance area, certain land North of those buildings was
identified as land that the city was desirous of purchasing from the
City of Hopkins. The land at that time was being occupied by the
City of Minnetonka for stockpiling of maintenance equipment and
materials and the ultimate purchase of that portion appeared logical
and a step toward straightening our common boundaries in that area.
(See Attachment "A").
e
The rendering and relationships of buildings and property lines shown
on that drawing indicated the common municipal boundary line to be
just East of the existing main lift station built in 1971. With that
assump~ion the city made certain improvements to the North and West
of that line over the years to facilitate the municipal operations in
and around that facility.
Last winter as we approached the final stages of the development of
the Operations and Maintenance facility plan, we were informed that
the main lift station was actually located on property owned by the
City of Hopkins and the city's right to occupy that property was
covered only by an easement for sanitary sewer purposes.
Following receipc of chis information, we compleced a survey of our
common boundary with the City of Hopkins and found that the actual
boundary line lies between the existing garap,e and the main lift station
as shown on the drawing laBelled Attachment 'B!'. On that drawing we
also located and drew the existing underground and surface improvements
now currently in place.
To resolve this issue we opened discussion with the City of Hopkins
about the possible acquisition of the necessary property
to adequately cover the area East of the lift station and garage
area as well as straightening our boundary North of the garage to the
railroad tracks. This is an area of slightly over 3 acres.
The City af Hopkins has set a price of $6,460 for that entire area. This
amount computes to 4.6C per square foot.
After having considered this issue we recommend to the City Council
that we pursue the purchase of this p=operty adjacent to the Ope=ations
and Maintenance Department as shown on the attached drawing (Attachment
"B") for the follmving reasons:
1
It is in ~(eecing :.;-ith past e:qres3ed
City CO'.mcil' ~
in~en: of s:aff a~G the
up
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. .
I"\ry
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Council Letter No. 83-
Meeting of August 22, 1983
Page 2
2. It is in the best interest of the city to have such major
municipal facilities as the main city sewerage lift station
on property owned by the city.
3. This purchase facilitates the efficient and orderly operation
of the public works (Operations and Maintenance) area.
4. The price set by the City of Hopkins appears to be a
reasonable price for the purchase of 3+ acres of land in
this area.
5. The cost of relocating the facilities currently located in
this area would exceed the purchase price for the property
in question.
If the Council concurs in staffs recommendation to proceed with the purchase
of this property it is suggested that the acquisition be financed from
the funds set aside for the construction of the Operations and Maintenance
Department office. $160,000 was budgeted for the office construction.
The construction cost along with architect fees will actually total
$153,410 leaving adequate funds to purchase this property.
Based on the foregoing information, it is recommended that the City
Council, at its meeting of August 22, 1983, adopt the following
motion:
That the City purchase approximately 3.2 acres of land
from the City of Hopkins in the area at the Operations
and Maintenance Department for the agreed price of
$6,460 and that this purchase De financed through funds
set aside for the construction of the Operations and
M~intenance facility plan.
Respectfully submitted,
9n; 1..f!1~~
City Manager
BY: Lloyd M. Pauly
Director of Operations &.Maintenance
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CITY OF HOPKINS
INTER-OFFICE
MEMO
TO
FROM
SUBJECT
B111 Craig, City Manager
DATE
Annl 15
19
83
Scott Renne, City Clerk/Assessor
Land on Northwest C1ty I1m1ts adjacent to C1ty of Minnetonka Operations
and Ma1ntenance fac11ity.
Pursuant to your request I have estimated the market value of three parcels
of land outlined in red on the enclosed map.
The land is zoned R-I-O, single family low density. The property lies
entirely within the flood plain of Minnehaha Creek. The land is unbuildable but
could serve as park1ng or open space for the four developable acres northeast
of the subject property.
.
The entire parcel of 29.56 acres was appra1sed as of March 22, 1979 by
Brad Bjorklund, MAI. The est1mated value was $130,000 or $4,397.83 per acre.
This valuation was based on the assumption that the property would be rezoned
to R-3, medium density multiple family, and developed with a multiple housing
project of forty units on the buildable four acres.
It is very difficult to find land sales that are comparable to the subject
property. Several hundred sales were surveyed and five selected as most
comparable due to their poor s011 conditions. It should be noted that these
sites are developable, either with piling or compaction, while the subject cannot
be built upon. Additionally, four of the five comparable sales were zoned either
commercial or industrial while the subject is zoned residential.
The comparable sales had per square foot values ranging from 19.4C to 32.2C.
This range would appear to be too h1gh for the subject property for reasons
stated previously.
Based upon the appraisal done 1n 1979, the comparable sales, and the unique
characteristics of the subject property I would estimate the value to be $2,000
per acre or 4.6C per square foot.
130,650 ~ x 4.6C + $6,009.9 say $6,000.00
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