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07/05/1994 - City Council SpecialAGENDA SPECIAL CITY COUNCIL MEETING Tuesday July 5, 1994 5:00 p.m. Eagan Municipal Center Building L ROLL CALL & ADOPTION OF AGENDA II. HOLTZ FARM PROPOSAL III. COMMUNITY DEVELOPMENT UPDATE IV. OTHER BUSINESS V. ADJOURNMENT city of eagan TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: JULY 1, 1994 SUBJECT: SPECIAL CITY COUNCIL MEETING/TUESDAY, JULY 5, 1994 A Special City Council meeting is scheduled for Tuesday, July 5 at 5:00 p.m. to discuss the following items: 1) Holtz Farm Proposal 2) Community Development Update 3) Sergeants Negotiations HOLTZ FARM PROPOSAL Enclosed on pages g through is a copy of a memo and support information regarding the recommendation of the Advisory Parks, Recreation & Natural Resources Commission and the Director of Parks & Recreation regarding the status of acquiring the Holtz Farm property for park purposes. COMMUNITY DEVELOPMENT UPDATE Director of Community Development Reichert will provide an update on pending community development related items. SERGEANTS NEGOTIATIONS Enclosed without page number is an update for the City Council on negotiations the City Administrator and Assistant to the City Administrator Duffy had with the Police Sergeants group on Wednesday, June 22. Direction is required on this item. If time does not permit to receive direction as requested in the memo, this item can be continued until executive session following the regular City Council meeting. OTHER BUSINESS There no other items for Other Business to be considered at this time. /S/ Thomas L. Hedges City Administrator / MEMO MEMO city of eagan DATE: JULY 1, 1994 TO: TOM HEDGES, CITY ADMINISTRATOR FROM: KEN VRAA, DIRECTOR OF PARKS & RECREATION SUBJECT: HOLZ FARM PROPERTY At the workshop on Tuesday evening, the City Council will be brought up -to -date relative to issues on the Holz Farm property. By way of background, the City Council will recall that Mr. & Mrs. Otto Holz passed away in late 1993. The property which consists of approximately 4.05 acres of land including a barn, house and other buildings, is now held by the estate. Mary Sell represents the estate and is interested in selling the property. Robert Middlemist, the developer of the Manor Lake Addition, has acquired the "first right of refusal on the property" which provides him the opportunity to match any offer on the land for development purposes. Mr. Middlemist also owns Outlot B which is immediately north of the Holz Farm. South of the Holz Farm property, the City has previously acquired park land dedication from the Manor Lake Addition and the Lakeview Trail Addition to develop a small neighborhood park: Holz Farm Park. The Advisory Parks, Recreation and Natural Resources Commission has been eyeing this parcel of land for some months now in the hopes that it could become a historical park within the community. The Commission and the Council may recall some discussions relative to the possibilities for use and development of this park for this purpose in the future. The issues for the City Council are outlined in a memorandum from City attorney, Jim Sheldon, to Ken Vraa, Director of Parks & Recreation (see attachment). The Advisory Commission committee feels that they should continue to pursue the Holz property and be prepared to also acquire Outlot B from Mr. Middlemist. The issue before the Advisory Commission is obviously one of dollar cost. Mary Sell, City Attorney Sheldon, Director of Parks & Recreation Vraa, Superintendent of Parks VonDeLinde met on July 1st for addition discussion in regard to the property. It would be desireable for the Council to determine if the City should pursue the Holz Farm and Outlot "B" owned by Mr. Middlemist. KV /Ik L5/MINUTES.KEN MEMORANDUM TO: Ken Vraa, Director of Parks and Recreation FROM: Jim Sheldon, City Attorney DATE: June 14, 1994 RE: Holtz Farm Park Land Acquisition Our File No. 206 -12304 Attached is the drawing that we have outlining the City park property and the existing Holtz property. The remainder is property which I understand is owned by developer Middlemist (Outlots A and B and other land). We understand that the City may be interested in acquiring the Holtz Farm property (shown as Parcel No. 020 -04). In the original Deed from Holtz, Petersens (the developer's predeccesor in interest) received "a first right to purchase the tract herein before designated as Tract A, together with the easement herein before designated as Tract B, which right shall continue in full force and effect until such time as Grantees have exercised said right to purchase or until such time as Grantees have refused to match a bonafide offer to purchase by a third party or parties within five days after receipt of written notification of the bonafide offer to purchase from a third party or parties." Tract A is the Holtz Farm property. The Tract B legal description is a bit confusing and we have not yet diagramed it but will upon request. We understand that the City is considering acquiring the Holtz Farm for park property. The City has been contacted by the personal representative of the Holtz Estate (the now owner of the property) about a possible sale. The Estate has established what it believes to be the fair market value of the property. It is also our understanding that the developer of Manor Lake has contacted the personal representative of the Estate saying that the developer expects the Estate to honor the developer's right of first refusal. Complicating all of this, is the issue of access to Outlot A and Outlot B from a roadway to keep them from being landlocked. Also, the Manor Lake developer and City's Subdivision Agreement provides access through the City park to the Holtz Farm property in the event the developer should acquire that at some future point. There are of course a number of issues to be reviewed. 1. What is the fair market value of the park property? 3 JFS /wkt 2. Assuming that it is within the range of the price established by the Holtz Estate, does the City wish to acquire that property? 3. Would the developer acquire the property from the City or another would be purchaser under the developer's right of first refusal? 4. Does the City have an obligation to provide access to Outlots A or B if the City acquires the Holtz Farm property? 5. Is access along the west line of the property north of the Holtz Farm property a suitable access for future development? 6. Would negotiations or condemnation provide the most efficient vehicle for the City to acquire all interest in the property if that were the City's desire? 7. Will acquisition of the Holtz Farm property require acquisition of either access or additional parcels of property? 8. Is the City able to develop its existing park property south of the Holtz Farm property adequately for a park if it is required to provide public road access through that property? 9. Is a claim by the developer (or its successor in interest) viable that acquisition of the Holtz Farm property would allow the developer to change the character of the property thus increasing its fair market value or increasing the damages to the developer in a condemnation action, or the price paid to the developer in a negotiation? As we have discussed, there are a number of unanswered questions but you felt it was appropriate at this time to review this matter with the City Administrator and City Council to get a sense of how much farther to proceed. If you have any questions or if I can provide any further information, please feel free to contact me. • 010 (woo ............ .. (0034) • 231.93 17 4 <t) (0010) 1" 2 (ome) -- 85.00 OUTLOT A (0001) (0023) ........... 21 60 . 4 12 . (00'e) • ....... 6 10 00 10 4 111(0047) (0046) SI 96. 6 (0045) ............. 85. 60 9 115.26 77.47 10 ( 00 13) 020 -04 CITY OF EAGAN OUTLOT G (0001 4 IR (00n) 45 18 (0320 20 96.00 96.00 :: (0016) 2 3 ,4 • 92.67 9 132. 1 9t " 5. 1 2 8 cc 3 (0021) (0014) 8 I 103. 12 TODD AVE (con) 8 2 95. 00 4543) 6 95. 100.01 cn (0033) 9 2 11-1 (00") 0 . 2847. 9 100 00 v,st 0 (0034) - mow 000 2) 3-25 t00044 040-25 4 70 NS TRAIL 7 85. 00 1 26 ; 1, (0003) 8 OVERLAP 409. 32 (0005) 050 -25 397.09 0 0' (00 030-27 r ‘67 N. E. 1/4 SEC. 3M 2 lJ- 1.1.1 QJ 97. :5) cr 96. 0( (0023) .., '3 4 (8824) 1 ?.., ■.:.... 5 . tr$ 11,4 0025S (0026) a 101.61 109.03 8E1 P .1ra'• 1 N..... 86. 1 ,,. 1 a 2 (8i 1 3 o 8 .- 8 (0022) - (0070) - (OM (0051) t 43. 73 86.0) 86.00 86.00 .1U 141DEE LANE