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?
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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.
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