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HomeMy WebLinkAbout8.i. Authorize Easement Payment Utility Project - First Baptist Church of Rosemount). ..stern �Ct l 1875- 14.5-f:1 ST w ROSEMOUNT. MINNESOIA 55068 E'►110U)1 ate 4:>:3-4411 TO: Mayor, Council, City Administrator FROM: Dean Johnson, Director of Community Development DATE: November 13, 1987 SUBJ: First Baptist Church Easement Settlement I have been involved in negotiations with the First Baptist Church on the trunk sewer and lift station improvement project for about 18 months. This issue was initiated by the Country hills Development. Original concerns regarded the actual location of the trunk sewer, lift station and force main required to serve half of the Country Hills project, the 80 acres lying north of 145th Street between Diamond Path and Shannon Parkway and the Emmet & Richard Carroll 80 -acre parcel. The church has acknowledged its future benefit to the utility improvement, but obviously agonized over the permanent location of the utility corridor. We have experienced good cooperation from representatives of the church. At stake was placement of the utility and its relationship to future development of the church property. The location of the lift station was made with regards to the future limits of "Hawkins pond." As a result we have identified and offered to pay for 1.5 acres of permanent ponding area on the east central portion of the 37 -acre church site. We have an appraisal from Metzen Realty, dated November 13, 1986, which identified the value of the proposed taking. In brief, the easements included 1.57 acres of permaneaL utility easements and 1.50 acres of permanent ponding. In addition, temporary construction easements involved 0.9 acres of land. The land value was set at $6,000/acre for the institutional property. The temporary easements are valued at 10% of this value. Our offer for the temporary and permanent easements was $18,960. We have since agreed to have the appraiser update the value of the property. I hope to have this figure available by the 161h. I would estimate an increase in the neighborhood of 10-12 percent. We will also offer 8% interest on the easement payment, from the date the waiver of entry was granted. A portion of the total easement costs will be paid by U.S. Home Corporation. In addition to the easement payment, our negotiations have centered around an assessment for the lateral benefit of the trunk sewer. Because the timing of the project was out of the control of the church and the church/school has its own private sewer system, we agreed to waive benefit for the existing church/school facilities. We are proposing an acre -type assessment for the future benefit of church/school developments on the site. First Baptist Church Easent Settlement November 13, 1987 Page Two Steve Jilk, Rich Hefti and I have agreed that a reasonable method of collecting assessments, or reimbursing the City in the future for the sewer lateral benefit, would be based upon the total area involved in a future development. In other words, if a new project involved a five -acre site plan, the church would pay the City a lateral assessment for that amount of acreage. The actual cost per acre would be figured as follows, plus and inflation factor: The cost of the lateral portion of the sanitary trunk was calculated at $23/lineal foot. The length of the gravity sewer is 1300 feet. 1300 X $ 23 = $29,000. $2900 — 37 acres equals $808/acre in 1987 dollars. A five -acre development would cost the church $4,040, plus any inflation since 1987. We feel this is a fair approach to the, issue of collecting an assessment for benefit received. The burden of assessing the church $29,900 outright is apparent. We don't feel institutional property can be viewed with the same development potential as other developable property. What we have suggested is a deferment plan. It is fair to the church and to the City. We will be reimbursed as benefit occurs. This represents a precedent of sorts but would be appropriate for other similar properties in similar circumstances. This issue will be duplicated when the City loops a watermain through the church property, from 145th Street to Country Hills. We would propose that the Council embrace the same policy for reimbursement of this utility benefit when it takes place_ The City is interested in causing the loop in the next year or two; and, as in the case of the sewer, the realized benefit of a lateral watermain to the church is a little premature. The particular costs are not available at this time. The issue of the assessments for lateral benefit has been a primary concern of the church for obvious reasons. There is a lot of money at stake. The representatives of the church have requested action by the Council on the assessment policy for both sewer and water as part of the easement settlement. This is not an unreasonable request. It allows the City and the church to know where each stands with its funding requirements for existing and proposed utility improvements. In summary, I would request two motions of the Council; 1. Approve the assessment procedure for both sewer and watermain lateral benefit on a per -acre basis as development occurs on the First Baptist Church property. 2. Authorize payments to the First Baptist Church for easements dedicated, based upon the updated appraisal from Metzen Realty and with 8% interest from the date of the waiver of entry. �j ✓ `` � of Y 2875-145TN ST. W ost ROSEMOUNT, MINNESOTA 55068 JC vl 612--423-4411 em O � t n { TO: Mayor, Council, City Administrator FROM: Dean Johnson, Director of Community Development, DATE: November 17, 1987 SUBJ: Agenda Item 8i. - Addendum I have received a verbal update on the Baptist Church appraisal from Tom Metzen. He has recommended an increase of 20 percent over the original appraisal for a current land value of $7,200 per acre. Using this value the actual costs of the temporary and permanent easements will total $22,752. Staff recommends the Council authorize this payment, with interest from the date of the waiver of entry, as final settlement with the church. Staff also recommends action on the assessment procedure, as outlined in my original memo.