HomeMy WebLinkAbout8.i. Authorize Easement Payment Utility Project - First Baptist Church of Rosemount). ..stern �Ct
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ROSEMOUNT. MINNESOIA 55068
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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.
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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.