HomeMy WebLinkAboutItem 05City of Lakeville
0 Administration
Memorandum
To: Honorable Mayor and City Council
From: Steven C Mielke, City Administrato
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Copy: Brett Altergott, Parks and Recreation Director
Date: May 8, 2014
Subject: Purchase of Property - Warweg Parcels Adjacent to Antlers Park
Background
The City has been approached by Mr. George Warweg to entertain a purchase of his
properties adjacent to Antlers Park. Antlers Park is a popular destination in Lakeville and on
many weekends and summer holidays fills to overflow capacity. Parking is insufficient, as is
the number of picnic shelters. The park's capacity to meet needs is limited by its size.
Overflow parking is officially Lakeview Elementary, but parking also bleeds into the
neighborhoods south and north of the Park.
Mr. Warweg owns acreage adjacent to Antlers Park and also owns parcels north and east of
the park. In addition, Mr. Warweg owns parcels west of Ames Arena. All of these parcels are
platted in one of the original Lakeville plats, Lenihans Lots Antler Park. Mr. Warweg would like
to prepare the parcels for future development by re -platting the parcels into outlots and
"cleaning up" the old lot lines.
Proposed Purchase Agreement
Staff and Mr. Warweg have conducted a series of negotiations regarding the proposed
purchase of the parcels adjacent to Antlers Park. Staff and Mr. Warweg have agreed to the
outline of a purchase agreement. Attached to this memorandum are'Bullet Points' outlining a
proposed purchase agreement. If so directed, the City Attorney will prepare a purchase
agreement for official action by the City Council. Staff is seeking direction from the City
Council on the proposal.
The following is a description of the components of the proposed purchase:
1. The City would purchase approximately 5.75 acres of land and buildings bounded by
201 11 St to the north, Ipava Avenue to the east and 202nd St. to the south at a price of
$675,000. Assuming purchase, the City would own all of the land within those
boundaries with the exception of a single family home on 202"1 St.
2. The City will assume or pay any and all deferred assessments on these parcels at a cost
of $1,236.06.
3. Some of the parcels are classified for tax purposes as green acres. When sold the
parcels must come out of green acres and 3 years back taxes are due. The City will
assume the cost of the back taxes for these parcels. The amount will be calculated but
could be estimated as less than $5,000
4. The City would lease the two homes currently on these parcels back to the current
residents. One home is Mr. Warweg's residence; he would lease the home from the
City for up to 5 years for $300 per month. The other home is currently leased to a
renter would be allowed to rent the home from the City for up to 3 years for $600 per
month. The City would be responsible for the property taxes; the renters would be
responsible for all maintenance and utilities of the properties.
5. The City will provide an easement on the west border of Mr. Warweg's homestead to
allow for a turn -around for the remaining single family home to prevent the drivers
from having to back onto 202"d St. The City will also agree to limit development of the
park north of Mr. Warweg's homestead to prevent park activities from being too close
to his residence.
6. The closing for purchase of the properties must occur by January 7, 2015.
7. The City will agree to purchase a wetland parcel Warweg owns north of Lake Marion at
a purchase price of $5,500 per acre at Warweg's option for up to 5 years from closing
of the purchaseof the Antlers Park parcels.
8. Mr. Warweg will plat the remainder of his parcels into outlots. As part of the platting
process:
a. The City will waive City platting fees.
b. The City will vacate the old right of ways in the original plat.
c. The City will waive some prior deferred assessments on these parcels at an
estimated cost of $3,448.54.
d. Warweg will dedicate a 66 foot right of way to the City which could provide a
connection of the current Italy Avenue to Itasca Avenue.
e. Warweg will grant a trail easement on his parcels south of the railroad right of
way between Ipava Avenue and Dodd Boulevard.
f. City will agree not to make any amendments to the Comprehensive Land Use
Plan or Official Controls on these parcels for 7 years unless agreed to by
Warweg or any future land owners of the parcels.
Antlers Park is a community amenity that is undersized for the volume of people that use it.
This purchase provides for expansion of the park and added capacity for a growing city. The
purchase opens up the possibility of a revised park layout and additional amenities while
relieving the need for overflow parking and access concerns that are a part of the current park
layout. Staff recommends the City Council authorize proceeding to a purchase agreement for
Council action in June of this year.
BULLET POINTS FOR PURCHASE AGREEMENT
Revised 05/08/2014
1. PURCHASE:
a. The City will purchase the following property depicted on the
attached map, approximately 5.75 acres ("Subject Property") from
Wa rweg:
22-44900-29-070
22-44900-29-120
22-44900-29-071
22-44900-28-041
22-44900-28-043
22-44900-06-010
b. The City will pay Warweg Six Hundred Seventy-five Thousand Dollars
($675,000.00).
C. The City will assume or pay any and all special assessments on the
subject property.
d. The City will pay the deferred green acres taxes due on parcel 22-
44900-28-043 and a pro -rated portion of parcels 22-44900-29-070,
22-44900-29-120 and 22-44900-06-010.
e. The City will acknowledge the receipt of a gift, but will not attest to
the value of the gift.
f. Improvements by City to these parcels shall be no closer than 165
feet to the north ROW line of 202nd St during the duration of the
lease as allowed in 3a.
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g. City will dedicate a 15 foot easement along the west property line of
parcel 22-44900-28-041 for purposes of ingress and egress
maneuvers in favor of parcel 22-44900-28-044.
2. ADDITIONAL PURCHASE. The City will also purchase 22-44900-00-050 from
Warweg for Five Thousand Five Hundred Dollars ($5,500.00) per acre at
seller's option for up to five years from the date of this purchase.
3. LEASE BACK:
a. City will lease back to Warweg his residence on the Subject Property
for five (5) years or such earlier time that Warweg moves out of the
home, but Warweg may in his discretion terminate the lease at any
time. Warweg will pay the City Three Hundred Dollars ($300.00) per
month rent. Warweg will be responsible for all maintenance and pay
all utilities and the City will pay any property taxes.
b. City will lease to the current tenant the rental home on the Subject
Property for three (3) years or such earlier time that the Tenant
moves out of the home, but Tenant may in his discretion terminate
the lease at any time. Tenant will pay the City Six Hundred Dollars
($600.00) per month rent. The Tenant will be responsible for all
maintenance and pay all utilities and the City will pay any property
taxes.
4. PLAT.
a. Warweg will final plat the following property:
22-02900-35-010
22-44900-07-010
22-44900-06-010
22-44900-29-070
22-44900-29-120
22-44900-07-010
22-44900-08-110
22-44900-08-120
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22-44900-08-360
22-44900-08-050
22-44900-08-042
22-44900-09-070
22-44900-09-081
22-44900-09-270
22-44900-09-090
22-44900-00-074
22-44900-00-050
22-44900-18-120
22-44900-00-012
22-44900-04-120
22-44900-04-070
22-11500-04-080
22-44900-03-240
22-11500-19-140
City will waive City fees required for the platting of these parcels.
b. The plat will include the dedication of a twenty (20) foot wide trail
easement adjacent to the railroad right-of-way on properties 22-
44900-06-010, 22-44900-29-120 and 22-02900-35-010.
C. The existing right-of-way connecting Italy Avenue and Itasca Lane
shall be vacated and a new sixty-six (66) foot wide right-of-way will
be dedicated on the plat from Itasca on the North to Italy on the
South, along but outside the wetland. City will perform a wetland
designation. A diagram is attached.
d. The City will vacate any and all roadways and alleys contained in the
parcels
e. The City will assume or pay any and all special assessments on all
parcels with the exception of Trunk Sanitary Sewer Assessments on
parcels 22-44900-00-012, 22-44900-04-120, 22-44900-04-070, 22-
11500-04-080 and 22-44900-03-240.
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175613v2
f. In accordance with Minnesota Statutes § 462.358, Subd. 3.c., the City
will agree in the development contract for the plat:
For (7) seven years following final plat approval, unless Warweg and
the City agree otherwise, no amendment to a comprehensive plan or
official control shall apply to or affect the use, development density,
lot size, lot layout, or dedication or platting required or permitted by
the approved final plat.
S. PURCHASE AGREEMENT/CLOSING. A purchase agreement will be drafted
incorporating all of the terms. The two rental agreements and
development contract will be exhibits to the purchase agreement. The
closing on the purchase and sale of the property and the leasebacks shall
occur no sooner than following the approval by the City of the plat but no
later than January 7, 2015.
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175613v2
Dakota County, MN
Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a Map Scale
legal document and should not be substituted for a title search,appraisal, survey, or for zoning 1 inch = 106 feet
verification. Dakota County assumes no legal responsibility for the information contained in this data. 2/3/2014
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