Staff recommends the City Council hold a public hearing and conditionally approve the vacation of the Block 51 Foster's Addition Alley.

Circle K, located at 6th Avenue North and North 27th, is proposing to raze the existing convenience store along with the neighboring car lot and old Hub building and construct a new Circle K store on all three parcels along with a car wash. Circle K currently holds an option to purchase the car lot to the east and the Hub building. In order to construct the new store, it is necessary to vacate the existing alley running north-south between North 27th Street and North 26th Street. The alley contains private utilities, a public sanitary sewer, and a storm drain, but dead ends at the former Denny's Property. In other words, it is not a through alley. Circle K has been working with the private utilities and has already recorded an easement for the utilities to be relocated. The attached easements are meant to be the private utility companies' approval of the right-of-way vacation. The sanitary sewer and storm drain only serves the property that previously had the Denny's restaurant on it. The Denny's Restaurant has been torn down. Circle K has been working with the former Denny's property owner to provide an easement to construct a sanitary sewer service and storm drain service for a future building.  Attached is an email from the former Denny's property owner acknowledging this partnership. An easement must be drafted and ready for recording and a relocation plan for the sanitary sewer and storm drain service must be in place that is acceptable to both property owners prior to filing the resolution vacating the alley.  City Engineering will work with both property owners on this easement and relocation of utilities.   Public Works is recommending conditional approval of the alley vacation. 

The total area proposed to be vacated is 4,000 square feet.  David Mitchell of Coldwell Banker performed a cost analysis, including comparable sales, in accordance with Administrative Order #56 Section 2 (attached) to determine the value of the right-of-way proposed to be vacated.  Mr. Mitchell estimated the value of the property to be $17.15 per square foot.  The total value of the property is $68,612.24.  The opinion of cost is attached.  

City Council may:

• Approve the right-of-way vacation; or,
• Not approve the right-of-way vacation.  If not approved, Circle K will have to re-design the site.  

The total value of the property, as established by Coldwell Banker is $68,612.24.  Circle K would be responsible for payment to the City prior to recording the resolution.