In 2002 Rehberg Ranch Estates Subdivision, First Filing, was approved by Council.  With that approval, the developer's parkland dedication was deeded to the City.  At the north end of Pa Hollow Trail cul-d-sac there exists a 20 foot wide strip of parkland between Lots 7 and 8 in Block 4.  (See attachment A)  The property owner of Lots 7 and 8 is interested in combining these 2 lots to provide a more suitable building site.  The current location of the parkland was reviewed by staff and was determined that due to terrain, size and location issues, it had limited value as parkland or as an access way to other parkland behind these lots.  A proposal was made to relocate the parkland strip to the south property line of lot 8.  After reviewing this option it was determined there would be no advantage gained in terms of location and access and would pose additional issues with stormwater runoff. Staff believes it is in the best interest of the City to sell this parcel and recommends approving the resolution. This is also consistent with Council's directive to evaluate parkland for potential disposal.  A Comparative Market Analysis (CMA) was done on this property and the suggested value is $10,500.  If Council approves the sale of this parcel, it is further recommended that the CMA value be the minimum opening bid.

Council may:

1. Approve the resolution directing Staff to sell the parkland strip,
2. Not approve the resolution and provide additional direction to staff.

The City will receive additional revenue from the sale of this parkland, which will be used for other park land acquisition or park development that benefits this subdivision.  Also, this sale will likely return this parcel to the tax rolls and the City will receive modest tax revenue.

Staff recommends that the City Council approve the resolution directing staff to sell this parkland and that the minimum opening bid be set at the CMA suggested value of $10,500.