Introduce Ordinance to Vacate a Portion of 147th Circle (Right of Way) and Drainage and Utility Easements in the Proposed SEASONS OF RAMSEY Plat

The City has received a request from Podawiltz Development Corporation to vacate drainage and utility easements within the TOWN CENTER GARDENS 3RD ADDITION plat in areas to be replatted as SEASONS OF RAMSEY. The request also includes a request to vacate right of way for 147th Circle NW, which would then become a private street. In exchange, the Developer would complete the connection of 147th Lane NW from TOWN CENTER GARDENS to Town Center Drive NW.

City Code and City Charter require that ordinances be introduced, then adopted at a later meeting date. As mentioned above, the action of introducing the ordinance is not the final action on the request. The City Council is scheduled to review the site plan at the February 12th City Council Meeting.

Due to changes in Minnesota Housing Finance Agency (MHFA) award limits scheduled to change on February 28th, the Developer is requesting that the Plat be approved and able to be recorded by February 28th, 2013. This step in the process is a critical step in ensuring the Plat can be properly recorded. To be able to proceed forward with the financing package as proposed, the Project needs to close on financing by February 28th, 2013 and be placed in service by December 31st, 2013. The Project could still move forward after February 28th, 2013, but would have a substantial financial impact on the pro-forma of the project. An excerpt from the MHFA Handbook is attached hereto outlining the impacts of the February 28th deadline.

Staff attempted to notify all Property Owners within 700 feet of the Subject Property via Standard US Mail of the Public Hearing on the Preliminary Plat to be held by the Planning Commission on January 31st. In addition, the City Council will hold a separate Public Hearing to consider adoption of this Ordinance to vacate easements and right of way on February 12th. At that time, another mailing will be sent to Property Owners within 350 feet.  The Notice of Public Hearing was also published in the Anoka Union newspaper.

The existing drainage and utility easements are based on the current Plat configuration. The new, proposed Plat would reconfigure existing lot lines, thus impacting locations for drainage and utility easements. Appropriate Drainage and Utility Easements shall be re-dedicated on the new Plat to be known as SEASONS OF RAMSEY.

Staff is forwarding this request in advance of the City Council hearing the Preliminary Plat, Final Plat, and Site Plan approvals to align all final approvals at the same time. The final approvals are tentatively scheduled for February 12th, 2013. As the City Council is introducing the ordinance at this time, it is not obligated to adopt the ordinance. A separate case will be drafted for February 12th to consider final adoption of the ordinance.

Alternatives

The first alternative is to approve the request as presented, thus vacating drainage and utility easements as well as right of way, with necessary easements to be re-dedicated on the new Plat. This alternative would allow the proposed Plat and site plan to proceed with development as proposed, once the site plan and Final Plat are approved by the City Council (scheduled for February 12th).

The second alternative is to not vacate existing drainage and utility easements. This alternative would leave areas that would remain un-buildable due to easement restrictions. The proposed Plat would need to be modified to avoid areas of existing easements. Provided that the necessary easements are dedicated on the Plat, these existing easements would be unnecessary.

The third alternative is to not vacate the right of way for 147th Circle NW. The City would retain ownership and maintenance obligations for this short roadway segment. In addition, the City Council agreed in a preliminary agreement to vacate this right of way to partially satisfy a local contribution point award for the Developer's Minnesota Housing Finance Agency (MHFA) Section 42 Tax Credit Application. This was in addition to the City's Housing and Redevelopment Authority (HRA) conveying Outlot C, RAMSEY TOWN CENTER 8TH ADDITION. If the City Council chose not to vacate this roadway, and still desired the project to move forward, the local contribution amount proposed was approximately $200,000.

Staff recommends that the City Council introduce the ordinance to vacate drainage and utility easements and right of way within the TOWN CENTER GARDENS 3RD ADDITION plat as indicated in the attached legal description.

All costs associated with processing the Application are the responsibility of the Applicant.

Motion to introduce the ordinance to vacate drainage and utility easements and right of way within the TOWN CENTER GARDENS 3RD ADDITION plat as indicated in the attached legal description.