Adopt Resolution #15-12-297 Authorizing the Acquisition of Land for Lake Itasca Community Park, and Satisfying Park Dedication Obligations for Northfork Inc.
 

The purpose of this case is to resolve the existing and future Park Dedication (and Trail Fee) obligations for Northfork Inc.; and acquire the final 37 acres of land for the Lake Itasca Community Park—the latter of which has been a desire and goal of 30 years.





 

 

Relative to a proposed community park east and southeast of Lake Itasca, the public has had numerous invitations to comment and provide feedback over the years, including as part of at least two Comprehensive Plan processes, and various public hearings on city-wide zoning.  Most recently, in August 2015, the city conducted a open-house specific to the proposal to acquire the 37 acres this case discusses.  In addition to the general notifications, notifications were sent to all Northfork property owners as well as the properties east of the proposed park parcels an invitation to comment in person, by phone, or via e-mail. The comments received are within the attachment entitled 'Summary from Public Engagement'.

At the Park and Recreation Commission's October 10th, 2015 regular meeting, a review occured of the August 13th public workshop examining the potential of some or all of Outlot E, MOORS ADDITION (associated with the Northfork Subdivision) to be developed as a park owned by maintained by the City. The Commission noted that, Outlot E is approximately 37 acres, and the Outlot is identified as Future Park in the Master Park and Trail Plan and shown as Park on the City's Future Land Use Map and Official Zoning Map.

There were two (2) components to consider relative to Park Dedication for Northfork, Inc.

1. The City approved a deferred Park Dedication contribution for previously approved portions of Northfork. The deferred contribution equates to two (2) acres.  Additionally, there was within a previous agreement the acknowledgement that in any future land use, the City would receive at a minimum, from North Fork Inc., a 50' corridor from Alpine Drive to the existing 24 acre city parcel approximately 800' feet to the north.

2. Northfork, Inc. desires to construct, or sell for development, approximately 21 to 31 new lots on undeveloped portions of  Northfork's holdings on either side of Alpine Drive. The land equivalent for Park Dedication is approximately 3.35 acres.

The City had been approached by Northfork, Inc. to consider accepting land dedication to satisfy Park Dedication and trail development fees in lieu of a cash contribution. Further, Northfork, Inc. desires to dedicate all of Outlot E, MOORS Addition to the city for park purposes, with appropriate cost accounting relative to the value of the land. 
 
After considerable discussion, and acknowledging that resident feedback generally favored park use for the area in question—together with the fact that this same 37 acres (Outlot E) has been proposed as a community park for decades; the Commission's motion included a recommend that, negotiations occur between North Fork Inc. and the City on solutions and alternatives for satisfying existing Park Dedication obligations (land dedication), and future Park Dedication (land or cash), together with Trail Fee satisfaction—with the goal being to arrive on a public land configuration suitable for a community park southeast of Lake Itasca.

The negotiations on conveying the aforementioned land to the city for park purposes occurred, and an agreement has been reached, which was supported by the Park and Recreation Commission at November's regular meeting, and is the recommendation this case and Resolution discusses.

In summary, after factoring previous Park Dedication (land) that had been deferred, and future Park Dedication and Trail Fees that will be owed to the city upon platting land presently owned by Northfork Inc., the agreement pencils-out with the city receiving all of the 37-acre Outlot E Moors Addition for park, with a $75,000 payment by the City to Northfork Inc. to compensate for the differences between Park Dedication obligations and land valuation. The 'new' park space proposed is shown as Outlot E, on the attachment entitled Outlot Exhibit.

Alternatives
 

• Alternative One would be to 'do nothing at this time'. Staff does not support this alternative for several reasons, including: 
  1) A community park has been planned to utilize the 37 acres that is proposed to be acquired, now is the time to bring resolution to this matter.
  2) A community park will serve the future residential properties to the southeast of Alpine Drive, and west of The COR. With Lake Itasca Community Park in place, this same residential area's Park Dedication can be in the form of cash, which may coincide with the need to begin park improvements (projected at 5 years or more into the future).
  3) Absent closing on proposed agreement, there would be difficulty 'capturing' the value of the deferred Park Dedication mentioned above.
   
• Alternative Two would be to proceed as outlined within Resolution #15-12-297 as soon as practicable with the $75,000 payment from the Park Trust Fund. (Staff's recommendation)
   
• Alternative Three would be to proceed as outlined within Resolution #15-12-297 - but at a time that coincided with which ever occurred first; the sale of the 4-acre lot south of Alpine Drive and east of Puma Street, OR the 36th month from the adoption of Resolution #15-12-297 with the $75,000 payment from the Park Trust Fund. (Acceptable to Staff, and Northfork Inc. but not desired by either.)
   

The $75,000 in cash required to be paid by the City, after reconciling for the development fees owed, past and future, would be from the Park Trust Fund, monies derived from development in the form of Park Dedication (cash payments).

It is important to point out, that the City accepted 4+ acres immediately southeast of Outlot E to satisfy Park Dedication from a different developer several years ago—with the intention that this land be sold, with the proceeds to be placed into the Park Trust Fund to ultimately provide for the necessary monies to acquire the community park this case discusses.  This 4-acre outlot is presently listed for sale, with the county assessed value at $86,800. The attachment entitled '4-acre parcel' shows its location.
 

Staff recommends the adoption of Resolution #15-12-297, satisfying all past and future Park Dedication and Trail Fees owned by Northfork Inc.— and acquiring the 37 acres of lakeshore to establish the 60+ acre Lake Itasca Community Park.

 

Motion to Adopt/Deny Resolution #15-12-297 Authorizing the Acquisition of Land for Lake Itasca Community Park; and Approving the Amended Park Dedication and Trail Development Agreement for Northfork Inc.