Adopt Resolution #20-289 Approving Donation Agreement and Acquisition of Lot 1, Block 1, Pineview Estates 2nd Addition

Consider Adoption of Resolution #20-289 Approving Donation Agreement and Acquisition of Lot 1, Block 1, Pineview Estates 2nd Addition.  T & G Land, Inc. (Donor) has offered to donate Lot 1, Block 1, Pineview Estates 2nd Addition (the "Property") to the City.  The property has significant value to the city as a likely road and/or trail connection between Town Center Drive (Center Street) and Uranimite St NW.  The Donor is asking the City to pay for the costs associated with the Phase 1 Environmental, tax appraisal and other costs associated with the closing.  Costs to be incurred by the City to acquire the Property are estimated to be $7,000 or less. Anoka County has assigned a tax valuation of $74,500 but a formal value will be determined when the tax appraisal is completed by the Donor. There are tax advantages of for the Donor to donate this property to the city on or before December 31, 2020.

This connection, in some form, is part of the City's long-range transportation plan and has been discussed in various forms over several years. By accepting this parcel, it does not obligate the City to move forward with the project, but does preserve right-of-way from development and more costly acquisition in the future. Allowing this parcel to be developed would create much higher acquisition costs in the future and create other disruptions. This connection was most recently discussed as part of the Garden View subdivision approved earlier in 2020. 

N/A

Staff is generally supportive of the accepting the donation fo the Property and paying for the acquisition costs associated with the environmental, appraisal and closing costs as presented in the Donation Agreement. Below are some key terms of the the Donation Agreement:

Legal Description: Lot 1, Block 1, Pineview Estates 2nd Addition
Tax ID Number: 28-32-25-12-0003
Acreage: 2.16 acres
Sales Price: $0.00 Property to be donated
Closing Date: On or before 12/31/20
Closing Costs: (Estimated to be $7,000 or less)

1. At Closing, the following Donor closing costs and expenses must be paid by the Donor:
   1. Donor’s own attorney’s fees.
   2. Donor’s portion of the property taxes prorated to the date of Closing.
   3. At Closing, the City must pay the following costs and expenses:
      1. City’s portion of the property taxes prorated to the date of Closing.
      2. City’s own attorney’s fees.
      3. Closing fees.
      4. State deed tax.
      5. Documentary and recording fees for the deed.
      6. Cost of the appraisal.
      7. Cost of environmental site assessment.
      8. Cost of title commitment and owner’s title insurance policy

Alternatives:

1. Adoption of Resolution #20-289 Approving Donation Agreement and Acquisition of Lot 1, Block 1, Pineview Estates 2nd Addition (As presented); subject to City Attorney review
2. Adoption of Resolution #20-289 Approving Donation Agreement and Acquisition of Lot 1, Block 1, Pineview Estates 2nd Addition (with changes); subject to City Attorney review
3. Something else

Cost not to exceed $7,000 and could come from the City's Public Improvement Revolving (PIR) Fund, Trail Development Fee Account, a combination of multiple sources or other.
 

Staff recommends adoption of Resolution #20-289 Approving Donation Agreement and Acquisition of Lot 1, Block 1, Pineview Estates 2nd Addition (as presented); subject to City Attorney review.

Motion to adopt Resolution #20-289 approving Donation Agreement and Acquisition of Lot 1, Block 1, Pineview Estates 2nd Addition.