06-9798r
RESOLUTION NO. 9798
APPROVING PURCHASE OF PROPERTY
FOR STREET RECONSTRUCTION AND OTHER PUBLIC PURPOSES
WHEREAS, the City Council of the City of Richfield ("City") is the official
governing body of the City of Richfield; and
WHEREAS, the City of Richfield, a Minnesota municipal corporation,
acting by and through its City Council, is authorized by law to acquire real estate
which is needed for public use or purpose; and
WHEREAS, on October 25, 2005, the Cit~ Council approved a two-lane
roundabout design for the new intersection at 66t Street and 1ih Avenue and a
financing plan concept for proposed improvements ("Project"); and
WHEREAS, implementation of the plans and specifications for the Project
requires that the real estate described in Exhibit A attached hereto ("Subject
Property") be acquired; and
WHEREAS, interim funds are available from the Capital Improvement
Reserve Funds for the purchase of the Subject Property and related expenses;
and
WHEREAS, funds from a Special Assessment Bond will be available to
the City for reimbursement of acquisition and relocation costs and related
expenses; and
WHEREAS, the City desires to facilitate completion of the street
reconstruction and other activities which are contemplated by the plans and
specifications for the Project; and
WHEREAS, the City Council finds that it is reasonably necessary, proper,
and convenient, and in the interest of the public health, convenience, and general
welfare of the citizens of the City that title to and possession of the Subject
Property be acquired for the furtherance of the Project; and
WHEREAS, the City obtained an appraisal of the value of the Subject
Property from BCl Appraisals, Inc. in the amount of $211 ,000; and
WHEREAS, based on the appraisal, on June 27, 2006, the City Council
determined that just compensation for the Subject Property is $211,000 and
directed the City's consultant, SRF Consultants, Inc. ("SRF") to submit an offer
on behalf of the City to purchase the Subject Property for $211,000 (subject to
the duty to also provide the owner with relocation assistance as provided in
applicable regulations); and
WHEREAS, SRF is also the relocation counselor to the City and
displacees from the Subject Property; and
WHEREAS, the owner of the Subject Property rejected the City's offer to
purchase the Subject Property for $211,000 and, instead, offered to sell the
Subject Property to the City for a purchase price of $220,000 (an increase of
4.27% over the City's offer); and
WHEREAS, the amount by which the owner's counteroffer exceeds the
City's offer is not substantial; and
WHEREAS, payment of a purchase price of $220,000 to the owner will
eliminate the need for the City to pay the owner a replacement housing
allowance; and
WHEREAS, the City advised the owner that he may obtain an
independent real estate appraisal of the Subject Property and that the City will
reimburse up to $1500 of the costs incurred by the owner in obtaining this
appraisal, but the owner elected not to do so; and
WHEREAS, if the City does not accept the owner's proposal it will be
necessary to acquire the Subject Property in eminent domain proceedings in
order to proceed with the Project; and
WHEREAS, counsel for the City has advised the City that the City would
likely incur $5500 to $7800 in legal, appraisal and commissioner fees and other
costs and disbursements to acquire the Subject Property in eminent domain
proceedings which would not be incurred by the City if the City accepts the
owner's proposal and that it is reasonably probable that the award of damages
for the Subject Property which would be issued by court appointed
commissioners in eminent domain proceedings could very well be substantially
similar in amount to the owner's proposed price of $220,000.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF RICHFIELD IN REGULAR MEETING ASSEMBLED, that it is the
considered judgment of the City Council that the Subject Property be acquired for
the stated public purposes for a purchase price of $220,000 in accordance with
the proposed purchase agreement between the City and David Vogel and Elaine
Vogel which is on file with the Community Development Department.
BE IT FURTHER RESOLVED, that the Mayor and City Manager are
authorized and directed to take all steps necessary to acquire the Subject
Property in accordance with said agreement.
Adopted by the City Council this 25th day of July 2006.
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ATTEST:
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Nancy Gibbs, . y Clerk
Exhibit A
Leqal Description of Subiect Property
Lot 2, Block 5, Iverson's 3rd Addition
According to the plat thereof on file in the Office of the County Recorder in and
for Hennepin County, Minnesota.
Located at 1614 E. 66th Street
Property Identification No. 26-028-24-14-0123