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1i. Hiway 5 Centre: Easement to Meet Site Coverage Requirement.I MEMORANDUM 1 / CITY OF -- CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 TO: Don Ashworth, City Manager FROM: Todd Gerhardt, Asst. City Manager DATE: June 26, 1996 SUBJ: Valuation of Hi -way 5 Centre Action by City Administrator Endorse -- ✓ 7 1,0 Modifie Rejecte Dat Date Submitted to Commission Date Submitted to Council 7 - ?7 - Staff was directed by the City Council to review the three alternatives regarding the value of the property owned by the HRA directly south of Holiday Station and east of Mr. Roos' proposed Hi -way 5 Centre development (Attachment #1). To address this request staff sent a letter (Attachment #2) to Carver County Assessor Orlin Shafer requesting his opinion regarding the value of this property under the following three alternatives and the results of this review are as follows: HRA Parcel Hi -way 5 Centre Total 1. 1 Selling the property (Comments- This value does not take into account any restrictions the city may place on the site) 2. Leasing the property (Comments- Because restrictions that could be placed in an agreement, he felt this would place less value on the property.) $66,000 $759,000 $0 $750,000 3. Providing an easement over property (Comments- Allows the developer to meet site coverage ratios without down sizing the building.) $0 $800,000 $825,000 $750,000 Don Ashworth, City Manager June 26, 1996 Page 2 The also reviewed this item at this June 20, 1996 meeting and made.a motion to grant Mr.. Roos an easement over the property. The basis for this decision is that the HRA felt it was importanit to retain ownership of this corner to ensure future public use, and open space is retained. Their motion also included that the City Council and HRA jointly concur on this issue. RECOMMENDATION Staff would recommend that the City Council concur with: the HRH's decision in granting an ease men to Mr. Roos in allowing the Hi -way 5 Centre development to meet the site . coverage! ratios. ATTACHMENTS 1. Site Plan Map. 2. Letter to Mr. Schafer dated June 13, 1996. Manage -'s Comments: Option 1 is really not an option. Assuredly the, developer would be looking back to the HRA for a "land assistance" payment equal to the $66,000 solel =y to ensure that the I roject. remained viable. Secondarily, the future $200 per year that the city obtains is,not worth the "restrictions" that will assuredly be forgotten, i.e. prohibition to sell vehicles, or other merchandise from the lot, future public uses, ability to screen the back side of Holiday, prohibition against clear cutting /grading, ability to revegetate, portable signs, etc. The list looks halfway i mpressive, but what if the.owner decides not to maintain this entrance corner? • When the weeds are two feet high, you can cite him, but it will still look like a weed pile. What if your maintenance department tells you that the only way the flower garden (whoops another thing forgotten can be maintained is by sprinkling (whoops another thing forgotten). , 4.4 i Approval of Option 3 is recommended. I I I i N: �r rte .. OOP PPP i v�� June 13, 1996 Mr. Orlin Schafer Carver County Assessor 600 East Fourth Street Chaska, MN 55318 Re: Valuation of Hiway 5 Centre Dear Mr. Schafer: Enclosed please find a set of plans for a 10,000 sq. ft. retail development located on the old "Prairie House Restaurant" site. The Chanhassen City Council is requesting an opinion from your office regarding the value of this property; however, the development currently does not meet the necessary site coverage ratios for green space. To address this concern, the HRA currently owns 11,000 sq. ft. of vacant land adjacent to this development (the area highlighted in yellow) that could be used to meet the city requirements. The city- is would like to know how the county assessor would value this property for tax purposes under the following alternatives: Alternatives Future Valuation__ _ ---- -- 1. Selling the property 2. Leasing the property $ Ca 3. Providing an easement over the property $ CITY OF CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 7 J J If you have any questions regarding this request, please do not hesitate to call me at 937 -1900 ext. 119. ' Thank you for taking time out of your b usy schedu to review this. Sincerely, Todd Gerhardt Assistant City Manager TG:k 1 =°.