1k. Acquire Parcel on Galpin Boulevard for Park from Otto/Hartung, Upper Bluff Creek Utility ProjectCAMPBELL, KNUTSON, SCOTT & FUCHS, P.A Oct 19,94 14:29 No.007 P.02
CAMPBELL, KNUTSON, SCOTT & FUC HS, PA.
Attorneys at Lnw
n
Thonws J. C,mu} ll
lkogt r N. Knutson
Th,tm:ns M. Scott
(Tory ( Fucl
bTlIt's R. Wahton
Elliott B. K TIVISCh
JAiNIVIh A. Lowcr
Andreii Md'Am Pochlo'
October 19, 1994
(612) 452 -5000
Fax (612) 452.5550
AcWn by Ctly AdmintattW
Modifie
Rejected
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Mr. Don Ashworth
City Manager
City of Chanhassen
690 Coulter Drive
Box 147
Chanhassen, MN 55317
Re: Upper Bluff Creek Utilities Project, Phase 11
Dear Mr. Ashworth:
D& Si!l,m�'ted to COWd
As you know, the above referenced project is the second phase of a major
utility installation effort in the west central part of the City. This phase includes the
installation of utilities along Galpin Boulevard, both north and south of Highway 5.
One of the several properties over which the City needed to acquire an
easement for this project lies on the west side of Galpin Boulevard, south of Highway
5, and directly across from the entrance road to Timbcrwood Estates. It is a long
narrow parcel approximately 2.5 acres in total size. It is jointly owned by Wally Otto
and the Estate of Richard Hartung. A portion of the south end of this parcel is in a
wetland area. The entire parcel is adjacent to another parcel to the west that I
understand the City is to obtain from Betty O'Shaughnessy.
The easement needed for the project is approximately one acre in size and runs
along Galpin Boulevard. The easement would reduce the depth of the parcel and
leave . it so narrow that future use would be severely limited. In that event, the City
would be in a position of having to pay for the easement and for the impact on value
to the remainder. In effect, the City would probably be paying for the full value of
the entire parcel.
However, in addition to the utility easement, this parcel tits into the City's
overall park land and trailway easement plan. Since the severance damage to the
16879
Suite 317 a Eagamlolc Office C.:entcr • 1380 Corpurote Center Curve a Eagan, MN 55121
CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A Oct
Mr. Don Ashworth
October 19, 1994
Page 2
remainder may well require the City to .pay for the entire parcel, it would make sense
to acquire the entire 2.5 acres for City use, without restriction.
Property in that area of Chanhassen, zoned residential as this parcel is, is
valued around $20,000 to $22,000 per acre. That is what the school site at Highway
5 and Galpin Boulevard was appraised at a year or two ago. Because of its size and
configuration, this parcel would be, worth something less.
At your direction we have negotiated with the landowners and have reached a
tentative agreement that is subject to City Council approval The owners have agreed
to sell the entire 2.5 acre parcel to the City for $24,000. That is less than. $10,000
per acre. If approved by the Council, the acquisition would be conditioned on the
owners establishing good title to the property and conveying fee title to the City.
Based on all of the above, we recoinmend the approval of the negotiations to
the City. It allows the City to acquire the entire parcel for both utility and park and
trailway needs, it allows it to combine it with a much larger parcel to the west and it
is at a price that appears fair and reasonable.
If you have any questions, please feel free to contact me.
Very truly yours,
CAMPBELL,
& FUCHS, f;
GGl~ :cjh
, SCOTT
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