1a Authorize Purchase of Lots
.Lev
CITY OF
CHANHASSEN
MEMORANDUM
TO:
Scott Botcher, City Manager
Cily CmterDriv"POBox 147 FROM:
banhllSleTl, Minn,sota 55317
Phont612.937.1900 DATE:
General Fax 612.937.5739
¡gin,ering Fax 612.937.9152 SUBJ:
blic Safety Fax 612.934.2524
7eb www.ci.chanhassen.mn.us
Bob Generous, Senior Planner
August 28, 2600
Approval of Resolution Establishing Just Compensation and
Authorizing Purchase of Lots 998, 999 and 1000, Carver Beach
Addition
BACKGROUND
As part of the city's Community Development Block Grant(CDBG) program, the
Chanhassen City Council has authorized the use ofCDBG funds for land
acquisition to assist in the provision of affordable housing in the community
The process for acquisition of property with CDBG funds requires that the City
Council establish a just compensation amount for property to be purchased. The
just compensation value of a property can be made by a licensed property
appraiser or by the county assessor's office. The assessor's office has provided an
estimated market value of$27,200.00 for the property. By approval of the
attached resolution, the City Council establishes a minimal valuation for purchase
of the property at $27,200.00 and authorizes staff to negotiate the purchase of the
property. Staff believes that this valuation will be acceptable to the property
owner.
DISCUSSION
Staff has been in discussions with Habitat for Humanity regarding a project within
the city. Initially, discussion surrounded the possible move of the "Wrase" home
to a site in the community. As part of any project, the need for land acquisition
became apparent. Staff initiated a search of potential areas for acquisition.
Previously, the city had attempted to purchase the Quinn property (Outlot A,
Oakwood 2nd Addition) for a project with Habitat for Humanity. However, the
abutting property owners purchased the property before the city could complete
the acquisition process required by the CDBG program.
In discussions with the property owner, staff has been told that the owner would
be interested in selling the property to the city provided a purchase price could be
agreed to by both parties.
:Ii
City of Chanhasstn. A [I'Owin~ community with cltan lakts, auality "hook a charmin~ downtown. thrivin~ busintssts, and brauti/ùl ~ark,. A "tat ~lact to IiV/!. work. and ~la.
Scott Botcher
August 28, 2000
Page 2
While the site would require a variance to make it buildable (lot width, lot area,
and possibly, lot coverage and side setbacks), this site offered potential economies
of scale for Habitat for Humanity development since they are looking at acquiring
another parcel in the area.
Due to significant restrictions on the use of CDBG funds, staff determined that it
would be more efficient for the city to purchase the land and Habitat for Humanity
to build the housing on the site.
The use of the CDBG funds to acquire the property is in compliance with the
following city housing policies:
· As state and federal funding permits, efforts should be made to provide low
and moderate housing where needed, to provide balance to the generally high
cost of new housing. New construction programs may provide a source of
such housing.
· Subsidized housing should be given equal site and planning considerations to
non-subsidized housing units and should not be placed in inferior locations or
in areas that are not provided with necessary urban services.
· The city will continue to participate in the implementation of the Livable
Communities Act of 1995 as stated in the goals and policies.
· The city will promote the integration of life cycle housing opportunities
throughout the community. Affordable and subsidized housing shall not be
overly concentrated in one area of the city.
Prior to the acquisition of the property, City Council would have to approve the
final purchase agreement. Additionally, Hennepin County will have to complete
an environmental audit of the site.
RECOMMENDATION
Staff recommends that the Chanhassen City Council approve the resolution
establishing just compensation and authorizing purchase of Lots 998, 999 and 1000,
Carver Beach Addition.
Scott Botcher
August 28, 2000
Page 3
ATTACHMENTS
I. Resolution
2. Letter tTom Steven H. Clay to Robert Generous dated 8/3/00 with attachments
3. Letter tTom Anita L. Benson to Robert Generous dated 8/9/00
4. Notice of Non-applicability of Relocation Benefits
5. Location Map
6. Copy of Portion of Section Map
g:\plan\bg\memo Benson just compensation resol..doc
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE:
RESOLUTION NO:
MOTION BY:
SECONDED BY:
A RESOLUTION ESTABLISHING JUST COMPENSATION AND
AUTHORIZING PURCHASE OF
LOTS 998, 999 AND 1000, CARVER BEACH ADDITON
WHEREAS, the City of Chanhassen is implementing its Community Development Block
Grant program approved by the City Council on June 14, 1999; and
WHEREAS, the acquisition of the real property known as Lots 998, 999 and 1000 Second
Addition, Carver County, Minnesota, (pm #25.1600850), would be in compliance with the
objectives of the Community Development Block Grant program, the City's participation in the
Livable Communities Act and the City of Chanhassen 2020 Comprehensive Plan; and
WHEREAS, the fair market value of the subject property was made by the Office of the
County Assessor for Carver County; and
WHEREAS, the appraisal work has been performed in a competent manner in accordance
with applicable state law, the Uniform Relocation and Real Property Acquisition Act, and
Department of Housing and Urban Development policies and requirements:
NOW, THEREFORE, BE IT RESOLVED by the Chanhassen City Council:
I. That the fair market value of $27,200.00 for the real property is hereby adopted as fair
and just compensation.
2. That Robert Generous, AICP, is authorized to negotiate the purchase of the subject
property by direct purchase.
Passed and adopted by the Chanhassen City Council this 28th day of August, 2000.
ATTEST:
Scott A. Botcher, City Manager
Nancy K. Mancino, Mayor
YES
NO
ABSENT
g:\plan\bg\cdbg\resolution establishing just compensation.doc
c
Office of County Assessor
Angie Johnson
Carver County Government Center
Administration Building
600 East Fourth Street
Chaska, Minnesota 55318-2158
Phone: (612) 361-1960
Fax: (612) 361-1959
RECEIVED
AUG 0 7 2000
-
:::ARVER
:OUNTY
CITY Of CHANHASSEN
August 3, 2000
Mr. Robert Generous
City of Chanhassen
PO Box 147
Chanhasscn, MN 55317
RE: Estimated Fair Market Value for vacant lot, PID# 25.1600850
Legal Description: Lots 998-1000, Carver Beach Subdiv.
Dear Mr. Generous,
At your request I have inspected and reviewed the data for the above captioned parcel in order to estimate
its current Fair Market Value. Our current estimated value is $4000, which presumes the lot to be non-
buildable due to size and setback requirements.
As the city is considering purchasing the property for purposes of constructing a residence, this new
estimated value will be based on the assumption that a purchaser is assured of the ability to construct a
single-family residence on the parcel. Also assumed is that a single family home can be constructed without
needing to significantly modify the size, shape or functional usage of the improvement beyond what is
typical for the immediate neighborhood.
After consideration of the size, location, and above-mentioned assumptions concerning the ability to build
on the parcel, ¡ estimate the Fair Market Value, as of August 3. 2000. to be:
$27, 200
Twenty-seven Thousand, Two Hundred Dollars
Sincerely,
.1 n
I/. 7/ ./ j/
J~/~
. Steven H. Clay '}
Sr. Property Appraiser
Affirmative Action/Equal Oppurfllnif)' Employer
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August 8, 2000
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Robert Generous, ACIP
Senior Planner
city of Chanhassen
690 city Center Drive
Chanhassen, MN 55317
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RE: CITY OF CHANHASSEN PROPERTY PURCHASE PROGRAM
1. I am interested in selling my property at 960 Carver
Beach Road, Lots 998, 999, and 1000, Carver Beach, to
the City of Chanhassen at this time.
2. I understand that relocation benefits will not be
applicable in this transaction because of the
voluntary nature.
3. The property is not under a written or unwritten lease
or rental agreement.
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Anita L. Benson, PE
NOTICE OF NON-APPLICABILITY OF
RELOCATION BENEFITS
The City ofChanhassen is interested in the possible purchase of your property at 760
Carver Beach Road, Lots 998, 999, and 1000, Carver Beach. The actual acquisition of
you property at this time depends entirely upon the successful negotiation of mutually
agreeable terms of sale. Should a purchase/sale occur, it would be entirely voluntary
in nature. .
The property is not currently a specified site for a program or redevelopment that the city
is undertaking. Nor is it a part of a planned or designated are where substantially all
property within the area is to be purchased within a specific time tTame. And, finally, in
the event negotiations fail to result in an agreement of sale, the city will not act to
acquire the property by other means, condemnation for example.
The above being the case, this transaction would not fall under the Federal Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), as
amended. and, therefore. would not call for payment of relocation benefits as outlined
under the URA. (Relocation benefits are sometimes provided when a public entity
acquires private property for redevelopment or other purposes. Relocation benefits may
include payment of moving expenses, a replacement housing payment, and referrals and
assistance to help a displaced household locate comparable replacement housing.)
In sign below, I acknowledge and state that this sale would be entirely voluntary and that
pursuant to this sale. no relocation benefits are applicable or due. This acknowledgement
and statement is conditioned upon the City of Chanhassen purchasing the property.
Should negotiations not result in an agreement and sale, this acknowledgement and
statement shall be null and void.
Seller
Date
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