ITEM 6.2 Resolution 15-42Ot sTe F(T//moo
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Legal
Andy MacArthur, City Attorney
August 24, 2015
PRESENTER(s):
REVIEWED BY:
ITEM #:
City Attorney
Lori Johnson, City Administrator
6.2
AGENDA ITEM DETAILS
EMIMMOMEMM
RECOMMENDATION:
Staff recommends that the attached Resolution Requesting the Minnesota Commissioner of Revenue to
Convey To the City a Tax Forfeit Parcel be approved.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No.
No.
BACKGROUND/JUSTIFICATION:
Clutlot A, Great River Centre has been noticed by the County as tax forfeit. A local business has
expressed interest in establishing an industrial operation at that site. The property has current unpaid
assessments against the property in the amount of $240,012.68 and future assessments of $192,570.00.
The site also requires additional fill to raise it to the proper elevation for a building. Additionally, normal
City infra -structure requirements, including construction of a street section are required for
development of the property.
City representatives have met with the County regarding the status of the above identified property.
Based upon those conversations, County officials have agreed that the property is burdened with extra
costs and assessments that make it undevelopable under current economic conditions. They have
therefore agreed to recommend to the County Board that the value of the property be listed as $100.00
and that the property would be eligible for transfer to the City.
This matter was explained to the City Council at a previous special meeting. Adoption of this resolution
is the first step in acquiring the property for economic development purposes.
SUPPORTING DOCUMENTS: x ATTACHED ❑ NONE
• Resolution requesting transfer of property.
MOTION: (Please word motion as you would like it to appear in the minutes.)
Motion to approve Resolution No. 2015-42, Requesting the Minnesota Commissioner of Revenue to
Convey to the City a Tax Forfeit Parcel.
BUDGET INFORMATION
FUNDING: BUDGETED: ❑ YES
NA NO
ACTION TAKEN
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2015-42
RESOLUTION OF THE CITY OF OTSEGO REQUESTING THE MINNESOTA
COMMISSIONER OF REVENUE TO CONVEY TO THE CITY A TAX FORFEIT PARCEL
WHEREAS, OUTLOT A, OTSEGO GREAT RIVER CENTRE (PID # 118-266-000010) has
been provided notice of tax forfeiture and the City of Otsego has been informed of that status;
and
WHEREAS, the lot currently has unpaid special assessments in the amount of $240,012.68 as
well as future assessments amounting to $192,570; and
WHEREAS, in order to bring the site up to proper elevation for development the estimated
amount of fill needed amounts to $389,543; and
WHEREAS, pursuant to the Otsego City Code the site also requires construction of a street,
sidewalk and trails, sanitary sewer and water extensions amounting to approximately $635,393;
and
WHEREAS, the assessments, additional site work, and public infrastructure requirements
exceed the assessed value of the property; and
WHEREAS, the City is in communication with a Developer that is willing to purchase the
property for the reduced value as determined by the County and to pay all of or a portion of the
assessments on the property; and
WHEREAS, the City believes that the reduced value of the property is $100.00; and
WHEREAS, the City believes that the parcel can be conveyed to the City under Minnesota
Statute 282.01, Subd. 1a, d (1) due to the blighted conditions that make the lands undesirable in
the open market; and
WHEREAS, the City will proceed to negotiate with the Developer for re -sale of all or a portion of
the property and will seek a State Deed grant for infra -structure improvements; and
WHEREAS, it is advantageous to the City and the County that the parcel be again placed on
the tax rolls.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Otsego, Minnesota
as follows:
1. That the City intends to acquire OUTLOT A, OTSEGO GREAT RIVER CENTRE (PID # 118-
266-000010) for less than market value for purposes of Economic Development of the blighted
property.
2. That the City requests that Wright County establish the value of the property at $100.00 for
transfer to the City for public purpose.
MOTION to approve made by Council Member
Member
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
and seconded by Council