DEPARTMENT: Physical Development Administration
FILE TYPE: Consent Action
TITLE
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Authorization To Execute New Option Termination Agreement With The Vance B. Grannis, Jr. Revocable Trust
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PURPOSE/ACTION REQUESTED
Authorize the execution of a new Option Termination Agreement that will terminate the right to purchase property in fee title in exchange for the donation of permanent and temporary easements associated with the future County Road 73 improvement project at both 9047 and 9075 Barnes Ave in Inver Grove Heights.
SUMMARY
On May 9, 2017, the County executed an Option Agreement (Option) by Resolution No. 16-355 (June 21, 2016) with Vance B. Grannis, Jr., and Darlene R. Grannis, husband and wife, with subsequent interest transferring to the Vance B. Grannis, Jr., Revocable Trust (Trust) for the right to purchase the Grannis family property in fee title.
The Option, which could not be exercised prior to August 1, 2024, and would be in effect until August 1, 2030, provided the County to acquire fee title to 124.5 acres based on donated land value; the County would pay closing costs and deferred Green Acres taxes. Due to existing statutes that prevent counties from owning property for conservation purposes, the County’s likelihood of exercising this option prior to 2030 is low. A separate provision provided an opportunity to acquire fee title to the 7.2-acre homestead exception area and an additional 1.3 acres of adjacent land at the appraised value. The homestead could be used for a family residence or for environmental education purposes for a period not to exceed 2077, so this Option would need to wait an additional 52 years before it could be exercised and would similarly require legislative updates to allow counties to own property for conservation purposes.
Earlier this year, the Trust approached the County about assisting with the implementation of a new Nature Center by terminating the Option to free up the properties to be donated to Dodge Nature Center (Dodge). The County’s intent with the Option was to preserve a mechanism to allow public access to the land. The creation of a Nature Center will achieve this goal without the need to purchase the property in fee title. Removing the County’s right to purchase the property in fee title will make it easier for Dodge and the Trust to fundraise while they work to meet the endowment goal. It is important to note that the existing conservation easements purchased by the County will not be affected in any way by the Option or change in property ownership.
In exchange for terminating the right to purchase the property in fee title, the Trust has agreed to donate the necessary permanent and temporary easements associated with the future County Road 73 improvement project at both 9047 and 9075 Barnes Ave in Inver Grove Heights. That project is not in the current Capital Improvement Plan but has been identified as a future need. Existing right of way through this corridor is roughly 33 feet from the centerline of the road. The future improvements would likely include a wider shoulder, boulevard, and multi-use trail that would require an additional 22-27 feet of permanent highway easement along the Trust’s property frontages. In addition to the temporary construction easements required as part of the project, the current assessed value of the easement donation exceeds $30,000.
The original Option was going to be difficult to realize due to the legislative limitation and timing of when they could be exercised. By entering into the Option Termination Agreement, the County will allow the Trust to fundraise freely to open the Nature Center while also gaining new property rights for a future trail project along Barnes Ave. This situation provides a win-win for both the County and the Trust, as the Trust is able to realize their family’s dream of opening a new Nature Center on their land, which will provide public access without additional monetary commitment from the County.
RECOMMENDATION
recommendation
Staff recommends authorization to execute a new Option Termination Agreement with Vaughn Grannis and the Revocable Trust Agreement of Vance B. Grannis, Jr.
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EXPLANATION OF FISCAL/FTE IMPACTS
This agreement will not cost the County any money. The current assessed value of the estimated easements for the future Barnes Ave improvement project is over $30,000, but the easements will be appraised at the time of the project to ensure the donated value is valid.
☒ None ☐ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, the County of Dakota (County) and Vance B. Grannis, Jr. and Darlene R. Grannis, husband and wife, with subsequent interest transferring to the Vance B. Grannis, Jr., Revocable Trust (Trust) entered into a certain Option Agreement for Acquisition of Fee Interest of Property Subject to Permanent Natural Area Conservation Easements I and II, dated May 9, 2017 (Article I), which also included that certain Option for Fee Title Acquisition of Homestead Property (Article II) (collectively the “Option”), granting the County the exclusive right to acquire in fee simple the real property; and
WHEREAS, a Memorandum of Option Purchase Agreement (the “Option Memo”) dated May 10, 2017, was recorded as Document No. 3192907 in the Office of the Dakota County Recorder for the purpose of memorializing and giving public notice of the Option; and
WHEREAS, the Trust now seeks termination of the Option to pursue development of a nature conservancy center; and
WHEREAS, the County is amenable to terminating the Option to facilitate the Trust’s proposal with the understanding that existing conservation easements over the Property running in favor of the County shall remain in full force and effect; and
WHEREAS, the Trust, in exchange for the County’s agreement to terminate the Option, is willing to convey certain easements over other real property owned by the Trust for purposes of highway right of way needs for the County’s future Barnes Avenue Project; and
WHEREAS, to memorialize this agreement, staff recommends execution of a new Option Termination Agreement and Memorandum of Option Termination Agreement to be recorded against the Property.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Board Chair to execute the Option Termination Agreement and Memorandum of Option Termination Agreement with the Vance B. Grannis, Jr. Revocable Trust.
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PREVIOUS BOARD ACTION
16-355; 6/21/16
ATTACHMENTS
Attachment: Option Termination Agreement
Attachment: Option Agreement
Attachment: Depiction of Grannis Property
Attachment: Depiction of Barnes Ave Easements
BOARD GOALS
☐ Thriving People ☒ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Erin Stwora
Author: Eddie Buell