DEPARTMENT: Parks, Facilities, and Fleet Management
FILE TYPE: Regular Action
TITLE
title
Authorization To Acquire Schwamb Property In Miesville Ravine Park Reserve
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PURPOSE/ACTION REQUESTED
Authorize expenditure of up to $443,500 to acquire the Peter and Linda Schwamb (Schwamb) property located within Miesville Ravine Park Reserve (MRPR) in Douglas Township; authorize the Physical Development Director (PDD) to sign a purchase agreement (PA); authorize submission of an Acquisition Opportunity Fund (AOF) funding request to the Metropolitan Council (MC); and authorize the Chair of the County Board of Commissioners to execute a required Agreement and Restrictive Covenant (ARC).
SUMMARY
The Schwambs have lived on a five-acre property located within the northern portion of MRPR in Douglas Township for more than 37 years. The property is a mix of grasslands and woodlands and includes a 1-1/2 story, 1,342-square-foot house built circa 1900; a manufactured home; a detached garage; and multiple outbuildings/sheds. Acquisition of this property would provide important access to the northern portion of MRPR. The legal description (Attachment: Legal Description of the Property) and general depiction (Attachment: General Depiction of the Property) of the property are attached.
County staff has been communicating with the Schwamb’s for years to maintain a good relationship and to be updated on their plans and goals. Based on recent discussions, their property was appraised to assist them in their decision-making and to place the County in a better position to potentially acquire the property if they were ready to sell. During this process, it was determined that the portion of their long driveway, located on two adjoining properties, was never recorded. Despite attempts by the Schwamb’s to obtain access easements from the adjoining property owners, they were unsuccessful. However, the County Attorney’s Office review determined that the Schwamb’s legal claim to a prescriptive right to the driveway would transfer to the County if the driveway is not used for open public access.
During the time when the appraisal was being completed, the Schwamb’s began searching for other properties. The independent appraisal of the property was completed, reviewed, and approved by County staff. Shortly after County staff presented a contingent offer based on the $420,000 appraised value, the Schwamb’s were informed that their offer to acquire a different property was accepted. During follow-up negotiations, the Schwamb’s agreed to sell their property to the County for $20,000 more than the appraised value in exchange for waiving eligible relocation expenses, which resulted in net savings for the County. This property acquisition is eligible for MC AOF funding that requires the County Board Chair to sign an ARC.
The financial summary of estimated project costs is as follows:
|
|
Purchase Price |
Closing Costs |
Met Council AOF (75%) |
County Cost (25%) |
Sub-total Costs |
|
Acquisition |
$440,000 |
$3,500 |
$332,625 |
$110,875 |
$443,500 |
|
Relocation Expenses |
|
|
|
|
$0 |
|
Total Cost |
|
|
$332, 625 |
$110,875 |
$443,500 |
RECOMMENDATION
recommendation
Staff recommends authorization to expend up to $443,500 to acquire the Schwamb property; authorization for the PDD to execute the PA; authorization to submission an AOF funding request to the MC; and authorization for the County Board Chair to execute a required ARC.
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EXPLANATION OF FISCAL/FTE IMPACTS
Sufficient AOF and County matching funds are available in the approved 2024 Parks Capital Improvement Program budget for this acquisition. If AOF funds are not available, Environmental Legacy Funds are available for this acquisition.
☐ None ☒ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, Peter and Linda Schwamb (Schwamb) own a five-acre property located within Miesville Ravine Park Reserve (MRPR) in Douglas Township; and
WHEREAS, the acquisition of this property would provide important access to the northern portion of MRPR; and
WHEREAS, County staff has been meeting with the Schwamb’s for many years to explore acquisition options and timing, should the Schwamb’s decide to move from the property; and
WHEREAS, an independent appraiser was contracted to appraise the Schwamb property; and
WHEREAS, during the appraisal process, it was determined that the portion of the long driveway located on two adjoining properties was never recorded; and
WHEREAS, the County Attorney’s Office reviewed the driveway access issue and determined that the Schwamb’s have prescriptive rights to use the driveway on the two adjoining properties, and those rights would transfer to the County, if the driveway is not used for open public access; and
WHEREAS, the appraisal was completed, reviewed, and approved by County staff; and
WHEREAS, a sale of a property with an occupied residence requires relocation expenses be offered to the property owner; and
WHEREAS, the Schwambs agreed to sell the property for $20,000 more than the $420,000 appraised value in exchange for their willingness to waive relocation expenses, resulting in net savings for the County; and
WHEREAS, the estimated closing costs are $3,500; and
WHEREAS, the Physical Development Director (PDD) is required to sign the purchase agreement (PA) to acquire the Schwamb property; and
WHEREAS, the Schwamb property acquisition is eligible for a 75 percent Acquisition Opportunity Fund (AOF) grant through the Metropolitan Council (MC) and;
WHEREAS, an AOF grant can be submitted to the MC after a PA is signed by the PDD and the Schwamb; and
WHEREAS, if the County is awarded an AOF grant by the MC for the Schwamb property, the Chair of the County Board of Commissioners is required to sign an Agreement and Restrictive Covenant with the MC; and
WHEREAS, there are adequate County AOF matching funds in the approved 2024 Parks Capital Improvement Program budget for the proposed acquisition; and
WHEREAS, the final acquisition costs of the property will be determined after the settlement statement is finalized and all associated acquisition expenses have been invoiced.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the expenditure of up to $443,500 to acquire the Peter and Linda Schwamb property, including $440,000 for acquisition and $3,500 in estimated closing costs; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Physical Development Director to execute a purchase agreement with Peter and Linda Schwamb’s to acquire their property, subject to approval by the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby authorizes staff to submit an Acquisition Opportunity Fund grant request to the Metropolitan Council to receive up to 75 percent of the Schwamb property acquisition costs; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Board Chair to execute an Agreement and Restrictive Covenant with the Metropolitan Council, which is required by the Metropolitan Council as part of an Acquisition Opportunity Fund grant agreement; and
BE IT FURTHER RESOLVED, That following the acquisition of the Schwamb property, staff will submit the necessary forms and documentation to the Metropolitan Council to receive approximately $332,625 of reimbursement funds that will be returned to the 2024 Parks Capital Improvement Program.
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PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: Legal Description of the Property
Attachment: General Depiction of the Property
BOARD GOALS
☒ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Niki Geisler
Author: Lisa West