258611 ORI6INAL TO CITY CLBRK �58�11_
� CITY OF ST. PAUL H uNCa NO. �
OFFICE OF THE CITY CLERK
� COUNCIL OLUTION NERAL FORM �
PRESENTED BY�� �
COMMISSIONE ' � AT
� � ' � ' `�
C�,� � ' \
WHEREAS, he city is desirous of acq iri g cer ain lands
located west of Snelling Avenue and near Midway Stadium for the
construction of a Fire Training Station -- such land more
particularly described in a letter dated May 11, 1972 from
J. William Donovan, Valuation Engineer, attached hereto and made
a part hereof; and
WHEREAS, an ordinance has been introduced this day to effect
such acquisition;
Now, therefore, be it
,
RESOLVED, that this �council does hereby go on record as
being in favor of such land acquisition subject to applicable
provisions of anj� statutes , ordinances or charter.
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MAY 1 � 197_2
COUNCILMEN Adopted by the Council 19—
Yeas Nays
sut�er AY 1 'L 1972
� App v 19—
Levine �� Favor �
Meredith
J ..._ . -- - r
Sprafka
A gainst
Tedesco
Mr. President, McCarty 197�
�I)tC1�HED MAY 2 0
��
3. WILLIAM DONOVAN 223-531T
� Valuation Engineer
'RQY E.�BqEDAHL, ��. C I T Y O F S A I N T P A U L
A:s't vol�otio� E�y��ee� BUREAU OF VALUATIONS ��"�p�
• 286 City Heil �j�� ,�..,�
Seint Paul, Minnesote 55102
��'�
To: Cammissioner Rosalie L. Butler
Chair�an o� the City Land Committee
From: J. T�Tilliam Donova.n� Valuation �ngineer
Re: Land Exchange Proposal by Malan Construction Compar�y� developer
of K-Mart Biscount Stores involving a portion of the Midway Stadium
land located West of Snelling Avenue.
May 11, 1972
I submit this report as nty co�nents pertaining to the pxoposal made to the
I,a.nd Committee by the K-Mart Disccant Stores and relative to t:�eix offer to
purchase a p�r-tion of the unimproved Midway Stadium property located West
of Snelling Avenue. This property is also a portion of the site being con-
sidered for the proposed Fire Training Academy which is currently being
desig:zed in the City Architect's office. A copy oi K-N�rt's pxopo�al is
attached hereto.
l. K-Ma.rt proposes an elen exchange of land with the City of St. Paul
embrac�ng land that both paxties have contro].ling interest in. The
City's land embraces a portion of the Midway Stadi�n property located
im�ediate].;� West of Snelli:zg Avenue and eontains an area of 11.15
acres� and is shown colored orange o� the attac�ed map. The K-N�.rt
land.s are loca�ed immediately west of the City site� contain an area
of 19.17 acres� and a.re shown colored green on the attached �a.p.
?zidependent appraisals of the two sites have been made by Messers.
Joseph L. Beti;endor� and Ray W. Faxicy. Theix appraisals indicate a
difference in value bettireen the 'two sites of $18�OG4.00 a.nd .`�p16�000.00
in favor of the Ci�:y's site. Both apprai�als were vredicated on the
assumption that adequate access be provided� �+rhich is ingress ar.d
egress in aecorciance with the existing codes and ordinances in effect
within the City of St. Paul.
2. K-I�axt proposes to install, at its vwn expense a sanitary sewer lif`t
station� which wi11 accommodate both them and the f�a.ture Fire Trair.ing
Acade�•. Es�;imated cost for the lif`t station is $15,000.00 of which
$5�OG0.00 should be apportioned to the needs of the Fire Training
Acader�y.
3. K-Maxt �roposes to construc� a six foot chain-link fence dividing the
'two sites along wi�th �,n adequate ga�:e at the north side of the sites.
Cos� of this fence has been estimated by K-Mart to be $5�250.00. Our
estimate for the fence is $3,75�.00.
�. K-rizst estimate the va.lue of �he construction and dedication of the
roadway access to the Fir� Trainin�; Aca3eray site to be $20�00O.00o
• Commissioner Rosalie L. Butler Page 2 May ]1a 1972
The City in its long range planning have considered the extension
of K�.sota Avenue f�om its present terminus at Gibbs Street easterly
to Snelling Avenue. K-AZart ha.s acqaired additional lands to provide
this roadway �:hereas the City will have to dedicate the roadway from
• lands being considexed herein and include3 in the two independerrt
appraisals. The value of the present K-Maxt appraisal is based on
adequate �.ccess� i-t is therefore � opinion tha� the value of the land
being dedicated by K_-Mart should not be considered as an offset. To
provide immediate access to the proposed netr Fire Training Acade�y
site, the segner.t of road f�om Snelling Avernze to the site should be
constructed by K-Mart, The Department of Public Works is in tre process
� of prep�xing a.n estimate of cost for this roadway and it is thei.r opinion
that the sub-grade should initial]y be constructed to MSA standards.
$. K-I�i�.rt has offered to bring in at its own expense a 12 inch �ra,ter main
to the proposed new east line of the Fire Training Acade�y site. Their
needs require an 8 inch line and the ovexsizing would be to accommod�.te
the Fire Training site. The cost for the oversizing has been estimated
to be $3�000.00. In additior. to this oversizing� K-Niwrt Y�.s agreed �o
construct at �heir cost a iVorth-South, 12 inch wa,ter line running along
the easterly li.ne of the new Fire Training Act�,derqy site.
6. R-Maxt ha.s xeferred to the appraisal. cost a.mo�unting to $1�200.00 w�hich
they have p�.id. Insofax as these costs would not r.a.ve baen necessary
if the excha.nge had not been proposed� it is my opi.nion tha1: these
costs should not be formal�,y considered.
7. K-Mast has made ava.ilable to the City certain soil borings and ana]�ysis
on the proposed. new Fire Training site. They esti.mate the value for
these boxings to be in excess of $5,000.00. The City Architect's office
' estimate the total cost of the borings to be $3,800v00,
8. The City Architect's o�ice adv�ses that their total service costs
relative to their study of the new proposed site amount to $6�100.00.
These costsshould properly be the responsibility of K-Mart.
9. A factor that should also be considered is the cost of si�e develo�ent.
The new proposed. Fire Trainino Acade�y si�e will requixe more earth w�rk
th�n the original siteo The exact computation of earth work quantities
is now '�eing comput�d in the Depart�ent of Public Works but �.s of this
d.a.te the final fi�ures axe not available, To compensate for the differ-
ences in e�.rth work quantities, It-Mart ha.s offered to deliver and com-
pa.et a� selec�ed locations �5,000 cubie yards o�' suitable fi11 material.
The City Architect's offiee would require that compacticn be to 95°� �ax-
imwn density.
10, A railroad spur track nai�r crosses the K-Mart site which K-Mart has agreed
to re�ove at their cost and expense.
11. A ponding area under the jura.sdiction of the Minnesota Highw'ay Department
is located at the northeast corner of the City site. The H3.ghway Depaxt-
mert is current]y stu�}ring the possibility cf releasing a pertion of the
poncling axea back to the City. Should this be aceomplished� the resnaping
' Commissioner Posalie L. Butler Pa�e 3 May 11� 1972
of the ponding area� including the relocaticn of the existing chain-
link fence should be the responsibility of K-Mart.
12. K-Mart ha.s agreed to dedicate to the City �all necessary sewer ease-
ments� the description of which are now being developed by the
Depaxt�►ent of Public i�iorks.
l3. It is r�y understandin� that the City originally intended to co�ence
construction of the Fire Trainin; qcaderr�y in 1971 at an estimated
cost o£ �180,000.00 i.ncluding �50,000.00 for earth work. Durin� the
- yeax delay cons-truction costs have increased, and the site preparation
werk witl probably exc'eed the initielly pianned �50�000.00. This will
result in higher cos-�s for the Fixe Department as we11 as a need for
additional CIB �znds before they can start construction,
The conditions and costs heretofore set forth wrn.zld in3icate that the K-Mart
proposal is an equitable one. The major iten of exnense that has �ot been
. determined as of this date is the site preparation costs that will be en-
cou�tered o;i the n�r pxoposed site. Should the Council approve the concep� of
the exchange proposed by K-Mart it ��ill be necessaxy that the City coramence
� action to acquire the additional lan3s needed ior the new site and to vacate
- and sell p•arsuant -co Section 87A of the St. Paul Legislative Code� the lands
requested by K-Marto
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' TO: � Land Committee, City of St. Paul ' , ' � . .
Fk20M: t�ialan Construction Company, develoner of K-Mart Discount
. Stores, division of S. S. Kresge Co. , Detroit, Michigan
� SUBJECT: Land Exchange Proposal _
PROPERTY . .
LOCATION: Snelling Avenue across from Midway Stadium (site of proposed
Fire Training Academy) .
BRIEF .
BACKGROUND: In May, 1971, a representative of K-Mart approached
representatives of the St. Paul Fire Department and the
City Architect' s O�'fice requesting feasability studies on
the possibilit� of a lan� exchange� wherein the City would
� exchange land it owns and expected to use es the future site
of a proposed Fire TraininQ Academy, for privately owned
. land immediately adj acent (cti�est) of the City land.
Tnterest c•�as ex�ressed, ar.d numerous meetings followed
through the halance of 1971 and early 1972. The developer,
at its own exnenses , enqaged local Architects, Engineers and
a Soil Engineering Lirm to conduc� �etailed analysis of the
entire site. Ne:�� layouts for the �`ire Trair.ing Academv were
drawn and made available for the Fire Depastment. After
numerous meetir.gs with the City' s Put�lic �aorks Denartment and
-the State Highway Department, special problems involvina release
of a partion of a 4 acre ponding area �rere resolved favorably.
SPecial problems involving right of way for future road
construction was resolved by the developer offerin_q to dedicate
`,, an 80 foot strip across its land to the City �t no cost to the
City. Snecial fill material requirements in the privately
held land have been the subject of intense study at the
expense of the developer, �•�hich stt�c�y is attached hereto for
examination, ancl City ' s use. (See proposal below. ) It is felt
that substantial agreement has been reached rela�ive to the
feasabilit_v of the exehange ► and that both c�eveloper anci Fire
Department could benefit if qround c,��s broken simultaneously
� in the early spring, therefore the a��tter is presented ta the
Land Cor�mittee at this time seeking f avorable recommendation
� to the City Council to effect the l..�nd exchange in accordance
with the following proposal:
PROPOSAL: . I. The Develoner nroposes 'to exc�mge 19, 3092 acres of land
" legally described on �xhi?�it A att.�cched hereto, for 7 , 50II� acres
__ _ _ _____ _ _ of City land plus 2. 2891 acres of a�riginal City ponding area,
• which legal descriptions are attac.3�,ed hereto on Exhibit A also.
Under this exchange the City will '2�e exchanging only a part
(7, 5089 acres) of its original builc3ing site , since 5 , 39F1
acres will be retained as part of t'�eir new site. Thus the
City will end up with a total of 2�4 ,7053 acres far its Fire
' Training Academy, and K-!�!art will end up cvith a total of
9,7975 acres including the portion of the ponding area.
� , II. Developer had previously proposed to allow the City to
• ' obtain two independent anpraisals of the parcels which are the
subject of this exchan�e. This 'has been done and the apnraisals
. .have been made available to the develoner. The developer has
agreed ta pay the cost of the appraisals. .
' III. Developer has, at its ocan expense, and with the consent
of the City, conducted extensive s�il analysis of the. site
, proposed to be exchanged to the City. Forty soil borings were
taken. All reports have been turned over to the City. Based
on a composite plan showing both the City and the K-Mart site
(See plan attached as Exhibit A) and copies of K-Marts
Engineers take off on quantities of common and special earth
work (See Exhibits . B and C attachedj , for the present site work
and the City ' s original site work, the developer proposes the
: followi.ng: . �
,
� a) The developer shall make avaiZable for site grading
on the new City site, 35, 000 cubic yards of suitable
fill material. If the City can grade at the same time
as the develoner, then develaper proposes to place and
com�act the said 35 , 000 cubic yards of fill material
on the neca Fire P.cademy si:te at grades existing. at the
time the develoner does its earth work.
If the City, for some reasc�n, cannot grade at the saine
time as developer, then developer pro�oses t� stockpile
the s�id fill on the new Fire Academy site in any area
the Citv designates.
b) ; Basec7 on the quantitv figures as attached in Exhibits B
� � and C and the unit cost figures used by the City
' Architect' s office (Building Constructicn Cost Data
"I970 Fdition published by R. F. Means Company, Inc. ) ,
it has been determined that the cost dif£erential for
� the necessary qeneral and special earth work is as
� attached on Exhibit D.
. � �
c) Developer proposes to bring .in at its own expense a
12 inch water main to the new property line including
oversizing of said main. . K-Diart' s needs are for an 8
. inch line and the oversizing is to accomodate the L'ire
Training Academy site
' , d) Through a parcel of K�Mart's remaining property (not a � •
part ot this exchange) Developer proposes to dedicate
� a road right of way 80 feet in width, and pay its
� portion of the assessed cost of said road, in return
� � � for the City' s initiation of action leading to the com-
mencement of construction of said road.
�
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v e) Developer proposes to install, at �ts own expense, a �
� lift station, which will accomodata the Fire Training
• Academy.
f) Developer pr000ses to construct a 6 foot chain link
fence along the ��est line �f its property to give the
Fire Trair.ing Academy sufficient privacy.
. g) Developer shall make available to the Fire Training
� Academy its site analysis and soil borings , and all other
engineering data to facilitate the�construction of the
Fire Training Academy.
h) Easements shall be given to the City for road and sewer
� access. '
SUMNIARY: Developer feels there are certain advantages to the City
inherent in the within Proposal and will briefly summarize them
here: - � �
1. Tax B�se
The present plans by the Fire Academy to construct a tax
free facility on choice commercial property abutting on Snelling
Avenue is felt to be (unrealistic) . � .
It is unquestioned that the higYiest and best use o£ that
parcel is commexcial develor�ment. A h-PZart store on that site
will bring to the City approximately $8�, 000. �0 per year ir�
real estate taxes and another $40, 0OO. �JO + of personal property
taxes , while the Fire Acader.►y caould pay no taxes. . .
� -
� 2. More Land for City
� � Original plans for the Fire Academy shoc�ed a need for almost
30 acres of land. The present plans (prior to this Proposed
exchange) show the City having 12, 9139 acres plus �a ponding area
of 4 ,0512 acres.
� If the exchange is completed, the Academy will end up with
24,7053 acres _of land, c�nsiderably more than contemplated on
the o�iginal fire site.
� 3. Eco1d9Y , . . '
" " The Fire Training Academy plans, in their rout�ne training
� curiculum, to burn several friendly° fires for training purposes
. _ _ . ___ __ ��
� It is .felt that the land to the imr,iediate West of the proposed
K-Mart site is much more suitable for the setting of s�id fires ,
than the land abuttin_q�busy Snelling Avenue. Th�oZosed Fire
immediately Nort}l, Sou�h and .aest of the newly p p
Training Academy site is primarily railroad and uninhabited, and
- ' smake will bother no one.
. . i.
1 • • � ' . . , . � .
� 4. Dedication of Roadway • � � • � . . � `
'.-
. Apparently the Public �aorks Denartment has had plans for a �
number of years for a roadway to come through this site in an �
East West direction. Under this proposal, the Developer shall ;
dedicate, at no cost to t'�e �City, an 80 faot strip for roadway �
purposes through other land it owns not invol�ved in this �
. exchange. This will result in a considerable savings to the E
City of St. Paul.
The exchange of land is proposed to be an even exchange : �
in spite of the fact that the appraisals show the new Fire
. Training Academy site to be of slightly less value. than the �
proposed K-Mart site,. and also that there is additional earth ;
work involved in the new Fire Training Academy site, for the
following reasons: ' �� �
The cost of the lift station �roposed to be installed .�
by K-P4art is approximately $15,000. 00. _
• _
,
The cost of a six foot chain link fence dividing the _ _ �
property is estimated to be $5,250. 00. . ' �
. ;
The value of the construction and dedication of the road•
way access to the Fire Training Academy site is estimated
to be $2Q, 000. 00.
. �
The difference in the value of an 8 inch water main; which
K-Mart ordinarily ���ould install, and a 12 inch water main �
for the accomodation of the Fire Trai.ning Academy, is �
•_,, estimated to be $3 ,000. 00. � . � :: -�
. The�..ualue of the 2 appraisals of the sites paid for by � _
K-Diart is $1,200. 00. . . �
The value of the soil borings and site analyst�s� made �
available to the City is in excess of •$5,000. 00. �
� In summary, for the reasons eriumerated above, it fs urged that `.
the Land Committee make a favorable recommendation to the full
City Gouncil to effect a land exchange with the Developer. �
� i.
' . M11LAN CONSTRUCTION COP'!PANY, . �
DEVELOPT•.R OF K-MART DISCOUNT STORES ,
� DIVISIOTI OF S. S. KRESGE CO.
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