Action ends Rosemount’s Land-Sale Impasse, City of Rosemount to purchase site targeted for redevelopment for $525,000
Posted: 12/14/07
by Tad Johnson
Thisweek Newspapers
The city of Rosemount’s more than two-year impasse with landowners of the current Ratzlaff Service Station property has ended.
The Rosemount Port Authority reached an agreement Monday, Dec. 10, to purchase the property to clear the way for a proposed downtown redevelopment project.
Port Authority members voted unanimously to enter into an agreement with Dr. Kurt Walter-Hansen and Patricia Walter to purchase their 0.57-acre property at the southeast corner of South Robert Trail and 146th Street for $525,000.
The action is the next step toward allowing the city’s contracted developer, Stonebridge Development & Acquisition, to build its proposed commercial/apartment building on 2.96 acres.
The agreement ends legal proceedings in which the city was prepared to purchase the land through an eminent domain court action. The first hearing in that case was scheduled for Dec. 13.
Prior to the city moving forward with eminent domain, residents opposing the action packed several city meetings over the past year to voice their concerns.
Some said the city was misusing the law, which was changed in 2006 to prevent private-to-private landowner transfers, according to a release from Minnesota Chapter of the Institute for Justice, which specializes in defending eminent domain cases.
The new law continued to allow Rosemount to use eminent domain because it had established a tax increment financing (TIF) district on April 20, 2004, prior to the law’s effective date of Aug. 1, 2006.
Hansen described in an e-mail to Thisweek that a Wednesday, Dec. 12, hearing at the Dakota County Courthouse regarding the land sale was “like a funeral.”
He said the case was not only about the price for the property but about him being denied the opportunity and right to develop his own property.
“My wife and I are now victims of eminent domain abuse,” he wrote. “We are very saddened by the outcome. We feel we have been violated by the actions of the city administrators and the Port Authority. This is a big loss for us and also for Rosemount. It is shameful to have elected officials that totally ignore the citizens’ pleas.”
“I think overwhelmingly what we heard was negative on eminent domain,” Baxter said of comments from residents throughout the public hearing and meeting process.
He said the Port Authority indicated it would use eminent as a last resort, which he says they did.
“We knew that downtown redevelopment was going to be difficult. That’s why nothing has been done for the past 20 years. There comes to a point where you have to make some hard decisions,” Baxter said.
Negotiating a land sale for the corner property has been ongoing for the past two years.
Contractor Property Developers Company, the city’s first partner in the downtown redevelopment process, had the Ratzlaff property appraised at $275,000 on Sept. 1, 2005.
CPDC made an offer to purchase the property from Ratzlaff, then extended the deadline for accepting the offer. The offer exceeded the appraised value, according to the city.
Hansen purchased the property for $450,000 from Don Ratzlaff in September 2006, according to the city.
After CPDC exited the negotiation process, the city made an April 13, 2007, purchase offer for the Ratzlaff property and three other sites in Core Block East. Hansen was granted two-week extension from the original deadline, but no settlement was reached.
In a letter to the city, Hansen wrote that he is a willing seller, but did not indicate whether he accepted or denied the offer or made a counteroffer.
The city began acquiring land at Core Block East more than 10 years ago. The Port Authority decided earlier this year not to pursue the purchase of three former homes on the block now used by Haupt Antiek Market and Quilters Haven.
“I’m really happy that we are going to move ahead,” Baxter said. “I think that project has momentum. It is a good project. There was always agreement on the Port Authority on the value of the Stonebridge project for downtown.”
The building
The Stonebridge building is expected to have at least 11,000 square feet of commercial space and an estimated 106 apartment units.
It was originally proposed to have four stories, but has been scaled back to three stories on all sides. The new three-story concept was presented to the Port Authority in November.
Work on design of the project is still underway and will be reviewed this winter by the Rosemount Planning Commission and the City Council.
“It will be given the same thorough vetting of any other development proposal,” City Administrator Jamie Verbrugge said.
The city reported that site work will begin during this winter, and construction of the project should start next spring.
“I think this is a positive step,” Verbrugge said.
He said the addition of the Dakota County branch library currently under construction, the future re-use of St. Joseph Church and School as proposed currently to be an arts and cultural center and the Stonebridge project “will only enhance the downtown.”
Tad Johnson is at editor.thisweek@ecm-inc.com.
http://www.thisweek-online.com/2007/December/14trib-rm-impasse-12.15.html
| Petition would allow purchase of final site, an auto repair and truck rental shop, for downtown project |
| BY MARICELLA MIRANDA Pioneer Press TwinCities.com-Pioneer Press |
| Article Last Updated:09/27/2007 12:03:17 AM CDThttp://www.twincities.com/localnews/ci_7009787?nclick_check=1 |
| It was nearly a decade ago when Larry Lockhart began fixing brakes and exhaust pipes as a mechanic at Ratzlaff Service in downtown Rosemount.Now, a court ruling could doom his job at the auto repair and truck rental shop to make way for redevelopment.Lockhart knew a downtown Rosemount makeover was in the works for years but wishes it didn’t have to come at the sake of the auto shop.
But the city moved forward loud and clear with redevelopment last week when it filed a petition in Dakota County District Court to use the power of eminent domain to acquire the property - the last one needed for redevelopment. This is the first time in 23 years Rosemount has used the controversial device to acquire property, City Administrator Jamie Verbrugge said. The city authorized eminent domain for an earlier downtown redevelopment project but negotiated out of court with the landowner. That’s what Rosemount officials hope will happen this time. If it doesn’t, the city gave the shop a deadline of Dec. 18 for the business to relocate. Lockhart is dreading losing his job before Christmas. A new job might force him to relocate his wife and six children from their Rosemount home and schools. “This is my livelihood,” he said. Before that happens, a judge needs to approve the eminent domain petition. The ruling would authorize a 90-day transfer of the land title, known as “quick take,” and determine whether the project has a public purpose, city attorney Corrine Thomson said. Commissioners, appointed by the judge, would then determine the fair market value for the land. Determining compensation from the Rosemount Port Authority - which acts as the city’s economic development arm - could take at least six months. A recent appraisal for the auto shop property was $300,000, Verbrugge said. News of the petition came as a surprise Tuesday to property owner Kurt Hansen, who rents to the auto shop. Hansen bought the property from shop owner Don Ratzlaff in 2006 - a move Port Authority officials have said was Hansen’s attempt to stop redevelopment in the area. Hansen, a veterinarian, owns three other downtown properties the city initially wanted to redevelop. He applied to redevelop the area himself, but the city rejected his plans. Hansen and city officials have butted heads over the project ever since. “It’s against the will of the people of Rosemount,” Hansen said. “The development they’re thinking of putting in is also against the people of Rosemount.” The first phase of downtown redevelopment would include a four-story complex with apartments, some of them affordable for low-income renters, and offices and retail space. The building would replace vacant land owned by the Port Authority, the auto shop and Rosemount Saw & Tool. The Saw & Tool owner has negotiated for the city to buy the land. Hansen has hired an attorney to protect his land. He said he still wants to redevelop his downtown properties and will work with anybody to make the project a success. But after two failed partnership proposals from downtown developers, Hansen holds out little hope for a joint venture. “There’s really no negotiation at all,” he said. Port Authority commissioners have said they tried working with Hansen by extending deadlines for him to submit redevelopment plans and to accept land purchase offers. In a 5-2 vote, the Port Authority last month agreed the project should not be halted by one property owner and approved acquiring the land using eminent domain. The fate of the property now rests with the court. Although the state’s revised eminent domain law makes it more difficult for governments to bulldoze houses and businesses for development, the changes don’t apply to the downtown project because redevelopment plans started years before the law was revised. But in order to be grandfathered under the previous regulations, the city must begin the eminent domain proceedings by Feb. 1. To do that, the city needs to serve Hansen a notice of the petition hearing, which can be done once it has a scheduled court date. The city should reach that deadline, Thomson said. A final redevelopment agreement for Apple Valley-based developer Stonebridge Cos. to make over the downtown will be presented to the Port Authority on Tuesday. If approved, the downtown makeover could begin spring of 2008. Maricella Miranda can be reached at 651-228-5421 or mmiranda@pioneerpress.com. If You Go The Rosemount Port Authority will review a final redevelopment agreement for Apple Valley-based developer Stonebridge Cos. to make over the first phase of downtown. The meeting will be at 6 p.m. Tuesday at City Hall, 2875 145th St. W. |
