City or I G CITY COUNCIL AGENDA REPORT. Honorable Mayor and City Council Members

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1 City or G REe" CTY COUNCL AGENDA REPORT TO: Honorable Mayor and City Council Members FROM: Rick Moskwa Public Works Director Agenda tem No.: 9. D. Meeting Date: October 10, 2016 ACTON REQUESTED: Motion to deny the offer from Mike and Jeannette Wilson to purchase a portion of land within the Burnside Cemetery. ATTACHMENTS: Mike and Jeannette Wilson letter dated September 23, 2016 requesting to purchase cemetery land Richardson & Richardson letter to City dated February 25, 2008 Survey map from Johnson & Scofield Maps A, B, and C showing options for property lines and the impact on future expansion of the cemetery. BACKGROUND: At the regular City Council meeting on April 14, 2008, Council approved the purchase of 3. 1 acres ( 134, 834 square feet) of property next to Burnside Cemetery in the amount of $ 135, 000 from Jim Grantman. The closing took place on May, Mike and Jeannette Wilson purchased adjacent property located at 4623 Highway 61 N., with their closing on May 29, 2008 as well. Public Works had been planning for the need of additional land at our cemeteries for some time. On February 25, 2008, Public Works received communication from local attorney Chuck Richardson regarding the possibility of a portion of the land adjacent to the Burnside Cemetery being offered for sale as a result of mortgage foreclosure. The intent of the offering was to provide grave sites to insure the usefulness of the cemetery for many years to come. Both this parcel and the adjacent parcel which was purchased by the Wilson' s were available as a result of this foreclosure. The City owns and operates 3 cemeteries, Oakwood, Burnside, and Mt. Carmel. Mt. Carmel is not active and is located approximately 4 miles west on a gravel road in a remote area off Mt. Carmel Road. The land the City purchased for future expansion of the cemetery is the only adjacent land to the current Burnside Cemetery. Page 1 9- D

2 DSCUSSON: Sometime during 2016, Mr. Wilson hired local land surveyors to perform a survey of the parcel that the City of Red Wing owns. As part of this work, Mr. Wilson chose a point along the north property to draw a new property line to. City staff was unaware of this work or the Wilson' s intentions until the survey was completed and they approached City staff with a verbal offer of $ 5, 000 to purchase that piece of property. Staff feels that the monetary value of this offering is not significant enough to put future Council members and city staff in a position of no longer having available space to offer for burials. Staff sketched in the number of graves that would most likely be plotted in the property. Approximately 137 future graves ( plan C) would be lost by selling this property. At today' s rate of $ 1, 040 per single grave, the potential revenue lost would be $ 142, 480. A compromise to the Wilson' s request was discussed ( plan B) when staff met on site. Approximately 71 graves would be lost with this alignment. The potential revenue lost in today' s dollars with this plan would be $ 73, 840. Although staff understands the reasons that the Wilson' s would like to purchase the property, a loss of this extent would be a setback for the future goal of achieving a self-sustaining operation as is the goal for the cemetery. While we could look to purchase land adjacent to Mt. Carmel for expansion, expansion at that location would require construction of maintenance facilities and other equipment for care along with additional travel time for maintenance. The current property is more desirable and effective from an operational point of view. The first expansion of the cemetery came from this same land under a different owner back in the late 1970' s. With the property that the City currently owns at Burnside Cemetery, staff estimates that the whole parcel will give the city approximately 30 years of additional capacity. ONGONG OPERATNG & MANTENANCE COSTS: FUNDNG SOURCE( S): N/ A ALTERNATVES: 1.) 2.) Deny the offer from the Wilson' s to purchase land from Burnside Cemetery. Direct staff to work with the Wilson' s to develop an official purchase price for the land from Burnside Cemetery to be brought back to the City Council. RECOMMENDATON: Alternative 1: Deny the offer from the Wilson' s to purchase land from Burnside Cemetery. Page D

3 Mike and Jeannette Wilson 4623 Hwy 61 N Red Wing, MN September 23rd, 2016 Ms. Kay Kuhlman Red Wing City Council Administrator 315 W. Fourth St. Red Wing, MN Dear Kay, We are writing in regards to the workable acquisition of a small portion of city land. The procurement is necessary in order to straighten out and square up our neighboring property line with the city. Our home at 4623 Hwy 61 N is adjacent to the Burnside Cemetery to the West which is where the piece of property we are interested in purchasing sits. We have met at our home with Rick Moskwa and Shawn Blaney on two occasions and with Kim Beise and Dean Hove once. n May of this year we had Johnson and Scofield Land Surveyors come to our home and survey the piece of land which we believe to be the best solution to our property line quandary. We trust you have a copy of the completed survey. Our interest in acquiring the city property at this time is the concern of our property value in the future as well as trying to save as much of the Walnut tree grove as possible. The Walnut trees are planted on the City property, as well as our own property. Over the past two years we have noticed significant Pine tree removal at the cemetery fence line and also along the bike trail which runs parallel to Hwy 61 in front of our home. Several of the city owned Walnut trees have been marked with pink ribbons which we believe are marked as such for removal. have spoken on the phone with Shawn Blaney a few times over the past few years about a " timeline" for the cemetery fence to be moved and more tree removal to begin and he indicated to me that nothing had been decided yet. Our goal is to work with the City to achieve the best possible resolution for saving the grove of Walnut trees, landscaping to ensure privacy and, of course, protecting our property value. Sincerely, Mike and Jeannette Wilson 4623 HWY 61 N Red Wing, MN 55066

4 RCHARDSON RCHARDSON & ATTORNEYS AT LAW 406 WEST THRD STREET, SUTE # RED WNG, CHARLES CHARLES RCHARDSON ( O. MNNESOTA ) TELEPHONE: FAX: RCHARDSON February 25, 2008 Denny Tebbe Public 229 Works Tyler Red Wing, Director Road North MN Dear Denny: On behalf of Jim Grantman, we hereby offer to the City of Red Wing parcel comprised of 2. 9 acres lying adjacent and westerly of the Burnside Cemetery for the sum of $ 160, , by David enclose herewith drawing dated February 20, A. Johnson that shows the 00. parcel. We would have the. parcel surveyed and provide the city with a proper legal description. this as soon as We would like to close on possible. The title to this property is currently in the First National Bank of Cannon Falls nka Merchants Bank. This property was the subject of a foreclosure on a mortgage that John and Robin Bezdichek had with the First National Bank. As a friend of the Bezdicheks, Mr. responsibility for the underlying loan. Grantman has some We have talked to Greg Kuglin of Merchants Bank and he has agreed that Mr. Grantman can offer this property to the City. We believe that the opportunity that Mr. Grantman is making available to the City to purchase this property should be taken because it will enable the City to provide grave sites that should insure the usefulness of the cemetery for The City already has a major investment many years to come. We in the Burnside Cemetery and it is an attractive place. also believe that by selling cemetery plots, the City can recoup the acquisition costs easily over time.

5 2 - We would like to meet with you again to discuss your interest and the process that would need to be gone through to get City approval. Yours very truly, RCHARDSON & RCHARDSON BY C Charles O. Richardson COR: sj s enc.

6 S' LY RGHT OF WAY BOUNDARY LNE TRUNK HWY. NO. 61, AS MONUMENTED AND DEFNED N MN. DEPT. OF TRANS. RW PLAT NO. 1 O AY, GOO f A a, Op Ag 6A 9 PROPOSED PROPERTY CONVEYANCE ti;s1 FROM THE CTY OF RED WNG TO y -- MKE & JEANNETTE 11 W Z Pro bra NsJ :69 a i, CTY OF RED WNG BK. 0-11, PG. 86,, A2 a^' / r,_ r r ' A; r Jam -- r \ 4 " }. " V. r 1v TOWN OF BURNSDE it, r,,. Z BK. H- 7, PG. 283 r " ND ca W? 9 O C C P ti N J Y "" E,6,NNETTE MKE &.' WLSON o PROPESTY y o Li i fie' CTY OF RED WNG / PROPERTY nu Aoj - pp SOZ' SZ O9, Z 737 O W DENOTES A PLACED 1" BY 18" RON PPE HAVNG A PLASTC CAP BEARNG LAND SURVEYOR LCENSE NO XNOTES FOUND RON MONUMENT. DENOTES FOUND COUNTY MONUMENT. X DENOTES OAK TREE. SURVEYOR' S NATES 1.) PROPOSED AREA OF LAND TO BE CONVEYED BY THE CTY OF RED WNG TO MKE & 2.) JEANNETTE WLSON = 2.) ACRES THE PROPOSED 64 NUMBER OF WALNUT TREES REMANNG ON THE CTY OF RED WNG REMNANT PARCEL: 5 89' a9' a0" W L NUMBER OF WALNUT TREES ON CONVEYANCE PARCEL: 78 SOUTH LNE OF W 1/ 2 OF NE 1/ 4 SEC. 28, TWP. 113N, RGE. 15W i BEARNGS SHOWN HEREON ARE ORENTED TO THE GOODHUE COUNTY COORDNATE SYSTEM, NAD 83, 1996 ADJUSTMENT ( HARN) CAST RON MON. AT SW CORNER OF W 1/ 2 OF NE 1/ 4 OF SEC. 28, T. 113N. R. 15W. S:\ Shore\ STR\ CERTS\ \ 28\ MKE WLSON CERTFCATE OF SURVEY FOR: MKE AND JEANNETTE WLSON hereby certify that this survey, plan or report was prepared by me or under my direct supervision and that am a duly Licensed Land Surveyor under the laws of the State of Minnesota. JOHNSON & SCOFELD NC. SURVEYNG AND ENGNEERNG 1203 MAN STREET, RED WNG, MN ) Marcus S. Johnson Minnesota License No Date: May 23, 2016 BK. NA HEET 1 PG. OF 1 NA SHEETS W. O.# DRAWNG NUMBER S- 621'

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9 Plan C 1111C. 46W 40ikf p q ' + L * 61 1 ', r r k itv, - Existing Parcel acres or 134, 834 sq ft Exisiting Usuable Space acres or 53, 143 sq ft Wilson' s Proposed Property Line Existing City Parcel Lines Wilson Proposed Usuable Space acres or 44, 431 sq ft Tree/ Fence 10' Buffer Future Plots - 99 Feet 579 Total Graves = $602, 160 Total Usuable Land Loss of acres or 8712 sq ft or 16. 4% Future Road Exisiting Grave Plots