4.B.1. SR 06-20-2016 - Laserfiche WebLink

Home Browse Search

Request for Action To Item Number City Council 4.B.1 Agenda Section Meeting Date Prepared by Property AcquisitionJune 20, 2016Troy Adams, P.E. – ERMU General Manager Item Description Reviewed by 1437 Main Street NW, Elk River, MN Cal Portner, City Administrator Reviewed by Action Requested Approve, by motion, a resolution authorizing condemnation of land for public purposes on behalf of the Elk River Municipal Utilities Commission. Background/Discussion The Elk River Municipal Utilities Commission (ERMU) believes it is in public’s best interest to acquire the property at 1437 Main Street NW, Elk River, a property adjacent to the ERMU Field Services Facility at 1705 Main Street NW. The property is currently licensed as a rental owned by Stu and James MacGibbon, although a fire destroyed the garage, which is required by city code. Two Parcel IDs make up the property, 75-411-0220 and 75-411-0250. The property acquisition serves a public purpose as the least cost highest value option to accommodate ERMU growth needs while addressing needed environmental considerations and site security requirements. ERMU has grown significantly over the past decade due to both development in serviced communities and electric service territory expansion. In 2015, ERMU executed an electric service territory transfer agreement with Connexus Energy establishing the terms for ERMU to acquire approximately 12 square miles of additional service territory within the corporate city limits. When fully implemented, the agreement will increase customers by approximately 20% within 5 years. The communities ERMU serves expect continued growth in both residential and commercial customers especially within Elk River as the city continues developing municipally-owned industrial parks. This growth directly impacts the operational needs of ERMU. In 2015, ERMU hired Kodet Architectural Group to evaluate existing field services facility needs and develop a long-term growth plan. Kodet found the field service facility was only sized for 33% of the current needs requiring outside storage for most vehicles and inventory which is both a site security and theft concern. The site is also home to a “black-start” electric power plant under contract with Great River Energy and is bid into the Midcontinent Independent System Operator (MISO) market. Although not currently subject to the North American Reliability Corporation (NERC) Critical Infrastructure Protection security requirements, it is likely those security measures will need to be implemented. Site NERC and theft security is elevated because a neighboring home requires property access through ERMU’s property. The site also has environmental challenges located adjacent to a dam, lake, bridge, wetlands, and a steep slope to the river. To protect the waterway ERMU proposes to relocate the wetlands south of the power