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City of EW REQUEST FOR ACTION River TO ITEM NUMBER Mayor and City Council 8.1 AGENDA SECTION MEETING DATE PREPARED BY General Business July 1, 2013 Michael Hecker, Parks and Recreation Director ITEM DESCRIPTION REVIEWED By Houlton Farm Property Letter of Intent Cal Portner, City Administrator REVIEWED BY ACTION REQUESTED Approve by motion the letter of intent for the Houlton farm property. BACKGROUND/DISCUSSION At the May 13, 2013,work session, the City Council was informed of a proposal by The Conservation Fund to acquire the Houlton farm property. Steve Hobbs,from The Conservation Fund, explained that there is a high likelihood that property could be fully funded through grant funds distributed from the Minnesota's Legacy Fund, the Minnesota DNR,The Minnesota Land Trust, and Friends of the Mississippi. The Conservation Fund would serve as the technical advisor to acquire funding and pre- purchase pending full repayment from grants. He indicated that the city would not be obligated to pay any acquisition costs. A Letter of Intent outlining respective responsibilities is required by The Conservation Fund in order to proceed. The attached letter was reviewed by the city attorney. The Letter oflntentis not a contract between the city and the Conservation Fund. It outlines responsibilities and requests that upon a successful property acquisition with grant funding, the grant funds would reimburse The Conservation Fund for the real property cost. The city would be listed as a responsible party because only public entities may receive these particular grants. The letter only excludes the city from costs pertaining property acquisition. Ongoing park maintenance, operations, security,insurance and infrastructure costs would still be the responsibility of the city, including the farmstead home and outbuildings. Staff would continue to work with The Conservation Fund and other partners to identify funding for trails, signage,parking,restoration and the planning / maintenance of the property. Additional potential costs include restoring the 165 acres of farmland to native grasslands. The transition to natives would occur over the course of several years. The city building official inspected the farmhouse and outbuildings. The ranch-style house, constructed in 1959, has an unfinished basement and is deemed in good condition. Minor modifications would need to be made if the city were to use the house as a rental. All but two of the outbuildings/barns are in good repair. Again, there may be limited funds available through the Legacy process for structures if used to further the visitor experience. One barn in poor condition is potentially of historical significance might be kept if restoration funding is available. The end result might be to demolish the buildings. POWERED By N:APublic Bodies\Agenda Packets\7-01-2013\Final\x8.1 sr letter of intent for Houlton.docx INAMIRE1