McFadden 2001 Payment Agreement_ChavenelleTHE CITY OF
DUB E
Masterpiece on the Mississippi
MEMORANDUM
October 29, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: 2001 McFadden Agreement
Economic Development Director Dave Heiar recommends City Council approval to
provide the McFadden family a $26,400 payment to be paid over three years, in lieu of
the previous commitment to construct a cattle underpass, at a projected cost of
$50,000, as part of the Chavenelle Street extension project.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen
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Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
THE CITY OF ~_ ~~~u~
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TO: Michael Van Milligen, City Manager
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Masterpiece on the Mississippi ~ ~ ~
z~~ MEMORANDUM
FROM: David J. Heiar, Economic Development Director
SUBJECT: 2001 McFadden Agreement
October 26, 2007
INTRODUCTION
The intent of this memorandum is to provide the Council with information in an effort to
finalize the commitment made in the 2001 agreement to purchase ROW for the
Chavenelle Drive extension from the McFadden family.
BACKGROUND
In December 2001, the City Council approved an offer to buy real estate from Vincent
and Luella McFadden. As part of the transaction, the City acquired 5.7 acres of land to
allow for the construction of a street to connect the two segments of Chavenelle Drive.
One of the special conditions of the contract required the City to construct a cattle
underpass to allow livestock to cross underneath Chavenelle Drive since the new street
would divide the farm ground into a north and a south section.
When the plans and specifications were developed for the street extension, it was
determined that there would not be sufficient clearance for an underpass. It was also
noted that an underpass would add another $50,000 to the cost of the street
construction project.
John McFadden, the son of the owners and the farm tenant, indicated that he would
normally let his cattle graze on the north side of the street after the crops were
harvested for about two months of each year. We calculated that Mr. McFadden will
loose a feed value of approximately $3,300 per year by not having access to this land
for his livestock. In negotiations, the property owner/tenant agreed to limit this loss to
an eight year period or a total of $26,400 ($3,300 x 8). Ultimately, this payment is less
costly than the anticipated cost to construct the underpass. The McFadden's would like
to receive this cash payment over a three year period (2008, 2009, and 2010).
RECOMMENDATION/ACTION
I recommend that the City Council approve providing the McFadden family a $26,400
payment to be paid over three years, in lieu of the previous commitment to construct an
underpass as part of the Chavenelle Street extension project.
F:\USERS1lnternpl\Economic Development\McFadden Memo.doc