Agenda Item Title:
Authorize Mayor & Finance Officer to execute the release of an agreement for property generally located at 2108 N. Elk Vale Rd. in Box Elder, SD.
Origination Group:
Public Works Committee
Origination Meeting Date:
05/29/2018
City Council Hearing Date:
06/04/2018
Petitioner:
BLM Properties LLC
Staff Contact:
Joel Landeen, City Attorney
Agenda Item Summary:
In 1974 Rapid City and the owner of a parcel legally described as Tract K in the SW1/4 of the NW1/4 of Section 27 T2N, R8E, BHM, entered into an agreement allowing the owner to transfer title of the parcel without platting. At the time the parcel was outside of the City limits, but within the City’s platting jurisdiction. The agreement required the property owner to not develop the property until a plat had been approved or the City was provided surety for the subdivision improvements along Elk Vale Rd. At some point after the agreement was entered into, the parcel was annexed by Box Elder, was platted, and improvements were constructed without the terms of the agreement being fulfilled. Since the parcel was in the exclusive jurisdiction of Box Elder, Rapid City could not prevent the platting. The State is currently in the process of acquiring the property to construct a frontage road. A title search turned up the agreement in the property’s chain of title and even though the City appears to have made no effort to enforce the agreement at the time the property was platted and developed. The SD DOT has raised concerns about the agreement. Elk Vale Road is now split between Rapid City and Box Elder. If Elk Vale Road is improved, it will need to be a joint project between the two cities and their will need to be a discussion at that time what, if any, contribution the adjoining property owners should make to the project. Based on the totality of the circumstances staff supports releasing the agreement and addressing the subdivision improvements along Elk Vale Road in the same manner the improvements are addressed for the other properties adjoining the street.
Funding Source & Fiscal Impact (if applicable):
| Funding | Cost Center |
|---|---|
Recommendations:
Origination Recommendation Action:
Approve
Origination Recommendation Notes:
I have spoked with Public Works Director Dale Tech and we are in agreement that it does not make sense to try and enforce the terms of this agreement now or in the future. Based on the fact the property is now in Box Elder’s jurisdiction, there is also concern about the legal enforceability of the agreement.
City Council Options:
You can approve or deny. If you approve, the sale of the property can be finalized and if you do not the State will retain funds in escrow until the matter is resolved.