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File #: 08-0750    Version: 1 Name: Closed Session Land Acquisition Resolution
Type: Resolution Status: Passed
File created: 7/21/2008 In control: City Council
On agenda: 7/21/2008 Final action: 7/21/2008
Enactment date: 7/21/2008 Enactment #: R-08-340
Title: Resolution to Approve a Participation Agreement With Pittsfield Township for the Purchase of Development Rights On 82-Acres of the Walter Hilton Trust Property and to Approve a Match Share up to $576,000.00 from the Open Space and Parkland Preservation Bond Proceeds and to Purchase 52 Acres in Fee Title for $1,092,000.00 from the Solid Waste Enterprise Fund (8 Votes Required)
Attachments: 1. Hilton Aerial Map
Related files: 08-0835
Title
Resolution to Approve a Participation Agreement With Pittsfield Township for the Purchase of Development Rights On 82-Acres of the Walter Hilton Trust Property and to Approve a Match Share up to $576,000.00 from the Open Space and Parkland Preservation Bond Proceeds and to Purchase 52 Acres in Fee Title for $1,092,000.00 from the Solid Waste Enterprise Fund (8 Votes Required)
Memorandum
Attached for your review and action is a resolution to support collaboration with Pittsfield Charter Township for the purchase of the Walter Hilton Trust Property in Pittsfield Township.  The parcel is located at the intersection of Morgan and Platt Roads.  The entire property is a total of approximately 155 acres in size.  The site has 2 houses located on the property, each with a few farm buildings.
 
Solid Waste is interested in purchasing fee title to 52 acres of the property, which are adjacent to the current compost site.  These 52 acres will provide access for a potential new drop off station, buffer to the current compost site and provide room for future expansion of the compost operation.
 
Pittsfield Township has received grants from the Farm and Ranchland Protection Program (FRPP), and the State of Michigan Agricultural Preservation Board, which can be used toward a portion of the purchase of development Rights.  The FRPP grant is in the amount of $350,000.00 and the State PDR grant is in the amount of $255,000.00 for a total of $605,000.00 in grant dollars. Pittsfield Township has also pledged a total of $295,000.00 toward the Purchase of Development Rights on the property.  
 
At the January 9, 2008 Greenbelt Advisory Commission meeting, the Commission approved a recommendation to Council to partner with the Pittsfield Township for the purchase of the parcel and recommended to provide up to $597,500.00 in matching funds.
 
The property is located between 2 properties already protected by the Township:  Lillie Park and the Pittsfield Preserve.  
 
The purchase price for the parcel is $3,255,000.00 representing a cost of $21,000.00 per acre.   The City's total share of the Hilton purchase is 51%.
 
Purchase Price:      $3,255,000.00
Easement:            $1,476,000.00
Fee:                  $1,779,000.00
 
Fee Simple Purchase:
City Solid Waste Enterprise Fund:      $1,092,000.00
Pittsfield:                        $   687,000.00
Total:                              $1,779,000.00
 
Easement Purchase:
City Greenbelt:                  $   576,000.00
Pittsfield Twp:                  $   295,000.00
State PDR:                        $   255,000.00
FRPP:                              $   350,000.00
Total:                              $1,476,000.00
Staff
Prepared By:       Ginny Trocchio, The Conservation Fund
Reviewed by:                 Jayne Miller, Community Services Administrator
                  Mary Joan Fales, Senior Assistant City Attorney
Approved by:       Roger W. Fraser, City Administrator
Body
Whereas, Chapter 42 of the Ann Arbor City Code establishes the Greenbelt District and enables the City to purchase property within the district;
 
Whereas, Chapter 42 of the Ann Arbor City Code specifically authorizes City Council to enter into agreements for joint acquisition of land in the Greenbelt District with other government agencies;
 
Whereas, Land Acquisition may be funded through the Open Space and Park Land Preservation Bond Proceeds;
 
Whereas, There are sufficient funds in the Open Space and Parkland Preservation Bond Proceeds for the expenditure; and
 
Whereas, The purchase of a portion of the property by the City was approved during the FY09 Capital Budget process and there are sufficient funds in the unobligated fund balance of the Solid Waste Enterprise Fund;
 
Whereas, Pittsfield Township has matching funds available for the purchase price for the Hilton Trust Property; and
 
Whereas, The Greenbelt Advisory Commission supports approval of the Participation Agreement with Pittsfield Township and expenditure of funds;
 
RESOLVED, That City Council approve a Participation Agreement with Pittsfield Township for the acquisition of the Hilton Trust Property as part of the current PUD Zoning District for the Swift Run Service Center and under terms which allow:
-  Development of the 52 acre parcel as a regional drop off/recycling/composting facility with road access from the existing Wheeler Service Road and/or Platt Road using on-site septic and well water systems.
-  Execution of the Participation Agreement and Release of City funds subject to satisfactory evidence that the City will be able to use the 52 acres for its intended purpose.
 
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the Participation Agreement defining each party's interest in the acquisition and, if required, any supplemental documents necessary to document the appropriation of funds up to $576,000.00 from the Open Space and Parkland Preservation Bond Proceeds and $1,092,000.00 from the Solid Waste Enterprise Fund unobligated fund balance for the purchase of the Hilton Trust property, after approval as to form by the City Attorney;
 
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute a Purchase Agreement for the purchase of the 52 acres after approval as to form by the City Attorney;
 
RESOLVED, That City Council authorize the expenditure of funds from the Open Space and Parkland Preservation Bond Proceeds and Solid Waste Enterprise Fund to be available for expenditure without regard to fiscal year in accordance with a participation agreement to be approved by each governing entity; and
 
RESOLVED, The City Administrator be authorized to take all necessary administrative actions to implement this resolution and the acquisition of the specified property.