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City Council Minutes 02-11-2008 SpecialCouncil Agenda: 2/11/08 MINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Monday February 11, 2008 - 5:30 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski. Members Absent: None 1. Call to Order. Clint Herbst called the meeting to order at 5:30. The purpose of the meeting was to discuss options to be considered in resolving the title problem relating to the Cedar Street right-of- way. Jeff O'Neill provided a summary of the information presented at a previous meeting addressing this issue. Glen Fosusta one of the affected property owners was present at the meeting. He stated he had a buyer interested in his property so he would like to get the title issue resolved in order that a possible sale could take place. Among the options the Council discussed were: 1) Providing financial assistance to Glen Fosusta in his quiet title action; 2) Reimburse John Lundsten on the lass of land resulting from the result of a quiet title action; and 3) The City could take no action and allow the property owners to resolve the issue. In discussing financial assistance in the quiet title action, it was noted that the property owner and not the City must initiate the quiet title action. However, the City could make a determination on whether or not to offer financial assistance to defray the cost of the legal action. Glen Posusta said the issue comes down to the time line. Initially Glen Fosusta contacted MnDOT in 2002. MnDOT said they would approve his request for the vacation of the property which they would turn back to the County who would turn it back to the City. Glen Posusta submitted to the Council a letter from John Lundsten to MnDOT written in 2003 requesting MnDOT give the land to him. The City's agreement with Jahn Lundsten was signed in June of 2003 which was 9 months after Glen Posusta had contacted MnDot. Glen Posusta commented that the interesting item in the City's agreement with Jahn Lundsten was that the City was proposing to obtain a quit claim deed from Amax Storage which was to be delivered John Lundsten. City Attorney, Joel Jarnnik indicated that he would want the opportunity to fully review the file documents. Glen Posusta stated that the cost on his first quiet title action was about $4,000. Clint Herbst asked what happens once Glen Posusta initiates a quiet title action. Joel Jamnik replied that John Lundsten could legally contest the quiet title action. Joel Jamnik said neither Glen Posusta nor John Lundsten could plat their land without getting the quiet title action done on this parcel. By granting the quit claim the City was merely giving up any right the City had in Council Agenda: 2/11/08 this parcel and City was not warranting title in the property. However the quit claim deed increased John Lundsten's belief that he owns the entire parcel. Glen Posusta stated that the legal description of his abstract describes the property as going to the center line of the road. Jael Jamnik pointed out that no one can use the property until somebody does a quiet title action. The City cauld do nothing and wait until the title issue is resolved or the City could pay a share of the quiet title action costs. The City could make this offer on the share of the quiet title action costs to either Glen Fosusta or John Lundsten. Wayne Mayer said he did not mind assisting in the cost to quiet title. Joel Jamnik did not recommend paying anything towards the quiet title action until the case was resolved. The City could agree to pay a certain percentage of the cost for the quiet title action. Joel Jamnik felt a contested quiet title action could be in the area of $5,000 ar $1,500-$2,500 if it is not a contested case. From Glen Posusta's perspective, he has had already had to pay for one quiet title action so it would be more fair for the City to pay 50% up to a maximum of $3,000. If the costs exceed the maximum, the matter could come back to the City for reconsideration. Glen Posusta stated it was the actions of Rick Wolfsteller that resulted in Glen Pousta being put in this position. Joel Jamnik repeated that the City's action only released what interest the City had in the property. It was pointed out that Glen Posusta voluntarily ceased pursuing the quiet title action on the entire area. The little parcel of land was left out of the quiet title action because of Jahn Lundsten's abjection. The Council again discussed the City's level of financial participation. Wayne Mayer felt the City should pick up any duplicated cost. Clint Herbst suggested the City pick up to $3,000 and then revisit the issue again if the cost exceeded the $3,000. SUSIE WOJCHOUSKI MOVED THAT THE CITY PROVIDE FINANCIAL ASSISTANCE UP TO $3,000 TO GLEN POSUSTA TO GO TOWARDS THE QUIET ACTION TITLE COVERING FOSUSTA' S REMNANT FARCEL WITH THE CITY RETAINING THE ABILITY TO REVISIT THE ISSUE AT A LATER TIME. TOM FERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Administrator O'Neill asked whether the City had to have a finding that would justify the assistance. Joel Jamnik stated that reviewing the history of the dispute has already occupied a significant amount of staff and council time and would require an additional number of hours on the part of staff and legal counsel, which provides sufficient legal justification far the Council to consider financial assistance. Z. Ad~yourn. The special meeting was adjourned at 6:30 p.m. s Recording Secretary 2