Did Brandon overpay for water tower land?

By: 
Jamie Hult, Staff writer
City addresses price, process of acquiring east-side Nelson property
 
Today concludes an 18-month-long journey for the city of Brandon to buy water tower land east of town.
Scheduled to close on the property today (Dec. 13), city leaders hope to close a contentious chapter in Brandon’s ongoing water saga.
The land purchase has remained a source of public concern since the city began its search for an east-side tower site last year.
Initially, residents near the intersection of Redwood and Chestnut boulevards were hesitant to welcome a water tower to the neighborhood, pointing to the potential property value of the 1.17 acre, which is near trees, water and two golf courses.
In recent months concerns have turned to the $60,000 purchase price and the fact that the city didn’t seek a land appraisal.
Brandon city administrator Bryan Read said the price was set by the seller, Randy Nelson, and an appraisal wasn’t required.
“It was pretty simple. We had two criteria – proper elevation and a willing seller,” Read said.
The area for the proposed east tower – northeast of Brandon, south of I-90 and west of 484th Street – was identified in a 2013 water study for its high elevation. In May 2016, the city contacted property owners in the area.
Nelson and his wife, Bonnie, a former city employee, were the only landowners to respond. They offered to sell the land to the city for $40,950. That number would change.
 
Three options
The city took the Nelsons’ offer and, since the land was outside city limits, applied for a conditional use permit from Minnehaha County. The following month, the county’s planning and zoning board reviewed the request and granted an extension to contact all neighboring property owners to ensure none were opposed to the proposed water tower.
“We met with all except one, who wouldn’t respond to letters or calls,” Read said.
That one was Dr. Benjamin Aaker, who later filed a civil suit against the city of Brandon.  
When the city returned to the board, it granted another extension – this time, to expand the land search to include more property owners. 
Brandon found another willing seller at Redwood Boulevard and 484th Avenue. The Wright property was $50,000, but developing it was $410,000 more in pipe costs than the Nelson land.
A third seller surfaced. David and Sandy Elofson approached the city with a purchase price of $120,000 for 2.2 acres. Pipe costs were an additional $200,500.
In January 2017 Brandon presented the three options to the county planning and zoning commission.
“By this time, all property owners had a chance to discuss their concerns,” Read said.
The board denied the conditional use permit.
The city appealed to the Minnehaha County Board of Commission and gained the permit in February.  
Within days Aaker filed a civil suit to appeal the decision. On Oct. 26 a judge upheld the commission’s decision to grant the permit.
A year and a half had passed since the city’s original agreement with Randy Nelson for $40,900. The price was now $60,000.
According to Read, “the reason the price went up is due to the length of time that the process took and other conditions experienced by the Nelsons.”
The Nelsons could not be reached for comment.  
Nearby land has sold for similar prices. In 2014, Vern and Martha Smith sold five acres located one-quarter of a mile from the Nelson property to Michael and Kimberly Adams for $250,000, or $50,000 per acre.
 
West tower land
The city’s new land parcel is the eastern counterpart of a larger proposal to build two 1.25-million-gallon water towers, with a second tower on the west side. 
Brandon bought 4.88 acres at Six-Mile Road and Holly Boulevard from Xcel Energy. After Xcel’s required land appraisal valued the property at $55,900, the city closed on the west site last month.
Forty percent of the west-side property is filled with power lines and unusable, Read said.
 
Opposition
A group of citizens approached the city council with concerns about the east-side land purchase.
Beth Aaker, Dr. Benjamin Aaker’s wife, said the land “has the potential to be something of value” with building and housing eligibility.  
“As bare farmland, it does not,” she said.
Aaker added that she didn’t agree with the city’s decision to build a water tower on a scenic spot surrounded by trees, river and golf courses.   
“In my opinion, you are robbing the city of a future development that could bring in more property taxes. With a water tower there, at best you will get townhouses or apartment complexes around it, which means less property tax and sales tax money,” Aaker said.
City alderman Jon McInerney noted the public concern surrounding the east-side land purchase on Facebook.
“There have been many posts that the price paid is significantly higher than the land is worth. That the land should be priced at normal ag land prices. That the city is corrupt and is hiding information,” he said.
“A water tower in any location is not going to be well received. What homeowner would not push back against locating one in the vicinity of their home?” McInerney said. “What I can assure those affected is this was not a decision taken lightly. Much forethought, research and negotiation went into it. I truly empathize with the affected homeowners, but given the options presented, it was the decision that made the most sense for the entire Brandon community.”
Determination of the final placement of the proposed water towers and need for additional elevated storage is contingent on the water development committee’s future recommendations to city council.
“They have a lot of work to do in assessing the current situation and needs of Brandon going forward. That work is ongoing. It is open. It is transparent. It involves the citizens of the community in deciding what is best for their families’ future,” McInerney said.
 

 

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