02-11-2004 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL FEBRUARY 11, 2004 concerns about lost tax revenues given the City would get a free Public Wa-ks garage. LaValle felt the Family Academy proposal was a huge windfall for the City. The Council discussed the value of the County Road B site. The Administrator reported that the City paid $2.48 per square foot for the site and he anticipated a resale value of approximately $3.15 per square foot. The site has challenges given the long driveway in as well as the need for substantial grading. The property is zoned Business-Warehouse (B-W). Fahey suggested that the City obtain an appraisal of the property. He also noted that if the ultimate decision is to sell the property, the City should get as high a price as possible for it. Fahey again raised the issue of how much additional space is needed by the Public Works Department with or without retention of the water system. Fahey again suggested that discussions with the Watershed on the Noel Drive property be delayed pending the outcome of a decision on the Public Works garage. Fahey suggested that the Public Works Director put together a space needs assessment based on both retention of the water system and turning the system over to St. Paul. Montour agreed that there will be a space needs difference depending on the outcome of the water system issue. Montour stated that he was not in favor of spot zoning, but he did not want to close down any options at this point. Fahey asked if Family Academy has the financial ability to purchase a property with an asking price of over $2 million. Anne Hennessey, Family Academy, indicated that they have a private donor. She also indicated that Family Academy has a clean audit, therefore, the ability to sell bonds. Hennessey gave a brief history on Family Academy, a charter school whose student popu]ation is comprised of approximately 25% special education students and 35% gifted and talented students. Fahey noted that the Family Academy proposal results in another piece of property being taken off the tax rolls and why Family Academy is proposing to give the garage space to the City at no cost. The City Administrator reported that he did a limited analysis of the tax impact to the City in taking this property off the tax rolls. Based upon the 2003 valuation for the property, the tax benefit to the City is approximately $4,500 per year. However, if the Frattalone property is sold on the open market, the County Assessor will increase the valuation based on the sales price, resulting in perhaps triple the tax revenue to the City. The Administrator pointed out that the Family Academy proposal for donating the garage space to the City is a tremendous economic incentive.