04-13-2022 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: EDA President Keis and Little Canada EDA Members FROM: Chris Heineman, City Administrator DATE: April 13, 2022 RE: Purchase of 2750 Rice Street ACTION REQUESTED The EDA is asked to approve the attached Purchase Agreement for acquisition of the property located at 2750 Rice Street (Lincoln Pawn). BACKGROUND In early November, the City Council was informed that Lincoln Pawn at 2750 Rice Street is listed for sale. The property owner is interested in selling both the building and the business. The existing building was built in 1922, and the parcel is only .21 acres. While development of this site will be more difficult with the surrounding development that has already been completed, this property is a critical acquisition for future redevelopment. As you may recall, this parcel was originally included in TIF District 3-2 which was initially established in 1995 to redevelop property along Rice Street. This included the Sherman Associates townhome and commercial development, however the pawn shop (2750 Rice Street) and several other nearby parcels were not acquired and were ultimately not included in the project. This TIF District (TIF 3-2) was decertified in 2017, however this parcel and a handful of other parcels in the area that were not redeveloped were included in TIF District 7-1 that was created in 2017 for the Suite Living senior housing development. Because of this, we already have a dedicated funding source for acquisition of this property. MN Statute 469.176 sub 6 requires that within four years from the certification date of a TIF district, certain activities must have taken place on each parcel within the TIF district or the parcel is ‘knocked down’ from the district and no increment can be collected from that individual parcel for the duration of the district. The four-year deadline for TIF District 7-1 would be January 28, 2024. There may be additional flexibility to the deadline due to the COVID-19 pandemic, and the EDA can work with our consultant from Ehlers or Baker-Tilly to determine the specific details for this site. The only parcels that have met the ‘knock-down’ requirement thus far are the two former residential parcels that the Suite Living project was built on. Site Evaluation The property at 2750 Rice Street is currently zoned PUD, Planned Unit Development. The 2040 Comprehensive Plan has this property guided towards C-2, Corridor Mixed-Use. The parcel is currently a pawn shop and the owner is requesting a lease-back agreement through July 1, 2022.