01-10-2024 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Fischer and Members of City Council FROM: Chris Heineman, City Administrator DATE: January 10, 2024 RE: Consider Purchase Agreement for 2828 Condit Street ACTION TO BE CONSIDERED: The City Council is asked to consider a Motion to Approve a Purchase Agreement for the acquisition of the property located at 2828 Condit Street. BACKGROUND: Attached is a purchase agreement between Donald J. Gagne and Mary Gagne ("Sellers") and the City of Little Canada, a Minnesota Municipal Corporation (“Buyer") for the acquisition of the property located at 2828 Condit Street. The purchase price of $1,375,000 is based upon a commercial appraisal report prepared by Kelsey K. Hornig, MAI, CCIM from September 26, 2023. The subject property is comprised of commercial-zoned land located north of Little Canada Road and west of Country Drive in Little Canada. The property is comprised of 3.24 acres and currently includes a single-family residence and a freestanding garage/storage shed. The current use of the property is considered legally non-conforming, as a single-family residential property and is not a permitted use under the commercial zoning designation. Several scenarios were considered in conducting the appraisal, including re-platting to allow for the single-family residence to stay and the remainder of the site to be used for commercial development. Based on the commercial zoning, the appraisal concluded that the highest and best use for the property is commercial development. The City of Little Canada has been assembling property in this area for future redevelopment for over twenty years, and currently owns five adjacent parcels along Countr y Drive. City staff was able to find the following information on the acquisition of four of these five parcels: • 2805 Country Drive: Purchased in July, 2000 for $133,000 • O Country Drive: Purchased in October, 2000 for $32,256 • 2825 Country Drive: Purchased in October, 2007 for $145,600 • 2801 Country Drive: Purchased in June, 2015 for $100,000 Each of these parcels were small lots with single-family homes that were subsequently relocated or demolished. The total size of the five parcels owned by the City of Little Canada is 1.37 acres. The Gagne site is a much larger parcel (3.24 acres) and combined with the City parcels would create a 4.61- acre future development site. Staff has updated the City Council on the potential purchase of this site at several workshops in 2023, and the City Council directed staff to move forward with the acquisition and pursue a Purchase Agreement.