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MINUTES <br />CITY COUNCIL <br />MAY 26, 1993 <br />Franklin felt it was a win/win situation, in that he <br />will purchase the property, Mr. Malsam is able to sell <br />it, and Franklin would cooperate with the City as long <br />as he got a fair price for the property. <br />Hanson pointed out that the City does not know how soon <br />redevelopment of the area will occur, it could be 4 to <br />5 to 10 years. <br />Franklin pointed out that he is taking a risk in <br />purchasing the property since his company is growing, <br />and should he need to relocate to a larger facility, he <br />would have to come back before the Council to get <br />approval for the buyer of the property. <br />Scalze felt that there should be some goals in mind as <br />the property is put to an interim use, and that these <br />goals should be spelled out. Scalze reported that the <br />Council would like to see Mr. Franklin's business <br />locate within the City and Mr. Malsam able to sell his <br />property. Scalze indicated that the City does not want <br />to be unfair to Mr. Franklin, but she felt details of <br />what is being done and expected need to be spelled out. <br />The City Planner reported that the City would be <br />responsible for relocation costs no matter who owns the <br />property unless the City can get the property owner to <br />waive relocation costs. The City has requirements that <br />must be met when it buys property, one of which <br />involves notifying property owners of relocation <br />rights. The Planner pointed out that while Franklin <br />Drywall may be an interim use of the property, the City <br />does not have an interim use district set up. <br />Hanson pointed out that it may be in a redevelopment <br />situation that someone other than the City would <br />purchase the property for redevelopment. <br />The City Administrator pointed out that the City used <br />TIF dollars to write down land costs for developers in <br />the area, and the City was not involved in the actual <br />purchase of any property. However, the Administrator <br />felt it appropriate to protect the City's exposure to <br />relocation costs, and it would not seem inappropriate <br />to agreed to a fair market value for the property with <br />escalation clauses up-front. <br />LaValle suggested that such an agreement could be <br />worked out at the staff level. <br />Franklin indicated that he was agreeable to entering <br />into an agreement with the City provided that it was <br />fair and would not tie his hands for the future sale of <br />the property. Franklin suggested that the agreement <br />Page 12 <br />