08-24-2005 Council Agenda - Laserfiche WebLink

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D O R S E Y City of Little Canada August 1, 2005 Page 2 1. MAC believes that there are other sites available for the public works garage, acquisition of which would have less adverse impact on their owners and be better for the City. In this regard, in making acquisition decisions, the City should not just consider its own needs, but should consider the adverse impact on one of its corporate citizens as it decides how to proceed. 2. MAC understands that the City has received an estimate of acquisition costs of $750,000 for the Property. The City should understand, at the outset, that that estimate is far off the mark. The limited supply of properties permitting outdoor storage use is such that many companies are willing to pay a significant premium for them in locations such as the City. When MAC heard that the City might acquire the Property, it attempted to identify other locations within the City. As you may recall, it discussed with the City the possibility of acquiring a property from Hillcrest Development. The City, however, indicated that outdoor storage use would not be permitted in that location. MAC has also tried to identify other properties that might serve its needs, without success. MAC has not had the Property formally appraised, but has consulted with brokers and an appraiser, and otherwise attempted to estimate the market value of the Property. The Property may be worth well over $2,000,000. Moreover, the City would have to pay a sum well in excess of the value of the Property alone, if it proceeds through the use of eminent domain, because it would also have to pay relocation costs and other damages on top of just compensation for the land. All in all, the Property is not a good place for the public works garage on grounds that the Property is too expensive in relation to the project contemplated. 3. If the City decides to acquire the Property, notwithstanding the points above, MAC wants the City to understand that proceeding with the acquisition on a short lead time basis would be particularly onerous for MAC and costly for the City. For example, use of the statutory "quick take" procedures to acquire the Property this year would not give MAC time to make alternative arrangements for the cost - effective conduct of its business. Condemnation, at least in that circumstance, would not involve a taking of only the Property, but would also involve a taking of significant business interests of MAC entered into in contemplation of use of the Property. The longer the lead time, the less damages of that kind would be involved. Therefore, MAC hopes the City will be mindful of that fact with regard to any decision it makes to go forward. Moreover, aside from other considerations, the City as a matter of simple fairness, should let MAC know of its decision well in advance. MAC hopes that the City will consider the points made in this letter, will abandon any plans it may have to acquire the Property, and will notify MAC of that decision promptly. Alternatively, MAC requests that the City let MAC know, in advance, of any City meetings, at which the acquisition of the Property will be discussed. MAC has asked for such a courtesy in the past, I understand, but, at times, the request has been ignored. Finally, MAC requests that 4 HORSEY & WHITNEY UP