04-27-1999 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117-1600 (651) 484 -2177 / FAX: (651) 484 -4538 MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: April 23, 1999 RE: Economic Development Update Rice Street/Little Canada Road: I have not received any new information regarding this project. MAYOR Michael I. Fahey COUNCIL Beverly Scalze Jim LaVaile Steve Morelan Bob Pedersen ADMINISTRATOR Joel R. Hanson Country Drive: I met with Mr. Don Gagne on April 22". I reviewed the reasons the timeline is becoming critical for this redevelopment district. I also emphasized the impact the reduction in class rates by the legislature is having on tax increment cash flows. I provided an example showing Mr. Allen's proposed building at current class rates and those recently proposed in the house tax bill. I discussed the concepts of increasing his appraised value by the consumer price index, paying him an additional amount to avoid condemnation (the amount we would pay for this process estimated at $15,000), and paying him a lump sum relocation payment estimated at $20,000 (this amount was provided by a relocation consultant). I further indicated that this would be the type of situation I would recommend to the Council for any property owners if a project was pending and the need for their property was immediate. Mr. Gagne is considering the situation. He indicated that it did not fully meet his expectations regarding the sale price. I emphasized to him that the decision was his as it was unlikely the Council would utilize eminent domain to force someone to sell their property when it had been their longtime homestead and had been so prior to the formation of our redevelopment district. I further indicated that if the project does not work at this time, the City will likely minimize its efforts in this area given the reduced possibility for success. JRH:kpp cc: Don Gagne Gary Collyard Page 176