04-14-1999 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 9, 1999 RE: Good Year Redevelopment Proposal MAYOR Michael 1. Fahey COUNCIL Beverly Scalze Jim LaValle Steve Morelan Bob Pedersen ADMINISTRATOR Joel R. Hanson Mr. Perry Linn of Linn's Service Center, Inc. has been attempting to acquire the properties at 2600 Rice Street, 2616 Rice Street, and 2620 Rice Street. To -date, he has not been successful in his negotiations. Therefore, he is making a request of us to assist him with acquisition of those parcels in order that the site can be assembled to support the construction of a 16,000 square foot retail project with a value of between $1.5 and $2 million dollars. As you know, this project would house the Good Year Tire Store and other retail uses. A letter from Mr. Linn and Mr. Jack Lowry of RJ Marco Construction, Inc. is attached asking for the City's assistance by the use of eminent domain to acquire the subject properties. The owners of the car wash property at 2600 Rice Street are opposed to the acquisition of their property by Mr. Linn. (See letter attached dated April 9, 1999. I also attached their previous development proposal.) Mr. Paul Anderson, the owner of 2616 Rice Street, is indicating his interest in working with Mr. Linn or the owners of the car wash to sell his property (see copy of his letter attached). I also understand Mr. Reiling and Mr. Drake are in the process of acquiring the property at 2620 Rice Street from the Kleins. Should the Council be interested in assisting the developers in acquiring these sites to facilitate the redevelopment of this area and enhance the tax base, I believe the first step would be to commission appraisals of the subject properties so the developers can be made aware of the cost implications of this action. To that end, they are prepared to pay for the cost of the appraisals in an amount not to exceed $15,000 to accomplish this task. I have received a proposal from Mike Bettendorf for an appraisal of the car wash property at a price of $4,500. An appraisal does not appear necessary for the Anderson property at this time given his interest in selling. An appraisal of the Klein property may also be necessary for a similar price as the car wash. Once the appraisals are received, the developers would have to decide if they are willing to go forward with the process. If acquisition proceeds, they would be required to reimburse the City for any and all costs associated with the acquisition of these parcels including but not limited to Page 1