06-22-1999 Council Agenda - Laserfiche WebLink

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515 Little Canada Road. Little Canada. MN 55117 -1600 (651) 484 -2177 / FAX: (651) 484 -4538 MAYOR Michael 1. Fahey COUNCIL Beverly Scalze Jim LaValle Steve Morelan Bob Pedersen ADMINISTRATOR Joel R. Hanson MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: June 18, 1999 RE: Rice Street/Little Canada Road Redevelopment Update Guerin Property Acquisition: The Commissioner's hearing is set for June 30'h. (Title to the property has already been acquired.) This hearing will be held at the City Center. It appears the City Attorney and his experts are appropriately prepared. Sherman Rutzik Proposal: Based on the preliminary tax increment financing analysis I have prepared two weeks ago, Mr. Rutzik has indicated his proposal is not feasible. He has withdrawn it from further consideration. He has also indicated he would like to sell his property to the City. The concept we discussed would have him selling the property based on the appraised value of $2 per square foot. Because Mr. Rutzik feels his property is worth more than $2, he would obtain his own appraisal of the property and gift any increase in the value over the $2 per square foot figure to the City. The City would also issue him a letter indicating the "threat of eminent domain" to provide him greater flexibility in dealing with capital gains. The major concern with this concept is the City's ability to finance the acquisition. I am attempting to put together a plan to accomplish this. Any comments on the part of the Council would be appreciated as to my efforts in this regard. South Site Redevelopment: I did meet with Mr. Christenson and Mr. Collyard on June 17th. We discussed some financing concepts of their development proposal. There is nothing of substance to report at this time. JRH.kpp ce: Ron Christenson Sherman Rutzik PAGE 259