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<br />WS – Item 7 <br />WORK SESSION STAFF REPORT <br />Work Session Item No. 7 <br /> <br /> <br />Date: June 6, 2016 <br /> <br />To: City Council <br /> <br />From: Michael Grochala, Diane Hankee <br /> <br />Re: American Legion Parking <br /> <br /> <br />Background <br /> <br />The American Legion would like to add parking at their club located at 7731 Lake Drive. <br />They currently have 35 regular stalls and 2 handicap stalls. Multiple options for <br />expanding their existing parking on site were considered back in 2011. The most that <br />could be gained was an additional 12 stalls. The American Legion is proposing a new <br />parking lot on the adjacent City owned land that would accommodate approximately 35 <br />additional stalls. The site plan provided does not currently include provisions for <br />stormwater management. <br /> <br />Council considered this request at the March 7, 2016 work session. City Council directed <br />staff to have an appraisal prepared for the property and evaluate potential financing <br />options. The American Legion was to prepare the design of the proposed improvement <br />and submit to staff for review. <br /> <br />Since that time an appraisal was completed by McKinzie Metro Appraisal on March 16, <br />2016. The appraised value for Lot 14 is $100,200 for the one-acre parcel ($2.30/SF). <br />Sale of just a portion of the parcel may result in a slightly increased SF price. The price <br />assumes that the city retains a 30 easement across the front of the property for access to <br />Lots 12 and 13. This information was provided to the Legion. <br /> <br />Springsted Inc., the City’s financial consultant reviewed options for financing the <br />construction of the parking lot. The main impediment to doing so is that there does not <br />appear to be a public purpose in constructing a parking lot for a private business. Public <br />expenditures and activities are limited to public benefit. <br /> <br />Even if the Council determines that the City complies with the public purpose doctrine, <br />the financing options are somewhat limited. Additionally, the issuance costs associated <br />with any city bonding/financing could outweigh the advantages of a city led project. <br /> <br />Staff has not received any site planning information from the American Legion. Staff <br />would recommend that the American Legion prepare a preliminary design, determine <br />their land needs and make an offer on the land. If the offer is acceptable, the American <br />Legion would be able to evaluate their private financing options and determine whether <br />to proceed or alternatively continue discussions on City financing options.