05-24-2021 Council Packet - Laserfiche WebLink

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CITY COUNCIL AGENDA ITEM 6A STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: May 24, 2021 TOPIC: Consider First Reading of Ordinance 04-21, Approving Sale of Land to Vaquero Ventures Management, LLC. VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting City Council consideration for the sale of land to Vaquero Ventures Management, LLC (Buyer). BACKGROUND In 1990 the Lino Lakes Economic Development Authority purchased lots 12-16, Block 2, Carole’s Estates as part of a Public Safety complex including construction of a new Fire Station. The properties were transferred to the City as part of the project financing. In 1999, following completion of the Civic Complex, the City sold the former Police Station (Lot 15) to the American Legion. In 2017 the City sold Lot 14 to the American Legion for parking expansion. Lots 12 & 13, Block 2 of Carole’s Estates 2nd Addition are immediately south of the American Legion and currently undeveloped. The property is approximately 2 acres in area. The property was being used for community gardens as a temporary use pending its sale and development. Through negotiations with Vaquero Management the City has reached a sale price of $525,000 ($6.00 SF) The purchase is subject to a 120 day buyer contingency period with options for 2-60 day extensions. Under the terms of the agreement buyer will execute a restrictive covenant prohibiting use of property for automobile/truck repair, or a Motor Fuel station with the exception of ancillary operations customary to a retail store selling automobile parts and accessories. The city will also retain the right to repurchase the property at the original sale price if buyer does not procure a building permit and commence construction within two years. The sale is also contingent on approval between both parties of a subsequent agreement regarding relocation of 77th Street, vacation of existing 77th Street, and provision of drainage easements for existing ponding on the site. The purchase is also contingent on the acquisition of an adjacent residential property, south of 77th, by the buyer. EDAC reviewed the sale at their May 6, 2021 meeting and supported the sale.