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CITY COUNCIL <br />CLOSED MEETING <br />AGENDA ITEM 1A <br /> <br />STAFF ORIGINATOR: Michael Grochala, Community Development Director <br /> <br />MEETING DATE: July 24, 2023 <br /> <br />TOPIC: Letter of Intent, Purchase of Lots 12 and 13, Block 2, Carole <br />Estates 2nd Addition and 7685 Lake Drive. <br /> <br />VOTE REQUIRED: N/A <br /> <br />INTRODUCTION <br /> <br />The City has received an offer for the purchase of 2.24 acres of property owned by the City at the <br />corner of Lake Drive and 77th Street and a remnant of 7685 Lake Drive. <br /> <br />BACKGROUND <br /> <br />Lots 12 and 13 were acquired by the City from the Economic Development Authority (EDA) in <br />1990, along with Lots 14, 16 & 17, for the construction of what was then known as Centennial Fire <br />Station No. 2. At that time the City already owned Lot 15, Block 2 which was occupied by the <br />original Centennial Fire Station No. 2. Lot 15, Block 2 was sold to the American Legion in 1999 as <br />well as Lot 15 in 2017. The City purchased 7685 Lake Drive in 2019 for right-of-way allow for the <br />77th Street realignment. <br /> <br />Statutory cities have the power to sell land or buildings they no longer need to anyone, other than <br />elected officials. Home rule charter cities generally have similar authority in their charters. If a city’s <br />charter is silent with regard to the matter, it may use the authority that statutory cities have. (Minn. <br />Stats. § 412.211 Minn. Stat. §410.33) <br /> <br />City Charter requires that any sale of property be authorized by ordinance. The proceeds of any sale <br />must be used to retire any outstanding indebtedness incurred by the City in the purchase. If no <br />outstanding indebtedness, the council may be resolution designate some other public use for the <br />proceeds (City Charter §12.05). There is no outstanding indebtedness remaining from the purchase. <br /> <br />The City has received a Letter Of Intent (LOI) from a developer with an offer to purchase Lots 12 <br />and 13 along with remnant of 7685 Lake Drive. Staff will present the offer for discussion at the <br />meeting. If an agreement is reached the sale of the property will require adoption of an ordinance in <br />accordance with City Charter requirements. <br /> <br />COUNCIL CONSIDERATION <br /> <br />Staff is requesting City Council consideration of the request and potential counter offers related to <br />the sale of property. <br /> <br />ATTACHMENTS <br /> <br />1. Location Map