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1 <br />CITY COUNCIL <br />REGULAR MEETING STAFF REPORT <br />AGENDA ITEM 6A <br />STAFF ORIGINATOR: Michael Grochala, Community Development Director <br />MEETING DATE: <br />TOPIC: <br /> September 25, 2023 <br /> Consider 1st Reading of Ordinance No. 11-23 Approving Sale of <br /> Property to TS Miller Co. (Rice Industries) <br />VOTE REQUIRED: 3/5 <br />______________________________________________________________________________ <br />INTRODUCTION <br />Staff is requesting City Council consideration to approve the sale of 1.14 acres of land to TS <br />Miller Co., (Rice Industries) to facilitate the expansion. <br />BACKGROUND <br />Rice Industries is a 46 year old full service distributor serving the metal casting industries. Rice <br />acquired a 1.9 acre parcel from the City in 1997 for the construction of a 10,000 square foot <br />warehousing facility at 424 Apollo Drive. In 2021 Rice Industries was acquired by TS Miller Co., <br />and they are now in the process of expanding the existing facilities. <br />The proposed 14,000 SF expansion requires additional land to meet drainage, impervious <br />surface and setback requirements. The City is the owner of an adjacent 1.14 acre parcel. The <br />parcel was originally used for borrow material as part of the development of the Apollo <br />Business Park and serves as an overflow storm water management ponding area for the Rice <br />Industries site. <br />To facilitate the proposed expansion staff is proposing conveyance of the city parcel to TS Miller <br />Co. The property is currently tax exempt and has a value of $24,000 per the County Assessor’s <br />office. To facilitate the project and place the property back on the tax rolls the City is proposing <br />a sale price at a nominal fee of $1. Because the value of the property is less than $150,000 the <br />conveyance is not considered a Business Subsidy under state requirements. <br />The City will retain a drainage and utility easement over the portion of property not needed for <br />expansion purposes. TS Miller Co. will be responsible for city costs associated with the <br />transfer. The conveyance will be conditioned on construction activities starting within 18 <br />months of approval. The company would like to begin construction as early October of 2023.