12-11-2023 EDA Packet - Laserfiche WebLink

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LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: December 11, 2023 TOPIC: Consider Resolution No. 23-02, Approving Purchase of Tax Forfeited Land in Apollo Business Park VOTE REQUIRED: 3/5 BACKGROUND In August, with recommendation from EDAC, the Council supported the acquisition of tax forfeit properties in the Apollo Business Park to support industrial expansion opportunities. These properties were originally created as borrow pits for fill material in the development and subsequently used for stormwater runoff. The lots do have capacity that would allow for some building expansion and/or use for additional stormwater from new construction. Since August, staff has continued to work with Mountain Manufacturing on their potential facility expansion. While expansion options are still being evaluated both parties believe acquisition of the parcel located southwest of Mountain Manufacturing is desirable. Under state law governmental subdivisions may purchase the tax forfeit property from the county for an authorized public purpose. The City’s Economic Development Authority (EDA) is authorized to acquire and sell property for economic development purposes. Staff is proposing that the EDA acquire the property from Anoka County for future assembly with abutting property. The County has established a market value of $900. Total cost with recording and state fees is $1,004.65. The proposed funding source is the EDA fund. The first step in the process is to request the purchase of property from the County. The County Board will then take action on the request. Once approved and payment made, the County will request a deed from the State of Minnesota and transfer the property to the EDA. Concurrently with this request, staff will be working with Mountain Manufacturing on a purchase agreement to complete the sale at the purchase price of $900 plus any costs incurred by the EDA. It is anticipated that action on the purchase agreement would be considered by the Authority in January of 2024. The EDA will retain a public drainage and utility easement over a portion of the property to maintain drainage rights for adjacent properties. The sale may also include a right for title to revest to the EDA, at the sale price, if no improvements are undertaken within a certain period of time.