07/26/2004 Council Packet - Laserfiche WebLink

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• • AGENDA ITEM 6B STAFF ORIGINATOR: Mary Alice Divine DATE: 7/26/04 TOPIC: Second Reading: Ordinance No. 20 -04 offering the sale of property to Legacy Holdings Lino Lakes, LLC Vote Required: Simple majority BACKGROUND: The City of Lino Lakes owns 11.69 acres of property for sale on the southeast quadrant of 35W /Lake Drive. This land makes up a portion of the proposed Legacy at Woods Edge mixed use downtown development. Hartford Group, Inc. has proposed a project that meets criteria established in the Comprehensive Plan for this site. According to the City Charter, the sale of real property shall be disposed of by ordinance. The proceeds of the sale shall be used to retire outstanding debt incurred by the city in the purchase of the property. In this case, it will be used to offset the costs incurred in purchasing the property and putting in public improvements. Once outstanding debt is paid, the city council may designate some other public use for the proceeds. The year end financial statements for 2003 show the Town Center Project Fund had a deficit of $1,081,320. This balance is the same as it was at the end of 2002, and no additional costs have been charged to this fund since the beginning of the year. The break -even analysis for the fund contained in the 2002 audit management letter to the City Council by Darwin Viker of LAWCO states a per square foot cost of the property at $4.38. The sale price of $4.50 per foot agreed to by Hartford Development will result in a net gain on the sale of the property and will eliminate the deficit in the Town Center project fund. OPTIONS: 1. Approve the second reading of Ordinance No. 20 -04 offering the sale of property to Legacy Holdings Lino Lakes, LLC