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HomeMy WebLinkAbout09-27-2004 EDA PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY MONDAY SEPTEMBER 27, 2004 6:00 P.M. 1. Call to Order and Roll Call 2. Consideration of Minutes of February 23, 2004 3. Public Hearing: Consideration of Sale of Property to E.G. Rud & Sons Land Surveyors 3A. Consideration of Resolution No. 04-02 authorizing the sale of property 4. Adjourn 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 DATE MEMBERS PRESENT MEMBERS ABSENT OTHERS PRESENT CITY OF LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY MINUTES : February 23,2004 : J. Bergeson, D. Carlson, C. Dahl, D. Stoltz (part), J. Reinert : None : Gordon Heitke, Mary Divine, Michael Grochala CONSIDERATION OF MINUTES OF NOVEMBER 24, 2003 EDA Member Bergeson moved to approve the November 24, 2003 minutes, as presented. EDA Member Reinert seconded the motion. Motion passed. CONSIDERATION OF ANNUAL APPOINTMENTS Ms. Divine summarized the Staff report, noting the various appointments to be made. EDA Member Reinert moved to appoint EDA Member Stoltz as President. EDA Member Bergeson seconded the motion. EDA Member Dahl asked if anyone else had yet to serve as President besides EDA Member Stoltz. Ms. Divine indicated she did not bring a list of the past President's, but remembers that EDA Member Bergeson was President the year before last. EDA Member Reinert noted he has not served as President. EDA Member Dahl asked if she has ever been President. Ms. Divine indicated she believes EDA Member Dahl was President for one year. Vote: 2 Ayes, 2 Nays. Motion failed. EDA Member Carlson and EDA Member Dahl opposed. EDA Member Dahl moved to appoint EDA Member Reinert as President. EDA Member Bergeson seconded the motion. EDA Member Dahl noted EDA Member Reinert would be next in line, and she likes it to be equal. Motion passed unanimously. EDA Member Stoltz absent. Ms. Divine noted that EDA Member O'Donnell was Vice President in 2003. EDA Member Dahl asked who else has been Vice President. Ms. Divine indicated that again, she is not sure who else has served in this capacity. EDA Member Carlson noted she believes EDA Member Dahl was Vice President the year before. EDA MINUTES FEBRUARY 23, 2004 DRAFT 46 EDA Member Dahl moved to appoint EDA Member Carlson Vice President. EDA Member Reinert 47 seconded the motion. 48 49 Motion passed unanimously. EDA Member Stoltz absent. 50 51 Ms. Divine indicated EDA Member Dahl was Treasurer in 2003. 52 53 EDA Member Bergeson moved to appoint EDA Member Stoltz as Treasurer. EDA Member Dahl 54 seconded the motion. 55 56 Motion passed unanimously. EDA Member Stoltz absent. 57 58 Ms. Divine indicated items four through eight could be done in one motion. She read the 59 appointments. 60 61 EDA Member Bergeson moved to recommend items four through eight continue with the same 62 individuals and agencies as stated in the Staff report. EDA Member Reinert seconded the motion. 63 64 Motion passed unanimously. EDA Member Stoltz absent. 65 66 CONSIDERATION OF RESOLUTION NO. 04-01 AUTHORIZING THE SALE OF 67 PROPERTY AT 6508 HODGSON ROAD 68 69 EDA Member Dahl moved to open the public hearing at 6:18 p.m. EDA Member Reinert seconded 70 the motion. 71 72 Motion passed unanimously. EDA Member Stoltz absent. 73 74 Ms. Divine summarized the Staff report, indicating Staff recommends approval. 75 76 EDA Member Bergeson asked if the action of the EDA was positive, the item would come to the City 77 Council for approval. Ms. Divine explained that the City Attorney advised the property was 78 purchased by the EDA, so it is being sold by the EDA. It does not need to go to the City Council, but 79 needs to be approved by resolution by the EDA. 80 81 EDA Member Carlson asked what other property in the city the EDA owns. Ms. Divine indicated she 82 is not aware of any other property, nor is she sure why the EDA bought this parcel, except that it was 83 a tax forfeiture at the time and the City Attorney must have advised Staff to purchase it through the 84 EDA. EDA Member Carlson stated she spoke with Mr. Grochala about this property earlier today, 85 and then became concerned there may be other parcels in this same scenario. 86 87 EDA Member Dahl asked again why it would happen that the EDA owns the property rather than the 88 City. Ms. Divine stated she does not know, and unfortunately the City Attorney is not in attendance 89 to shed light on the subject. She indicated that she would guess that because it was Anoka County 90 property, and because of the tax forfeiture issues that this was the best way to do it. 2 EDA MINUTES FEBRUARY 23, 2004 DRAFT 91 92 EDA Member Dahl moved to close the public hearing at 6:21 p.m. EDA Member Bergeson seconded 93 the motion. 94 95 Motion passed unanimously. EDA Member Stoltz absent. 96 97 EDA Member Bergeson moved to adopt Resolution No. 04-01 approving the sale of property at 6508 98 Hodgson Road. EDA Member Reinert seconded the motion. 99 100 EDA Member Dahl asked why they would not want to sell the right-of-way to Anoka County and 101 keep the remainder of the property to sell to Apitz Garage or someone else. Ms. Divine stated that the 102 remainder of the property as its own parcel is not large enough to sell for commercial use. She noted 103 the City was getting full market value for the property, and the deal was worked out with Anoka 104 County and Apitz Garage. 105 106 EDA Member Dahl stated the taxed market value is $89,600, and she is aware you can generally sell 107 property for somewhat higher than the taxed market value, but agreed the City is getting somewhat of 108 a fair price for the land. She indicated as she passed the property tonight she saw a number of cars 109 parked there, so she believes Apitz Garage is using the property already, which does not bother her 110 unless the City were liable if someone got hurt. 111 112 Ms. Divine stated she is not aware of any use of this property. EDA Member Dahl stated she did see 113 a line of cars on the property. She questioned if the City has insurance on the property in case 114 someone gets hurt. She stated she would still like control of that intersection being there is a lot of 115 development going on, but understands selling it to Anoka County if they plan to sell the remainder to 116 Apitz Garage. She noted Apitz Garage must want the property since they are already using it. 117 118 Community Development Director Grochala explained that the property in question is small, and Mr. 119 Grubbs owns property all around it. 120 121 EDA Member Stoltz joined the meeting at 6.•28 p.m. 122 123 EDA Member Reinert indicated he agrees with selling the entire piece to the County for market value. 124 He stated they could splice the property up, but the City would end up with the same money. He 125 stated the City is not losing money because they are getting fair market value for the land. He 126 indicated they could squabble over selling the extra land to Apitz Garage themselves, but Apitz 127 Garage may not want the land if they have to pay for it. Ms. Divine noted Anoka County would be 128 selling the land to Apitz Garage, not giving it to them. 129 130 EDA Member Reinert stated the City is getting a good increase over the price they purchased the land 131 for in 1995. He believes the City is coming out good, and the County is getting the land they want. 132 133 EDA Member Dahl reiterated her concern is that the City will lose control of the intersection. She 134 stated while they would be making money either way, she is more concerned about losing control. 135 3 EDA MINUTES FEBRUARY 23, 2004 DRAFT 136 Vote: 4 Ayes, 1 Nay. Motion passed. EDA Member Dahl opposed. 137 138 ADJOURNMENT 139 140 There being no further business, EDA Member Reinert moved to adjourn. EDA Member Stoltz 141 seconded the motion. Motion passed unanimously. 142 143 Meeting adjourned at 6:31 p.m. 144 145 Transcribed by: 146 Karen Bucklen 147 TimeSaver Off Site Secretarial, Inc. 148 4 STAFF ORIGINATOR: DATE: TOPIC: VOTE REQUIRED: BACKGROUND: AGENDA ITEM 3 Mary Alice Divine 9/27/04 Consideration of Resolution No. 04-02 Authorizing the Sale of Property at the northeast corner of Highway 23 (Lake Drive) and Highway 49 (Hodgson Road) 3/5 The EDA owns 4.4 acres of property on the northeast corner of Hodgson Road and Lake Drive. This property was obtained as a part of the realignment of Hodgson Road. The property is zoned General Business and the intent of the EDA was to sell it for economic development purposes. E.G. Rud & Sons Land Surveyors has submitted a purchase agreement for the property for the location of its offices. The city completed an appraisal of the property. The appraisal indicated that the market would likely realize only 1.39 acres of the property as buildable, with the excess land providing some support site improvements, landscaping and view -shed amenity. Based on the 1.39 buildable acres, the appraisal placed the estimated value of the property at $300,000, or $4.95/sq. ft. An overhead power line traverses the site, and interferes with the use of the parcel and the view of the lake. The purchase agreement states that the city will pay for one-half of the cost of burying the power line, up to a maximum of $25,000. The buyer has put down earnest money on the parcel and the anticipated closing is before December 31, 2004. If an extension of the closing is required, additional earnest money will be required after this date. This resolution authorizes the sale of the property and directs staff and city attorney to execute the agreement. OPTIONS: 1. Approve Resolution No. 04-02 authorizing sale of property to E.G. Rud & Sons Land Surveyors 2. Do not authorize the sale. 3. Return to staff for further consideration RECOMMENDATION: Option 1 JO•Mu .r.:1111war.V=11•1ar, t 1 i J den Lake Side Pa Subject Baldwin Lake 1 Ik 49 I ,Nr r1 Y It P LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 04-02 RESOLUTION AUTHORIZING THE SALE OF PROPERTY WHEREAS, The Lino Lakes Economic Development Authority (the "Authority") owns 4.4 acres of property (the "Property") on the northeast comer of Highway 23 (Lake Drive) and Highway 49 (Hodgson Road): and WHEREAS, the real property is described as: That part of Government Lot 1, Section 30, Township 31, Range 22, Anoka County, Minnesota and all of that part of the right of way of State Highway No. 49 (also known as Hodgson Road) lying within said Government Lot 1, lying northwesterly of the southeasterly right of way line of said State Highway No. 49, lying southeasterly of a line parallel with and distant 75.00 feet southeasterly of Line A as described below, lying northeasterly of a line parallel with and distant 64.00 feet northeasterly of Line B as described below and lying northeasterly of a line parallel with and distant 74.00 feet northeasterly of Line C as described below: Line A: Beginning at a point on the west line of Section 25, Township 31, Range 23, distant 944.55 feet north of the southwest corner thereof; thence northeasterly at an angle of 48 degrees 18 minutes 00 seconds from said west section line (measured from north to east) 247.30 feet; thence northeasterly deflecting to the right 09 degrees 52 minutes 00 seconds a distance of 8400.70 and said line there terminating. Line B: Commencing at the northwest corner of said Section 30; thence on an assumed bearing of South 89 degrees 54 minutes 18 seconds East along the north line of the Northwest Quarter of said Section 30 a distance of 1596.26 to the point of beginning of the line to be described, said north line of the Northwest Quarter also being the north line of said Government Lot 1; thence South 40 degrees 01 minute 05 seconds East 109.40 feet; thence southeasterly 429.10 feet along a tangential curve concave to the southwest having a central angle of 30 degrees 02 minutes 14 seconds and a radius of 818.51 feet and said line there terminating. Line C: Beginning at the terminus of Line B as described above; thence South 09 degrees 58 minutes 51 seconds East and tangent to last above described curve 393.10 feet and said line there terminating. TOGETHER with all that part of Lot 17, Auditor's Subdivision No. 151, Anoka County, Minnesota and all that part of the right of way of State Highway No. 49 (also known as Hodgson Road) lying within Government Lot 3, Section 19, Township 31, Range 22, and lying northwesterly of the southeasterly right of way line of said State Highway No. 49 and lying southeasterly of a line parallel with and distant 75.00 feet southeasterly of the following described line: Beginning at a point on the west line of Section 25, Township 31, Range 23, distant 944.55 feet north of the southwest comer thereof; thence northeasterly at an angle of 48 degrees 18 minutes 00 seconds from said west section line (measured from north to east) 247.30 feet; thence northeasterly deflecting to the right 09 degrees 52 minutes 00 seconds a distance of 9120.00 feet and said line there terminating. Subject to all right of access, being the right of ingress to and egress from the two above described properties to County State Aid Highway No. 23, also known as Lake Drive. WHEREAS, Ernest G. Rud, together with Marian Rud, Jason Rud and Karla Rud (collectively the "Buyer") has agreed to purchase the property from the Authority for an amount of $300,000; and WHEREAS, the Authority has agreed to divide the cost of burying power lines on the Property at a cost that will not exceed $25,000 to the Authority; and WHEREAS, the Authority has determined that the Property is no longer needed for any public purpose. NOW, THEREFORE, BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows: rrtr are - Staff and City Attorney are hereby authorized and directed to a purchase agreement with the Buyer for the purchase of the property for the amount of $300,000. The President, Executive Director, staff and City Attorney are hereby authorized and directed to take any and all other steps necessary or convenient in order to accomplish the sale of the Property. September 27, 2004. ATTEST: xe(eutive Director