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
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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
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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
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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
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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