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HomeMy WebLinkAbout05/13/1991 Council Minutes136 COUNCIL WORK SESSION CITY OF LINO LAKES COUNCIL MINUTES MAY 13, 1991 DATE May 13, 1991 TIME STARTED : 5:30 P.M. TIME ENDED • 6:30 P.M. MEMBERS PRESENT: Bisel, Bohjanen, Kuether, Neal, Reinert MEMBERS ABSENT : None City Engineer, Darrell Schneider; Public Works Director, Don Volk; Administrator, Randy Schumacher and Clerk - Treasurer Marilyn Anderson were also present. SCHILLING INDUSTRIAL PARK AND ROAD SYSTEM Mr. Schilling has sent a letter to the City offering to sell to the City the Lino Industrial Park. The Lino Industrial Park is approximately 36 acres and Mr. Schilling is asking $300,000.00 to be paid within the next seven (7) years at about 10% interest. The selling price would be approximately $8,300.00 per acre or 19 cents per square foot. Mr. Schneider calculated the cost of improving the Industrial Park with street and municipal water and sanitary sewer. The total cost would be about $489,000.00. In addition drainage ponds would be constructed. Total cost of the land and improvements could be about 70 cents to 75 cents per square foot. Mr. Schumacher had researched the cost of land in other industrial parks in Anoka County. He presented this information to the Council. It was noted that land costs vary and this is due to the number and kind of incentives offered by each city in which the industrial park is located. Mr. Schumacher also noted that if the City were to purchase Mr. Schillings property, the City would have control of the amount and type of development. The City could use some MSA funding for streets and TIF for installation of sewer and water lines. The City probably would have more flexibility in development of the property than a private person or company. Mr. Schneider noted that most large commercial developers are looking at basically getting the land free of charge. Mr. Schneider presented a map showing a different street system PAGE 1 1 1 1 1 1 COUNCIL WORK SESSION MAY 13, 1991 for the Industrial Park. He noted that the large collector street would qualify for MSA funding. He -also explained that Lilac Street is an outdated trunk highway and because it is the main route to the state prison, the state may be encouraged to participate in the upgrading of Lilac Street and possibly the relocation of the street to the north. The relocation is needed to design a better traffic pattern for the intersections of Lake Drive, I35W and Lilac Street. There was further discussion regarding the location of streets in the Industrial Park and the relocation of Lilac Street. Mr. Schumacher suggested that he approach Mr. Schilling and ask for an option to purchase the Lino Industrial Park. This would give him time to meet with MnDOT regarding Lilac Street and also time to put together a package to purchase the property, improve the property and prepare related costs. It was noted that the state is considering building additional cottages at the prison and fronting them on 4th Avenue. It was noted that 4th Avenue south of Lilac Street is not in good condition. The consensus of the Council is, if the state is going to place any improvements along 4th Avenue, these improvements should be tied to the state participating in the reconstruction of 4th Avenue. It was the consensus of the Council that Mr. Schumacher is directed to negotiate an option with Mr. Schilling based upon a purchase price that is 1/2 the purchase price asked by Mr. Schilling and explain to him why the City feels the land is not worth the current asking price. The work session adjourned at 6:30 P.M. These minutes were considered, corrected and approved at a regular Council meeting held on May 28, 1991. nc.�� `17? ( -(erjl n G. Anderson, , Clerk -T easurer Harold L. Bis 1, Mayor PAGE 2 13 7