HomeMy WebLinkAbout#4 - 180 AcresSTAFF REPORT
DATE: March 10, 2020
DISCUSSION
AGENDA ITEM: Sale Process for 180 acres
TO: Mayor and Council
SUBMITTED BY: Kristina Handt, City Administrator
ISSUE BEFORE COUNCIL:
Is the city ready to consider offers to purchase all or a portion of the 180 acres? If so, how would the
council like to proceed?
PROPOSAL DETAILS/ANALYSIS:
As the city gets inquires on the possibility of purchasing some of the 180 acres on Ideal Ave we received
from 3M, it would be helpful for staff to know how the Council would like to proceed from a process
standpoint. I’ve checked with the City Attorney and verified that an appraisal or sealed bids are not
required. Per Attorney Sonsalla, “the City may sell it without hold a public hearing. The Planning
Commission is required by statute to review the sale in order to determine whether it is in compliance with
the Comprehensive Plan. Other than that, no other review is required. The Council will need to approve
the Purchase Agreement. The sale of real estate is exempt from the competitive bidding laws so the City
is not required to go out for bids on the sale of the land and doesn’t have to do any type of request for
proposals if it does not want to. The City may negotiate and enter into a purchase agreement with a
purchaser of its choice.”
If it is the Council’s goal to sell the land and get it back on the tax rolls as soon as possible, staff would
recommend a direct negotiation approach. Staff would research sales data in Washington County in order
to get a fair price.
If Council is willing to wait longer, staff would recommend an appraisal be completed after the land is
reguided. Having the property guided for the type of development the council wishes to see occur there will
allow for the most accurate appraisal. As we found with the Royal Golf development for example, the
value changed significantly ($5 million purchase price to $8 million appraised value) after it was reguided.
FISCAL IMPACT:
Cost of the appraisal for Royal Golf in 2017 was $10,000. Staff hasn’t gotten quotes for the city’s 180
acres so this is just meant as a rough estimate.
The bigger fiscal impact is related to the amount of time the land goes undeveloped versus the change in
sales price the Council expects to receive in 6 to 12 months from now if an appraisal and sale process is
selected.
ATTACHMENT:
• None