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�.�V�T ��G� C�(ll)[�`��f�;)�,� �'•,� iii��inl,'� ~Oki�,1S , Partnecs�`�QS REQUEST FOR �DA CONSIDERATION STAFF REPORT EDA MEETING DATE November 12, 1996 Agenda Section 7B Report #: EDA 96-61 C Report Date: 11/8/96 Item Description: Consideration of Resolution Approving and Authorizing the Acquisition of 2975 Highway 10 for Redevelopment Purposes and the Execution of a Purchase Agreement for that Purchase Explanatlon/Summary (attach supplement sheets as necessary) Summary: Over the past year, the EDA has discussed the status of property located at 2975 Highway 10. It has been vacant since the summer of 1995 and prior to that the property was a used car sales lot. In June of 1995, the property went into foreclosure with an outstanding note of $150,000. As part of foreclose proceedings, there was a sherif sale, whereby the t�ote on the property could be purchased. Since there was no sale, the banl< continued to hold the note and were required to go through a redemption period of 6 months. The redemption period allows the owner to malce the note current and get the property bacic within the six month period. The redemption period ended October 5, 1996 with no action fi'om the owner. The City has been in close contact with the banlc regarding the status of the property. As a courtesy, loan officer Glen McCabe offered the sale of the property to the City prior to putting it on the marlcet. The purchase was discussed by the EDA at the Novembei• 4th work session and staff was directed to negotiate a purchase for $106,000 which would cover bacl< property taxes. In addition, the EDA suggested several contingencies as part of the sale such as payment of all past due City fees, removing debris and hazardous substances from tlle property and covering the cost for a Phase I Environmental Assessment. Norwest was willing to draw up a purchase agreement including the EDA's contingencies but the same day received another offer from a long time banlc customer (1Cen Clark) interested in using the property for an "insta-lube" station. Not•west is currently evaluating the pros and cons of each offer. ICen Clar•Ic representing Amoco and Bill Clarl< Oil Company met with the Community Development Staff regarding the procedures for an "insta-lube" on the site. It was explained that he would need to obtain a conditional use permit from the Planning Commission and Council for this use and the process may talce approximately 120 days. Staff reviewed the additional recoinmended requirements that should be met to improve the property prior to issuance of a conditional use permit. Those requirements included improvement of parlcing lot with curbing, driveway access more clearly defined, additional landscaping, expand, repair or replace existing fence which serves as a buffer to the residential neighborhood, paiut exterior of building and remove window signs and replacement of parlcing lot liglits. Norwest is aware of the process, additional requirements aud the possibility that the conditional use permit will not be �ranted if all of the requirements are not met. Planning Commission reviewed a similat• case recently fi•om another applicant who recently requested that the City delay final consideration. � Cathy Benne , c n. Dev. Coordinator RECOMM�NDATION: Waive the reading and approve Resolution No. 96-EDA 55 Approving and Authorizing the Acquisition of 2975 Highway 10 for Redevelopment Purposes and the Execution of a Purchase Agreement