Agenda Packets - 2004/06/28 (2) - Laserfiche WebLink

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Mounds View City Council June 14, 2004 Regular Meeting Page 12 1 Mayor Linke returned to the room. 2 3 J. Resolution 6282 Approving an Agreement to Purchase 2525 County Road 10 4 (Gas for Less) for $820,000 5 6 Economic Development Director Backman stated on April 26, 2004 the Mounds View Economic 7 Development Authority authorized staff to proceed with an appraisal of the commercial property 8 at 2525 County Road 10, known as Gas for Less. The EDA approved that an appraisal be 9 undertaken for an amount not to exceed $4,000 to be paid from the City’s EDA funds. Tisdell 10 Appraisal Services, Inc. from Burnsville was selected at a cost of $3,000, and the complete 11 appraisal was submitted to the City on May 27, 2004. Mr. Tisdell places the market value of the 12 facility as $819,000. 13 14 Economic Development Director Backman stated on May 19, 2004 the Mounds View Planning 15 Commission considered and approved a resolution recommending approval of the acquisition of 16 the parcel at 2525 Highway 10. The Commissioners determined that the city’s acquisition of the 17 lot would be consistent with the Comprehensive Plan future land use map. On May 24, 2004 the 18 Mounds View City Council authorized staff to negotiate a purchase agreement to acquire the 19 commercial property at 2525 Co. Highway 10 and present the agreement to the City Council for 20 final action. 21 22 Economic Development Director Backman stated staff has contacted Twin Cities companies that 23 conduct environmental assessment activities. During the first week of June three engineering 24 companies (Peer Engineering, DPRA, and Applied Engineering) provided proposals to the City 25 to undertake Phase I and other assessment activities. Staff advises that these environmental 26 activities be completed prior to the proposed closing on the property on June 30, 2004. 27 28 Economic Development Director Backman stated that staff recommends that the Mounds View 29 City Council adopt Resolution 6282 that authorizes staff to enter into a purchase agreement for 30 $820,000 with Calhoun Companies to acquire the commercial property known as Gas for Less 31 located at 2525 County Highway 10. Staff further recommends that the City of Mounds View 32 approve a Phase I Environmental Assessment, tank removal cost estimate and a minimum of four 33 site borings be undertaken of the site for an amount not to exceed $7,500, and that the results are 34 submitted to the City prior to June 30, 2004. 35 36 Council Member Stigney asked whether the seller would pay the $7,500 for the borings and tank 37 estimate to reduce the cost. 38 39 Economic Development Director Backman stated he didn’t think they would agree to that. 40 41 Council Member Stigney asked if the purchase would originally come from the Special Projects 42 Fund. Economic Development Director Backman stated that it would. Council Member Stigney 43 asked if it would later be transferred and paid out of the TIF fund, and Economic Development 44 Director Backman stated that it would. He stated there are no problems in so doing. 45