HomeMy WebLinkAboutAgenda Packets - 2012/02/06
CITY OF MOUNDS VIEW
MOUNDS VIEW, MINNESOTA
NOTICE OF CLOSED EXECUTIVE SESSION MEETING
Monday, February 6, 2012
6:00 p.m.
NOTICE IS HEREBY GIVEN that the City Council of the City of Mounds View will hold a
Closed Special Council Meeting, including a closed meeting, on Monday, February 6, 2012,
commencing at 6:00 p.m. at City Hall, 2401 Highway 10, Mounds View, Minnesota, for the
following purposes:
1. Pursuant to Minnesota Statutes Sections 13D.05, subdivision 3(c), to conduct a
closed session to review and consider strategies and to develop or consider
offers or counteroffers for the purchase or sale of an interest in real or personal
property located at 2832 County Road 10, Mounds View, Minnesota.
James Ericson, City Administrator
DATED: February 2, 2012.
Meeting Date: Feb. 6, 2012
Type of Business: Executive Session
Administrator Review: ____
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Heidi Steinmetz, Economic Development Specialist
Item Title/Subject: Determine Purchase Offer Amount for “PAK” Building
Background
On December 16, 2011, the EDC recommended that the EDA purchase the “PAK” building
located at 2832 County Road 10 in Mounds View for the purpose of future redevelopment.
On January 3, 2012, the City Council discussed the potential purchase of the building. On
January 9, 2012, the EDA scheduled a closed meeting for February 6, 2012, to determine a
price that the EDA would offer to purchase the property for redevelopment purposes. The
property consists of two Property Identification Numbers (PINs) as shown below.
Ramsey County’s estimated market value of PIN 06.30.23.34.0089 for 2012 is $427,500
(Structure = $183,600 / Land = $243,900). Ramsey County’s estimated market value for
PIN 06.30.23.34.0086 for 2012 is $118,500.
Property taxes for PIN 06.30.23.34.0089 in 2011 were $15,792. Property taxes for PIN
06.30.23.34.0086 in 2011 were $4,514.
PIN 06.30.23.34.0089 PIN 06.30.23.34.0086
2/6/2012 – Executive Session
PAK Building Offer
Page 2 of 4
Below are images of the building.
Front of Building Mezzanine Area
Warehouse Area with Drive-In Door Warehouse Area with 2nd Drive-In Door
Property Status
The “PAK” building has been vacant since early 2005. The vacancy date is based on the
last utility bill issued by the City. The property is currently in “court appointed receivership”.
The property’s listing agent, Matt Oelschlager from C.B. Richard Ellis, has provided City
staff with the following updates on the status of the property:
November 21, 2011 − The asking price is $316,800.
January 25, 2012 − The court accepted a purchase offer from a private party.
January 31, 2012 – A purchase agreement was executed. Due diligence should be
completed by late February 2012.
2/6/2012 – Executive Session
PAK Building Offer
Page 3 of 4
Redevelopment Area
The “PAK” building is part of an area that has been slated by the City for redevelopment
since at least 2002 with the completion of the latest County Road 10 Redevelopment and
Revitalization Plan. As shown on the below image, the redevelopment area includes four
parcels (2832 County Rd 10, 2840 County Rd 10 and 7861 Groveland Rd). The 2840
County Rd 10 parcel is not for sale at this time.
Four Parcel Redevelopment Site − 2.04 Total Acres
.34 Acre
.7 Acre
.41 Acre
.59 Acre
7861 Groveland Rd
Vacant City-Owned Lot
$67,200
2012 Est’d Market Value
2840 County Rd 10
Tenant Occupied Building
Royal Supply & ABC Liquor
$337,300
2012 Est’d Market Value
2832 County Rd 10
1.04 Acres
Vacant “PAK” Building
$546,000
2012 Est’d Market Value
$316,800
Asking Price
2/6/2012 – Executive Session
PAK Building Offer
Page 4 of 4
Staff Recommendation
Staff recommends that the EDA offer a price of at least $50,000 lower than Ramsey
County’s 2012 estimated land value. If environmental cleanup is needed on the property,
City staff would apply for brownfield grants through Ramsey County or the State of
Minnesota.
Respectfully submitted,
____________________________
Heidi Steinmetz, Economic Development Specialist