HomeMy WebLinkAboutAgenda Packets - 2009/10/05
CITY OF MOUNDS VIEW
CITY COUNCIL WORK SESSION AGENDA
MOUNDS VIEW CITY HALL
Monday, October 5, 2009
7:00 p.m.
ROLL CALL: Flaherty, Stigney, Hull, Mueller, Gunn
PUBLIC COMMENT
Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full
name and address for the minutes. Also, please limit your comments to three minutes.
Agenda Items Discussed by Consensus
__________ 1. Discuss Burger Time Restaurant Concept for Former Premium Stop Site
__________ 2. Conservation Water Rates
__________ 3. Enterprise Fund Budgets (Water, Sewer, Storm Water, Street Light)
Next Work Session: Monday, November 2, 2009, at 7 p.m.
Next City Council Meeting: Monday, October 12, 2009, at 7 p.m.
Item No: 1
Meeting Date: October 5, 2009
Type of Business: WS
Administrator Review : ____
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Heidi Steinmetz, Economic Development Specialist
Item Title/Subject: Discuss Burger Time Restaurant Concept for Former
Premium Stop Site
Introduction
The attached staff report to the EDC dated September 18, 2009, provides background on
Burger Time and how their building concept may fit with the 1.28-acre, EDA-owned
property located at 2390 County Highway 10.
The Mounds View Economic Development Commission (EDC) made the following two
recommendations (6-0 vote, 1 member absent) to the EDA on September 18, 2009 in
relation to Burger Time and the property at 2390 County Highway 10:
1. The EDA should proceed in discussions with Burger Time or other parties interested
in purchasing the former Premium Stop parcel located at 2390 County Highway 10.
2. The EDA should set an asking price for the former Premium Stop parcel located at
2390 County Highway 10 based on the mid-point of value ranges that at least three
appraisers provide verbally to City staff at no charge.
Background – 2390 County Road 10
In mid-to-late 2006, the EDA invested $652,000 in the below pictured former Premium Stop
parcel located at 2390 County Highway 10.
County
Hwy 10
2390 Cty
Hwy 10
Greenfield
Ave.
Taiko
Japanese
Restaurant
Cty Rd H2
Oct. 5, 2009
City Council Work Session
Item 1 – Burger Time
Page 2 of 3
Listed below is a breakdown of the EDA’s investment in the property at 2390 County
Highway 10:
$2,000 appraisal
$625,000 purchase/acquisition of the property
$25,000 building demolition, site clearance/environmental abatement
Discussion
There are two discussion points for the EDA/City Council to consider:
1. Is the EDA/City Council interested in the Burger Time concept for 2390 County
Highway 10?
2. Does the EDA/City Council want to set an asking price for the property?
Below are a few items for the EDA/City Council to consider when discussing Burger Time
and 2390 County Highway 10:
2010 Ramsey County Estimated Property Value
Ramsey County’s estimated market value of 2390 County Highway 10 is $446,000, which
is just under $8.00 per square foot. The current value of the property is determined by its
current use, which is a vacant commercial lot.
Per the EDC’s direction on September 18, 2009, City staff contacted several appraisers.
City staff learned that since appraisers are certified with the State, even an estimated value
range is considered an appraisal, so appraisers will not provide value ranges at no charge.
Plus, even the most basic appraisal would take several hours. Therefore, two appraisal
firms suggested contacting a commercial real estate broker or realtor if the EDA is
interested in requested a range of value for the property at no charge.
Property Tax Scenarios
Since the EDA currently owns the parcel, there are no property taxes generated from the
property. If a private party purchased the vacant parcel, the total property taxes paid (City,
State, School District) would be about $13,462. From 2007-2009, the property would have
generated at total of about $40,386 in property taxes if the property was privately owned.
Forecasted Tax Contribution by Burger Time
The local commercial real estate broker for Burger Time estimated that a new Burger Time
building would be valued between $750,000 and $900,000. Based on a building value of
$750,000 alone, the amount of total taxes paid on the property would be about $23,428 per
year.
Zoning
The 2390 County Highway 10 parcel is zoned B-3 (Highway Business). The B-3 zoning
designation allows a restaurant, but Burger Time would need to apply for a Conditional Use
Permit because it is a drive-in/convenience restaurant, along with a Development Review,
for consideration by the Planning Commission and the City Council.
Oct. 5, 2009
City Council Work Session
Item 1 – Burger Time
Page 3 of 3
Recommendation
Staff recommends that the EDA/City Council provide direction to City staff on the following:
1. W hether to proceed with discussions with Burger Time for the possible purchase of
the EDA-owned property at 2390 County Highway 10.
2. W hether the EDA would like to set an asking price for 2390 County Highway 10.
Respectfully submitted,
___________________________
Heidi Steinmetz, Economic Development Specialist
Attachment
1. Staff Report to EDC, September 18, 2009