1999.02.01 CC Minutes - Laserfiche WebLink

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City Council meeting of February 1, 1999 Page 4 agreed to this arrangement. The Purchase Agreement envisions the City entering into a Development Agreement for the use of TIF in this project at a future date. In Paragraph 8B, the City may incur some expense in constructing a shared driveway between the parcel being sold to the Lindstroms (Lot 3, Block 1), and the remaining vacant parcel owned by the City (Lot 2, Block 1). The shared driveway is being considered for this location as it would align with Fitzgerald Avenue to the north, and provide for better control of traffic entering 140th Street. Leroux made motion, Barnes seconded, to approve the Purchase Agreement between the City of Hugo and Kay -Rick Corporation for the sale of approximately 56,660 sq ft of land for constriction of a retail liquor store. The sale of price of $130,070 reflects a commission of $13,007 to be paid to Lake State Realty Services, Inc. All aye. Motion Carried. INTERSTATE LUMBER (LAND SWAP) The Council considered a proposed letter to Interstate Lumber offering to exchange their property at the intersection of 145th Street and TH61, for an equal amount of property currently owned by the City, in the Bald Eagle Industrial Park. In addition, the City would pay Interstate Lumber for the value of the improvements existing on their current site, at the time the City sells the property to a third party. This would allow Interstate Lumber to expand its operations in the City in an area zoned for such use, and allow the redevelopment of the current site for higher value retail facilities. Mr. Bruce Neisse of Interstate Lumber was present and stated that Interstate has no interest in moving from their present location. As this proposal was mandated by the previous Council: Barnes made motion, Stoltzman seconded, authorizing submittal of the proposed letter to Interstate Lumber for a possible exchange of property. All aye. Motion Carried. SUNSET LAKE RIDGE ESCROW Colleen and Thomas Frampton, developers of the Sunset Lake Ridge subdivision, posted with the City a cash escrow in the amount of $17,700 to guarantee completion of the improvement of Ingersoll Avenue, south of 122nd Street. The majority of the work on this project was completed in 1998 with some ditch cleaning and site restoration required for the spring, 1999. The City Engineer estimates the cost of the work remaining to be done at approximately $1,600, and recommended that the City maintain a letter of credit or cash escrow in the amount of $2,000 to guarantee performance. The Framptons have requested that the City release the remaining balance of the escrow to them as they have paid the contractor out of their personal savings for the work completed, and believes this work has been performed and they should have their money back. Typically, the City maintains a letter of credit or cash escrow in an amount equal to 25% of the project cost for a period of one year following substantial completion of the public improvements in order to guarantee any repairs that need to be made under warranty. In this case, the final lift of bituminous was placed on Ingersoll Avenue on October 22, 1998. Staff recommended retaining the existing escrow amount until October 21, 1999.