Agenda - Economic Development Authority - 05/15/2008

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could move from Ramsey if they are unable to find a suitable site in the City that can accommodate their growth. This is happening in another part of the City with another major employer where the site was sold to them because it was adjacent to their existing site, and five years later they are planning a major expansion. This helps to keep a company in town. Motion by Member LeTourneau, seconded by Member Kiefer, to approve the proposed project, to convey the land necessary, and to finalize the terms of the landscaping of the newly formed pond and residual property and to make that recommendation to City Council. Motion carried. V oting Yes: Chairperson Riley, Members LeTourneau, Kiefer, Steffen, and Strommen. Voting No: None. Absent: Member Elvig. Case #3: Consider Sale of the North 120 Feet of Lot 2, Block 2, Gateway North Industrial Park Economic Development Coordinator Sullivan reviewed that the City acquired Lot 2, Block 2, Gateway North Industrial Park (formerly known as KIH) as part of a condemnation action. Dave Perkins of Dave Perkins Contracting attempted to the purchase the site directly from the previous owner in 2005 and also contacted the City to discuss the property acquisition to fulfill the needs of his project in 2005. At the time of the inquiry in 2005-2006 the City had just purchased the site to the north (Dave Perkins Contracting's current site) and it supported the $2.14 per square foot price, which was factored into Mr. Perkins' future project costs. In February 2008, the City purchased the entire KIH parcel for $332,988 ($3.92 per square foot) which would relate to a price of $123.309 for the portion Mr. Perkins needs for his growing business. There is a gap of $54,230 in what Mr. Perkins would like to pay for the land and what the City paid for the land. Staff proposes a compromise to split the difference in cost with Mr. Perkins which would be $96,194 or $2.98 per square foot. Mr. Sullivan indicated it should be noted that 142nd Avenue has the ability to be vacated, as well as a portion of Limonite Street. These are adjacent to this lot. By selling Mr. Perkins 1/3 of this lot the remaining portion would be over one acre, and the City also owns property to the west, so depending on how this area is developed in the future there are options for configuring the site. Mr. Sullivan advised he recommends continued support for Mr. Perkins who is strapped for space on his site and made a big investment moving from a metal building to the large building he has built. Chairperson Riley inquired about the lot to the south. Economic Development Coordinator Sullivan replied the Public Works facility is located to the south. Recently the City Council approved the purchase of the 20-acre parcel to the east of this area that will be the future Public Works campus. The intention is that Public Works will move over to that area five years from now br later. There is definitely the potential to reconfigure the lot and take the Public Works facility out of the equation. Chairperson Riley inquired about the underlying reasons. for purchasing the KIH property. Economic Development Coordinator Sullivan replied the underlying reason was that the property was underutilized. There was not a building on the site and there was outside storage on the site that was not being utilized and was never moved. Mr. Perkins will use this site for outside storage so the use will be similar, but it will be active use versus inactive use. As far as Economic Development Authority/April 10, 2008 Page 6 of 14 6