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<br />screening, Mr. Perkins currently has a chain link fence up, which is all that is required. Outside <br />storage is an allowed use in this area. He noted during the summer the equipment is out on sites; <br />there is more equipment stored on the site during the winter. <br /> <br />Chairperson Riley asked whether there was anything in particular that increased the purchase <br />cost from the $2.14 per square foot Mr. Perkins is proposing to the $2.98 per square foot. <br />Economic Development Coordinator Sullivan replied there was a timing issue. It took a long <br />time to get the deal done and they have seen industrial values increase and appreciation in the <br />Critical Blight Redevelopment Area. Condemnation proceedings were commenced on the KIH <br />property, but was not followed through in the end; a little higher price was paid to avoid going <br />through a court proceeding. <br /> <br />Member LeTourneau pointed out approximately $26,500 would be the City's lost opportunity if <br />this 32,280 square feet of property were to be sold at $2.98 per square foot versus $3.82 per <br />square foot. It asks a lot of the EDA to make a recommendation to potentially charge the <br />taxpayers' base with a $26,500 loss associated with this land sale. He inquired whether there is <br />information on things that will be done to recover the $26,500 over time or additional tax <br />revenue that would be generated. Economic Development Coordinator Sullivan replied this is a <br />difficult decision. They will be adding outside storage with this sale, which will not generate <br />taxes; however they will be adding to the taxable versus non taxable property immediately, <br />rather than waiting for redevelopment to come in. It is important to note the vacation of the road <br />that could add square footage back on to this lot. He suggested Mr. Perkins could be requested to <br />provide information regarding his new tenant and how many new jobs they have created to this <br />point. But he does not believe the issue here is the creation of new jobs, this is an issue of <br />whether this business may not be able to function unless this area is available for Mr. Perkins' <br />storage. There are things already on the site because Mr. Perkins had been leasing the area for <br />storage from the previous owner, and they are in the process of trying to put together a temporary <br />agreement for that storage. <br /> <br />Chairperson Riley inquired about the current fair market value of the property. Economic <br />Development Consultant Mulrooney indicated a recent study shows that industrial land prices in <br />the metro area have declined by about 11 % over the course of the last year. <br /> <br />Member Steffen pointed out the first paragraph of Mr. Perkins' letter states "It was my <br />understanding that the City agreed to allow me to purchase one acre of the adjacent parcel if he <br />land was acquired by the City. I was under the impression that the negotiated price and terms of <br />the possible sale were certain and would not change over time." Economic Development <br />Coordinator Sullivan explained Mr. Perkins had approached the City and asked if he would be <br />able to purchase the KIH property if it was purchased by the City. Mr. Perkins was told via the <br />City Administrator and then via himself, that if the City purchases the property Mr. Perkins will <br />be given an opportunity to purchase it. He explained Mr. Perkins price was based on that <br />snapshot in time when land was going for $2.14 per square foot. There is no contract or written <br />agreement in place. <br /> <br />Member Steffen asked if there would be a better use for this property if it were not to be sold to <br />Mr. Perkins. Economic Development Coordinator Sullivan replied this is debatable. This is an <br /> <br />Economic Development Authority/Aprill0, 2008 <br />Page 7 of 14 <br />