Agenda - Council - 03/23/2010 - Laserfiche WebLink

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CASE # 9 APPROVE PURCHASE AGREEMENT FOR THE PURCHASE OF PROPERTY LOCATED IN THE HIGHWAY 10 CORRIDOR (Inter City Oil Co ( "ICO ") PARCEL -6021 Highway 10) By: William K. Goodrich, City Attorney Background: As the Council is aware, the City has been negotiating with ICO for the acquisition of their parcel of land lying within the Highway 10 corridor Official Map area. The parcel is located at 6021 Highway 10 NW and is 2.03 acres (88,450 sq. ft.) in size. The property was formerly occupied by an ICO automobile station and is now vacant. Because the Subject Property was formerly a gas station, petroleum storage tanks and related equipment were located on the site. This case was previously on the Council's agenda on February 9, 2010 at which time action was postponed to afford the opportunity for the Council to meet with MnDot's appraisers regarding the appraisal process and how this and other RALF parcels are appraised. In addition the Council discussed negotiating with the owner that the demolition expense of removing the existing structures on the property be at the cost of the owner. The Council met with the appraisers at a work session on March 2, 2010. During that worksession, Council requested that several items be researched and brought back as a part of this case for Council discussion. Those items include the amount of taxes paid by the property owner for the past 20 years, information on the recent property acquisition in Coon Rapids by the Anoka County Regional Rail Authority (ACRRA), information from the Anoka County Assessor regarding why the assessed value of the property was decreased for 2009 payable taxes, and the impact of RALF or other municipal land purchases on other commercial properties in the city. Each of the items are summarized below: • Taxes paid over past 20 mss. Staff was able to retrieve tax data back to 1999; data prior to 1999 would need to be retrieved from Anoka County archived records and there would be a fee for retrieval. If Council desires data from years prior to 1999, staff will pursue the retrieval of archive records with the County. Tax data for years 1999 -2009 is attached to the case for Council review. • ACRRA Recent Property Acquisition in Coon Rapids. Information received from Anoka County regarding the acquisition is attached for Council review. • Assessed Value Change for 2009 Payables. Tim Gladhill, Associate Planner spoke with the Anoka County Assessor regarding the ICO site. He stated that there was a petition from the property owners to re- evaluate the assessment. Per that petition, the Assessor determined that the value is essentially only in the land and the buildings hold little to no value at this point due to the condition of structures, removal of one structure due to fire damage, known future acquisition, and the cost of moving/removal of building exceeds the value of the buildings themselves. • Impact of RALF & other Municipal Acquisitions on other commercial properties. Attached to the case is a tax bill breakdown for the ICO property. The fiscal disparity portion of the tax bill would be distributed to other properties when it is removed from taxable status. Diana Lund, Finance Officer, will be present for this case to discuss the fiscal disparity impact of property acquisitions by the City or other non - taxable government entity.