Agenda - Council - 09/23/1997 - Laserfiche WebLink

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the All-Brite/JAC sites would continue that trend (which also coincidentally seemed to be a high priority by the residents at the recent visioning session sponsored by the City). What is proposed is that the City exercise its rights under eminent domain to acquire the parcel proposed for redevelopment. This parcel is about 50,000 square feet, houses a Volkswagen repair facility with significant site deficiencies according to the code. The acquisition would require the City to provide relocation assistance to the present user. The revenue source to provide for acquisition costs will be the economic development account reimbursed by future increments generated by redevelopment activity. Attorney Goodrich will be providing the appropriate eminent domain resolution. AEC/UPA are negotiating to purchase the AMCON concrete site which is a 60-acre expansion of the current AEC Energy Park. Proposed is that the new owners (if the purchase is completed) provide for the clean up of the site and deed the property to the City for $1. The City in exchange would provide a revenue note back to AEC to reimburse them for acquisition and development costs at the rate of $0.65 per square foot out of created tax increments~ The City would not have any holding costs (but for insurance coverage on the land) and would reimburse only out of increments. If no increment is created no payment is made. The Council had previously created a 25 year redevelopment district which includes this property. The paperwork has not yet been filed awaiting completion of this acquisition. Council is requested to authorize receipt of the property and approval of the revenue note mentioned above (pursuant to City Attorney approval). The revenue note is due to be delivered today. We have been working with Mate Precision Tooling for two years on their proposed expansion. Difficulty has been experienced due to lack of site control of the property to the south. At the last meeting, Council authorized a purchase agreement with the owner of one of the two parcels in the way of redevelopment. The second parcel is an approximate nine-acre property owned by T and G Land. They have offered to sell the land for $775,000 (just under $2/foot). We would expect to acquire land such as this for substantially less than this amount. Council is requested to either reject the offer outright; to authorize the City attorney to continue negotiations; or to direct the City attorney to provide for eminent domain of the property. Council has previously approved the development of the property north of Automated:EDM for Wolf and Associates. We have been proposing a replat of property in order to facilitate that development. We were just informed that we have an immediate timing problem which creates the need to gain Council approval of a minor subdivision this evening. The project is being conducted under a 1031 Exchange which requires substantial project completion by January 28, 1998. Any delay in delivery of the land will eliminate that possibility. Other options for land delivery exist but all that we have identified put the City in a deficient site control position. Hence, our request for your approval of the required subdivision at this fiine. Council has briefly discussed a concern for continuance of economic development activities during the next three to four months. Proposed is the attached agreement, effective 10/1/97 for consulting services from AEC. The agreement provides for a $2,000/month retainer for 20 hours of service with time billed at $100/hour thereafter. For projects which ar~'igenerated under the contract, a 1% finders fee would be an additional project expense. For projects in process that the consultant works on there would be no such fee. Council is requested to enter into this agreement in 30-day increments. (The assumption being that it would survive for up to 4 months.)