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Backgroundi: <br /> <br />By: <br /> <br />MINNESOTA SAWDUST PLANT <br /> Ryan Schroeder, City Administrator <br /> <br />CASE <br /> <br />On Wednesd~, June 8, 1994, Councilmembers and Staff had the opportunity to tour the <br />property at 14[00 Jaspar Street N.W. (Minnesota Sawdust and Shavings) for consideration <br />as a Public W~rks facility. The attachments show the site (Lot 1, Block 1, Gateway North <br />Industrial Parl~). The property consists of a 12,240 square foot block building (90 x 136) <br />and a 13,125 .s[quare foot steel frame structure (103 x 125). The total of 25,365 square feet <br />compares favt~rable with the 28,540 square feet in the Public Works space needs study. <br />(All of the apl~roximate 2,200 square foot Public Works/Community Development office <br />area wouldn'tbe required.) <br /> <br />The property i~ listed for sale at $375,000. This compares to about $1.7 million plus fees <br />and continger~cies in a new construction project as contemplated in the needs study <br />(although we ~hould be able to trim that number). Both the new project or an existing site <br />would requiret site development ($200,000 to $258,000 in needs study) and equipment <br />($150,000 in deeds study). <br /> <br />Council is awge that we have a current building replacement fund balance of $360,456. <br />Additionally, 0pis is expected to grow somewhat at year-end. While we may ultimately be <br />able to sell the ~current Public Works site, initially, it is more likely that that site will require <br />some correctiofi and demolition/debris removal costs before being placed on the market. <br /> <br />It appears tha~the group that was able to attend this site visit has some interest in the <br />property. The[efore, Engineering/Public Works is currently estimating site and facility <br />improvement ~sts. Depending on any requirements placed upon the seller by the City, I <br />believe a purqhase could be effected within our budgetary constraints. A purchase, <br />however, woul~ not eliminate a possible City construction project in the future in that the <br />Police (and ulti~h'~ately Fire) Department will continue to pursue a project. <br />If Council is i~terested in pursuing this opportunity, I would request the assistance of two <br />Councilmemb~rs in negotiating a purchase agreement to be brought to the next Finance <br />Committee/Cot~ncil meeting. <br /> <br />Council Action: <br /> <br />Authorize the (~ity Administrator and Councilmembers and to <br />negotiate towar~l purchase of 14100 Jaspar Street N.W. <br /> <br />Reviewed by! <br /> <br />City Administrator <br />City Engineer I <br />PubIic Works ~upervisor <br />Finance Officer I <br /> <br />CC: 06/14/~4 <br /> <br />~mt <br /> <br /># I0 <br /> <br /> <br />