Agenda - Council - 07/12/1994 - Laserfiche WebLink

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CASE APP_I~OVE OPTION AGREEMENT FOR PIN 27.32-25-44-0017 ~James By: Ryan Schroeder, City Administrator Gromberg, Economic Development Coordinator Background: At the June ~8, 1994 City Council meeting, Mayor Gilbertson and Economic Development Authority (EPA) Chairperson Hardin were directed to meet with Staff to prioritize the list of available ~ommercial/industrial properties and then meet with the affected property owner(s) to ~,a. in an option and purchase price on the desired properties to be brought back to the entire %ity Council for their consideration. On July 6, 1~994, this Committee met and discussed an option proposal on the property legally descnlbed as Lot 3, Block 1, Gateway North Industrial Park Plat 4 (PIN 27-32-25- 44-0017). 'lb, is property is located directly to the north of the Sunfish Lake Boulevard ParaBody facility (see attached map o Property 1). As the attached option indicates, it will cost $500.00,, and will expire as of September 1, 1994. This amount will be subtracted from the purchase price, however, if the City fails to exercise the option, the $500 will be forfeited. Thj~ option is for a purchase price of $75,000.00 for this 12.00 acre parcel. The current mark{t value listed for tax purposes is $76,500.00. The City, if it would exercise this option, ,4,ould be paying $6,250.00 per gross acre or a net price of $9,146 per acre (subtracting Cut wetlands). As a reference, when Anoka Electric Cooperative purchased their 145 acres, they paid $7,000 per gross acre. The Commitiee has identified this property as a top priority due to its location near the ParaBody fadility and their interest in constructing a new facility in the near future. The Committee fe}lt that this property would only be held for a short time (less than three (3) years) and could be used to help retain and encourage an expansion of an existing business. Additionally,ithe Committee has proposals for options on Lot 1, Block 2, Gateway North Industrial Park Plat 4 (see attached map - Property 2) at $20,000 ($10,000 per acre) and the portion of PII'~ 27-32-25-24-0001 north of County Road #116 (see attached map - Property 3) at $25,000!($5,000 per acre). The Committee is not recommending entering into these options at thig time. Recommend, ation: The Committ,ee recommends that Council approve the Option Agreement for Lot 3, Block 1, Gateway NDrth Industrial Park Plat 4. Council Action: Motion to approve and authorize the Mayor and City Administrator to sign the Option Agreement f~r Lot 3, Block 1, Gateway North Industrial Park Plat 4 and direct the Committee to lfinalize the purchase of this property. Reviewed bY: Economic Deyelopment Coordinator City Administrator Finance Officer CC: 07/12.2/94 /jrnt ~