01/08/13 - Laserfiche WebLink

Home

5.02: Update on Leasing Activity — The Residence at The COR This item was removed upon adoption of the agenda. 5.03: Consider Offer to Purchase Property — Lot 3, Block 1, COR TWO (Portions were closed to the public) 5.04: Consider Purchase of 14590 Armstrong Boulevard NW, Ramsey, Minnesota (Wiser Choice Liquor Store) from M &W Holding Company, LLC (Portions were closed to the public) Development Manager Lazan reviewed the staff report and indicated that at the request of the HRA, this item was for discussion purposes only. Chairperson Backous noted this item was open for discussion. Commissioner Riley stated he wanted all of the information on which to base an intelligent decision including why the property is being considered for purchase and justification of the price. Development Manager Lazan stated this information is available to the public and was brought forward because Mr. Wise is anxious to align tenants and would like an indication whether he should continue to work to secure a tenant. Development Manager Lazan explained the acquisition was conceptualized and governed by State Law to purchase the real estate, building, and fixtures. The City hired an appraiser for the property, another appraiser for the furniture and fixtures, and an expert to determine relocation costs. The City got a second technical review of the appraisal that confirmed the first appraisal was correctly done for public acquisition. On the issue of timing, he noted there has been considerable discussion on the HRA's approach to this project to get ready for THE Highway 10 overpass. Mr. Wise is now the last parcel to consider in that strip of land necessary to realign Armstrong Boulevard and construct the overpass. Development Manager Lazan stated there are phasing exhibits on acquisitions for this project and this is the last parcel. Mr. Wise wanted to relocate his business to The COR and it is a willing buyer /willing seller process rather than a condemnation process. Executive Director Ulrich distributed an exhibit depicting the sources and uses of the Sunwood Drive project, noting land acquisitions were included with the initial cost of that project. There are two properties left to acquire: Diversified Paving has a tentative agreement and Wiser Choice Liquors. He explained that money is part of this project, which is a combination of funds from the County, grants, utility money, Equipment Revolving Loan Fund, and TIF. Commissioner Kuzma asked how old is the appraisal. City Attorney Goodrich stated the appraisal is dated April 3, 2012. The City conducted appraisals of the property, business, and fixtures and hired an expert to determine the relocation estimate. The purchase does not include relocation costs, as required by the statute. City Attorney Goodrich reviewed the Statute and provided an explanation of the Relocation Housing and Redevelopment Authority / January 8, 2013 Page 3 of 7