Agenda - Council Work Session - 03/12/2013

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CC Work Session 3. 4. Meeting Date: 03/12/2013 Submitted For: Patrick Brama By: Kathy Schmitz, Administrative Services Title: Consider Offer to Purchase City Owned Property Located at 14280 Azurite Street NW (PORTIONS MAY BE CLOSED TO THE PUBLIC) Background: The City owns a property located at 14280 Azurite Street NW ( "Subject Property "). The Subject property is 4.8 acres in size, is located on the north side of Bunker Lake Boulevard adjacent to MultiSource Manufacturing and Diamond Graphics. The Subject Property is zoned Employment 1 (El) and is available for sale. The City received an inquiry from a prospect regarding the Subject Property in early January 2013. Staff met with said prospect on January 11, 2013 to discuss the Subject Property. Subsequent to meeting with the prospect, Staff ordered a market appraisal on the Subject Property. Staff contacted the prospect on February 15, 2013 indicating the City's position and the result of the market appraisal. The prospect made an offer to purchase the Subject Property on February 28, 2013. The purpose of this case is to review an offer to purchase the Subject Property. Observations /Alternatives: Staff will provide copies of correspondence between the City and the prospect, along with a recommendation, in closed session. Attached to this case is background information on the Subject Property. NOTE: The appraised value of the Subject Property is $420,000. Based on the City's adopted Business Subsidy Policy, any discount in land value greater than $25,000 would be considered a "Business Subsidy." In which case, certain filing and reporting with the State of Minnesota would be required; and potentially, an agreement, for job creation and /or retention would need to be established. Staff would be required to work with the prospect annually to complete required reporting to the State of Minnesota. Recommendation: Staff will provide copies of correspondence between the City and the prospect, along with a recommendation, in closed session. Attached to this case is background information on the Subject Property. Funding Source: NA Council Action: Accept: Accept offer to purchase City owned property located at 14280 Azurite Street NW; and, authorize Staff to draft a purchase agreement and the required ordinance Counter: Authorize Staff to draft a counter offer to the prospect for the sale of City owned property located at 14280 Azurite Street NW Deny: Deny standing offer and do not direct Staff to draft a counter offer to the prospect for the sale of City owned