Agenda - Council - 02/24/2020 - Laserfiche WebLink

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CC Regular Session 5. 11. Meeting Date: 02/24/2020 By: Sean Sullivan, Community Development Information Title: Adopt Resolution 1t20 010 Approving Listing of Northern Seven (7) Acres of Lot 1, Block 1, Bury and Carlson Addition Please Note: This case has been moved from the Consent Agenda to the Regular Agenda as item 7.7. Purpose/Background: Purpose: To provide an update relating to Anderson Dahlen Purchase Agreement and to obtain approval for the listing of the the north seven (7) acres of Lot 1, Block 1, Bury and Carlson Addition Background: The City did not receive a "Notice to Proceed" from Knoll Properties to move forward with their expansion on the North 9.3 acres of the Bury and Carlson site. Failure to give a "Notice to Proceed" by January 31, 2020 (end of "Inspection Period") terminates the Purchase Agreement. As a result, the City will refund the $67,500 Earnest Money according to the terms and conditions outlined in Paragraph 4(c) and 9(b). This is the third project proposed on this site that has not moved forward (previously Platinum Properties/Adrenaline Sports Center and Sharp Construction). Additionally, this scenario was conceived prior to execution of the Bunker Lake Industrial Park when developable industrial land was in scarce supply. The immediate urgency is not as strong as in previous years, but marketing this property does provide a number of economic development benefits. The property is currently listed on MNCAR and Costar. Staff has received interest from two potential buyers and other brokers while the property was under contract with Anderson Dahlen. Staff has obtained shovel ready certification for this site for the purposes of marketing and selling the site to the private sector for development. Staff believes that this site has the potential to develop by the private sector in the near future. Staff is aware that that southern half of the site has been designated for the future Public Works Campus. The City did complete a Space Needs Analysis as it relates to the Future Public Works Campus that identified the northern 9 acres as potential for industrial development. Previous direction from the City Council has guided this property for private industrial development. The final planning and feasibility for the future Public Works Campus is now underway. As the final planning stages are underway for the Future Public Works Campus Site, the Public Works Department has requested that the City at least consider pausing listing a portion of this property until final plans and specifications are complete to ensure additional land is not necessary for public works use. An architect has been selected to prepare final plans and specification. As part of that process, it has been discussed re-evaluating the reuse of existing buildings on site, which may impact the space needs on this parcel. The Public Works Committee met on February 18, 2020 and recommended that 1.9 acres be removed from the listing to allow for time to determine if this land would be needed for the Public Works Campus. Notification: N/A Observations/Alternatives: