03/14/00 - Laserfiche WebLink

Home

FC CASE REQUEST AUTHORIZATION FOR ACQUISITION OF SPOHN PROPERTY By: James E. Norman, City Administrator Background: The City has recently completed negotiations with Systematic Refrigeration to build an 80,000- square-foot facility in the northernmost portion of Business Park 95. As part of those negotiations, the City discussed making available land to the east of the proposed site for future expansion of Systematic Refrigeration. The site in question is a five-acre parcel currently owned by Leonard J. & Lois J. Spohn of Aitkin, Minnesota. The City Administrator has made contact with Mr. Spohn and has reached a tentative agreement for the purchase of the five-acre parcel. Mr. Spohn has agreed to sell the five-acre parcel with a legal description of Lot 1, Block 1, Business Park 95 2''~ Addition and is highlighted on the attached map as Site B. The agreed upon price for the sale of the property would amount to $1.25 per square foot, which would bring the total purchase price to the amount of $272,250. Staff discussed the possible sale with the City Council in the work session of February 22, 2000, and it was recommended that the item be brought to the Council meeting of March 14, 2000. Financing: The Spohn property lies within Tax Increment District No. 2 and would be eligible as a TIF expenditure. Future revenues from the anticipated expansion of Systematic Refrigeration would more than offset the cost for the purchase of the property. Finance Officer Diana Lund would provide internal loans until the TIF revenues from Systematic Refrigeration would repay the purchase of the Spohn property. Council Action: Motion for authorization to acquire Spohn property described as Lot 1, Block 1, Business Park 95 2'~ Addition in the amount of $272,250. Reviewed by: City Attorney Finance Officer Development Consultant FC: 03/14/00