Agenda - Council - 11/07/2005 - Laserfiche WebLink

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Motion carried. Case//9: Acquisition of 14050 Basalt St NW ~';conom ic Deveiopment/TIF Specialist Sullivan indicated staff has been directed by the EDA to lacilitatc development and redevelopment activity and to acquire properties in the City's [)evclopment District No. 1 as willing sellers put their properties on the market. Staff has negotiated a sale with a willing seller and is excited about redeveloping a property that has been vacant l'or over a year. Staff has obtained an appraisal and an environmental assessment of the property and has presented an offer of $315,000 for the property contingent on City Council approval. This purchase price requires the City to assume and be made responsible for payment of all environmental clean-up costs associated with the site. The appraisal of $280,000 was completed in February 2005 so it is feasible that the value would have increased significantly duc to development in the surrounding area. He advised the acquisition of this property would be thndcd through TIF District No. 2. l.;conomic Development/TIF Specialist Sullivan explained staff has advised the owner of possible relocation qualification and benefits. It is the position of staff that there is no business t~ relocate at the present time and that this land sale is not subject to relocation due to its inactivily and open market sale. The owner has agreed to waive any relocation. He explained during thc environmental assessment it was determined that there were significant clean-up issues, including high levels of PCB's, involved with the former Saint Paul Terminals site. A grant was awarded to the City of Ramsey from Met Council for $295,000 to assist in the clean- up of this parcel. Staff is requesting that the City Council approve the purchase agreement for thc st~bjccl property. Mayor Gamec inquired if the $315,000 is a high purchase price if there is clean-up required on thc site. I:iconomic Devclopment/TIF Specialist Sullivan replied the appraisal of $280,000 completed ¢:tt'lict' in the year did not include clean-up on the property. However, the City did acquire $.295,000 in grant money for the property to assist in the clean-up. The estimate for the total clean-up on the property is $300,000 to $400,000. TIF District No. 2 funds can be used to not only purchase the property, but assist in the funds needed to complete the clean-up. It will be a b{mcfit to have the City involved in the clean-up and ensure that it is done properly. (~otmcilmember Elvig expressed concern with possible relocation costs. City Attorney Goodrich advised it does not appear that this site would be eligible for relocation expenses, but it cannot be ruled out. One of the significant expenses of relocation is moving crluipmcnt and materials, which are not located on this site. Counci hncmber Cook asked if this owner could still pursue relocation costs if they sign a waiver. City Council / October 25, 2005 Page 15 of 22