Minutes - Council - 06/13/2000 - Laserfiche WebLink

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Case #12: Condemnation Action to Acquire Industrial Land City Administrator Norman stated that in 1996, the City along with AEC, was in the process of discussing the purchase of a 56.7 acre parcel of property described as the Royal Concrete property owned by L.W. and Diana M. Maken. The property is located in an area to the southwest of the AEC Energy Industrial Park. Negotiations were terminated some time in 1997, and the City Council directed staff to do a feasibility study of the project in 1999. The City Council heard the feasibility study in a work session on March 6, 2000, and it was determined that redevelopment of the property would be financially feasible and staff was directed to begin negotiations with the property owner. Negotiations with the property owners have not yielded a purchase price close to the appraised value of the property so staff requested that the City Council consider condemnation to acquire the property. The City has used condemnation in the past to acquire property for public purpose when negotiations have failed. Property owners are still paid for their property but a process is used to arrive at a fair price. Each part completes independent appraisals and then a judge appoints a committee of three to review the land and arrive at a fair market price. The landowner can then appeal the committee decision to District Court if they are not satisfied with the price they are to be paid. The City has used this process to acquire various well sites, road rights-of-way, industrial land for ponding, senior housing (more recently) and other industrial sites. Since the property owners seem unwilling to negotiate a price that the City feels is a reflection of the market value of the land, the City should proceed to condemnation which will set the price for both parties. Motion by Councilmember Connolly, seconded by Mayor Gamec, to authorize the City Attorney to proceed with condemnation if negotiations fail in the acquisition of the 56.7-acre parcel property owned by L.W. and Diana M. Maken. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Connolly, Anderson, and Hendriksen. Voting No: None. Case #13: Authorization to Acquire Industrial Land City Administrator Norman stated that, while in the process of studying the feasibility for the industrial site know as the Maken property, staff began to review the development potential of the parcel known as the Sauter property. The Sauter property is located immediately west of Sunfish Lake Boulevard and north of McKinley Street. Staff began to directly negotiate with Mr. Sauter in April and a rough framework of a land swap with cash was discussed. Under the terms of the agreement, Mr. Sauter will receive a cash settlement for the land and additionally will receive 15 acres of the Maken property for relocation of three businesses on the Sauter property. It has been further proposed that Mr. Sauter construct approximately 118,000 square foot of new building on the Maken property. Staff has been in negotiations with Mr. Sauter and has made a tentative proposal for Mr. Sauter to receive $434,932 for the property located on Sunfish Lake Boulevard, he would receive approximately 18 acres in the Maken property and he would receive $100,000 in the form of TIF assistance for site improvements of the Maken City Council/June 13, 2000 Page 18 of 26