Agenda - Council - 07/25/2006 - Laserfiche WebLink

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. . .~ CASE # ^3 INTRODUCTION OF AN ORDINANCE AUTHORIZING THE SALE OF PROPERTY LOCATED AT 6030 BUNKER LAKE BLVD NW By: William K. Goodrich, City Attorney Sean M. Sullivan, Economic Development Coordinator Background: Staff has been in contact with the management group for Zero-Zone Refrigeration. The company has expressed interest in purchasing the property adjacent to it. existing facility on . Bunker Lake Boulevard. Staff received an offer on July 10, 2006 for $440,000. The EDA discussed the offer and conditions on July 13, 2006 and recommended that the City Council authorize the sale of 6030 Bunker Lake Blvd NW to Zero-Zone Refrigeration. Observations: Zero-Zone Refrigeration has submitted an offer of $440,000 to purchase the 4.58 acres adjacent to their current business for future expansion. The offer works out to be $2.20 per square foot. Industrial land in Ramsey has been selling between $2.00-2.75 per square foot. The parcel in question was subdivided to provide expansion room for the then Systematic Refrigeration. Although Zero-Zone is not looking to expand immediately they are looking to secure their future in Ramsey. The land is somewhat limited by the fact that it doesn't have access to Bunker Lake Boulevard. There are also access issues from the south on a cross easement that devalue the property to some extent. As presumed, the offer is at the lower end of the spectrum but it is fair considering the restrictions on the property. Recommendation: Introduction of the proposed ordinance. Council Action: Motion to introduce Ordinance No. 06-_ which is an ordinance authorizing the sale of Lot 1, Block 1, Business Park 95 Second Addition Enclosure: Proposed ordinance. Review Checklist: Community Development Director -- cc: 07.25.06 -287-