Agenda - Council - 08/08/2006 - Laserfiche WebLink

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ADOPTION 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: Zero -Zone Refrigeration 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 S.F. 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. (See attached letter from Zero -Zone as well as the pertinent pages of the appraisal. The appraisal was done by The Valuation Group, Inc. in April of 2005 and a market value of $460,000 was determined which correlates to a value of $2.10 per Square foot. The appraisal was based on 5 acres which was incorrect due to the fact that the parcel is actually 4.58 acres. This correct acreage would have corresponded to a value of $418,960. Not taken into account in the by the appraisal is the limitation the property has in regards to the lack of 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. On July 25, 2006, the City Council introduced an ordinance to authorize the sale. That ordinance is now being presented for formal adoption. Recommendation: Staff recommends adoption of the proposed ordinance. Council Action: Motion to adopt Ordinance No. 06- which is an ordinance authorizing the sale of the Lot 1, Block 1, BUSINESS PARK 95 SECOND ADDITION, Anoka County, Minnesota. Review Checklist: Community Development Director City Attorney CC:08/08/06 CASE # —345--