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

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rest will fall into place. The development agreement is projected to be completed no later than December 31 st. Mr. Bray explained the actual development agreement will not be signed until preliminary plat approval. The importance of the 30 days is that the subsidy is seen as a primary issue, and they want to be sure both parties are on the same page before getting too far down the road. City Administrator Norman stated the Muir Group is a good professional group, and he would never describe the talks as being two sided and opposing. He believes there is willingness and a spirit, and that the Muir Group wants to work with the City to get the issues resolved. Councilmember Elvig noted it seems the worst case scenario is the $3,800,000, and there are many options to close that gap, from county assistance to determining areas where costs are actually covered. Case #3: Introduction of an Ordinance Authorizing the Sale of Property Located at 6030 Bunker Lake Blvd NW City Attorney Goodrich indicated staff has been in contact with the management group of Zero- Zone Refrigeration. The company has expressed interest in purchasing the property adjacent to its 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. 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. The parcel in question was subdivided to provide expansion room for the then Systematic Refrigeration. Mr. Goodrich indicated the proposed purchase agreement should be included with the adoption of the ordinance. He advised Council should be cautious regarding the purchase agreement. Land costs on Highway 10 have been around $9 per square foot, and they should be satisfied that there is really such a difference with this parcel at the price of $2.20 per square foot. Mayor Gamec noted Zero-Zone was looking at this parcel for truck delivery, and the access on this parcel is a little difficult. Councilmember Olson asked if the City Attorney is recommending that the parcel be appraised. City Attorney Goodrich replied the cost of the appraisal could be applied towards the City's due diligence. He noted Economic Development Coordinator Sullivan may have better information regarding this sale price. Councilmember Strommen indicated this purchase was discussed at the EDA level, and the EDA recommended going forward with the sale. The case does include information that the price of industrial land ranges between $2.00 and $2.75 per square foot, and that Economic Development Coordinator Sullivan felt the $2.20 per square foot, which is on the lower range, is fair due to the access Issues. City Attorney Goodrich indicated staff can provide further information regarding the sale price when the adoption of the ordinance is brought forward. City Council / July 25, 2006 Page 7 of 20