Agenda - Economic Development Authority - 01/01/2007

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Case # 1 CONSIDER SALE OF LOT 1, BLOCK 4, GATEWAY NORTH INDUSTRIAL PARK PLAT 2 TO ACE SOLID WASTE By: Sean Sullivan, Economic Development Coordinator Background: On March 8, 2006 the EDA made a recommendation to sell lot 1, Block 4, Gateway North Industrial Park Plat 2 to ACE Solid Waste for $275,000. The City acquired that property for $315,000 in December 2005 and received a grant for the clean-up of the contamination on the site. The City completed the clean-up process in early 2007. ACE Solid Waste has increased its offer to $286,000 for the site due to the length oftime that has passed since its original offer. The offer is a reasonable offer considering that the appraisal came in at $205,000. It should be noted that the City acquisition cost of $315,000 included the structure on the property, the area to be utilized for 141 st Avenue, and an in ground scale. The funds realized by the sale of the property could be used to acquire. additional blighted properties or redevelop others within the Critical Blight Redevelopment Area (CBRA). Observations: The proposal Ace Solid Waste has presented does not guarantee a specific project being built but it does specify that it will be an expansion of its existing facility. ACE is not requesting financial assistance for this project and is willing to pay market rate for the property. ACE has agreed to maintain the site in a professional manner until the time of construction which remains 2009. The reputation ACE has earned in the community speaks for itself and warrants strong consideration for this proposed project. Recommendation: Staff recommends approval of the sale of LOT 1, BLOCK 4, GATEWAY NORTH INDUSTRIAL PARK PLAT 2 to Ace Solid Waste and to make that recommendation to City Council. EDA Action: Motion to recommend sale of LOT 1, BLOCK 4, GATEWAY NORTH INDUSTRIAL PARK PLAT 2 to Ace Solid Waste and to recommend this action to City Council. EDA: 10.18.07 9