HomeMy WebLinkAbout9.a. Purchase of Broback Industrial Park � CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
PORT AUTHORITY MEETING DATE: March 2, 1994
AGENDA ITEM: Purchase of Broback Industrial Park AGENDA SECTION:
Executive Directors Report .
PREPARED BY: Ron Wasmund AGENDA
Interim City Administrator ���� �
ATTACHMENTS: None APP VED Y:
This item is brought to the Port Authority as a concept to see what the reaction of the
Port Authority is to the purchase of the Broback Industrial Park by the Port Authority.
� The purpose of this purchase would be to get all of the land under control of one owner
with the intent to res�l� the entire parcel to the Cottages, Inc. for the development of low
cost senior rentals.
The land referred to as Broback Industrial Park consists of nine 1+acre parcels. Those
parcels would all be combined into one or two parcels, depending upon the agreement
reached with Cottages, Inc.
The proposed purchase price of the land would be $1.10 per square foot. That would
amount to a total of 5525,000 that the Port Authority would pay out for the land. The
budget that Cottages, Inc. has to work with for land purchase equals 5.90 a square foot.
Selling the land to the Cottages, Inc. at 5.90 a square foot would result in the Port
Authority recapturing 5429,676 in sale proceeds. The difference between 5525,000 and
5429,676 is 595,324. This 595,324 would be carried by the Port Authority for a period
of time yet to be determined.
This Industrial Park is in the County tax increment finance district. We wilt be working
with the County to see what they would give us for tax increment and also to determine
the life on the district.
It is believed that we could get at least 595,324 from the Dakota County HRA to offset
the Port Authority's carrying charges or difference between the purchase price and the
sale price, thus allowing the Port Authority to break even, get these lots that have been
sitting since 1979 on the tax roll and provide land for the Cottages, Inc. to proceed with
their development for rental housing for seniors. -
Again at this time this is concept, but is intended to measure the reaction and see what
interest their might be on the Port Authority to proceed with this project. '
Port Authority Member McMenomy and myself will be at the meeting to provide more
detail and answer questions that you have regarding this issue.
RECOMMENDED ACTION: None.
COUNCIL ACTION:
,
MEMO
TO: Ron Wasmund, Interim City Administrator
FROM: John Miller, Economic Development Coordinator �
DATE: February 28, 1994
RE: Meeting Dates with White Funeral Home
Recently you drafted a memorandum requesting that I give you a written response to several
questions regarding my attendance at meetings with White Funeral Home. In addition, you
verbally requested that I give the task priority so that commissioner Wippermann could
discuss the issue on March 2.
To provide you with the information requested, I have done the following:
1. Reviewed my telephone message slips from January 1, 1993, to the present. This
will provide dates when I was contacted by person representing White Funeral Home
and not able to take the telephone call.
2. Reviewed my 1992 and 1994 calendars for meeting dates. I was unable to find the
1993 calendar which I though was strange but that's another story.
3. Contacted Anne McMenomy for meeting date information.
4. Contacted Gary Verkinnes of Miller Construction, the St. Cloud firm that wauld
design and build White's building if the project should proceed for any phone log or
meeting da.tes he might have.
5. Reviewed long distance telephone log for calls to Miller's 251-4109 number. This
too provided only partial documentation as Miller Construction has a toll free number,
1-800-450-0111 which I tried to use to save city money.
Here's what I've pieced together.
February, 1992 First meeting. Commissioner McMenomy brought Jim White to city hall
and introduced Mr. White to me. McMenomy expressed interest in the city redeveloping the
land east af the annory and said White Funeral Home would like to locate on the Todd Franz
property. McMenomy and White proposed port authority purchase of the Franz property.
They also inquired about the availability of ta�� increment fmancing.
,
I explained there was a problem with the TIF as the Franz property was outside the
development district. White and McMenomy continued to state interest in the project. I said
that I would get it before the board for consideration but could promise nothing.
Gary Verkinnes was ident�ed as the architect.
Commissioner McMenomy later visited with the eity's building official, Ron Wasmund,
about code violations at the site. Wasmund visited the property.
February 17. Miller call to Verkinnes.
February 18. Verkinnes call to Miller.
February 24. Verkinnes call to Miller.
March 4. Franz call to Miller. Requests (facetiously) to be placed on port authority
agenda with a request for the board to buy Genz-Ryan and permit Franz to
move his used car business to that site.
March 16. Verkinnes call to Miller
March 16. Rosemount Port Authority considers request from Jim White. Todd Franz is
in attendance and questions why the port authority would want to buy his -
property as he is making an attempt to improve it. Franz states a
representative of the McMenomy real estate firm has approached him and
offered to buy the site. Mr. Franz also questions why the "building inspector°
appeared on his property shortly after he rejected the McMenomy offer.
I am directed by the board members to prepare a fiscal analysis of the project
and to present it at the next board meeting.
March 25. Franz call to Miller.
March 29. Verkinnes call to Miller.
April 2. Miller call to Verkinnes.
April 5. Verkinnes call to Miller.
April 6. Miller call to Verkinnes.
April 6. Rosemount Port Authority again considers the White Funeral Home proposal.
I report that the dollars and cents af the project (outside the development
2
district) would require decades for the city to reach a break even point. The
port authority suggests White work with use in finding another location
preferably inside the development district.
April 12. Miller call to Verkinnes.
May 17. Verkinnes call to Miller.
Late S,�ring Again my 1993 calendar has mysteriously disappeared but I do recall a meeting
with Verkinnes shortly after the port authority asked White to look for other sites. At the
meeting I asked Verkinnes to talk with White about his demeanor before the port authority
and suggested he tone down his arrogance in making requests. Verkinnes acknowledged Mr.
White's st,yle and said he would talk to White. I also provided Verkinnes with a list of
passible other sites developed in part with former port authority chairperson Eci Dunn.
These included:
1. Diamond Path and County Road 42
2. Park and Ride lot
3. McMenomy-HIeveter site
4. Burnley - Port authority owned site
Verkinnes expressed an interest in the Park and Ride lot and asked for some topographic
information so that he might see if White would fit on the site. Verkinnes liked the site
because of its proximity to the Catholic chureh.
May 18. Verkinnes call to Miller.
May Z 1. Miller call to Verkinnes.
July 19. Verkinnes call to Miller.
July 22. Verkinnes call to Miller.
July 23. I believe this was a meeting date. Verkinnes showed me sketches of the Park
and Ride lot (certainly sometime in the summer) that proved White could not
fit on the long and narrow parcel. Verkinnes indicated also that Jim White
was interested only in a downtown location and especially a T.H. 3 site.
Verkinnes inquired about Repairs, Inc. I informed him of the Kerry and Ron
Johnson proposal and stated the only way Repairs, Inc. would become
available were if the Johnsans were unable to perform. Verkinnes stated an
interest (close to the Catholic church) and asked if he could inquire from tune-
to-time about the site.
Nov. 23. Verkinnes call to Miller.
3
Thanks iving week Ed McMenomy Sr. was at city hall purchasing license tabs. I saw him
the lobby and he asked to speak with me. He indicated Jim White was still interested in
Rosemount for a funeral home site and was especially interested in the Repairs, Inc. land.
He suggested a meeting around Christmas as he would be in town and liked the idea of
White as a neighbor. McMenomy Sr. stated that Johnsons would not be able to perform on
their proposed office building.
Dec. 27. Meeting attended by Ann McMenomy, Ed McMenorny Sr., Jim White, John
Miller, and Ron Wasmund. McMenamy Sr. proposes that the Repairs Inc.
site be made available to White Funeral Home, that the port authority attempt
to move Polthus Equipment to the business park, that the port authority then
buy the Polthus site from Corcorans and sell it to McMenomy at a deep
discount. This would then permit McMenomy to connect the e�cisting Dakota
Central office building to a remodeled Polthus building. McMenomy asks for
tax increment finaneing to pay for some of the remodeling costs. This would
permit Dakota Central to keep some tenants who wish larger spaces.
Wasmund and I are overwhelmed and tell McMenomy that the port authority
members probably do not want to get involved in raiding tenants, selling land
at deep discounts with no payback, that Kerry Johnson still has control of the
Repairs site, and that the scope of the pmject is beyond the ability of the port
authority to fund even if the commissioners wanted to "do the deal." White
tells Wasmund and me we aren't doing anything to get businesses in town and
several other cities would love to help White Funeral Home in fmancing a site.
The meeting ended with only a limited amount of cordiality.
Week of Feb. 7 Meeting with Commissioner McMenomy to review port authority
agenda. McMenomy rea:ds staff report and asks that I amend the
second recommended action under the Shamrock Square from "Motion
to direct the port authority staff to present the port authority with other
options for the site" to "Motion to direct the port authority staff to
present the port authority with other options, includin� White Funeral
Home, for the site.°
Now for a final note. Verkinnes notes that his list of contacts is an rtial. In addition, my
records do not show calls that I received while in the office or made with the toll free
number. If I had my 1993 calendar I could also pinpoint exact meeting dates. In a nutshell
then this chronology of events does not include all contacts.
dw
attachments
4
MEMO
TO: JOHN MILLER, ECONOMIC DEVELOPMENT COORDINATOR
FROM: RON WASMUND, INTERIM CITY ADMINISTRATOR ���
DATE: FEBRUARY 24, 1994
RE: MEETING DATES WiTH WHITE FUNERAL HOME
Please provide me with a written response to the following questions:
1 . The number of ineetings that you have been in attendance at where the White
Funeral Home was a topic of discussion?
2. When these meetings were held?
3. Where the meetings were held?
4. Who was in attendance at these meetings?
5. The topic of discussion?
I also need to know whether any specifics regarding the amount of tax increment
finance assistance needed or any other form of assistance wzrs requested and any
specific amounts that may have been identified.
Please have a written response to me by March 1 st and be prepared to discuss this
at the Port Authority meeting on March 2nd.
• 6122514693 MILLER CONSTRUCTION Page 1 /2 Job 873 Mar-01 Tue 16:43 1994
�1�MN.I.ER CON51'RIlCTIK?N.
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Qur F'�7C number is (612) �40-8711
COmmerit5:
, 6122�14E93 MILLER CONSTRUCTION Page 2/2 Job 873 Mar-01 Tue 16:44 1994
1�iJ�A FUNERAI MOME
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March 1, 1994
Mr. John Miller �
City af ltosemont �
Dear Jahn:
The fallawing is a partial lisi af the times that we h�v�e inet or have had telephone
conv�r58�tions aS per ypur ret]uest.
Febn,.ary 17, 1993
February 18, 1993
February 24, 1943
Ma.rch i6, 1993
March 29, 1993
July 73, 1993
Navember 73, 1993
February 1, 1994
If you have any questians, please do nat hesitate ta cantact me.
�incerely,
MILLER FUNSRAL HOMB DSSIG►N AND +C��iSTR[JGTI�IY
.
Gary W. Verkinnes
�?Yiee�'resident
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TOPS � FORM 3002S
�LITHO IN U.S.A.