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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. M�ICf�RPORA7ED 9�96 YME�T ST.GERMAIM PA.9�lf 12Z� ST.CLCl1D.(�M1E30TA 58342 F � � OFFICE:a12-25�•a�og fAX:�ta•2s1-�594 � C] V E R � I-i E � T Date: From: T�: � � Attx1; ' S�nding � pages (including cav�r sheet) 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 pE8#01!AND coriarr;uc'noN �b YVEST ST.OERMAIht PA.BO�i 1228 BT.CLOIID,AAIMNEFATA 58342 CIffIGF:412�251-1109 fAX:6yR�1-�t�93 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. 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