Loading...
HomeMy WebLinkAbout5.a. Canada Circle Discussion EXECUTIVE SUMMARY Port Authority Date: November 21, 2017 AGENDA ITEM: Canada Circle Property AGENDA SECTION: Old Business PREPARED BY: Kim Lindquist, Deputy Director AGENDA NO. 5.a. ATTACHMENTS: 2005 Port Authority Information, Dakota County Road ROW Map, Proposed Site Map APPROVED BY: LJM RECOMMENDATION: Provide Staff Direction ISSUE The Port Authority has discussed potential development of the Canada Circle property for some time. Earlier this year, the Port authorized site grading to better serve future development on the property. While staff has retained a contractor, as of writing the grading work has not been completed. In addition, after work had commenced, it was found that storm sewer and concrete curb and gutter from the old Hwy 3 roadway were not removed when the road was realigned. Staff has authorized that additional work for a total of grading and site demolition cost of $66,178.56. As mentioned previously, the City has been approached by several businesses expressing some interest in purchasing the property. A definite cost has not be given, which is the subject of the existing discussion. Staff would like the Port Authority to settle on a price so that we can begin negotiations with potential business owners. From a background standpoint, the City acquired several parcels in 2005. Parcel 7A was acquired from the County for $1.85/square foot. Two other parcels were obtained for no additional cost, as they were excess right of way. As part of the 2005 agreement, the City and County agreed that the City would share 50/50 any profits associated with sale of 7A. Staff’s expectation is that the City should try and cover the cost of acquisition and grading work expended which would total $185,340.56. Because the parcel that would be for sale encompasses 7A, but is greater than just 7A, the proposed site would be sold at $1.03/square foot meaning no profit is made on the sale. The map attached indicates the numerous parcels which comprise portions of the lot. It is staffs intention that properties east of the “Hwy 3 retaining wall” would be sold, while areas at the higher elevation and currently used for the public works operations would remain in City ownership. That will also require the City to replat the parcel to facilitate a sale. Those costs should be covered by the sale of the site. Staff also anticipates that upon development the properties would pay appropriate area and connection charges. Presently there are two different businesses who have expressed interest in the site. In both cases they would like the entire parcel, however the 4 acre site may be too large for their uses. Both businesses could likely locate to the site, but unfortunately both would like to be located along the Hwy 3 frontage. The next steps would be to contact both parties about the site costs including development fees and see what their view of the property is after receiving the financial information. RECOMMENDATION Provide staff direction regarding property price so that interested parties can assess the economic viability of their future projects.