CR 98-33 Purchase Of Parking Lot 500AFebruary 23, 1998
Proposed Action
Staff recommends adoption of the following motion: Move to approve Resolution 98 -11,
approving the purchase of Parking Lot 500A by the City of Hopkins from the Hopkins Housing
and Redevelopment Authority and authorizing execution of the necessary documents.
Overview
PURCHASE OF PARKING LOT 500A
The Hopkins Housing and Redevelopment Authority has purchased a number of properties over
the years for various redevelopment purposes. A number of these properties are either being
retained by the BRA for redevelopment or being utilized by the City of Hopkins for miscellaneous
public purposes.
A property which is presently being utilized by the City for public activities is as follows:
• Property A: Parking Lot 500A, north of Boston Garden Restaurant
Because this property is being used for City- oriented activities, it makes sense to have it in the
ownership of the City. A public hearing on this item was held November 18, 1997, but no action
was taken at that meeting.
Primary Issues to Consider
• What are the specifics of this action?
• What is the purpose for undertaking this action?
Supporting Documents
• Resolution 98 -11
• Letter from Bradley & Deike
• Location map
S 1,e . /`Jim Kerrigan
��1��t vwvv ! Planning & Economic Development Director
Council Report 98 -33
Primary Issues to Consider
• What are the specifics of this action?
This action will give the City ownership of property that it is presently utilizing for public
purposes.
The purchase price to be paid by the City for the subject property is being proposed as
follows:
•Property A: $1
•What is the purpose for undertaking this action?
•To legitimize the City's use of the subject property
•To address staff concems regarding liability insurance issues
Alternatives
The BIRA has the following alternatives regarding this matter:
1. Approve the action as recommended by staff.
2. Continue for further information. There is no immediacy to a specific action.
3. Deny the action as recommended by staff. The major concern staff has regarding this action is
that there could potentially be insurance issues at some future date should there by any claims
relating to this property.
CITY OF HOPKINS, MINNESOTA
RESOLUTION NO. 98-11
AUTHORIZING PURCHASE OF PARKING LOT 500A
WHEREAS, the Hopkins Housing and Redevelopment Authority has developed
Parking Lot 500A on 1 lth Avenue north of Mainstreet (located north of the Boston
Garden Restaurant) as a public parking lot for downtown shoppers, visitors and
employees; and
WHEREAS, once public use of a facility is established it is often advantageous for
the facility to come under the ownership of the City of Hopkins for insurance and other
reasons; and
WHEREAS, the Hopkins Housing and Redevelopment Authority has agreed to
sell Parking Lot 500A to the City of Hopkins for one dollar,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF HOPKINS (THE "CITY") AS FOLLOWS:
1. The City Council of the City of Hopkins hereby agrees to purchase Parking
Lot 500A from the Hopkins Housing and Redevelopment Authority for the sum of one
dollar.
2. The Mayor and City Manager are authorized to execute such documents as
may be required for the purchase of Parking Lot 500A from the Hopkins Housing and
Redevelopment Authority.
Approved by the City Council of the City of Hopkins this day of
March, 1998.
Attest:
Terry Obermaier, City Clerk
CITY OF HOPKINS, MINNESOTA
Charles D. Redepenning, Mayor
Ul l - 4d - 1' ( 1 4; JJ
• BRADLEY &DEIKE,RA.
Attorneys At Law
SUITE 300.5100 EDEN AVENUE
EDINA, MINNESOTA 55436 -2337
Mr. Jim Kerrigan
City of Hopkins
1010 First Street So.
Hopkins, MN 55343
Re: Transfer-of 11RA Land
Dear Jim:
This is written to confirm our conversation regarding the legal authority of the Hopkins Housing
and Redevelopment Authority (the "KRA ") to transfer certain land owned by it to the City of
Hopkins.
Section 469.029, subdivision 1, of the Act provides that, "In accordance with a redevelopment
plan, an authority may make any of its land in a redevelopment project available for use by
private individuals, firms, corporations, partnerships, insurance companies, or other private
interests, or by public agencies, by sale, lease, or otherwise, or the authority itself may retain
property for redevelopment by it." Subdivision 3 of Section. 469.029 also provides that after
property in a redevelopment project has been assembled by . an authority, the authority may
transfer by deed to local public bodies properties which in accordance with a redevelopment plan
are to be devoted to public uses, other than public housing or redevelopment purposes.
Therefore, the HRA has the authority to transfer the parcels to the City for public purposes.
Property transferred under subdivision 3 of Section 469,029 may be transferred by gift or at a
price agreed upon between the authority and the public body. The only instance in which the
statute requires a reimbursement to the redevelopment project fund is in the case of a transfer to a
public low -rent housing project. In that case an authority must reimburse the fund for the fair use
value of the property transferred. The HRA may, then, require the City to pay any amount for
such properties that the. HRA feels is appropriate. Given the circumstances, I believe that your
proposal to have the HRA transfer the property to the City for a nominal cost would be
justifiable.
Please let me know if you have any questions about this letter or if you need further assistance on
this matter.
Sincerely,
Robert J. Deike
DKNULC h LC ■ , . -1. 01c 'co 43 f . OG/ GJ
October 28, 1997
PATRICK J. BRADLEY
ROBERT J. DEIKE
STEPHEN J. WONTOR
CAROL M. WILSON
(612) 926.5337
FAX (612) 926 -5743
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