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CR 93-154 Public Works Facility '-- '\ ( '\ " - -l.:'.... ! 1 y I I \ o I 1 (J ,I:- I i-& September 14, 1993 i ..y <0 Council Report 93-154 . I" 0 ~ , ' , ,PK \ .. HENNEPIN COUNTY PUBLIC WORKS FACILITY Proposed Action. Staff recommends adoption of the following motion: Move to authorize City staff to negotiate a purchase option aqreement with Hennepin County reqardinq the Hennepin Countv public works facility. with staff to return to the City Council for final approval of the option aqreement. Overview During the course of the last few years it has become apparent that Hennepin County is interested in relocating its public works facility to another location, perhaps Medina. As a result of this possible occurrence, the City Council has in the past taken formal action which supported the redevelopment of the public works site. Recently, events have occurred which have peaked the City's interest in the redevelopment of the property. . First, it appears apparent that Hennepin County has increased its efforts to facilitate a relocation of its facility. Secondly, the City of Hopkins has been contacted by a major employer iri Hopkins which has expressed an interest in the Hennepin'County public works site for expansion purposes. . Based upon recent discussions with Commissioner Keefe, it was agreed that it was appropriate to begin to resolve some of the issues relative to the redevelopment of the property. One step which was discussed to accomplish this task was for the City to enter into a purchase option agreement with Hennepin County. On September 14 the Hennepin County Board approved a resolution which authorized its staff to complete an appraisal of the property and negotiate an option agreement with the city of Hopkins. Attached is a copy of the resolution. primary Issues to Consider 0 What specific actions has the City Council taken in the past which supports the redevelopment of the Hennepin County site? 0 What specific actions has Hennepin County taken recently to indicate their potential move from Hopkins? 0 Why should the City enter into an option agreement with Hennepin County and what are the related implications? Documents in County Resolution . Thomas K. Harmening Communi ty Development Director / .. CR93-154 Page 2 I. Primary Issues to Consider 0 What specific ~ctions has the City council taken in the past which supports the redevelopment of the Hennepin county site? Over the course of the last few years the city council has undertaken several actions which support the redevelopment of the public works site. These include: - city council Resolution No. 92-51, July 7, 1992: "Determine the feasibility of redevelopment of the County public works facility and specifically address the possibility of industrial uses on the site." This specific statement was included as a part of a number of goals which the city council had established. - strategic Plan for Economic Development: "Work with Hennepin County on redevelopment of the Hennepin County Public Works site.u - Comprehensive Land Use Plan: ~. This document encourages the relocation of the Hennepin County public works facility in order to facilitate redevelopment of the site. 0 What specific actions has Hennepin county taken recently to indicate their potential move from Hopkins? Hennepin county has undertaken a number of actions which signifies their intent to relocate the public works facility. These include: - Included in their 1993-1997 Capital Improvements Plan the relocation of the public works facility located in Hopkins - Budgeted $1.2 million in 1993 for the design of the proposed facility - Have undertaken Phase I and Phase II environmental studies of the Hennepin County site in Hopkins. Based upon this analysis monitoring wells have been installed on a portion of the site. - Hennepin County is in the process of undertaking . discussions with Medina regarding the location of a public works facility. site plans and other related documents are being prepared for zoning and Planning approvals from Medina. I ....... CR93-154 Page 3 0 Why should the City enter into an option agreement with . Hennepin County and what are the related implications? The major employer in Hopkins which is interested in the site has a time line which needs to be met to insure that its expansion can occur to meet their needs. It currently appears that the availability of the Hennepin County site, presuming a move is made, will coincide somewhat with the expansion needs of the local business. However, the local business is concerned about the certainty of the availability of the site. This is important to the business in order to allow it to undertake its business planning efforts. In order to illustrate to the local employer the city and County's interest in making progress on the relocation of the public works facility, as well as to insure a close working relationship between the County and City on the redevelopment of the site, Commissioner Keefe and City staff discussed the possibility of the City entering into a purchase option agreement with Hennepin County. Although this option agreement will obviously have a number of.conditions in place to allow the County to withdraw itself from the agreement, it will establish a price for the property and other parameters regarding the sale and redevelopment of the site. In addition, by entering into a direct option agreement with a governmental . agency ,the County is not required to undertake a .formal public bidding process for the site. However, the CoUnty does expect to be paid fair market value for the property. It should be clearly understood that if, the City enters into this option agreement, the City is not required to buy this property. Rather, it gives the City the option and first right to acquire the property if it so wishes. Please note that staff is in no way suggesting that the City should acquire the property without a developer/business in place to purchase the property from the City for development purposes. staff would expect that at such time the City acquired the property, the property would be transferred to a private ,party shortly thereafter for redevelopment purposes. In essence, the City would assist in facilitating the sale and the redevelopment of the property. Alternatives Approve staff's recommendation. Deny staff's recommendation continue matter for further information. . :;'iiiJlii~t~m~]~~~;;k' ,'>.\x.~"'f",;"WiZi'~, Si\";~k\',!Q,.;'" - . -._- ';"'~~"/' ... RESOLUTION NO. :'. The following resolution was offered by WHEREAS, the 1993-97 Capital Improvement Program includes replacement of the Publ ic Works Facil ity site in Hopkins, located at 320 Washington Avenue South; and WHEREAS, the Cityof Hopkins has expressed interest in the redevelopment of the Publ i c Works fad lity property, BE IT RESOLVED, that staff be directed to obtain an appraisal of the 41.15 acre parcel, legally described as Blocks 25 through 29 inclusive and Blocks 43 through 47 inclusive, including adjoining vacant streets and alleys except roads and county highways, West Minneapolis, and that part'of the NE 1/4 of the NE 1/4 lying south of West Minneapol is, and West of County Road 18 except street, Section 25~ Township 117, Range 11; and BE IT FURTHER RESOLVED, that the County Administrator be authorized to prepare an Option Agreement with the City of Hopkins based on the appraised value of the property, said option to be exercised on or before January 1997; and BE IT FURTHER RESOLVED, that the Option Agreement be ~ontingent on (e, Hennepin County's gaining approval to locate the Public Works Facility at another 1 ocat ion, that funding is Clva il abl e in future budgetary years, and that the County has sufficient time to actually relocate their facility. The question was on the adoption of the resolution and there were YEAS and NAYS as follows: COUNTY OF HENNEPIN BOARD OF COUNTY COMMISSIONERS YEA NAY OTHER Mike Opat - - - Sandra Hilary - - - Peter McLaughlin - - - Randy Johnson - - - John Keefe Emily Anne Staples - - - - - - Mark Andrew, Chair - - - ATTEST: Clerk of the County Board .