CR 90-196 Sale Of Property 11th Ave410 September 11, 1990
SALE OF PROPERTY AT 11TH AVENUE & COUNTY #3
BY THE CITY TO THE HRA
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Aupm ing in.mation
o Location map of the site
an Fr a ng
Economic Development Specialist
K
J
Staff reco?tmends adoption of the following motion: "Direct staff to
r of Cit owne jroperty located on the SE corner of
1t mmug a.n i Bounty_ #3 wit: the HRA Boar"
This process will allow the sale of this property to the HRA and will
provide more opportunity to utilize it in any redevelopment of the
area
gYSINiaeNra
The parcel of property on the southeast corner of County #3 and llth
Avenue is currently owned by the City of Hopkins. This vacant parcel
is approximately 105,471 square feet in size and located within the H--
3 zoning districts
The City Council, while approving the City Hall remodeling project,
agreed that the land in question would be sold to assist in paying for
the project. City staff is now requesting that this sale be
undertaken and completed during the budget hearing process.
The questions which need to be answered at this time are whether the
City Council wants to sell the property and does the HRA want to
purchase it.
k e uuee _Io Vea lkaa r ..
o What is the rational behind this proposed sale?
o What is the Fair Market Value?
o Are any easements needed on the property to accomplish City
objectives?
o What future steps are necessary to complete this sale?
o What are the funding sources for the sale?
Council Report:90-196
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Prima, Z3sut Te Consider:
Based on the information above, the City Council has the following
issues to consider:
o What is the rational behind this proposed sale?
The reason why the property is proposed to be sold is that as a part
of the City Hall remodeling project, the City Council agreed that the
land in question would be sold to assist in paying for the project,
This property is intended to be sold to the HRA. The HRA is the
appropriate owner for several reasons:
- The HRA is the appointed authority for future development
within the City. As such, the HRA has more legal ability to
deal with the property.
•- As a representative of the City, the HRA can control the
development of the parcel. Whereas if the property were sold
to a private developer, the City would have less input into
what occurs on the sits.
o What is the Fair Market Value?
SALE OF PROPERTY
CRp 90-196
Page 2
Staff is presently having an appraisal completed on the property to
obtain the Fair Market Value. If the Council makes the decision to
sell this property, the FMV will be available at the October HRA
meeting,
o Are any easements needed on the property to accomplish City
objectives?
Yes. Easements will have to he provided for future road improvements,
water mains and water tower i'r provements. The exact procedures on
securing these easements has not yet been determined.
o Whet future steps are necessary to complete this sale?
If the motion is made to sell this property, there are still several
steps which need to be completed prior to this sale being finalized.
They are as follows:
1. Draft a resoletion authorizing the HRA to purchase the
property.
2. Drafting Easements the City wishes to retain at this time.
3. Determinitian of the FMV.
4. Deteraainition if the HRA desires to purchase the property.
S. Determining the specific time of purchase.
6. Review disposition with Public Works and engineering
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SALE OF PROPERTY
CR: 90-°196
Page 3
o What are the funding rources for the sale?
It is anticipated that :some combination of Tax increment Financing
will be used for this purchase. The final sale terms will be
structured after receiving council approval to conduct this sale.
Based on the information provided above, the City Council has the
following alternatives to consider,
1. Move to direct staff to review the purchase of City owned
property located in the SE corner of llth Avenue and County
Road #3 with the HRA Board.
2. Direct staff to provide further information on this item.
3. Direct staff to take no further action on this item at this
time.
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CHAPTER V
1. PURPOSE
1.01 The City of Hopkins owns various items of personal property or parcels of real property which may be
surplus to operating needs.
2. PERSONAL PROPERTY POLICY
2.01 Disposal of personal property is covered in Section 305 of the Hopkins City Code,
3. REAL PROPERTY.
3.01 A resolution declaring property to be surplus shall be approved by the City Council. Prior to this action,
the City Council shag direct the staff to undertake the following:
1. Notify HRA. and Park Board of the availability of the property.
2. Review with the Zoning and Planning Commission to determine if the disposition complies with
the Comprehensive Han.
3.02 The sate tzf land shall be wade available at a price that shill take into consideration the estimated fair
market value of the cleared land. However, the City Council, based upon the specific situation, shall
have the right to ascepC an offer for more or less than the fair market value.
3.03 The City Council shall have the irbility to undertake a negotiated sale of land without public bidding, but
onfy following a public hemming, and after published notice in the official newspaper ai least once, and not
l *4;1 clays nor more than 30 dayti prior to the dace of the hearing.
3.04 When the public bidding prows is followed in the sale of property, a notio shall be placid in the official
newspap at least owe providing s. minimum 30 day period for submission of bids.
3.05 The City Countil is authorized to establish any guidelines and specifications determined appropriate to
govern the sale and development of surplus property.
3.01 When the. public bidding pro.ss is followed,. the City Council has the right to award the safe of surplus
property based upon the highes1 r4sponsible bid which complies with any estabti54ed guidelinee4 and
spedfications. The City Coand sail have the right to reject any or all bids.
POLICY # 5. -A
SALE OF PROPERTY
3. me _ Counc t is authori to si ll ot donate surplus property to the Hopkins Rowing and
- - -�°` Re vela ent Authority to facilitate redentopmest activities..
3.08 The City Attorney shalt draft legal documents and eoordhlate the consunimatioa of the sale of surplus
property.
Egabillattoti Q /1j%7
Revised 8/1,84
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