HomeMy WebLinkAboutAdded - Acquiring Property
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
February 19, 2002 1\>\
~DDEDITE~ . ~~
Frank Boyles, City Manage
CONSIDER APPROVAL OF A RESOLUTION ACQUIRING PROPERTY.
Historv: The City Council has sought to acquire land to facilitate progress in the
Downtown Redevelopment project. Over the past few months through the efforts
of Councilmember Petersen, a purchase agreement has been negotiated for
property located at 16318 Main Avenue SE, Prior Lake, commonly known as the
Joe's Pizza site.
Current Circumstances: Scott County tax records identify the market value of
the land and building at $79,500. The negotiated purchase price in the purchase
agreement provides for a payment of $85,000 for the land and building. It is our
understanding that the current owner would like to lease the property back from
the City to continue operation of the business. While the City intends to pursue
negotiation of a lease agreement, the purchase agreement provides that the
Seller is responsible for removal of all personal property from premises, and that
the City would take possession of the property as of the date of closing. In this
manner, the City will not incur additional costs for removal of or disposal of the
personal property should the parties be unable to reach an acceptable lease
agreement. The negotiation of a separate lease agreement for the premises
would take place outside of the City's purchase of the property, and any
proposed lease agreement would come back to the Council for approval. If the
City is unable to negotiate an acceptable lease agreement, the building would be
vacated and the property available.
Early indications are that there are some title issues with the property. The extent
of those issues are not clear, but would be disclosed by the Title Company. The
Seller, through her realtor, has indicated that she is aware of some title issues.
The purchase agreement provides that the Seller must provide clear and
marketable title to the property, which means that all title issues must be
resolved to the City's and Title Company's satisfaction at or prior to closing.
Other City costs associated with the purchase of this property would include
typical closing costs, real estate taxes payable Oct. 2002 and subsequent years,
the cost of any improvements to the building fa<;ade, and utility costs.
Conclusion: The City Council should review the purchase agreement to
determine if they concur with the terms of the contract.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
1:\COUNCIL\AGNRPTS\2002\JOES PURCHA~~g..G. OPPORTUNITY EMPLOYER
ISSUES:
Acquisition of this property would continue the City's efforts to make this property
more consistent with the Downtown development ordinance. The property owner
has confirmed a willingness to sell and has entered into the purchase agreement
voluntarily. Considering these circumstances, the acquisition of this property is
prudent from a public policy perspective.
ALTERNATIVES: (1) Adopt a Resolution authorizing the acquisition of the property and authorizing
the Mayor and City Manager to enter into the Purchase Agreement.
(2) Take no action.
RECOMMENDED
MOTION: Alternative (1).
1:\COUNCIL\AGNRPTS\2002\JOES PURCHASE DOC
1 -
RESOLUTION
~l 0'\ ESOLUTION AUTHORIZING ACQUISITION OF PROPERTY LOCATED
NNES AT 16318 MAIN AVE. SE, PRIOR LAKE, AND AUTHORIZING THE MAYOR
AND CITY MANAGER TO ENTER INTO A PURCHASE AGREEMENT.
Motion By:
Second By:
WHEREAS, the City desires to facilitate progress and encourage the redevelopment of the Downtown
area; and
WHEREAS, the Joe's Pizza property located at 16318 Main Avenue SE, which will ultimately be
redeveloped as part of the Downtown revitalization effort, is available for purchase; and
WHEREAS, a purchase agreement satisfactory to Buyer and Seller have been voluntarily negotiated
and executed by the Seller.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA
that:
1. The recitals set forth above are incorporated herein.
2. The acquisition of the property is hereby approved.
3. The Mayor and City Manager are authorized to execute all necessary documents to effectuate the
closing of the transaction.
4. Funding for the acquisition will be drawn from the General Fund Reserve Balance.
PASSED AND ADOPTED THIS 19TH DAY OF JANUARY, 2002.
YES
NO
Haugenr Haugen
Ericson Absent Ericson Absent
Gundlach Absent Gundlach Absent
Petersen Petersen
Zieska Zieska
City Manager, City of Prior Lake
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
i"roperty Tax Search Results
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Scott County Property Information Search Results
General Property Information
Property ID:
Roll Type:
Payable Year:
Owner Name:
Property Address:
City/State/Zip:
Taxpayer Name:
Attn:
Taxpayer Mailing Address:
Address:
City /State/Zi p:
25-002008-0
Real Estate
2002
PEPPER, EARL T
16318 MAIN AV SE
PRIOR LAKE MN 55372
SCANDINARO,JOE
16318 MAIN AVE SE
PRIOR LAKE MN 55372
Legal Description Information
Lot/Block/Plat# :
Plat Name:
Section/Townsh ip/Ra nge:
Deeded Acres:
Legal Description:
1&2 2 25002
PLAT-25002 CATES ADDN
o
N 29.25' OF S 81' OF EX STREET
Miscellaneous Information
School District:
Taxing District Code:
719
2001
~roperty Tax Search Results
Taxing District Name:
PRIOR LAKE CITY
Valuation & Tax Information
Estimated Market Value of Land:
Estimated Market Value of Building:
Estimated Market Value Total:
Total Net Taxes for Current Year:
$22,600
$56,900
$79,500
$0.00
Total Special Assessments Due for Current Tax $0.00
Year:
Total Net Tax plus Special Assessments:
Outstanding Special Assessments:
Payments:
Green Acres:
Ag Preserve:
$0.00
$0.00
$0.00
Tax Classifications
Property Type:
Homestead Status:
Exempt Status:
COMM LAND & BLDGS
N
Sales Information
N/A
Building Characterstics
N/A
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