HomeMy WebLinkAbout9D - City Properties Dev. Rep.16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
MEETING DATE:
AGENDA#:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
July 18, 20059D {~ ,~~
Frank Boyles, City Manager
CONSIDER APPROVAL OF A REPORT REGARDING THE DEVELOPMENT
OF CITY PROPERTIES:
1. MAIN AVENUE AND HASTINGS, AND
2. FRANKLIN TRAIL AND PARK NICOLLET
History
The City Council previously authorized the solicitation of bids responsive to a
request for proposal to facilitate the sale and economic development of the
above-identified City property. On June 6, 2005, the Council adopted resolutions
accepting the proposal of Rock Creek Design and Homes for the Hastings parcel
and Dan O'Keefe for the Franklin Trail parcel. The purpose of this agenda report
is to provide a status report on this topic.
Current Circumstances
Each of the projects has made progress since the Council took action at its June
6, 2005, meeting.
Rock Creek Desiqn and Builders (Hastings parcel)
Dan Schaefer has been in contact with the staff and others expressing his
desire that the development of the Hastings parcel be part of a bigger
development in this area. Staff has made it clear to Mr. Schaefer that while we
support a larger development effort in Downtown, the first priority must be the
completion of development on the Hastings property.
Accordingly, the City Attorney has prepared the necessary documents to allow
this development to proceed. The staff has completed its review of the
documents. We will provide these documents to Mr. Schaefer within the week.
Dan O'Keefe (Franklin Trail parcel)
As the Council may recall, Mr. O'Keefe included two contingencies in his
proposal which he hoped to address within 60 days (August 20, 2005).
The first contingency was soil contamination. I have supplied Mr. O'Keefe with
the Phase II environmental report that was done on the T. J. Towing parcel. It
shows contamination levels within acceptable limits. Mr. O'Keefe indicated his
intent to complete some additional testing.
The second contingency was a confirmation that a 30,000 square-foot building,
together with the necessary ponding, parking and setbacks could fit on the
parcel. He and his architect have been working with staff in this regard.
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ISSUES:
FINANCIAL
IMPACT:
ALTERNATIVES:
RECOMMENDED
MOTION:
The T. J. Towing parcel and Park Nicollet parcel have constraints. Both are
narrow and both abut residentially-zoned property. The structure setback
between commercial and residential is 60 feet. There is also a setback from
Village Lake Drive.
Accordingly, it appears that Mr. O'Keefe will need to seek one or more
variances to develop this property with a building the size he has proposed.
That process can require 30-45 days. Given this unforeseen development,
staff would recommend that Mr. O'Keefe be given an additional 60 days to
address and investigate the two contingencies. The City Attorney has
prepared the necessary documents to allow development to proceed, which
are currently being reviewed by City Staff for their comments.
The staff believes that an extension of time to clear the contingencies on the
Franklin Trail parcel is appropriate since we concur that the parcels do possess
constraints which support one or more variances.
Regarding the Rock Creek proposal (Hastings parcel), we believe that
satisfactory progress is being made.
Both sales would provide revenue to the City in the form of the sales price and
real estate taxes. Both buildings will house businesses which will benefit the
Prior Lake market.
1. Adopt a motion extending the time to satisfy contingencies for the Franklin
Trail parcel another 60 days (October 20, 2005).
2. Take no action.
Alternative #1.
h\COUNCIL~,GNRPTS~005\0718 Development of City Properties. DOC