HomeMy WebLinkAbout5 - John & Carolyn Egan Property
AGENDA NUMBER:
PREPARED BY:
SUBJECT:
DATE:
INTRODUCTION:
BACKGROUND:
DISCUSSION:
HERITAGE
1891
COMMUNITY
1991
WJ.5fJ-.h"
2Q91
5
KAY SCHMUDLACH, ASSISTANT CITY MANAGER
CONSIDER APPROVAL OF PURCHASE AGREEMENT
WITH JOHN AND CAROLYN EGAN FOR SALE OF
CITY PROPERTY
OCTOBER 1, 1990
John and Carolyn Egan owners of MNtex, a
company specializing in marketing
entertainment videos, have recently purchased
the former Nelson Woodcraft building at 16151
Main Avenue. The Egans have requested the
City consider selling the vacant lot adjacent
to their newly purchased building. This
agenda item re9Uests consideration of the lot
sale as specifled in the purchase agreement.
a new business which is expanding
The Egans have rented space in
Prior Lake for several years but
expand to enhance their business
MNtex is
rapidly.
downtown
need to
growth.
Their ~urchase of the building on Main Avenue
necessltated significant improvements to the
interior and exterior of the building. The
Egans have requested the lot sale to assist in
completing their building improvements.
Previously the lot was the site of the City'S
water tower and an administrative building.
The site has been vacant for quite some time.
The building purchased by John and Carolyn
Egan is being retrofitted to provide a
receptionist's area, office space, and
warehouse space. Because of the remodeling
effort, the code dictates that the building
must either have 1) a sprinkler system
installed or 2) a second access on the side of
the building.
The Egans approached the City requesting the
purchase of the lot in order for them to
provide the second access. The second access
must be on either side of the building and
because their building is built to the lot
line, a door would not be feasible. The Egans
4629 Dakota $1. 5.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245
RECOMMENDATION:
ALTERNATIVES:
also requested the purchase to provide off
street parking and a picnic/break area for
their nine employees.
The Economic Development Committee considered
this issue on September 13, 1990. Mr. Egan
was present to introduce the idea and address
questions. The EDC strongly supported this
lot sale to the Egans and passed a motion
supporting this position. The EDC minutes
from September 13 have been attached to
illustrate the EDC's motion and rationale for
the support.
At the September 17 City Council meeting,
staff inquired as to the support of the
Councilmembers on this issue. City
Councilmembers generally supported the sale
and staff proceeded based on this feedback.
Mr. & Mrs. Egan will be present on October 1
to make a presentation to the City Council for
their request.
The purchase agreement has been drafted by
citf Attorney Glenn Kessel and is being
revlewed by the Egan's attorney. The Purchase
Agreement reflects the negotiated purchase
price. The price per square foot that has
been negotiated is slightly more than the
price paid per square foot on the lots located
at Main Avenue and County Road 2l. Staff did
not have an appraisal done, but have checked
this price with local appraiser Frank Wicker.
Mr. Wicker believes this is a fair price. The
Egans have also agreed to pay 50% of the costs
for removing the pilings for the former water
tower. The total cost of removing the pilings
will be approximately $2,500. The Egans will
be paying $1,250 and the City will cover the
balance. Staff will be presenting the
Purchase Agreement on October 1, 1990.
Staff recommends the Citr Council approve the
Purchase Agreement, selllng the City owned lot
to the Egans as specified in the Purchase
Agreement.
The City Council
alternatives.
following
has
the
1.
Approve the
presented.
Purchase
Agreement
as
ACTION REQUIRED:
2. Deny the Purchase Agreement as presented.
3. Table this item and direct staff to
renegotiate the sale.
Motion to approve the Purchase Agreement
John and Carolyn Egan for the sale of
property.
with
City