HomeMy WebLinkAbout8C - Proceeds from Sale of Real Estate In Brooksville Center 1st Addition
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
ISSUES:
ALTERNATIVES:
1.
CITY COUNCIL AGENDA REPORT
December 20, 1999 :@U
8C _\
Frank Boyles, City Manage(\\
CONSIDER APPROVAL OF RESOLUTION 99-XX DIRECTING USE OF
PROCEEDS FROM THE SALE OF REAL ESTATE (LEGALL Y DESCRIBED AS
LOT 2, BLOCK 3, BROOKSVILLE CENTER 1ST ADDITION, EXCEPT THE
WESTERL Y 80 FEET THEREOF, SCOTT COUNTY, MN) PURCHASED BY
NORTHVIEW DEVELOPMENT COMPANY.
History
On October 4, 1999, the City Council adopted Resolution 99-105 which
authorized the Mayor and City Manager to enter into a Purchase Agreement for
the sale of Lot 2, Block 3, Brooksville Center 1 st Addition. The sale price of the
property was $90,000. At the same meeting, the City Council also adopted
directive 99-40 which mandated that the staff review and make a
recommendation for the allocation of proceeds from this parcel.
Current Circumstances
The closing of this sale occurred on November 15, 1999. The proceeds of
$89,293 have been deposited in the City accounts and require designation by the
City Council.
If the Council does not designate the use of these funds, they will become
miscellaneous revenues and included in any surplus which may occur for 1999.
There has been some debate with respect to this issue.
The Economic Development Authority did previously recommend a tax levy in the
amount of $76,000 to be used for Downtown Redevelopment. They have
subsequently withdrawn their request. The City Council could elect to designate
this amount for eventual use in the funding of the Downtown Redevelopment
Project with the understanding that a specific Downtown project would need to be
identified before expenditure of the funds can be considered.
2.
The alternatives are as follows:
Leave the proceeds undesignated recognizing that they become part of the
surplus, and automatically part of the General Fund Reserve as provided by
State statute and by City Council resolution.
Earmark the funds for the Downtown Redevelopment Account with the
requirement that a specific project must be identified before the funds may be
used.
Transfer the funds to the debt service sinking fund to reduce property tax levies
to service outstanding Capital Improvement Program debt.
3.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
1:\COUNCIL\AGNRPTS\99\1220_8C.DOC AN EQUAL OPPORTUNITY EMPLOYER
RECOMMENDED
MOTION:
4.
Transfer the funds to the Collector Street Fund to provide additional money for
TH13 intersection improvements including the ring road.
Transfer the money to the Building Fund to begin the process of saving for a new
Police/Administration facility.
5.
As the Council deems appropriate.
I :\COUNCIL\AGNRPTS\99\ 1220_ 8C.DOC