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Home My WebLink About2016 02-08 City Council Workshop PacketPPLLEEAASSEE NNOOTTEE SSTTAARRTT TTIIMMEE RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY Following are rules of civility the City of Maplewood expects of everyone appearing at Council Meetings - elected officials, staff and citizens. It is hoped that by following these simple rules, everyone’s opinions can be heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles: Speak only for yourself, not for other council members or citizens - unless specifically tasked by your colleagues to speak for the group or for citizens in the form of a petition. Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each other. Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public. Be respectful of each other’s time keeping remarks brief, to the point and non-repetitive. AGENDA MAPLEWOOD CITY COUNCIL MANAGER WORKSHOP 6:15 P.M. Monday, February 8, 2016 City Hall, Council Chambers A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. UNFINISHED BUSINESS E. NEW BUSINESS 1. Facility Security a. Intent to Close Meeting (§13D.05 subd. 3) 2. Purchase Agreement for Londin Lane Property a. Intent to Closed Meeting (§13D.05 subd.3c) F. ADJOURNMENT THIS PAGE IS INTENTIONALLY LEFT BLANK Workshop Item E-2 Consent Agenda Item G16 MEMORANDUM REGARDING SALE OF PROPERTY LOCATED AT 2501 LONDIN LANE TO: City Council FROM: Melinda Coleman, City Manager H. Alan Kantrud, City Attorney DATE: February 2, 2016 SUBJECT: Sale of Excess Land (Londin Lane Fire Station property) These reports are confidential per Minnesota Statute 13D.05: Subd. 3.What meetings may be closed. (c) A public body may close a meeting: (3) to develop or consider offers or counteroffers for the purchase or sale of real or personal property. Before holding a closed meeting under this paragraph, the public body must identify on the record the particular real or personal property that is the subject of the closed meeting. The proceedings of a meeting closed under this paragraph must be tape recorded at the expense of the public body. The recording must be preserved for eight years after the date of the meeting and made available to the public after all real or personal property discussed at the meeting has been purchased or sold or the governing body has abandoned the purchase or sale. The real or personal property that is the subject of the closed meeting must be specifically identified on the tape. A list of members and all other persons present at the closed meeting must be made available to the public after the closed meeting. If an action is brought claiming that public business other than discussions allowed under this paragraph was transacted at a closed meeting held under this paragraph during the time when the tape is not available to the public, section 13D.03, subdivision 3, applies. An agreement reached that is based on an offer considered at a closed meeting is contingent on approval of the public body at an open meeting. The actual purchase or sale must be approved at an open meeting after the notice period required by statute or the governing body's internal procedures, and the purchase price or sale price is public data. Once considered at workshop the decision is going to be made during the public meeting as Consent Agenda Item G-16 and the full memorandum will be available to the public and shall be made part of the public record and approved at the next meeting of the City Council as part of the official minutes. Workshop Packet Page Number 1 of 1 MEMORANDUM TO: City Council FROM: Melinda Coleman, City Manager H. Alan Kantrud, City Attorney DATE: February 2, 2016 SUBJECT: Sale of Excess Land (Londin Lane Fire Station Property) Introduction and Background The City of Maplewood authorized the sale of several parcels of vacant/excess land within the City including two fire stations, including the one at Londin Lane. Over the last several months the City’s Agent, Mike Brass, identified and has been working with a Developer, Rubicon Group, to purchase the Londin Lane site. The City was marketing this site for redevelopment at approximately $2M with the understanding that any buyer would likely discount the cost of removal of the existing infrastructure—essentially the retired fire station and attendant parking area as well as let the market dictate the value. Mr. Brass and Staff anticipated that this site would be slow to market as any potential developer would need to secure the parcel next to it to make full-use of the site in terms of being economically viable. The adjacent piece is approximately 15 acres and is bank-owned. The Londin Lane site is approximately 6 acres. Discussion The City has a Purchase Agreement from the Rubicon Group before it. Rubicon is owned or at least managed by a developer by the name of Tom Wentz. Tom and his group spent a fair amount of time negotiating a deal with the Bank that has control of the adjacent parcel, which they now have a Purchase Agreement on. Since then staff has been working with Mr. Wentz to create a Purchase Agreement that combines the closing on the Londin Lane parcel with the closing on the vacant piece next to it. That is what is before you and Rubicon has offered $1,165,000.00 with some contingencies. Rubicon plans to develop the area with a multi(4)story market-rate apartment complex of approximately 240 units. This would require a change in the zoning of the property, from lower (farm) to higher (R4) density residential (a simple majority vote) unless a PUD is brought forward. It would also require a modification of the City’s Comprehensive Plan as the site is guided, “government,” currently which would require a super-majority vote and also means it needs the advise-and-consent approval of the Metropolitan Council. To proceed with the actual building the project plans will receive design review and there may be a need for a lot division as well. These approvals and changes are part of the contingency to close and Rubicon would make those applications promptly following the signing of the Purchase Agreement. This will allow the For The Permanent Record Meeting Date: 02/08/2016 Agenda Item E2 City to move forward with the Commission and Met Council recommendations and approvals that will eventually come to Council for your ultimate decision. While the development is important, it is also worth noting that the adjacent 15 acres that Rubicon is also purchasing will be used for density purposes, but preserved as green space in perpetuity, which is a nice preservation of native ground and reduces visual clutter. While the contingencies are plain enough, the price is based on a few expenses that have been built into the deal in the mind of the developer, including approximately $100,000.00 in demo expenses. While your agent will be available to provide more detail, the offer is consistent with his market analysis and does contemplate redevelopment that will bring an attractive market-rate complex to south Maplewood with no tax subsidies. According to the Closing estimate the City will net approximately $1,090,000.00. Recommendation Rubicon is a well-positioned and experienced player in this development market. Staff has found them easy to work with and professional in their conduct. This is a good project for the area and also makes good use of the adjacent 15 acres. Staff recommends that the Council approve and authorize the signing of the Rubicon PA (presented as signed by them) and allow Rubicon to initiate the process to obtain the approvals to clear the contingencies prior to closing. Attachments 1. Rubicon, LLC Purchase Agreement and visual site plan 2. Colliers Land Sale Comps 3. 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