HomeMy WebLinkAbout2013-09-11 HEDC Packet
AGENDA
CITY OF MAPLEWOOD
HOUSING AND ECONOMIC DEVELOPMENT COMMISSION
Wednesday, September 11, 2013
7:00 P.M.
Council Chambers -Maplewood City Hall
1830 County Road B East
1.Call to Order
2.Roll Call
3.Approval of Agenda
4.Approval of Minutes:
a.June 12, 2013
5. New Business:
a.Approval of Loan Program Application, Larkin Dance Studio
b.Approval of Selling Excess City-Owned Real Property Policy
c.Approval of Sale of City-Owned Real Property, Castle Avenue and Van Dyke Street
6.Unfinished Business:
7.Visitor Presentations:
8.Commission Presentations:
9.Staff Presentations:
a.Commissioner Appreciation Event, September 26, 2013 (No Report)
b.Development Summary (No Report)
10.Adjourn
MINUTES OF THE HOUSING AND ECONOMIC DEVELOPMENT COMMISSION
1830 COUNTY ROAD B EAST, MAPLEWOOD, MINNESOTA
7:00 P.M., WEDNESDAY,JUNE 12, 2013
1.CALL TO ORDER
A meeting of the Commissionwas held in the City Hall Council Chambers and was called to order
at 7:02p.m.byActing Chairperson Kloncz.
2.ROLL CALL
Commissioners
Gary Kloncz, CommissionerPresent
Mark Jenkins, CommissionerPresent
Absent
Jennifer Lewis, Commissioner
Joy Tkachuck, CommissionerPresent
Absent
Beth Ulrich, Chairperson
Absent
Dennis Unger, Commissioner
Warren Wessel, CommissionerPresent
Staff
Michael Martin, Planner
3.APPROVAL OF AGENDA
Commissioner Jenkins commission presentations park strategy discussion for July 11, 2013, and
to Move item 7. Visitor Presentations ahead of 5. New Business.
CommissionerWesselmoved to approve the agenda as amended.
Seconded by CommissionerTkachuck.Ayes –All
The motion passed.
4.APPROVAL OF MINUTES
CommissionerWesselmoved to approve the HEDC minutesforMay 8,2013.
Seconded by CommissionerJenkins.Ayes –Commissioner’sJenkins,
Tkachuck & Wessel
Abstention –Commissioner Kloncz
The motion passed.
5.NEW BUSINESS
a.Review of Proposed 3M TIF District
i.Planner, Michael Martin introduced the item.
ii.Analyst, Springsted Incorporated, 380 Jackson St., Ste 300, St. Paul, MN, Tom Denaway
presented and answered questions of the commission.
iii.Assistant City Manager, Chuck Ahl addressed and answered questions of the
commission.
June 12, 2013 1
Housing and Economic Development CommissionMeetingMinutes
iv.Mary Ippel, Springsted Incorporated, 380 Jackson St., Ste. 300, St. Paul, MN, addressed
and answered questions of the commission.
Commissioner Jenkins moved to approvethe proposed 3M TIF District for the development of the
company’s new Research and Development facility.
Seconded by Commissioner Wessel.Ayes –Commissioner’s Jenkins,
Tkachuck & Wessel
Nay
–Commissioner Kloncz
The motion passed
This item goes to the city council on July 22, 2013.
Commissioner Jenkins stated he is in favor of the3M TIF Funding because it is not financing
public buildings, because it is going to retain local jobs and local have residents who would not be
relocating to another state. It would not be a significant increase on city services and because 3M
has agreed to pay $285,000 in park charges and agreed to pay city fees.
Commissioner Kloncz stated he is voting nay at this time because he felt he needs to do more
research to understand TIF funding.
Commissioner Jenkins will represent the HEDC at the city council meeting in July.
b.2014–2018 CIP Plan Review and Debt Analysis
i.Assistant City Manager, Chuck Ahl gave the presentation and answered questions of the
commission.
Commissioner Wessel moved to approve the 2014 –2018 CIPPlan Review and Debt Analysis.
Seconded by Commissioner Tkachuck.Ayes –All
The motion passed.
Commissioner Kloncz volunteered to be the HEDC representative at the June 18, 2013, city
council meeting.
Commissioner Wessel volunteered to be the HEDC representative at the July 8, 2013, city
council meeting.
6.UNFINISHED BUSINESS
None.
7.VISITOR PRESENTATIONS
Visitor Presentations was heard ahead of other items on the agenda.
a.Bob Zick, North St. Paul resident addressed the commissionregardinghis comments
regardingthe review of the proposed 3M TIF District.Assistant City Manager, Chuck Ahl
responded to the question from Mr. Zick.
June 12, 2013 2
Housing and Economic Development CommissionMeetingMinutes
8.COMMISSIONPRESENTATIONS
a.Commissioner Jenkins said the Park Task Force will be having a meeting for Maplewood
business owners on July 11, 2013, from7:30-9:00 a.m. at the Maplewood Community
Center.
9.STAFF PRESENTATIONS
a.Development Summary
i.Planner, Michael Martin gave an update on the development in the city.
10.ADJOURNMENT
Chairperson Ulrichadjourned the meeting at9:02p.m.
June 12, 2013 3
Housing and Economic Development CommissionMeetingMinutes
MEMORANDUM
TO:
Charles Ahl, City Manager
FROM:
Michael Martin, AICP, Planner
Melinda Coleman, Assistant City Manager
SUBJECT:Approval of Loan Program Application, Larkin Dance Studio
DATE:
September 4, 2013
Introduction
Molly Larkin Symanietz, of Larkin Dance Studio, has made an application to the city requesting
consideration of a commercial reinvestment loan. This loan would assist Larkin Dance Studio in
moving to the vacant building and site at 1400 East Highway 36.
Discussion
Ms. Larkin Symanietz’s application is requesting a loan from the city for $100,000. The city loan
would go toward exterior upgrades for the 1400 East Highway 36 site. Improvements would
include a new parking lot, site drainageupgrades, a possible rain garden, new landscaping, new
lighting and screening for the east side of the property. This site has been vacant for several
years and has not been well maintained.
It is the applicant’s intent to grow its business in the new location. The applicant currently has
three full-time and 10 part-time employees, but would expect to hire four or five full-time and 10
part-time new employees by January 2016. The applicant would also be looking to add different
business segments to supplement the dance studio.Additional uses could include a child care
facility and a small café for its patrons. Please refer to the attachments for the applicant’s full
application.
On December 10, 2012, the city’seconomic development authority (EDA) approved and
establisheda levy to generate funds for business development and redevelopment purposes.
This is the city’s first application of request since the levy has been established. The EDA
would have several options in structuring a loan to Larkin Dance Studio. The request for
$100,000 could be satisfied with a combination or EDA levy dollars and the waiving of city fees
–for example $75,000 in a loan and $25,000 in fees waived. In addition, to encourage the
expansion of the business the EDA may consider making part ofthe loan forgivable if certain
benchmarks are met –for example, additional employees hired by a certain date.
Summary
The housing and economic development commission (HEDC) is being asked to consider
support for city financial assistance to assist Larkin Dance Studio in renovating the site at 1400
East Highway 36. The HEDC should consider options for how the EDA would structure any
assistance.The HEDC work plan identifies the non-residential areas surrounding the Highway
36 and English Street intersection as an area of focus for the city to concentrate its
redevelopment efforts. This proposal has the opportunity to bring a new user to the area and
provide upgrades to a site that has been sitting dormant.
Recommendation
Approve the use of EDA levy funds for a commercial reinvestment loan to Larkin Dance Studio.
Attachments
1.LocationMap
2.Aerial Site Map
3.HEDC Work Plan
4.Applicationfrom Larkin Symanietz, dated August 28, 2013
Attachment 1
1400 East Highway 36
Chad Bergo
1400 East Highway 36 - Larkin Dance Studio
Location Map
Attachment 2
1400 East
Highway 36
Chad Bergo
1400 East Highway 36 - Larkin Dance Studio
Aerial Site Map
Maplewood Economic Development Commission
Economic Development Priorities, Implementation Activities and Timeline
Economic Development Priorities
Redevelopment
The Maplewood Business and Economic Development Commission recommends actively exploring
opportunities for redevelopment in three potential areas in 2013. Redevelopment is a multi-year process;
the BEDC would lay the foundation by exploring market opportunities, building familiarity with business
and property owners in the target areas, and determining the level of city support needed to stimulate new
investment.
St. John’s Hospital Area: Growth is anticipated in the health care sector. The reuse of Gander
Mountain by HealthEast reflects market interest in a location close to St. John’s. Ancillary medical
office buildings have the potential to generate significant property tax revenue as well as quality
employment opportunities. The long term plans of St. John’s and market potential for additional
health care related development/businesses should be explored.
Gladstone (Frost Avenue and English Street): Historically, this area of the community served as a
key commercial node in the community and is considered the original settlement site of
Maplewood. However shopping, traffic patterns, retail formats and typical retail parcel sizes have
changed, and market forces alone may not be sufficient to stimulate reinvestment.
Highway 36 and English Street: Change is underway in this area with the major reconstruction of
Highways 36 and 61 in 2013. This can serve as a stimulus for redevelopment within these key
transportation corridors. Underutilized buildings, vacant parcels and redevelopment opportunities
exist within this area.
Business Retention
The BEDC recommends that it undertake a business retention effort, with an emphasis on relationship
building. Starting in 2013, the focus of retention efforts will be primarily on businesses in potential
redevelopment areas. There are approximately 1,000 businesses in the three potential redevelopment
areas, distributed as follows.
St. John’s Hospital Area
Gladstone
Highway 36 and English Street Corridor
Ideally, visits to redevelopment area businesses will involve one staff member and one volunteer. City staff
would be responsible for scheduling and maintaining pertinent information; volunteers can bring a business
perspective to the visit and send a strong message that the city cares. A simple interview guide should be
developed to make sure that key information is gathered while creating an opportunity to listen to the
business and build a relationship. It is estimated that staff capacity allows for approximately 3 visits each
month.
In addition, the BEDC recommends that the Mayor or City Manager notify GREATER MSP and Ramsey
County that the city would like to be informed of visits in the community, so that it might send a
representative of the city as part of delegation on visits to major employers.
Implementation Activities and Timeline
The following implementation strategies and timeline are suggested.
Third Quarter 2012
a. Redevelopment areas broadly defined and agreed to by BEDC and EDA.
b. Funds budgeted for market analysis in early 2013
c. Business lists developed for redevelopment areas; interview guides developed
Fourth Quarter 2012
d. Develop and issue RFQ or RFP for market analysis for the three key market
areas with preliminary redevelopment feasibility analysis to help determine the
level of city support that may be needed to stimulate investment.
e. Complete 3 business retention visits; review & refine the process
f. Send letter to GREATER MSP and Ramsey County requesting that the city be
invited to participate in business retention visits to major employers in the
community
First Quarter 2013 g. Retain consultant and begin market analysis & preliminary feasibility to
determine level of city support needed to stimulate investment
h. Conduct 9 business retention visits to businesses in the potential
redevelopment areas
Second Quarter i. Consultant completes market analysis and preliminary feasibility; shares results
2013with EDC
j. Conduct 9 business retention visits to businesses in the potential
redevelopment areas
Third Quarter 2013 k. Consider market analysis and preliminary feasibility. Develop a strategyfor
the potential redevelopment areas. Set priorities and determine the level of city
engagement that may be needed to stimulate private investment in revitalization
of these areas including the following:
Do nothing
•
ID area only & indicate city is receptive to redevelopment of the area
•
Create vision or physical concept plan
•
Conduct environmental review
•
Purchase property, assemble sites, clean-up sites, provide incentives for
•
redevelopment
Align comp plan, transportation, zoning, design standards, development
•
review process
Create implementation strategy based on market opportunities, catalyst
•
sites, financing tools and funding opportunities
Share with neighbors & partners – e.g. area residents, business owners,
•
Met Council, MnDOT, county, watershed district, others
Market to developers
•
l. Review business retention process. Is it meaningful? Does the number of visits
per month work well for staff & volunteers? How might it be improved or
adjusted? Continue conducting visits based on insights gained from the review
process.
Possible Future Activities
The BEDC also considered strengthening electronic communication with businesses. Because the city has a
business base of more than 1,000 businesses, personalized outreach to all businesses would require a
substantial commitment of resources. Electronic communications would allow the city to reach a broader
base of businesses and a visitation approach.
One option is to work with the city communications department to build a database over time of e-mail
addresses for businesses and develop a newsletter targeted specifically to businesses. As taxpayers,
businesses have different concerns and service needs than residents. It could include positive messages
about growing businesses in Maplewood and identify specific ways that businesses might access a variety
of city services (e.g. expansion assistance, fire safety, employee participation in park and recreation
opportunities, etc.). A business oriented newsletter would ideally be distributed 2-4 times per year.
Another option is to conduct annual or semi-annual business events, sponsored by the city, to which
businesses are invited. Approaches such as a Mayor’s Breakfast, luncheon speakers or events that feature
city facilities such as parks or the community center provide an opportunity for relationship building with
businesses.
Attachment 4
APPLICATION FOR COMMERCIAL
OFFICE USE
REINVESTMENT LOAN PROGRAM
Date received:_________
Return to: Community Development Dept. By:__________________
City of Maplewood Rec.#:______Date______
1902County Road B East
Maplewood, MN 55109
651-249-2300 Fax: 651-249-2319
APPLICANT
1.Co-applicant/business name: Larkin Dance Studio
Contact person: Molly Larkin Symanietz
Address: 3000 White Bear Ave, Maplewood MN 55109
Telephone: (Work) 651-779-0764(Home) 651-338-8489
Fax: 651-779-6106
Co-applicant/building purchaser and future owner: 1400 East Highway 36, LLC
Contact people: Joe Card, telephone number of 651-271-8181
Avi Levi, telephone number of 651-329-4956
Interest in the property:
The property that we (Larkin Dance Studio and 1400 East Highway 36, LLC) are interested in is
the former Minnesota Granite building that is located at 1400 East Highway 36 in Maplewood.
This building has been vacant for several years and it is currently a distressed property that is in
need of substantial repairs. The current lender is involved in the sale of the building and the City
of Maplewood has had to complete work and general maintenance on the property for lawn-care
and weed control.
The total projected costs for this project are approximately One Million Six HundredForty Two
Thousand Dollars ($1,642,000). With the overall project costs being so high, we (Larkin Dance
Studio) needed to find an investor that would work with us to acquire the property and complete
the renovations of the building to convert it from a manufacturing facility to a dance studio. We
found the investor in a family that had a son not only take classes but also teach at the Larkin
Dance Studio.
Joe Card and Avi Levi (through the entity 1400 East Highway 36, LLC) plan to purchase the
building at 1400 East Highway 36 in Maplewood solely for the purpose of leasing the property to
us (Larkin Dance Studio). We (Larkin Dance Studio) will have the option to purchase the
building at anytime during the lease term. Weplan to move our dance studio to 1400 East
Highway 36 in Maplewood and be open for business on or before January 1, 2014. We need to
upgrade our facilities and reduce our operating costs to insure a successful future and to better
serve our students.
3DJHRI
Attachment 4
2. Applicant's real estate broker and attorney: Dean Trongard with Options Real Estate, Inc.
Address: PO Box 33, Maple Plain MN 55359
Telephone: (Work) 612-812-1616
Fax: 763-267-7664
3. Applicant's architect (if selected): Phil Stein with DLR Group
Address: 520 Nicollet Mall Suite 200, Mpls. MN 55402
Telephone: (Work) 612-977-3576(Home) 651-214-8335
Fax: 612-977-3600
4. Applicant's contractor (if selected): Joe Card with Card Construction
Address: 644 Brookside Ln, Mendota Hts. MN 55118
Telephone: (Work) 651-271-8181
Fax: 651-552-9986
5. Property owner(s) of record: MN Granite and Marble Company
Address: 1400 Highway 36 East, Maplewood MN 55109
Telephone: (Work) N/A.
Fax: N/A.
6. Applicant's business form (corporation, partnership, sole proprietorship, etc.) and state of
incorporation or organization: Larkin Dance Studio is a Minnesota corporation and 1400
East Highway 36, LLC is a limited liability company in the state of Minnesota.
PROJECT
1. Project name:
Larkin Dance Studio Building
2. Legal description of the site:
The property consists of two property identification numbers.
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Attachment 4
3. Why is city assistance needed in order to move forward with your proposed project
and how will the assistance be used?
As previously stated, the overall project cost is estimated at $1,642,000. This breaks down to
$775,000 for the building (which our investor will purchase and lease to us). Our investor (1400
East Highway 36, LLC) has also agreed to provide $50,000 toward property renovations. The
interior build-out projected costs are estimated at $595,000. The exterior renovation costs are
estimated at $200,000. The estimated SAC/WAC charges are $22,000.
Our plan for financing the overall project is as follows:
1400 East Highway 36, LLC will purchase the property and lease it to us and we will have an
option to purchase the property at anytime during the entire lease term. This is $775,000 toward
are needed funds.
1400 East Highway 36, LLC will contribute $50,000 toward the renovation costs.
We (Larkin Dance Studio) have $630,000 to contribute toward the project (through dance studio
funds, personal savings and a home equity loan). We currently have a projected shortage of
financing funds of $187,000. We are counting on the City of Maplewood to contribute $100,000
towards the project through a business subsidy agreement. For the remaining $87,000 shortfall
we likely phase in some of the renovations to fit within our budget.
As we look at the overall project, we have an investor to buy the building. We have the needed
funds for the interior renovations and we are looking to the City of Maplewood to help with the
exterior renovation costs. The funds we would receive from the City would be used for the
following improvements: parking lot, site drainage, possible rain garden, landscaping, new
lighting and screening on the east side of the site.
As the financing section (Item 8) shows, wehave budgeted all available funds to this project.
We need assistance from the City of Maplewood in order to move forward with this project.
4. Describe the project as proposed, i.e. how much commercial square footage, etc.
Include contractors bid and diagram or photo if applicable.
The property consists of approximately 2.34 acres of land and one main building that is
approximately 21,000 sq. ft. and a smaller out-building that is approximately 1,920 sq. ft.
Copies of two contractor bids are attached.
5. How will the use of assistance be used to create or retain jobs within the city of
Maplewood?
3DJHRI
Attachment 4
We believe Larkin Dance Studio has not only been a successful community business but it has
proven to be a priceless amenity for the City of Maplewood for over 37 years.The current studio
facility is only 12,000 sq. ft. The new location of over 21,000 sq. ft. would allow us to retain our
current workforce, expand our business andadd additional instructors, employees and other key
personnel. This new facility would provide for 2 additional large studios.
In our current facility we have 3 full-time employees. With the new space, within the first two
years (by January 1, 2016) we project adding 4 to 5 additional full-time employees. We
currently have 10 part time employees and with the new space, within the first two years (by
January 1, 2016) we project adding 10 additional part-time employees that will be working at
least 10 hours per week.
In the new space, we project needing at least two new instructors to support our projected growth
of 100 to 150 additional students. The new facility would also provide for an expansion of the
retail business and our plan for possibly two or three new business segments; a child care facility
and a small café for our patrons and possibly voice lessons (which may be a subtenant or an
expansion to our current class offerings).
In addition to jobs, the move will enable us to offer additional scholarships to Maplewood
residents.
For over 60 years Larkin Dance studio has been much more than a school to learn dance. It is a
family. Relationships have been formed. Help has been given to those in need.
Shirley Larkin was known for her generosity. Many years there were balances uncollected from
patrons that had fallen on hard times. Rather than having formal scholarship programs, Shirley
showed her generosity by forgiving debts to those who could not afford to get caught up on their
dance bills.
In this economy, many people in our neighborhood are feeling the pinch. We have the same
compassion for our dancers that are in need that our mother did. After we are established in our
new facility, and we have a good handle on our operating costs,we will help more families in
need. We plan to announce
families in need to get reduced and free dance lessons. Our projections for scholarships are as
and competition schedule. Within the first two years of being open for business (by January 1,
2016) we plan
to students and families that need assistance.
Over the years, Larkin Dance Studio has spent literally millions of dollars on rent. As costs
continue to rise, it is more difficult to operate profitably. Owning a building will help reduce our
overhead costs and we will be building an asset rather than paying rent for someone else to build
their assets.
3DJHRI
Attachment 4
Please help us give back to our community through your financial assistance and make our
dream become a reality.
6. What improvements will be made to the site, building exteriors and/or landscaping?
The funds we are requesting from the City will be used for exterior site renovations to include
improvements to the parking lot, site drainage, possible rain garden, landscaping, new lighting,
screening on the east side of the site. The parking/traffic flow of the proposed site plan would
increase safety for the patrons and children.
7. Estimated project costs (as applicable):
a. Land & Building acquisition: $775,000*
*The building and land cost will be deferred until our option to purchase is exercised.
b. Investor property improvement allowance $50,000
c. Projected Interior build-out costs $595,000
d. Projected Exterior build-out costs $200,000
e. SAC/WAC estimated costs $22,000
Total $1,642,000
8. Financing:
a. 1400 East Highway 36, LLC building purchase $775,000
b. 1400 East Highway 36, LLC build-out allowance $50,000
c. Bank Financing: (Home equity loan) $200,000
d.Applicant Funds: Larkin Dance Studio $230,000
e. Applicant Funds: Owners of Larkin personal funds $200,000
f. City Financing: $100,000
g. Shortfall - $87,000
3DJHRI
Attachment 4
MEMORANDUM
TO:
Charles Ahl, City Manager
FROM:
Michael Martin,AICP,Planner
Melinda Coleman, Assistant City Manager
SUBJECT:Selling Excess City-Owned Real PropertyPolicy
DATE:
September 4, 2013
Introduction
The city has been presented with a purchase offer for propertyit owns at the
intersection of Castle Avenue and Van Dyke Street. Because of this purchase offer, city
staff is recommending the city adopt a policy to guide this and any futureproposals.
Discussion
The proposed selling excess city-owned real propertypolicy outlines Maplewood’s
mandatory criteria and the city’s review policies, procedures and criteria. These would
be in effect for anyrealproperty that the city deems inexcess and proceeds to sell. The
proposedpolicy incorporates the minimum requirements for selling real propertyas
required by Minnesota state statutes.
The policy requires the planning commission and housing and economic development
commission (HEDC) to make a recommendation to the city council deeming the real
propertyin excess and available to sell. The council than shall deem the real propertyin
excess. If the intent is to use proceeds from a salefor economic development than the
city council will transfer ownership to the city’s economic development authority (EDA) to
sell the land.Once a buyer has been found, the EDA shall call a public hearing and
make any final decisions on selling the land. If the proceeds are to be used for other
publicfunctions then the city council shall remain the owner of the real property. The
HEDC will also review any purchase proposals and make a recommendation to the city
council orEDA.
Recommendation
Adopt the selling excess city-owned real propertypolicy attached to this report. This
policy has Maplewood’s criteria and project review policies, procedures and criteria for
any city-owned real property that would be sold in the city ofMaplewood.
Attachments
1.Proposed Maplewood Selling Excess City-Owned Land Policy
2.League of Minnesota Cities Informational Handout
P:\HEDC\Agenda Reports\2013\091113
PROCEDURE FOR THE SALE OF EXCESS MAPLEWOOD REAL PROPERTY
1
PURPOSE AND AUTHORITY
1.01
The purpose of this document is to establish the criteria and process for the City
of Maplewood (the “City”) to sell ordispose of excess city-owned real property.
1.02
The City's ability and authority to sell and dispose of real propertyis governed by
the limitations established in Minnesota Statutes.
1.03
The Citymay amend this document at any time. Amendments to these criteria
are subject to the same review requirementsestablished by this policy.
2
DEEMING CITY-OWNED REAL PROPERTY IN EXCESS
2.01
The planning commission shall review all proposals for the sale of city-owned
land. To sell city land, the planning commission must determine the sale of such
land would be consistent with the city’s comprehensive plan and other official
controls. The planning commission shall make a recommendation to the city
council.
2.02
The housing and economic development commission shall review all proposals
for the sale of city-owned land and shall determine whether the land is in excess
and suitable for sale into the private development market. The housing and
economic development commission shall make a recommendation to the city
council.
2.03
The city council shall consider recommendations from the planning commission
and the housing and economic development commission on deeming any city-
owned properties.
3
SELLING EXCESS CITY-OWNED REAL PROPERTY
3.01
If the proceeds of any sale of city-owned real property is intended for the use of
economic development in the city then the real property shall be transferred to
the City’s economic development authority. The city attorney shall prepare a
purchase agreement for approval by the city council and the City’s economic
development authority.
3.02
If the proceeds of any sale of city-owned real property is intended for public use,
except foreconomic development, than the city council shall retain ownership.
3.03
Any agreements or contracts with Realtors or other real estate professionals to
represent the City must be approved by the city council or the City’s economic
development authority.
3.04
Upon receiving any purchase offers for City-ownedreal property, city staff shall
prepare a report for the housing and economic development commission’s
review. The housing and economic development commission shall make a
recommendation to the city council or the City’s economic development
authority.
3.05
For real property owned by the City’s economic development authority, a public
hearing mustbe held and noticed in the City’s official newspaper at least 10 days
prior to the scheduled meeting.
3.06
Any and all purchase agreements or other legal documents related to
transferring land must be reviewed by the city attorney.
3.07
The city council or the City’s economic development authoritymay close a public
meeting to determine the asking price for real property to be sold, to review
confidential or nonpublic appraisal data, and to consider offers or counteroffers
for the sale of real property.
3.08
Any proposed changes to the City’s comprehensive plan’s future land use map
or the official zoning map shall be the sole responsibility of the entity purchasing
the real property. All land use applications and public hearing processes must
be adhered to by the purchasing entity.
MEMORANDUM
TO:
Charles Ahl,City Manager
FROM:
Michael Martin, AICP, Planner
Melinda Coleman, Assistant City Manger
SUBJECT:Approval of Sale of City-Owned Real Property, Castle Avenue and
Van Dyke Street
DATE:
September 5,2013
Introduction
The city has received a purchase offer for property it has been marketing for sale. The property
is located on the southeast corner of Castle Avenue and Van Dyke Street. Refer to the
attached maps. This property has135.38feet of frontage and 296.68feetof lot depth for an
area of .92square feet. It is currently zoned R1 (single dwelling residential) and guided LDR
(low density residential)in the comprehensive plan.
As a note,the abutting single dwelling parcel to the southat 2260 Van Dyke Streetis for sale
and being sold with the anticipation for commercial development by that property owner. This
lotis the same size as the city-owned parcel.
Request
Staff would like the housing and economic developmentcommission (HEDC) to make a
recommendation to the city council and the economic development authority (EDA) on this
parcel being excess land owned by the city and accepting the purchase offer.
Discussion
Excess Land
The city acquired this parcel through a private transaction in 1974for right-of-way or utility
purposes. A portion of this parcel was utilized to build the roundabout at the Castle Avenue and
Van Dyke Street intersection. The rest of this parcel is not needed for any additional right-of-
way purposes. The city has run anownership and encumbrance reportand there are no
restrictions against the property which would limitany potential sale.
Since this parcel does not have any deed restrictions and is not needed by the city for any
additional public functions, staff is recommending the city deem the parcel in excess and move
forward with selling the property.
Purchase Agreement
The city hired Mike Brass, a real estate agent with Colliers International, to represent the city
and market this parcel. The city has received a purchase agreement for this property from a
development group that would intend to develop this site with a commercial use. The purchase
agreement submitted to the city is considered confidential information and because of this Mr.
Brass has submitted a letter for the HEDC’s review indicating the offered sale price represents a
fair market value.His letter also includes information on comparable sales from the surrounding
area.
The property is zoned and guided by the city’s comprehensive plan for single family residential
use. Any purchase of the property would be contingent on the buyer making the appropriate
land use applications to zone and guide the land for commercial use. The city’s normal public
hearing and notification process would be utilized for any land use applications. The city council
approves all official land use and map amendments.
The intention is to use the proceeds from this sale for future economic development pursuits.
So to move forward the City of Maplewood must transfer ownership of this land to the city’s EDA
who then would officially sell the land to an outside group. The EDA is required to notice and
hold a public hearing prior to approving any land sales.
Recommendation
A.Approval of a recommendation to the city council in determining the property the city owns
on the southeast corner of Castle Avenue and Van Dyke Street is in excess and not needed
for any public use and should be marketed for sale.
B.Approval of a recommendation to the city council and the city’s economic development
authority to move forward with a purchase agreement to sell the property located on the
southeast corner of Castle Avenue and Van Dyke Street.
Attachment
1.Land Use Plan Map
2.Zoning Map
3.Aerial Photo
4.Survey Drawing
5.Mike Brass Letter, dated September 5, 2013
4700 Lexington Avenue N+1 952 837 3050
Minneapolis -St. Paul
MAIN
Suite B
+1 952 837 3051
North Suburban Office
FAX
Shoreview, MN 55126
www.colliers.com
September 5, 2013
Michael Martin,
The Purchase Agreement for the Van Dyke site is for $6.49 per square foot. The
survey square footage includes a portion of the Roundabout in front of the
property.
If you remove the roundabout square footage the actual price per square foot
would be closer to $7.56 per square foot. The comparison is shown on the
attached Completed Deal Tracking for sites that I have sold.
Two good comparables on the Deal Tracking Sheets are the two Lande Estate
sales that are currently under contract with a projected close date in September
and July 2014
The White Bear Parkway Propertysite is closing in three weeks. That site is next to
Bremer Bank and is on Birch Lake that sold for $6.04 per square foot and is in a
highly desirable area but with much lower car counts and visibility.
The Centerville Road Propertyis under contract for $4.74 psf. This site sits in
between I-35E and Cub Foods. This site is half retail and half zoned for
apartments. This site has very high car counts and demographics. The apartment
zoned land portion pulls down the value of the retail land as well as a water tower
on the site which makes development difficult.
Both of the above properties have wet lands but the square footage listed is the
usable land value.
Two recent closing are also good comparables;
Piccadilly site in Mahtomedisold for $7.88per square foot.This property sold more
on a per unit basis because it was sold as a senior housing site. It was bought on a
basis of $14,000 per unit or $1,030,000 divided by 72 units = $14,305 per unit. This
site is a highly visible site at the entrance to Mahtomedi with views of White Bear
Lake.
Wall-Mart sitesold for $8.09 per square foot. This site had I-35E to the east and is
in the Wal-Mart parking lot to the west. This is a highly desirable location with very
high traffic counts on two sides. This is the high end of the retail locations.
The two sales previous to the Wal-Mart site on the Land Sales sheet are located in
Shoreviewfor two sites located between Target and I-694. These sites are now a
strip retail center with 5 tenants and a Trader Joe’s. These two sites sold for $9.95
per square foot for the strip center and $13.89 per square foot for the Trader Joe’s
site. The Shoreview Trade area is surrounded by homes and has limitedland for
development. This area is desired by retailers because of the high demographics
and the very high daytime demographics because of the high number of corporate
employers in the area. Also these sites had ponding off site which makes the
usable land more valuable.
The Vandyke site is located close to Highway 36 and close to White Bear Ave. The
preferred retail sites would be on the North side of Highway 36 because the
grocery anchor and most of the newer retail is on that side. With this in mind I
believe getting $7.56 is a very fair market price for the Van Dyke site.
Sincerely,
Mike Brass
Vice President
I I L I I I I I I I a k 19
JRA
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