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011392 EDAOFFICIAL FILE COPY CITY OF NEW HOPE EDA AGENDA EDA Regular Neeting #1 Agenda #l President Edward J. Erickson Commissioner W. Peter Enck Commissioner Gary L'Herault Commissioner Gerald Otten Commissioner Marky Williamson January 13, 1992 2. 3. 4. 5. Call to Order Roll Call Approval of Minutes of December 23, 1991 Discussion Regarding City-Owned Property at 7305 42nd Avenue North Adjournment Approved EDA Minutes Meeting #12 CITY OF NEW HOPE 4401Xylon Avenue North Hennepin County, Minnesota 55428 December 23, 1991 CALL TO ORDER ROLL CALL APPROVE HINUTES ARDELL ENGINEERING PROPERTY Item 4 MOTION ADJOURNMENT President Pro Tem Enck called the meeting of the Economic Development Authority to order at 8:31 p.m. Present: Enck, L'Herault, Otten, Williamson Absent: Erickson Motion was made by Commissioner L'Herault, seconded by Commissioner Williamson, to approve the EDA minutes of December 9, 1991. Voting in favor: Otten, Williamson, L'Herault; Abstaining: Enck; Absent: Erickson. Motion carried. President Pro Tem Enck introduced for discussion Item 4, Discussion on Request for Authorization to Obtain Appraisal on Ardell Engineering and Manufacturing Property at 7500 42nd Avenue North (Project No. 474). Mr. Donahue indicated at the work session last week, Council directed staff to initiate an appraisal on the property on 7500 42nd Avenue. The motion tonight would formalize that directive and would authorize the City's appraiser, Brad Bjorklund to undertake the work for a cost of $1,200 to $1,800. President Pro Tem Enck questioned whether the appraisal will be a formula in which it may be adjusted up or down depending on changes in property values in case nothing is done within a year or two. Mr. Donahue stated he believes it could be updated rather than repeating the whole process. Mr. Sondrall stated the appraiser would probably update the comparables to determine market value. Motion was made by Commissioner Otten, seconded by Commissioner L'Herault, to authorize the appraisal on Ardell Engineering and Manufacturing Property at 7500 42nd Avenue North. All present voted in favor. Motion carried. Motion made by Commissioner Otten, seconded by Commissioner L'Herault, to adjourn the EDA meeting as New Hope EDA Page I December 23, 1991 there was no further business to come before the Council. All present voted in favor. The New Hope EDA adjourned at 8:35 p.m. Respectfully submitted, Valerie Leone City C1 erk New Hope EDA Page 2 December 23, 1991 EDA REQUF~T FOR ACTION Originating Department City Manager Kirk McDonald Manatement Assistant DISCUSSION REGARDING NORTH Approved for Agenda Agenda Section EDA 13-92 Item No. By: 4 CITYO~WNED PROPERTY AT 7305 42ND AVENUE Staff requests to discuss with the EDA the status of the City-owned property at 7305 42nd Avenue North. Subsequent to the November 25th EDA meeting where Rapid Oil, Inc. indicated an interest in the property, their realtor has submitted a blank copy of a Contract to Purchase to the City. Staff has contacted All-Star Sports and they are still interested in developing the property but are not yet prepared to provide a timetable for development. Previous EDA minutes regarding this topic and correspondence from Rapid Oil are enclosed. Perhaps the EDA wants to have an updated appraisal of the property completed to determine the current market value. LaSalle & Associates appraised the property in 1988 in conjunction with the 42nd Avenue project. Staff has contacted LaSalle for a cost estimate on an updated appraisal and they would provide a new appraisal for $750.00. Staff also contacted BCL Appraisals and should have an estimate from them before the EDA meeting. There is not a taxable market value listed for the property in the County's tax listing, but staff has contacted the assessor and he indicated that they would place a value of $50,000 on the vacant property, as that would be comparable to the land surrounding the parcel. MOTION BY SECOND BY TO: ~ RFA-O01 a 4025 WEST BROADWAY ealty ROBBINSDALE, MINNESOTA 55422 533-8629 December 18, 1991 Mr. Dan Donahue City Manager City of New Hope New Hope, Minnesota 55428 Re: Valvoline Instant Oil Change Dear Dan, I am enclosing a blank copy of a Contract to Purchase, for your reviewal, from Valvoline Oil they would like to use if they are successful in negotiating a deal with the City of New Hope on the 42nd and Nevada site. Please let me know if the agreement would meet the City's require- ments to use in making a bon-a-fide offer on the subject property. ~oSe~t- L. Baldwin COntRACT TO PURCHASE AGREEMENT, dated .... 19 ....... by and between ___, witl~ a mailing address of Attention: ........... Da~me Telopl~o~e ( .......... )-- (wl~athor one or more, "Owner') and Valvoline Instant Oil Charge, Inc., a Delaware corpora~n, a sul:~k:llary of Ashland Oil, Inc., witi~ a malting address of 301 East Main Street, Suite 1200, Lexington, KY 40507, Attention: Real Estate Department ('Purchaser*). Prior to cic~ing, contact ........... Telepi~one wrrNESSETH: IN CONSIDERATION OF ............................................... Dollars ($ ........ ), paid by Purctmsor to America~ Title Insurance Company, 530 Freedom Business Center, King of PrtJ~Na, PA 1940~, ~ its local ~ ("nile Company"), receilx of wflic~ i~ hereby aclmowMdged, Owner haS agreed to ~ and Purchaser I~s agreocl to purchase certa~ land now owned by Owner ar~ located in/at ........... City: .................. County: .., State: ..... and mo~e particularly de$orlbed on Exhibit A att~-'l~ecl hereto and made a part hereof, together with the buildings, improvements, appurtefl .ance~___ ~ fixtures k:kT~tod on such largl ("Property'), on the following terms and condl'do~s: 1. PURCHASE PRICE. The Purchase Price for the Property payable at the closing hereunder Shall be (a) A re~ordable deed or deeds w~ covenartts Pr~, fr~ ~ ~, I~ ~ m~ ~a~, ~ ff~ ~ r~t~ns, ~, t~ancias, or othor ~r~ns ~ ~ ~ P~, a~ ~ ~ur~e M~ P~b~s Uae in~ran~ ~m~ny s~j~t only to the u~e ex~ ~ ~ ~ ~ ~ny; ~) ~ ~ ~ ~ ~, ~, ~ar a~ d~r~ ~ ~ ~ ~Y ~r~, in t~ same ~n ~ ~ ~ ~ ~, ~ ~ ~ t~ ex~. ' (a) ~r ~ ~ a 'F~ P~, ~ ~e ~i~ of ~fl~ 1445 of the I~ Re.hue C~e ~ 1~6, as a~, a~ ~r ~ ~l~r ~ a~ ~n; ~ ~) ~ a ~a~, ~n~ a m ~ ~ u~ ~ ~ ~ ~ Sam ~ ~ ~~, ~ ~N ~lifi~ to ~n~ ~ ~~ ~ ~ ~. a~ has ~ ~a~ ~y (~ ~ ~ ~ ~ ~~ (e) To ~ ~t ~ ~s ~ (fl ~ ~ ~ ~ ~ ~ a ~ ~ ~ ~ ~ ~ ~ ~t~. ~ ~r, storm ~, ~, ~ ~ ~ ~ ~ r~ ~ ~e ~~ ~ ~ P~ ~ ~~ w~ ~ans a~ (g) T~ Pt~ ~ not ~ to ~ ~, ~ ~ ~ ~ ~ ~ ~d in ~ ~in of tide ~ t~ Pr~; ~ The~s~ ~a~ 3~~ ~ ~r. 4. CON~TIO~ TO ~CHA~S ~GAT~S. (a) Pu~r, at ~ ~e ~ati~, may ~ncel this ~e~; (i) Pu~ ~ai~ at ~s ex~-~ a t~ ~tr~, ~ ~ any ~n, ~~ ~ ~r ~t or ~er e~fl~ ex~ ~ ~ud, ~M ex~i~s of the (ii) Purer ~ at ~s e~ ~ a~am suw~ ~ t~ Pr~ ~dor~ in a~rda~e with other def~t; ~ C<~'~r~cl to Purchase N~LP ~ECm11~1 P.04 EXHIBIT A TO CONTRACT TO PURCHASE dated_.. Between P~chaser and ....... Legal Oe~'~tptlon of Land: Owner(s) Int~al$: .......... C, ont~act to Purct',ase/VlOC/MLP Approved EDA Minutes Meeting #10 CITY OF NEW HOPE 4401Xylon Avenue North Hennepin County, Minnesota 55428 November 25, 1991 CALL TO ORDER ROLL CALL APPROVE MINUTES 7305 4214) AVENUE NORTH PROPERTY Item 4 President Erickson called the meeting of the Economic Development Authority to order at 9:51 p.m. Present: Erickson, L'Herault, Otten, Enck Absent: Williamson Motion was made by Commissioner L'Herault, seconded by Commissioner Enck, to approve the EDA minutes of November 12, 1991. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Discussion with Rapid Oil Inc. Regarding City-Owned Property at 7305 42nd Avenue North. Mr. Donahue, City Manager, explained that Valvoline Company would like to make a presentation to the EDA regarding the city-owned property at 42nd and Winnetka. He stated the proposal is for a Rapid Oil Change facility on the site next to All Star Sports. He indicated the EDA does not have to take any action tonight on the matter. He pointed out that the EDA may accept or reject the proposal and is under no obligation. Commissioner Enck inquired whether All Star Sports has expressed an interest in the property. President Erickson stated he did speak with Mr. Norman on Friday and he is very interested in expanding his building and would like to discuss it with the City. Mr. Mark Segal, Valvoline Rapid Oil Change, Inc. Real Estate Field Representative, was recognized. He stated they are willing to pay a fair market value for the property. Mr. Segal showed a prototype building of Rapid Oil Change. He stated Rapid Oil Change would change the property which is currently non-taxable into taxable functioning property. President Erickson explained that he would favor utilizing the property for an addition to the All Star Sports facility rather than a automobile service station. He New Hope EDA Page 1 November 25, 1991 pointed out that the plan for 42nd Avenue Redevelopment was to minimize commercial uses of property where petroleum products are dispensed and the Rapid Oil Change is closely related to this type of use. Mr. Segal inquired whether the purchase price would influence the EDA's decision. President Erickson stated at this time the EDA cannot react to All Star Sports because they have not made a formal proposal. Mr. Segal emphasized that Rapid Oil Change businesses are good corporate neighbors, and he asked how long the EDA is willing to wait for a formalized proposal from All Star Sports. President Erickson noted that he would like to see something concrete this winter so construction can begin next summer. Commissioner Enck pointed out that President Erickson has provided his feelings regarding the site; however, the other EDA members may not agree. He explained that he would like to consider a proposal and purchase offer; however, Mr. Segal has not provided that tonight. He stated he would like to see the market value and traffic generation, etc. Commissioner L'Herault agreed that more information is necessary. He commented that he feels a Rapid Oil Change is considerably different than a gas station operation. Mr. Donahue pointed out three items: first, the EDA is the property owner and can act like a property owner; second, the EDA has a development plan for 42nd Avenue which would have to be modified to accept this proposal; and third, a purchase offer should be presented at the same time as the proposal. Mr. Segal stated his primary purpose tonight was to introduce Rapid Oil Change and obtain an inclination from the EDA as to their feelings for the property. He indicated he would be happy to return with a proposal and purchase offer. Mr. Sondrall, City Attorney, informed the EDA that a public hearing would be required before city-owned property could be sold. Therefore, the EDA should bear in mind the notification requirements. Commissioner Enck recommended that Mr. Segal provide a New Hope EDA Page 2 November 25, lggl ELECTRONZC ZNOUSTRZES Zt~m 5 MOTION Ite~ 5 NORTHWEST YMCA Ite~ $ New Hope EDA Page 3 rendering of the structure and indicate the structure's value when he presents the proposal. Mr. Segal replied that he would not be able to give the EDA a site plan unless the project was authorized due to the expense. He reported that he could provide an old set of plans and a rendering. He stated a 1300 square foot two-bay building is proposed for the site. President Erickson introduced for discussion Item 5, Discussion on Request for Authorization to Obtain Appraisal on Electronic Industries Property at 7516 42nd Avenue North. Mr. Sondrall indicated the City has formally served an order under the Hazardous Building Act which would require action on the part'of the property owner. The action would be either to respond formally much like an answer in a civil lawsuit or do nothing which would cause the City to make a motion in court to have the building razed. He explained that nothing will happen on the property for 30 days. The property owner has contacted the City and indicated that they would be willing to sell the property at a reasonable price, in light of the order. They do not desire to make extensive repairs to the building, only to have the property taken by the City. Mr. Sondrall stated an appraisal is necessary so the EDA can determine the property's market value. He pointed out that if the property is not sold to the EDA, the City will proceed with its action in district court for requiring improvements to the property or the demolition of the property. Mr. Donahue indicated the approximate cost of the appraisal is $3,500. Motion was made by Commissioner Enck, seconded by Commissioner L'Herault, to authorize the appraisal for $3,500. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 6, Discussion with Northwest YMCA on Their Vacant Parcel. Mr. Ouane Ostlund, representing YMCA, was recognized and stated the assessment for Quebec Avenue Extension for the YMCA amounted to $76,000. He stated on behalf of the YMCA Chuck Holmes sent a letter to Mayor Erickson regarding a November 25, 1991 REQUEST FOR ACTIO I1 ' Originating Department Approved for Agenda Agenda Section City Manager ~ FDA 11-25-91 Item No. Kirk McDonald By:. , 4 By: M~-~n~ement Assistant DISCUSSION REGARDING CITY-OWNED PROPERTY AT '/305 42ND AVENUE NORTH ~ RAPID OIL, INC. Bob Baldwin, Baldwin R~alty, and Mark Segal, Valvoline Rapid Oil Change, Inc. Real Estate Field Representative, will be ~g at the November 25th EDA meeting to discuss the City- owned property located at 730S 42nd Avenue North. The representatives have previously met with City staff and are interested in the possible construction of a Valvoline Rapid Oil Change on the site adjacent to All Star Sports. The property is located in a B-4 Zoning District and an auto-oriented use would be allowed as a rollover conditional use, if the City made a decision to sell the property for this use. However, in 1990 the City rezoned the majority of the property along 42nd Avenue from B-3 to B-4 specifi- cally to get away from automobile oriented uses. Them also had been previous discussions with All Star Sports regardifig expansion on this property. Staff have reviewed a number of simple concept sketches from Rapid Oil and one sl~tch do~s fit the buildable yard area. There are several functional/concept problems that would need to be addressed on the site plan if the concept of a Rapid Oil building was to proceed. Rapid Oil indicated that if the City made the site available, they would be interested in constructing a building and site improvements with a total valuation of about $300,000. Rapid Oil indicated the advantages of allowing them to locate on the sim: 1. They run a clean Ol~'ation and it would not be degrading to the surrounding neighborhood, 2. No petroleum tan~ would be involved on the site, 3. They would be good corporate neighbors, and they sponsor numerous community programs in other citi~ where they am located, 4. They would be willing to participate with the 3 cities that comprise the HRG to promote · ~." the collection of ~._~d_ oil at thor site. MOTION BY SECOND BY Review: Administration: Finance: RFA-O01 ~ Request for Action - EDA November 25, 1991 Page -2- They indicated that the store in New Hope would not be a franchise, that it would be owned/operated by corporate headquarters. Staff indicated to Rapid Oil that the City's preliminary concerns would be noise pollution to surrounding neighbors and screening of the operation in a B-4 zoning District. Additional background information, including staff sketches, survey of the property, section/zoning maps, excerpts from the 1988 appraisal, and the Planning Case regarding the recent 42nd Avenue rezoning, are enclosed for your review. "~APID OIL# PKOTOTl~F- 7305 42nd Ave. ** B-4 Zone (Auto-oriented discouraged) 14,000 sq. ft. lot - 52' x 36' building Driveway shifted No access on 42nd Trash enclosur~e ac south side No curr~e~e ~. Aesthetic concern/compatibility N SITKI'OTKIi'FIAI. 7305 42nd Avenue No. B-4 Zone .29 acres (12,700 sq. ft. +) "Butldable Yard" indicated- Hinimum 5* parkins setback Parking needs based upon use; 8"9# · 19' stalls 24' drive aisle No access to 42nd allowed by county LOT 8URVBY$ C MPANY, INC,, ~ I.~¥~TO~B ,S~I~LE r' ~o' 0 - DEKTES ~ ~ . , , - , ~ ~ - , ~., -~. ...... , _ _ ~ - .... ~ 8 (I~ Cmty ~itor) ~e no~h 12S ~t ~ Lots ~ ~d 4, ~ 6, R~o~ a pe~t e~m~t for strut ~ utility p~oses ~er, ~det ~d ~s t~ Trot 8 de~rt~ ~e ly~ no~ ~ Line "~" de~rzb~ ~. a t~or~ c~st~ti~ emmet ~er, ~der ~d ~ross the north 10.~ f~t s pe~t eom~t for utility ~ ~er, ~der md ~ross the no~ ~.~ ~t of t~t ~ ~": ~g et · ~tnt ~ ~e e~t line ~ Trot 8 d~rib~ ~e dist~t 1.~ f~t s~th~Iy ~ ~d e~t line ~r~ its in~ers~ti~ ~ith the s~ line of ~o~t~ State ~d ~ay No. 9 ~ deltneat~ ~ ~ ~k~ ~I~ HI~Y ~. 9. ~T 58; t~ce ~ 88 de~s 51 a~ut~ 44 s~s ~t 99.25 f~t; ~h~e ~uth 89 degr~ ~ ~ ~ s~ ~st 140.61 Ee~ to its ~ters~Ti~ ~ith the ~t line o~ ~ 1, Sl~ 6, ~ord P~k md there te~ati~. Area tn pemaneflt street easeaeflt = 125 Sq. Ft. Area in tmpor~ry construction easement = Z.40! Sq. Ft. Area tn permnent utility easmmt = ~4o Sq. Ft. Note: ~etch c~Ly, no irms have been set to establish property lines. R.4 I-1 // R.4 I-1 8-4 AVE N . ,"5 75 75 ADA AVE .: N 75 75 ?$ OOc NO ~o~oe~2 MARYLAND AVE N 163 I :1 I APPRAISAL REPORT City of New Hope 7305 42nd Ave. No. New Hope, Minnesota Rtverway Company PURPOSE AND DATE OF APPRAISAL The City of New Hope is considering improving the 42nd Avenue North corrtdor~ also known as County Rd. 9 or Rockford Rd. This project involves upgrading various intersections, widening 42nd Ave. No. in certain areas and limiting access from certain properties. The subject property ts part of the street widening that will be considered within this improvement prosram. The purpose of this summary appraisal is to estimate the fair market value of the property in order =o establish the basis for compensation if the property is acquired. A complete before and after analysis has not been undertaken because of the relative tnsisnificance of the taking. This summary or strip appraisal reflects only the value of the part taken. The subject property was inspected on May 30, 1988, and all valuation conclusions revolve around that point in time. MARKET VALUE -- The highest price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each &cting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit ~n this definition is the consummation of a sale as of a specified date and the pass£ng of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated. 2. both parties are well informed or well advised, and each e=ting in whac he considers his own best interest. 3. a reasonable time is allowed for exposure ~n the open market. Riverway P T AP ISA CONT ' 4. paymen= is made in cash or l=s equivalent. 5. financing, if any, is on terms generally available in =he communi~y ac =he specified dace and =7pical for the property cIpe in ics locale. 6. ~he price represen=s a normal considera~ion for =he proper:y sold unaffec:ed by special financing amounts .... and/or terms, services, fees, cos=s, or credi=s incurred in =he cransac=ion. DENT FICATIO G D CE ON: Nor=h 125 fees of Lo=s 3 and 4, Block 6, Rockfork Park 17-118-21-24-0061 S SO 'S V Land only 5OO $13,390.96 Includes special assesanen= payment of: $105.83 Remaining Balance Special Assessmencs: $ 91.19 APPRAISAL X~EPORT ~£ve'rway LOCATION AND NEIGHBORHOOD The subject property is located in the City of New Hope, a wall developed second-tins suburb northwest of Minneapolis. The city has Srown from a predominantly rural community of the early 1950's to its present population of approximately 23,000. New Hope is a community that is considered to be approximately 90 percent developed. It has adopted a well-defined land use plan that has left portions of the land in sraen, open spaces as well as recreational areas. The Metropolitan Council estimates the average meal~ value of sin$1e family homes in the area to be approximately $86,000. The future of New Hope can be attributed to ice location, Just 30 minutes from downtown Minneapolis. Its proximity to downtown Htnneapolis will continue to be its strongest asset, as much of its population works in downtown Minneapolis and lives in the suburb. The city has a well planned street system. 42nd Avenue North is a major traffic arter~ runnin$ east and west which provides access to the major interstate system of the Twin City metropolitan area, County Ed. 18 on the west and T. H. 100/169 on the east. The subject property is located in the southwest corner of 42nd Ava. No. and Nevada Ave. 42nd Ave. No. is a four lane street with limited access runnin$ east and west. Nevada Ave. No. is a local collector street running north and south. A~RAISAL REPORT ~£verway L0~TION AND NEIGHBORHOOD (CONT'D) The development around the sub]acc properc7 is mixed commercial. To the ease, is a gas station with single story retail buildings beyond. To the west is an intermix of office buildings and single_scotT retail buildings. To the notch, across 42nd Ave. No. are vacant parcels with multi-family residential beyond. SITE DESCRIPTION The site is level ac street grade and gradually slopes downward Co the southeast. Ic is served with all utilities. Visibility co the site is good and there is nothing co indicate chac the site bas adverse or unstable soil conditions, from a visual observation. The right of way for 42 Ave. No. is along the northern property line, a distance of approximately 125 feet. The street easement consists of an area approximately 1 fC by 125 fo. and the utility easement approximately 3 fC by 125 fo. The righ~ of way is improved with a curb and blacktop. The balance of the site is vacant. There is one access fro~ 42nd Ave. which will be closed. Access co the site will be from Nevada Ave., along the easterly property line. REPORT LAND VALUE ¢CONT'D) Land sales i to & represent sales in reasonable proximity =o the subject property. These range in price from $2.90 to $6.34 per square foot. Sale *4 is across the street from the subject. It is a corner Location. A fast food chain purchased the site to reuse it for a restaurant. Sales #1 end *2 ere abou~ two miles west of subject and were purchased for retail auto se~ice use. The sublet= property is zoned B-3, auto oriented business. It receives ~he commercial influences from the surrounding business proper=les, particulerily to the east. Because of its exposure on 42nd Ave. and its corner Location, it is felt that the property would reflec~ a value toward the upper end of the range of the compar&ble sales. After takLn$ into consideration the pattern of Land sales within this area and recosniz~n$ ~he various differences between the location of these properties and the subject proper=y, i= is my opinion that the value of the Lend for the sub]ec~ proper~y is $5.00 per square foot. CITY OF NEW HOPE MEMORANDUM DATE: October 29, 1991 TO: Bob Baldwin FROM: Kirk McDonald, Management Assistant/cOmmunity Development Coordinator SUBJECT: Rapid Oil Location at 7305 42nd Avenue North City staff have reviewed a number of simple concept sketches from Rapid Oil and one sketch does fit the buildable yard area. The sketches are attached. Staff feels that there are several functional/concept problems that would need to be addressed. In 1990 the City rezoned a majority of the property along 42nd Avenue from B-3 to B-4 specifically to get away from automobile- oriented uses, therefore the staff is not encouraging the use of this property as an auto-related use (see previous rezoning report attached). The auto-oriented use would be allowed in the B-4 zone as a roll- over conditional use, if the City made a decision to sell the property for this use. There have been previous discussions with All-Star Sports regarding expansion on this property. Please contact me if you have any comments or questions. Dan Donahue, City Manager Doug Sandstad, Building Official