6.19. SR 10-20-2003 - Laserfiche WebLink

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Item # 6.19 MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor and City Council Michele McPhers~0irector of Planning October 20, 2003 Consider Offer for Emporium Site Attachment · Location Map · October 14, 2003 Letter from John Gries - Gries and Lenhardt, PPLP Request We received the attached letter from John Gries, representing Jerry and Diane Gobel, owners of the Ron's Foods property, indicating an offer for the Emporium site under City ownership, located at the northeast corner of Highway 169 and Main Street. Mr. Giles' letter indicates that an appraiser was retained and determined that the Emporium property is valued at $5.00 per square foot. The Gobels are offering to purchase the Emporium site from the City at this price. The letter continues to outline other issues regarding the desire on the part of the City to include the two sites in a future redevelopment project, the agreement with the Salvation Army to lease the building, and who would be responsible for removing the building from the property, should the City elect to accept the offering price. It is staff's opinion that the offer of $5.00 per square foot is substantially lower than the market, considering the sale price for the Conoco site was $11.00 per square foot, and the Post Office paid $6.61 per square foot for property in Mulvany Point one-quarter mile to the east. In addition, there is the unknown of the Highway 169 corridor plans developed by MnDOT. Recommendation Based on these facts, staff would recommend the Council decline the purchase offer from the Gobels and continue to utilize the Emporium site for wellness and recreation programs as appropriate. S:\PLANNINGMVlichele McPherson\CCREPRTS\10-20 cc Emporium.doc