08-09-1999 CC MIN - Laserfiche WebLink

Home Browse Search

City Council Minutes August 9, 1999 Page 2 e 5.1 . Presentation bv David MacGillivrary, Sprinasted David MacGillivray of Springsted Financial Advisors informed the council that Moody's Investors Service has increased the city's bond rating from Baal to A3. He indicated that the upgrade reflects the city's diversifying and growing tax base and an expectation that the growth will continue. In addition, the city's financial position has strengthened which is evidenced by the growing reserves in the general fund, and the city's debt burden is expected to moderate as the city has in place the necessary infrastructure to accommodate the planned future growth. David MacGillivray presented Mayor Klinzing with a plaque commemorating the bond rating upgrade. 5.3. Consider Proposal From Allina Mayor Klinzing explained that Allina has offered the city two options regarding a piece of property that the city owns. The options consist of the following: ODtion 1- Purchase the City's parcel of land for $6.50 per square foot. ODtion II - Purchase the two end parcels of land and offer a land exchange with the city trading the westerly parcel for the center parcel owned by the City. e Lori Johnson, Finance Director, indicated that the City Administrator has listed his concerns and recommendation regarding this issue in his memo to the Mayor and City Council. Michele McPherson, Director of Planning, reviewed the potential zoning issues regarding Allina's request. Mr. McKee of Timco Construction stated that Allina has re-evaluated the situation and feels that after taking the zoning issues into consideration, the only way that the only way Allina's proposal will work is to use all three lots. He indicated that the request made by Allina at this time is to purchase the city's property. Discussion was held regarding the purchase price of $6.50 per square foot that Allina is offering to pay for the city's property. It was noted that the City purchased the property at $5.50 per square foot in 1997. Council member Dietz indicated that he would have been agreeable to a land swap, however, he is not interested in selling the lot. He indicated that the City took the initiative to plan ahead for the purchase of property for a future liquor store and stated that the City should keep the property for that purpose. e Council member Motin indicated that he concurred with Councilmember Dietz. He noted that selling the lot for $6.50 per square foot will only realize an 18% increase in over three years. He further noted that there have been several improvements in the area since the city purchased the land including the completion of Joplin Street and the construction of Guardian Angels. Councilmember Motin stated that the City was wise for planning ahead when purchasing the site for a liquor store. He indicated that the city's population rate will continue to grow and there will be a need for another liquor store to service the western area. He stated that he is not interested in selling the site.