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<br />rll ---'\j <br />( ); <br />tl~ <br /> <br /> <br />Item # 5.2. <br /> <br />MEMORANDUM <br /> <br />River TO: <br /> <br />Mayor and City Council <br /> <br />FROM: <br /> <br />Pat Klaers, City Administrator <br /> <br />DATE: <br /> <br />August 2, 1999 <br /> <br />SUBJECT: Allina Medical Clinic Development <br />Site Request <br /> <br />. <br /> <br />Tom McKee of Timco Construction, Inc. is representing Allina in its effort to <br />purchase a site (3 acres min.) for a new medical clinic in Elk River. A variety <br />of sites have been pursued, and one that came before the City Council for <br />discussion on July 26, 1999, is the Hartman neighborhood commercial (C4) <br />property. This issue came before the City Council because the city owns the <br />middle lot of a three lot plat for a future Westbound Liquor Store. Everyone <br />believes that Allina will be a valuable addition to the community and staff <br />was instructed to continue having conversations with Mr. McKee regarding <br />Allina's possible acquisition of the city liquor store site. An option includes <br />Allina exchanging property with the city, so that the clinic could have <br />approximately three contiguous acres for its project and the city could retain <br />a liquor store site. <br /> <br />Allina Medical Clinic <br /> <br />Please see the attached 7/29/99 offer letter from Mr. McKee, and the <br />background letter and maps from the last City Council meeting. Allina's <br />offer to the city is: 1.) $6.50 per square foot for our 1.5 acre site or <br />approximately $65,000 more than we paid for our lot, or 2.) to have the city <br />"switch" lots from the center to the west. Also attached is a memo from the <br />Director of Planning in regard to the proposal and the public hearing <br />process/timeframe. <br /> <br />As I understand the situation, Allina has been looking at Elk River as a <br />location for a medical clinic for the past five years or so. The medical <br />industry has changed slightly, whereby Allina's site selection criteria <br />requires highway frontage, compared to a few years ago when no such <br />criteria seemed necessary for Mork, nor apparently for Fairview. Mr. McKee <br />tried to purchase the southwest corner of Main Street and Highway 169 for <br />this project but, in the end, negotiations fell through. <br /> <br />. <br /> <br />13065 Orono Parkway · P.O. Box 490. Elk River, MN 55330. TDD & Phone: (612) 441-7420. Fax: (612) 441-7425 <br />