5.2. SR 09-13-1999 - Laserfiche WebLink

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rei ----'\) ( ); tli< ITEM #5.2. MEMORANDUM TO: Mayor & City cou~J1. Pat Klaers, City ~s~ator f' t/~ September 13, 199!} FROM: DATE: SUBJECT: Allina Request The representative for the Allina medical clinic requested that the city sell its future liquor store site to them so that they can proceed with the construction of a multi-specialty medical clinic. Council reviewed the request on August 9, 1999, and authorized continued negotiations for Allina's purchase of the city property. (See attached council minutes.) . The city has received the attached letter from Thomas McKee (who is representing Allina medical clinic in this request) regarding an offer for the city property. In this letter dated August 11, 1999, Allina is offering the city $6.50 per square foot for our property. This is the same amount that was in the July 29, 1999, offer letter. In an August 26, 1999, phone conversation with Mr. McKee, it was reaffirmed that this is the proposal Allina wants presented to the City Council. On August 27, Planning Director Michele McPherson and I met with Guardian Angels representatives to discuss options for the Allina proposal and the city's dilemma regarding an appropriate site for a possible second liquor store. At a follow-up meeting on September 3 with Guardian Angels representatives, Mr. and Mrs. Hartman, and Mr. McKee and Mr. Davis (representatives of Allina), all known concerns and possibilities were discussed. The dollar amount offered by Allina to the city for its property was again reaffirmed at this meeting. Guardian Angels representatives also indicated that they had no interest in selling part of their complex property to the city for a possible second liquor store. Guardian Angels expressed a desire to work with Allina for locating the medical clinic on their property, but this option did not appear to be a workable situation for Allina. The meeting resulted in no changes in Allina's position or additional options being explored. . I believe, like most everyone else, that the Allina medical clinic would be a great addition to the community. However, I also believe that a second municipal liquor store is in our future. A second store would be a great benefit to our citizens as well as a solid financial resource for the City Council, and we should retain or secure the best site available for this potential second store. We often hear that the city should run its operation like a business, and it does not seem to be a good business decision 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420. Fax: (612) 441-7425