4.5. SR 03-20-1995 - Laserfiche WebLink

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• Holmgren requested that the City Attorney explore other communities that assisted a business with a unique situation such as Custom Motors. The writer of this memo contacted the following cities as part of the exploration exercise: Oak Grove, Andover, Ogilvie, Champlin, and Ham Lake. Oak Grove currently has a moratorium on waste handling companies, the definition of which includes auto salvage yards. As a result of this moratorium, such companies are prevented from locating in Oak Grove. Ogilvie has no recent experience with auto salvage yards. The City Clerk has been there since 1983 and indicated that an auto salvage business did exist outside the city limits. This business was subsequently closed by the State. In Ham Lake, a moratorium has been adopted to prevent other salvage yards from relocating into the community. In addition, a new ordinance requires existing yards to achieve environmental compliance. Andover is currently exploring the possible use of tax increment financing (TIF) funds to purchase a variety of salvage yards along Bunker Lake Boulevard between Round Lake Boulevard and Hanson Boulevard. The source of the TIF funds is a result of most of the commercial development in "downtown" Andover (intersection of Round Lake and Bunker Lake Boulevards). This TIF District is generating excess increments which provides the city with an opportunity to undertake the potential purchase of the salvage yards along Bunker Lake . Boulevard. Champlin allowed anon-conforming auto yard to construct a building on its site. In return, both parties executed an agreement that includes a ten year amortization period. The salvage yard must close its operations after amortization period expires. Custom Motors has offered to sell its site to the City on a Contract for Deed. This would not require a large amount of cash, initially. In addition, Custom Motors could continue to operate at its current location during the duration of the Contract for Deed. Presumably, this time period would also give Custom Motors an opportunity to select, finance, and relocate to a new location. It should be noted that no public acquisition would occur until a full environmental assessment is conducted. City staff prefers that if public acquisition of the existing Custom Motors site were pursued, the City would immediately resell the site to an end-user. No such user existed in December when the City Council obtained a status report, and, no such user exists today. With this void, public acquisition of the Custom Motors site at 13913 Highway 10 is not recommended. An opportunity to assist Custom Motors with its relocation to another site within Elk River does exist. The recommended approach is to provide supplemental financing from, say, the EDA's micro-loan fund, or, work with • the owners of Custom Motors to ensure that this project is financed through conventional means.