5.7. SR 04-04-2011 - Laserfiche WebLink

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REQUEST FOR ACTION TO ITEM NUMBER Ci Council 5.7. AGENDA SECTION MEETING DATE PREPARED BY Administration A ri14, 2011 Lori ohnson, Ci Administrator ITEM DESCRIPTION REVIEWED By Commercial Purchase Agreement Between the Houlton Investment Company and the City of Elk River REVIEWED BY ACTION REQUESTED Approve a Commercial Purchase Agreement (Agreement) between the Houlton Investment Company and the City of Elk River for the purchase of parcels 75-404-0160, 75-405-0540, 75-405-0545, and 75- 405-0550. BACKGROUND/DISCUSSION Currently, the Houlton Investment Company owns four parcels directly behind the retail buildings on the south side of Main Street between Jackson and King Avenues and adjacent to Rivers Edge Commons Park. These parcels are used as a parking area consisting of an upper and a lower lot. Although the lots function much like public parking, it is actually private parking owned and controlled by the Houlton Investment Company. The Houlton Investment Company no longer wants to own the lots thus the lots have been marketed for sale. If the lots are sold to a private party, there is no guarantee that public parking will remain in these two lots. In an effort to preserve and control the 68 parking stalls on the property and assist the businesses in downtown by ensuring this parking remains available to the public, the city has negotiated with Houlton Investment Company to purchase the parking lots. Maintaining public parking in these lots is important for the vitality of the businesses that abut the property and for the entire downtown area. Additionally, parts of the parking lots are used for the concerts held in the park. The lower lot in particular will provide additional handicapped access to the park. Owning the lower lot is a welcome addition to the park as it allows additional space to accommodate events as well as providing convenient parking for park visitors. The attached Agreement lays out the terms in which the city would agree to purchase this property. Those conditions include obtaining easements from all adjacent property owners in order to provide access to the parking drive lanes of, entrances to, and exits of the parking lots. Additionally, Houlton Investment Company's Declaration of use for the alley that borders the west side of Rivers Edge Commons Park will be terminated. The purchase price stated in the Agreement is $225,000. 'Therefore, the cost of purchasing the 68 parking stalls is approximately $3,300 each. By comparison, the cost of constructing additional parking ramp or deck spaces is estimated to be between $10,000 to $15,000 per stall. Earnest money of $1,000 will be due upon signing the Agreement with a proposed closing date on or before April 29 at which time the remaining $224,000 is due. The closing will not take place until all easements are secured. N:\Depaztments\Administrative Services\Administration\Lori\2011