8.5. SR 01-09-1995 - Laserfiche WebLink

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rll ---'\) ( )j till ITEM 8.5. MEMORANDUM Mayor & City Council FROM: Pat Klaers, City Administrator DATE: January 9, 1995 SUBJECT: Liquor Store Land Purchase In early fall 1994, the City Council directed me to open discussions with Mr. Foster regarding the City's possible purchase of a lot in his Hillside Crossing commercial plat. There are a number of reasons why the City felt it was appropriate to pursue another liquor store site. These reasons include traffic congestion and traffic patterns at the existing site, physical constraints for expansion at the existing site, future development in the vicinity of Main Street and Highway 169, and the potential cash value of the existing Northbound property. Good planning dictates that the City understands the growth that we are experiencing and that we protect our liquor store activities, investments and profits. . At the budget worksession on October 24, 1994, the City Council formally approved a motion that authorized me to pursue the purchase of Lot 1, Block 1, Hillside Crossing at market rate for a future liquor store site. This property is located at the northeast comer of the intersection of Highway 169 and 193rd Avenue (see attachments). In discussing the price for this land with Mr. Foster, we had an opportunity to review a 5/17/94 appraisal of this property, the Certificate of Real Estate Value for the SuperAmerica site directly south of this property, Sherburne County information on the selling price of other highway commercial properties, and the asking (and sometimes receiving) price for lots in the Elk Park Center project. Overall, it would have been my desire to have negotiated a lower price for this property, but certainly the price that is acceptable to Mr. Foster and to myself is appropriate when considering current market conditions. This property is very desirable and I understand that since we have opened negotiations, Mr. Foster has received higher offers than what we have agreed upon. . Originally Mr. Foster had requested some conditions be attached to this property. The only condition that caused a concern for me was the "construction manager" condition. This condition is not part of the final agreement. The other conditions that Mr. Foster requested were reasonable and are planned to be part of the terms and conditions of the purchase. In this regard, Mr. Foster has asked that we use the title company that has handled all of his previous real estate transactions and the City has no problems with this request. Also, Mr. Foster requested some "quality control" over what is constructed on Lot 1, Block 1. The City has no major problems with this request as, if and when we construct a facility, we are certain that it will be of comparable quality to the existing 13065 Orono Parkway · P.O. Box 490. Elk River, MN 55330. (612) 441-7420. Fax: (612) 441-7425